HomeMy WebLinkAboutItem 07 - Trinity MetroMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: MARCH 2, 2021
SUBJECT: INTERLOCAL AGREEMENT WITH TRINITY METRO FOR POSITIVE
TRAIN CONTROL REQUIRED INSURANCE COVERAGE
RECOMMENDATION: City Council to consider an interlocal agreement with Trinity Metro to meet
requirements for Positive Train Control related insurance coverage.
FUNDING SOURCE: Funding is available in the Convention and Visitors Fund 115 in an
estimated amount of $194,801.25.
BACKGROUND: This Interlocal Agreement with Trinity Metro comes in response to the
requirement that Grapevine Vintage Railroad (GVRR) meet Federal
Positive Train Control standards (PTC). Positive Train Control is a system
of functional requirements for monitoring and controlling train movements
and is a type of train protection system that is required by the Federal
Railroad Administration. A critical requirement of PTC is that GVRR
procure and maintain $300 million per occurrence in rail liability insurance
coverage. This required coverage is significantly more than the GVRR can
obtain economically on a stand-alone basis. This Interlocal Agreement will
allow GVRR to piggy -back off of the rail liability insurance of Trinity Metro.
Trinity Metro is willing to allow GVRR to be added as a listed insured on
their policy subject to being reimbursed for all of the additional expenses
which accrue as a result of GVRR being added to the Trinity Metro policy.
Those additional expenses are substantially less than the costs for GVRR
to obtain its own independent policy. Trinity Metro's insurer requires that
Trinity Metro own an insurable interest in GVRR so the Interlocal
authorizes the conveyance of a 1 % interest in a GVRR locomotive as long
as GVRR is included as a listed insured on Trinity Metro's policy. If, for
any reason, GVRR is no longer a listed insured under Trinity Metro's
policy, then the 1 % interest in the locomotive automatically reverts to
GVRR.
The cost required to be added to the Trinity Metro policy $69,801.25. The
one-time costs associated with the ILA include $25,000 to add GVRR to
the policy and a one-time $100,000 to establish a claims reserve for
GVRR. If the City were to purchase our own policy, the cost would be over
$700,000 per year.
Staff recommends approval.
AGREEMENT BETWEEN
METRO AREA TRANSPORTATION SYSTEM CORPORATION AND
THE CITY OF GRAPEVINE, TEXAS
TO SUPPORT THE IMPLEMENTATION OF PTC FOR
THE GRAPEVINE VINTAGE RAILROAD
This AGREEMENT (this "Agreement"), dated as of the day of , 2021 (the
"Effective Date"), is entered into by and between METRO AREA TRANSPORTATION
SYSTEM CORPORATION,a local government corporation created by(but legally separate from)
the Fort Worth Transportation Authority, doing business as "Trinity Metro" ("Trinity Metro")
under Subchapter D, Chapter 431, Texas Transportation Code ("MATS") and the CITY OF
GRAPEVINE, TEXAS, a political subdivision of the State of Texas and a home-rule municipal
corporation ("Grapevine"), MATS and Grapevine being sometimes collectively referred to as the
"Parties" or individually as a"Party."
