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Item 4H MemoM E M O R A N D U M October 2, 2018 To: Shana Yelverton, City Manager From: Sharen Jackson, Chief Financial Officer Timothy Slifka, Purchasing Manager Subject: Item 4H Approve Four Year Lease Agreement for Replacement of Police Motorcycles from Longhorn Harley Davidson in the amount of $80,810 Action Requested: Approve four year lease agreement for replacement Police motorcycles from Longhorn Harley Davidson in the amount of $80,810 Background Information: Per the Southlake Vehicle Replacement Policy the vehicles are scheduled for replacement. State of Texas and City of Southlake bidding requirements have been met by utilizing a bidding exemption allowed in Local Government Code 252.022.2, “a procurement necessary to preserve or protect the public health or safety of the municipality's residents”. Department Description Cost Police Services Per Year Lease Cost for Five Police Motorcycles $19,980 Police Services Harley Davidson Proprietary Required Equipment all units $60,830 TOTAL $80,810 The City’s Vehicle Replacement Committee in June 2018 reviewed and discussed vehicles scheduled for replacement per the Policy and to review available options. The committee evaluated individual vehicle condition, repair history, age, mileage and usage before recommending replacement. Financial Considerations: The request will be funded through the FY 2019 Vehicle Replacement Fund. Strategic Link: C1 – Achieve the highest standards of safety and security. B2 – Collaborate with select partners to implement service solutions. F2 – Invest to provide and maintain high quality public assets. Citizen Input/ Board Review: None Legal Review: None Alternatives: Deny and retain the old vehicles. This will lead to increased vehicle maintenance cost. Supporting Documents: Longhorn Harley Davidson Pricing Worksheet and Local Government Code 252.022.2. Staff Recommendation: Approve four year lease agreement and required Harley Davidson equipment for Police Motorcycles from Longhorn Harley Davidson. 1/18/2018 LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES http://www.statutes.legis.state.tx.us/SOTWDocs/LG/htm/LG.252.htm 1/16 LOCAL GOVERNMENT CODE TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES SUBCHAPTER A. GENERAL PROVISIONS Sec. 252.001. DEFINITIONS. In this chapter: (1) "Bond funds" includes money in the treasury received from the sale of bonds and includes the proceeds of bonds that have been voted but have not been issued and delivered. (2) "Component purchases" means purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase. (3) "Current funds" includes money in the treasury, taxes in the process of being collected in the current tax year, and all other revenue that may be anticipated with reasonable certainty in the current tax year. (4) "High technology procurement" means the procurement of equipment, goods, or services of a highly technical nature, including: (A) data processing equipment and software and firmware used in conjunction with data processing equipment; (B) telecommunications equipment and radio and microwave systems; (C) electronic distributed control systems, including building energy management systems; and (D) technical services related to those items. (5) "Planning services" means services primarily intended to guide governmental policy to ensure the orderly and coordinated development of the state or of municipal, county, metropolitan, or regional land areas. (6) "Separate purchases" means purchases, made separately, of items that in normal purchasing practices would be purchased in one purchase. (7) "Sequential purchases" means purchases, made over a period, of items that in normal purchasing practices would be purchased in one purchase. (8) "Time warrant" includes any warrant issued by a municipality that is not payable from current funds. 1/18/2018 LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES http://www.statutes.legis.state.tx.us/SOTWDocs/LG/htm/LG.252.htm 4/16 Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an expenditure of more than $3,000 but less than $50,000, shall contact at least two historically underutilized businesses on a rotating basis, based on information provided by the comptroller pursuant to Chapter 2161, Government Code. If the list fails to identify a historically underutilized business in the county in which the municipality is situated, the municipality is exempt from this section. Added by Acts 1993, 73rd Leg., ch. 749, Sec. 3, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.18, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 115, Sec. 2, eff. Sept. 1, 2001. Amended by: Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 2, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.100, eff. September 1, 2007. Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not apply to an expenditure for: (1) a procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the property of the municipality; (2) a procurement necessary to preserve or protect the public health or safety of the municipality's residents; (3) a procurement necessary because of unforeseen damage to public machinery, equipment, or other property; (4) a procurement for personal, professional, or planning services; (5) a procurement for work that is performed and paid for by the day as the work progresses; (6) a purchase of land or a right-of-way; (7) a procurement of items that are available from only one source, including: (A) items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies; (B) films, manuscripts, or books; (C) gas, water, and other utility services; (D) captive replacement parts or components for equipment;