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HomeMy WebLinkAboutResolution - 2008-R0082 - Lease Agreement - Wild West Harley-Davidson - Police Motorcycles - 02_28_2008Resolution No. 2008-R0082 February 28, 2008 Item No. 5.26 RESOLUTION E IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT the Mayor of the City of Lubbock BE and is hereby authorized and irected to execute for and on behalf of the City of Lubbock, a Lease Agreement for the ual lease of police motorcycles, by and between the City of Lubbock and Wild West Harley-Davidson, and related documents. Said Lease is attached hereto and incorporated ,n this resolution as if fully set forth herein and shall be included in the minutes of the City Council. assed by the City Council this 28th day of February 2008. DAVID A. MILLER, MAYOR TTEST: eb cra Garza, City Secre PROVED AS TO CONTENT: Dale Holton., Police Chief PPROVED AS TO FORM: F y L. s ssistant City Attorney .ease Agrmnt-Wild West Harley-Davidson.res IO2/15/ 2008 Resolution No. 2008-R0082 Motorcycle Agreement Wild West Harley-Davidson (referred to as "Lessor") agrees to lease to the City of Lubbock (referred to as "Lessee") and Lessee agrees to lease from Lessor the motorcycles and equipment described in the attached Appendix A (referred to as leased property) under the following terms and conditions. 1. Lease Term The term of this lease shall begin on March 1, 2008 or the first day after delivery of the new bikes, whichever occurs first and continue for a period of twelve (12) consecutive months. The property leased under this agreement must be used solely for police and related law enforcement activities. Only one rider per motorcycle is permitted. 2. Payment Period Lessee shall pay to Lessor a monthly lease payment of $329.00 per motorcycle. The first payment is due and payable at Lessor's place of business, 5702-58#h Street, Lubbock, Texas 79424, on the first day of March, 2008 or the first day of month after delivery of the new motorcycles, whichever comes first and each subsequent payment will be due on the first day of each subsequent month during the term of the lease. 3. Insurance Lessee shall maintain at its own expense insurance against casualty, bodily injury, property damage, and loss caused by or arising from the use and operation of the leased property. Coverage shall be pursuant to Resolution 2672 dated October 22, 1987, Section IV, item E, "the City of Lubbock Liability Self Insurance Program". Lessee also shall maintain insurance sufficient to reimburse Lessor for $18,000.00 as per Section 8 of this agreement. Certificates or other satisfactory evidence of insurance will be furnished to Lessor by Lessee upon execution of this lease. 4. Hold Harmless To the extent permitted by law, Lessee hereby agrees to protect, defend, indemnify and hold harmless the Lessor and it's officers, directors, employees, and agents up to the limits of municipal liability as provided by state statute from and against any losses, penalties, damages, settlements, judgments, costs, charges or other expenses or liabilities of any kind in connection with the leasing of motorcycles as described in this document. However, Lessee shall not be Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -1- required to indemnify or protect Lessor from Lessor's own negligence or that of Lessor's officers, directors, employees or agents. 5. Liens Lessee shall not directly or indirectly create, incur, grant or cause to be attached any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the leased property without the Lessor's prior written approval. Lessee shall immediately, at its own expense, take such action as may be necessary to duly discharge any such mortgage, pledge, lien, charge, encumbrance or claim if same shall arise at any time due to the Lessee's action or inaction. 6. Taxes and Fees Lessee shall pay all appropriate taxes or fees or similar charges imposed by virtue of Lessee's ownership, possession or use of the leased property during the term of this agreement. This section shall not require Lessee to pay taxes, fees or charges from which Lessee is exempt pursuant to its status as a municipal corporation. 7. Care and Use of Equipment Lessee agrees to maintain at its own expense the leased property in accordance with the manufacturer's standard preventive maintenance contract and /or recommendations if any. All repairs shall be made at Wild West Harley-Davidson, 5702 58th Street, Lubbock, Texas 79424. Lessee, at its own expense, shall deliver the leased property to Wild West Harley-Davidson at regular Maintenance intervals set up by Lessor in accordance with the service schedule attached as Exhibit B. However, the repair and replacement of tires, regardless of reason, as well as purchase and use of gasoline and petroleum products will be the sole responsibility and expense of Lessee. Lessee shall use reasonable care to protect the leased property from loss, theft, damage or deterioration, other than reasonable wear and tear. Lessee shall use the leased property for reasonable and customary police activities only, without abuse, and shall not make modifications, alterations of additions to the leased property without the written consent of Lessor, which shall not unreasonably be withheld. Lessor shall have the right, immediately after notifying Lessee during regular business hours, to enter upon the premises where the leased property is located Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -2- to inspect, observe or protect the Lessor's interest. Lessee shall afford the Lessor reasonable opportunity to do so. 8. Damage or Deterioration of Property To the extent permitted by law, in the event the leased property is damaged or destroyed by anyone, regardless of fault, while in the possession, custody or control of Lessee, the Lessee shall immediately have the leased property repaired and restored to its original condition, less reasonable wear and tear, at Lessee's own expense. In the case of theft or total loss of the leased property, Lessee shall immediately pay Lessor the replacement value of the leased property, which shall be $18,000.00 each. 9. Rider Responsibility and Privileges Lessee shall be responsible for keeping the motorcycles clean and shall immediately report any needed repairs to the Lessor. Lessee may allow riders to use the leased property to travel to and from work provided that the leased property is fully insured as herein required and that the distance to and from work is no more than 50 miles each way. 10. Events of Default and Remedies Lessee shall be