WHEREAS, Trinity Metro is a regional transportation authority created pursuant to Chapter
452, Texas Transportation Code, and has constructed and operates a commuter rail line known as
"TEXRaiI" in an approximately 27-mile corridor between the T&P Station in Fort Worth, Texas,
and Terminal B Station at the Dallas/Fort Worth International Airport; and
WHEREAS, Grapevine owns and operates the Grapevine Vintage Railroad ("GVRR"), an
excursion and special-event railroad that operates, in part, on track shared with TEXRaiI; and
WHEREAS, as a result of TEXRail's operations, GVRR is subject to the nationally
mandated positive train control ("PTC") requirements, and Meteorcomm LLC, an essential PTC
vendor, requires that its customers procure and maintain $300 Million, per occurrence, in rail
liability insurance coverage,which is significantly more than the GVRR can obtain on a stand-alone
basis; and
WHEREAS, the installation of PTC on GVRR's locomotives also enhances the safety and
reliability of TEXRaiI, and thereby directly benefits Trinity Metro and justifies Trinity Metro
supporting that PTC installation, and that installation cannot occur unless GVRR obtains the rail
liability insurance required by Meteorcomm; and
WHEREAS, MATS was formed, and is authorized, to assist and act on behalf of Trinity
Metro to accomplish any governmental purpose of Trinity Metro including, without limitation,
financing, constructing, owning, managing and operating, or otherwise supporting, enhancing, or
advancing,regional mobility service, and to engage in activities in the furtherance of such purposes;
and
WHEREAS,Trinity Rail has implemented PTC on TEXRaiI and has procured and maintains
$300 Million, per occurrence, in rail liability insurance coverage (that or such other amount Trinity
Metro later carries being the "Required Insurance"), and the Parties intend to add GVRR as a
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"named insured" on the Required Insurance, with all associated and additional costs and liability to
be borne by Grapevine and GVRR; and
WHEREAS, pursuant to Section 431.108, Texas Transportation Code, the operations of a
local government corporation are governmental, not proprietary, functions; and
WHEREAS, pursuant to Section 199.002, Texas Transportation Code, railroad-related
activities by a municipality are declared to be public and governmental functions that are exercised
for a public purpose and matters of public necessity; and
WHEREAS, pursuant to the Interlocal Cooperation Act, Chapter 791, Texas Government
Code, and Section 431.105, Texas Transportation Code, Grapevine and MATS may contract with
one another to accomplish a governmental purpose; and
WHEREAS, at its meeting on January 25, 2021,the board of directors of Trinity Metro
authorized and instructed MATS to negotiate and execute this Agreement, and this Agreement was
further authorized by the Grapevine's city council at its meeting on , 2021, and by MATS'
board of directors on , 2021;
NOW, THEREFORE,in consideration of the covenants, conditions, and provisions set forth
in this Agreement,the receipt and sufficiency of which are hereby affirmed, the Parties agree as of
the Effective Date as follows:
1. Recitals are True and Correct. All matters stated above are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
2. Provision of the Required Insurance. Subject to and conditioned upon the terms
of this Agreement, including Grapevine's full performance of its obligations hereunder, and further
subject to commercial availability, market factors, and other force majeure events (as described in
Section 12.b.),MATS, either itself or through Trinity Metro,will (a) cause GVRR to be included as
a "named insured" on the Required Insurance by endorsement or other reasonable means on or
before the Effective Date and(b) maintain the Required Insurance for the benefit of GVRR, subject
to all terms of this Agreement, including the Conveyance(as defined below). The satisfaction of any
deductibles, self-insured retentions, or similar amounts under the Required Insurance for claims that
arise, in whole or in part, from the acts, omissions, or other activities of GVRR or Grapevine (the
"Deductible"), are the sole responsibility of Grapevine. To the extent MATS or Trinity Metro is
required to satisfy the Deductible pursuant to the terms of the Required Insurance, Grapevine will
promptly reimburse MATS and Trinity Metro for the Deductible.
3. No Resulting Liability or Unreimbursed Cost. MATS' and Trinity Metro's
willingness and agreement to obtain and maintain the Required Insurance and to cause GVRR to be
included as a"named insured" on the Required Insurance, is expressly conditioned and contingent
upon MATS and Trinity Metro being neither exposed to nor incurring any resulting (a) additional
liability risk, including risk from GVRR's operations or diminution of TEXRail's coverages and
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limits, or(b) unreimbursed costs of any kind. The provisions of this section and Sections 4, 5, and
6, constitute material consideration for this Agreement.
4. Initial Fees, Expenses, and Claims Reserve. Pursuant to Section 3, the currently
identified annual fees, expenses, and claims reserve to be remitted to Trinity Metro or its insurance
advisor, currently Higginbotham Insurance Group, as of the Effective Date is set forth on Exhibit
A_ attached hereto and made a part hereof. Prior to the annual renewal of the Required Insurance,
MATS (or Trinity Metro)will notify Grapevine of adjustments to be made to the items and amounts
set forth on Exhibit A and Grapevine will either (a) accept the adjustments and remit the indicated
amounts to Trinity Metro or(b) decline the adjustments and amounts, in which case this Agreement
will terminate.Failure of Grapevine to accept any year's adjustments and remit those amounts within
ten(10)days of MATS' notification will be deemed Grapevine electing to decline those adjustments
and amounts and to terminate this Agreement. The Parties acknowledge and agree that MATS and
Trinity Metro will incur additional costs as a result of their support for the implementation and
operation of PTC on the GVRR, such as cell modem charges, and Grapevine agrees to pay or
reimburse all such third-party costs within thirty (30) days following a written request by MATS or
Trinity Metro.
5. The Claims Reserve Deposit. Pursuant to Section 3,Grapevine will remit to MATS
One Hundred Thousand Dollars ($100,000.00)to serve as a claims reserve for the benefit of MATS
and Trinity Metro (the"Claims Reserve Deposit").MATS will deposit the Claims Reserve Deposit
with its other investments to be held in TexPool,other government investment pool,or other account
collateralized by government securities or FDIC-insured in compliance with the Texas Public Funds
Investment Act, and neither Party(nor Trinity Metro) shall have any investment discretion over the
Claims Reserve Deposit. Neither Party (nor Trinity Metro) shall have any liability for any loss
sustained as a result of any investment made pursuant to the previous sentence. All income, interest,
and dividends earned on the Claims Reserve Deposit shall be held until disbursed either (a) to pay
any amounts owed MATS, Trinity Metro, or Higginbotham (or any successor to Higginbotham as
Trinity Metro's insurance advisor) under this Agreement (including any Deductible pursuant to
Section 2), but only after not less than five (5) days' prior written notice from MATS to Grapevine,
or(b) to Grapevine upon termination of this Agreement and MATS' reasonable determination that
there are no remaining unpaid costs or pending or threatened claims for the Claims Reserve Deposit
to potentially satisfy. Within five (5) business days following a disbursement pursuant to clause (a)
of the preceding sentence, Grapevine will remit to MATS the funds necessary to restore the balance
of the Claims Reserve Deposit to $100,000.00.
6. INDEMNIFICATION BY GRAPEVINE. PURSUANT TO SECTION 3,
GRAPEVINE COVENANTS AND AGREES, TO THE EXTENT NOT PROHIBITED BY
APPLICABLE LAWS, THAT IT WILL INDEMNIFY, DEFEND,AND HOLD HARMLESS
MATS, TRINITY METRO, AND THEIR AFFILIATES, SUBSIDIARIES, OFFICERS,
DIRECTORS, AGENTS, AND EMPLOYEES (COLLECTIVELY, "INDEMNIFIED
PARTIES," AND INDIVIDUALLY, AN "INDEMNIFIED PARTY"), FROM ALL FINES,
JUDGMENTS,AWARDS, CLAIMS, DEMANDS, LIABILITY, LOSSES, DAMAGES,AND
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EXPENSES (INCLUDING,BUT NOT LIMITED TO,REASONABLE ATTORNEYS' FEES
AND COSTS AND ALL ACTUAL LITIGATION COSTS INCURRED BY THE
INDEMNIFIED PARTIES,INCLUDING WITHOUT LIMITATION COSTS OF EXPERTS
AND CONSULTANTS) (COLLECTIVELY, "CLAIMS" AND INDIVIDUALLY, A
"CLAIM"),ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT OR THE
UNDERTAKINGS BY MATS OR TRINITY METRO UNDER OR IN CONNECTION
WITH THIS AGREEMENT (INCLUDING THOSE ACTUALLY OR ALLEGEDLY
CAUSED BY THE SOLE OR CONCURRENT NEGLIGENCE OF INDEMNIFIED
PARTIES), EXCEPT TO THE EXTENT THE CLAIM ARISES FROM THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY.