deemed to be in default under this agreement upon the happening of any of the following events: A. Lessee fails to make any periodic payment or fails to make any other payment required hereunder, or, B. Lessee breaches or fails to perform any term, covenant, condition or provision of this agreement. Upon occurrence of any event of default as specified above, and should Lessee fail to remedy such event of default within a period of thirty (30) days after default occurs, Lessor shall have the right, after mailing written notice to Lessee of Lessor's intent to pursue any of the following remedies: A. To repossess the leased property, which includes the right to sell or lease the property for the account of the Lessee, or to hold the Lessee liable for all accrued and unaccrued payments under the lease term. Lessor may, at its option, hold lessee responsible for the difference between payments payable under this agreement and Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -3- the amount received, if any by Lessor for re -leasing property upon repossession. However, Lessor has no duty to re -lease property. B. To initiate any action at law or in equity as may appear necessary in Lessor's sole discretion, or C. To pursue and obtain any other remedy allowed in law or in equity. Lessor shall be deemed to be in default under this agreement upon the happening of any of the following events: 1. Lessor fails to effect repairs to the leased property under Section 7 of this agreement within a reasonable time after delivery to Lessor. 2. Lessor breaches or fails to perform any term, covenant, condition or provision of this agreement. Upon the occurrence of any event of default as specified in paragraphs 1 or 2 above, and should Lessee fail to remedy such event default within a reasonable time after default occurs, Lessee shall have the right, after mailing written notice to the Lessor, to cancel this agreement without incurring any further liability or obligations hereunder. 1 I. Termination This agreement may be terminated by either party at the end of each budget year of the Lessee during the term of the contract. Lessor, however, shall be entitled to all lease payments due or accrued to the date of such termination. Written notice of Lessee's intent to terminate must be sent to the Lessor at Lessor's business address at least thirty (30) days before the agreement is terminated. 12. Maintenance and Equipment Lessee shall furnish its own radios and all equipment necessary to operate said radios. Maintenance and installation of said radios shall be the sole responsibility of Lessee. 13. Sub -Lease or Assignment This agreement may not be assigned by either Lessor or Lessee. Neither Lessor nor Lessee may effect the sub -leasing of the leased property Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -4- 14. Purpose Lessee represents, and Lessor expressly relies upon the representation in entering this contract, that the leased property is necessary to preserve or protect the public health and safety of Lubbock, Texas residents. 15.Ownership The parties to this lease agree that ownership of the leased property shall remain, at all times, in the Lessor's possession. This document represents a lease, not a lease -purchase agreement. 16.Invalidity Clause Should any term, condition, or provision of this contract be deemed or held invalid for any reason, all other terms, conditions and provisions shall, nevertheless, remain fully enforceable. The entire contract shall not be rendered void. 17. Venue and Jurisdiction This contract is performable in Lubbock County, Texas. Furthermore, the laws of Texas will control its interpretation and the resolution of all disputes arising under and related to it. 18. Entire Agreement This contract constitutes the entire agreement between parties. Any prior or contemporaneous representations or promises are not binding unless expressly included herein. Furthermore, this agreement cannot be modified except in writing signed by both parties. Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -5- IN WITNESS HEREOF, the parties hereto have caused this agreement to be executed as of this 28th day of February zoos. LESSEE: David Mil r Mayor CITY OF LUBBOCK APPROVED AS TO CONTENT: Dale A. Holton Chief of Police CITY OF LUBBOCK APPROVED AS TO FORM: Assist t city Attc CITY F LUBBOCK ATTEST: RebLAcca Garza City Secretary LESSOR: Larry ay Owner/General Manager Wild West Harley-Davidson Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -6- Resolution No. 2008-R0082 Exhibit B Minimum Required Maintenance Schedule Harley-Davidson Electra Glide Police Motorcycle FLHP First Scheduled Maintenance ..... 1,000 Mile 2,500 Mile interval service 5,000 Mile interval service 7,500 Mile interval service 10.000 Mile interval service (Additional service as indicated) • Change engine oil and filter • Inspect air cleaner and service as required • At 1,000, 5,000, and 10,000 mile intervals: change primary chaincase lubricant; adjust primary chain; adjust clutch; change transmission lubricant and clean magnetic drain plugs. • Check/adjust drive belt. • Lube the foot shift/brake lever bearings • Inspect brake pads and discs for wear • Check brake fluid reservoir levels and condition • Inspect oil lines and brake system for leaks • Lubricate the following: 1. Front brake hand lever 2. Throttle control cables 3. Throttle 4. Clutch control cable and hand lever 5. Jiffy stand • inspect fuel lines and fittings for leaks • Check/adjust tire pressure and inspect tread and state any safety concerns on RO • Check battery and clean battery connections • Check operation of all electrical equipment and switches • Check air suspension -pressure, operation and leakage • Check stabilizer links and engine mounts • Check tightness of all critical fasteners: 1. Hand controls 2. Brake system 3. Axle nuts 4. Front fork components 5. Riser and handlebar fasteners • Check engine idle speed adjustment Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -7- • Inspect spark plugs • Change spark plugs (10,000 Mile) • Lubricate hinges, latches, fuel door, tour pak and saddlebags • Lubricate and adjust steering head bearings/as needed • Repack fork bearings/as needed • Road test Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -8- APPENDIX A LEASED PROPERTY: Twelve (12) Harley-Davidson FLHP ROAD KING POLICE motorcycles with standard equipment, ABS brakes, siren, front pursuit lamps, engine guard, strobe lights, and Tour-Paks with integrated LED/strobe lights. Motorcycle Agreement, City of Lubbock & Wild West Harley-Davidson -9-