GRAPEVINE ACKNOWLEDGES THAT IT HAS REVIEWED THE REQUIRED
INSURANCE PROCURED BY MATS OR TRINITY METRO UNDER THIS AGREEMENT
AND HAS AND WILL RELY SOLELY ON ITS OWN INVESTIGATION OF THE
SUITABILITY, FITNESS, AND ACCEPTABILITY OF THE REQUIRED INSURANCE
AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY MATS OR
TRINITY METRO.
7. Disclaimer. By entering into this Agreement,MATS and Trinity Metro do not agree
to insure or provide insurance coverage to GVRR or Grapevine, and cannot and do not make any
representations, guarantees, or warranties regarding the scope of the coverage afforded by the
Required Insurance. MATS and Trinity Metro are not liable to Grapevine or GVRR in the event the
insurance carrier of the Required Insurance denies, in whole or in part,coverage under the Required
Insurance for a claim asserted by or against GVRR or Grapevine.
8. The Locomotive Share. Upon the Effective Date, Grapevine will convey a one-
percent (1%) interest (the "Locomotive Share") in GVRR's 1953 Diesel Locomotive GVRX2199
— GP-7 (the "Locomotive") to MATS to be owned by MATS throughout the Term, which will
constitute an"insurable interest"for purposes of the Required Insurance. At all times during MATS'
ownership of the Locomotive Share, (a) Grapevine and GVRR will maintain full operational control
of and responsibility for the Locomotive, and shall be solely responsible for the Locomotive's safe
and efficient maintenance, direction, supervision, and control of movement and (b) Grapevine and
GVRR will cause MATS to be included as a "named insured" on any property insurance policy
Grapevine or GVRR maintains that provides coverage for or with respect to the Locomotive. The
conveyance of the Locomotive Share will be accomplished by a form of Partial Locomotive
Conveyance with Right of Reverter substantially identical to the form attached as Exhibit B and
made a part hereof(the "Conveyance"), and will be subject to a right of reverter set forth in the
Conveyance and described in Section I I.c.
9. Term. This Agreement shall be in full force and effect for a term of five (5) years,
unless otherwise earlier terminated as provided for herein (the "Term").
10. Termination. This Agreement will terminate:
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a. upon agreement of the Parties, as evidenced by a written instrument executed by the
Parties and effective as of the date stated in that instrument;
b. upon sixty(60) days' prior written notice by either Party to the other Party;
c. by either Party upon ten(10)days' prior written notice to the other Party if the Parties
are unable to renew or retain the Required Insurance, including unilateral
cancellation by the insurance carrier, or the Required Insurance expires; or
d. by MATS (i) upon only such notice as MATS may reasonably provide under the
applicable circumstances or (ii) immediately if no such notice can reasonably be
provided upon:
i. the good-faith determination by MATS or Trinity Metro that its performance
under or any of the terms of this Agreement, including the provision of the
Required Insurance, has caused or will cause a loss of coverage, default,
disqualification, revocation, lapse, expiration, diminution, defense,reduction
of limits, or other materially adverse change to or amendment of any
insurance retained by MATS or Trinity Metro (including any coverages
provided by Trinity Metro to third parties pursuant to any agreement); or
ii. the failure of Trinity Metro's insurance limits to be fully restored immediately
following a claim under the Required Insurance.
11. Effect of Termination. Upon termination of this Agreement as provided above:
a. any unexpended and reimbursable amounts under Section 4 will be reimbursed to
Grapevine;
b. the Claims Reserve Deposit will be disbursed to Grapevine if, when, and as provided
in clause (b) of the penultimate sentence of Section 5;
c. as provided in the Conveyance,
i. Grapevine may exercise its right of reverter regarding the Locomotive Share
by filing a declaration of such with MATS; or
ii. MATS may release and quitclaim the Locomotive Share to Grapevine, and
the Locomotive Share and all of MATS' right,title, and interest therein shall
automatically revert to and be held by Grapevine without the need for
acceptance or acknowledgement of any kind by Grapevine.
d. the Parties will be released from the terms of this Agreement, except for the
provisions of Sections 3, 5, and 6 that will survive termination.
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12. Miscellaneous Provisions.
a. Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed to have been duly given: (i) on the date of delivery, if
delivered personally to the Party to whom notice is given, or(ii) on receipt, if mailed
to the party to whom notice is to be given by overnight courier or first class mail,
registered or certified, return receipt requested, postage prepaid and properly
addressed as follows:
To MATS: Metro Area Transportation System Corporation
c/o Trinity Metro
801 Cherry Street
Suite 850
Fort Worth, TX 76102-6803
Attn: President
To Grapevine: City of Grapevine
Office of the City Manager
200 S. Main Street
Grapevine, Texas 76051
With copy to: Matthew Boyle
Boyle & Lowry, L.L.P.
4201 Wingren, Suite 108
Irving, Texas 75062
b. Force Majeure. Each Party will be excused from the performance of any of its
obligations hereunder, except obligations involving the payment of money to the
other Party, during the time when such nonperformance is caused by inability to
obtain the Required Insurance or any other similar cause beyond the nonperforming
Party's reasonable control, provided the nonperforming Party gives notice to the
other Party within ten (10) days following the nonperforming Party's knowledge of
such event, setting forth the facts giving rise to such nonperformance.
c. No Third Party Rights. NEITHER MATS, GRAPEVINE, NOR TRINITY METRO
IS THE AGENT, SERVANT, OFFICER,AND/OR EMPLOYEE OF ANY OTHER
AND, NOTHING IN THIS AGREEMENT CREATES, GRANTS, OR ASSIGNS
RIGHTS OR RESPONSIBILITIES TO ACT AS A JOINT VENTURER,
PARTNERSHIP, OR AGENT TO ANOTHER OR CREATES A JOINT
ENTERPRISE. The representations, warranties, terms, and provisions of this
Agreement are for the exclusive benefit of the Parties (and, when indicated, Trinity
Metro) and no other person or entity will have any right or claim against either Party
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by reason of any of these terms and provisions or be entitled to enforce those terms
and provisions against either Party.
d. Severability.If any part,term,or provision of this Agreement is judicially determined
to be illegal or in conflict with any applicable law, the validity of the remaining
portions or provisions will not be affected, and the rights and obligations of the
parties will be construed and enforced as if this Agreement did not contain the
particular part,term, or provision held to be invalid or illegal.
e. Entire Agreement. This Agreement, including any Exhibits hereto, is intended as the
complete integration of all understandings between the Parties. No prior or
contemporaneous addition, deletion, or other amendment will have any force or
effect unless embodied in writing. No subsequent novation, renewal, addition,
deletion, or other amendment hereto will have any force or effect unless embodied
in a written amendment or other agreement executed by the authorized
representatives of the Parties.
f. Captions and Headings. The captions and headings set forth herein are for
convenience of reference only and will not be construed so as to define or limit the
terms and provisions hereof.
g. Assi nom.All the contents of this Agreement shall inure to the benefit of and shall
be binding upon the Parties' successors and assigns, except that neither Party may
assign any of its rights or obligations hereunder without the prior written consent of
the other Party, which consent will not be unreasonably withheld or delayed.
h. Applicable Law.This Agreement shall be governed by and interpreted under the laws
of the State of Texas.
i. Venue. Venue as to any dispute, claim, or litigation with regard to this Agreement
shall lie in Tarrant County, Texas.
j. Limited Waiver of Immunity by Grapevine. Grapevine acknowledges and agrees
that this Agreement states the essential terms for the provision of goods and services
and is subject to Subchapter I of Chapter 271, Texas Local Government Code, as
amended. Notwithstanding anything to the contrary herein, Grapevine and MATS
hereby acknowledge and agree that Grapevine's immunity from suit is waived only
as set forth in Subchapter I of Chapter 271, Texas Local Government Code. Should
a court of competent jurisdiction determine Grapevine's immunity from suit is
waived in any manner other than as provided in Subchapter I of Chapter 271, Texas
Local Government Code, as amended,the Parties hereby acknowledge and agree that
in a suit against Grapevine for breach of this Agreement:
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i. the total amount of money awarded is limited to actual damages in an amount
not to exceed the balance due and owed by Grapevine under this Agreement;
ii. the recovery of damages against Grapevine may not include consequential
damages or exemplary damages;
iii. the Parties may not recover attorneys' fees; and
iv. the Parties are not entitled to specific performance or injunctive relief against
Grapevine (but the Parties may utilize mandamus).
k. Federal Assistance Contract Provisions. The Parties have concluded that because
this Agreement does not constitute a"Third Party Contract"under the Federal Transit
Administration's Master Agreement or Circulars, the several provisions required to
be inserted in federally funded or assisted contracts are not required in or germane to
this Agreement. If the Parties or the Federal Transit Administration determines at any
time or for any reasons that the conclusion expressed in the preceding sentence is
inaccurate, the required provisions will be deemed included by reference and,
additionally, the Parties will promptly amend this Agreement accordingly.
In witness whereof, the undersigned Parties have executed this Agreement effective the
Effective Date.
City of Grapevine
By:
Bruno Rumbelow, City Manager
Attest:
By:
Tara Brooks City Secretary
Approved as to Form:
By:
City Attorney
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Metro Area Transportation System Corporation
By:
Wayne Gensler, President and Treasurer
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EXHIBIT A
TRINITY T METRO""
Grapevine Vintage Railroad
2021 Rail Liability Renewal Fees and Expenses
$300,000,000 Rail Liability Coverage
1. Railroad Liability Premium - Grapevine Vintage Railroad $65,000.00
2. Wholesale Broker Fee $1,600.00
3. Surplus Lines Tax $3,152.50
4. Stamping Fee $48.75
Cost increase for Trinity Metro Policy $69,801.25
Cost items 1-4 to be reimbursed to Trinity Metro
5. Higginbotham Risk Management Fee $15,000.00
6. Railway Claim Services TPA Fee $10,000.00
Cost items 5& 6 to be reimbursed by GVRR to Higginbotham $25,000.00
7. Legal Fees Frank Stevenson, Locke Lord To Be Determined
8. Establishment of Claims Reserve for GVRR $100,000.00
With Trinity Metro available to draw again for fees, cost,to support Rail Liability
Funds to be deposited with Trinity Metro
Exhibit A - Page 1 of 1
EXHIBIT B
PARTIAL LOCOMOTIVE CONVEYANCE WITH RIGHT OF REVERTER
STATE OF TEXAS §
COUNTY OF TARRANT §
WHEREAS, the Grapevine Vintage Railroad, a , hereinafter called "GVRR" and
the Metro Area Transportation System Corporation, a local government corporation created by the
Fort Worth Transportation Authority, doing business as "Trinity Metro" ("Trinity Metro") under
Subchapter D,Chapter 431,Texas Transportation Code("MATS")wish to cooperate in the purchase
of rail liability insurance to the mutual benefit of GVRR, MATS, and Trinity Metro; and
WHEREAS, GVRR operates railroad service on a portion of the Southwest to Northeast
Corridor (also referred to as "the Corridor") from Grapevine to downtown Fort Worth utilized by
Trinity Metro; and
WHEREAS,the City of Grapevine and MATS have executed the Agreement Between Metro
Area Transportation System Corporation and the City of Grapevine, Texas to Support the
Implementation of PTC for the Grapevine Vintage Railroad (the "MATS/Grapevine Interlocal
Agreement") of even date herewith relative to the purchase of a$300 million rail liability insurance
(the"Policy"), and the terms of the MATS/Grapevine Interlocal Agreement are incorporated herein
by reference; and
WHEREAS, GVRR wishes to convey a 1% interest (the "Locomotive Share") in its 1953
Diesel Locomotive GVRX2199—GP-7 (the "Locomotive") to MATS commensurate with the term
of the MATS/Grapevine Interlocal Agreement and the corresponding term of the Policy, subject to
a reverter as provided for herein; and
WHEREAS, it is the intent of GVRR and MATS that the Locomotive Share constitute an
insurable interest in the Locomotive and GVRR in satisfaction of any requirements of the Policy;
and
Exhibit B - Page 1 of 4
WHEREAS, GVRR and MATS are both authorized to execute this Partial Locomotive
Conveyance with Right of Reverter (this "Conveyance") and the persons executing below are
authorized to sign this Conveyance on behalf of their applicable entities and such signature shall
bind each entity accordingly; and
WHEREAS, this conveyance is in the best interests of GVRR and MATS and serves the
public good.
NOW THEREFORE be it agreed by and between GVRR and MATS as follows:
1. All matters stated above are found to be true and correct and are incorporated herein by
reference.
2. Simultaneous with the issuance of the Policy, GVRR for and in consideration of the sum of
Ten and NO/100 Dollars ($10.00) and other good and valuable consideration to GVRR in
hand paid by MATS, the receipt and sufficiency of which are hereby acknowledged, does
GRANT, SELL, and CONVEY unto MATS the Locomotive Share subject to the reverter
provided below.
3. At all times GVRR shall maintain full operational control of and responsibility for the
Locomotive.
4. GVRR does further reserve for itself, its successors, and assigns a right of reverter in the
Locomotive Share subject to the following conditions: (i) if GVRR and MATS are unable to
effectuate the purchase of the Policy, (ii) if the Policy expires, or(iii) as otherwise provided
the MATS/Grapevine Interlocal Agreement,then either (a) GVRR may exercise its right of
reverter by filing a declaration of such with MATS as provided below or (b) MATS may
release and convey the Locomotive Share to GVRR, and the Locomotive Interest and all of
MATS' rights, title, and interest therein shall automatically revert to and be held by GVRR.
5. Any notice required to be given under this Conveyance shall be deemed to have been
Exhibit B - Page 2 of 4
adequately given if deposited in the United States mail in an envelope with sufficient
postage and properly addressed to the other city as follows:
IF TO GVRR: Grapevine Vintage Railroad
c/o City of Grapevine
P.O. Box 95104
Grapevine, Texas 76099
Attention: City Manager
IF TO MATS: Metro Area Transportation System Corporation
c/o Trinity Metro
801 Cherry Street, Suite 850
Fort Worth, TX 76102
Attention: President
A change of address may be made by either party upon the giving of prior written notice.
6. Miscellaneous.
a. This Conveyance may not be assigned by either party without the written
consent of the other party.
b. This Conveyance and the MATS/Grapevine Interlocal Agreement contain the
entire agreement of the parties with respect to the matters contained herein and may not be
modified or terminated except upon the provisions hereof or by the mutual written agreement
of the parties hereto.
C. This Conveyance shall be construed in accordance with the laws of the State
of Texas and shall be performable in Tarrant County, Texas.
d. This Conveyance shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.
e. The parties agree this Conveyance has been drafted jointly by the parties and
their legal representatives.
Exhibit B - Page 3 of 4
f. Notwithstanding anything in this Conveyance, nothing herein waives any
right of immunity available to GVRR or MATS under applicable law.
EXECUTED as of the day of , 202_.
GRAPEVINE VINTAGE RAILROAD
By:
Bruno Rumbelow, City Manager
Attest:
By:
Tara Brooks, City Secretary
Approved as to Form:
By:
City Attorney
METRO AREA TRANSPORTATION SYSTEM
CORPORATION
By:
Wayne Gensler, President
Exhibit B - Page 4 of 4