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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. NGkORN wawa-WHIMD9 City of Southlake Texas 1400 M in Street, Southlake Texas 09/14/2018 Invoice #091418-1 Harley-Davidson Police M torcycle Longhorn Harley-Davidson would like to extend the offer of leasing Five (5) Black 2019 FLHTP Harley- Davidson Police m tors for a forty-eight (48) m nth period, at a rate of$333.00 a m nth per unit ($3,996 a year per unit).Term Oct 1", 2018 to Sept 30th 2022 $0 down, $0 due at turn in if unit is in good working order and no m jor dam ges. Unit shall have nearest major service com leted,tires, brakes, brake rotors, clutch shall be greater than 80%wear rem in at end of lease term $19,980 Total for(5) Five Lease Harley-Davidson Per Year Due at Start of Lease Year Page 1 of 3 Harley-Davidson Police M torcycle Equipm nt/Installation Labor $103.45 1.00 Front LED Turn Signals Harley-Davidson 67800639 $103.45 1.00 Rear LED Turn Signals Harley-Davidson 67800640 $134.95 1.00 Brake LED Light Harley-Davidson 68116-08 $2312.36 1.00 Harley-Davidson Scream ng Eagle M Iwaukee-Eight 114 Engine Upgrade Kit-Torque $880.00 10 HRS Install Labor $166.45 29400246A SE High Flow-Filter $269.95 41000008C SE Pro Street Tuner 359.95 92500047 Stage II Torque Cam 6.11 25566-06 Sprocket Retention Kit 8.95 25928-06 TC96 Spacer Kit 620.95 P354240 Rinehart 4" Slip-On M fflers for Harley Touring 2017-2018 500-0106-CBT17 $162.95 1.00 Oberon Adjustable Clutch Lever LEV400C-CC Chrom $229.95 1.00 Utopia Products Inc- Police Bike Backrest Coil-over Shock Seat $213.95 1.00 Khrom W rks 1.25" x 10" Bars 0601-2845 $36.15 1.00 Harley-Davidson Switch W re Extension Kit 69200034 $269.95 1.00 Coolflow Fan 26800128 $54.49 1.00 69200173 Coolflow Switch Pack $54.49 1.00 69200173 Switches for Pack-Aux Lighting $899.00 1.00 Audio Package: tinger M cro Bluetooth Am lifier SPX350.2 tinger Bluetooth M dule PGBTM 1 em his Xtrem Audio 6.5" Coaxial Speakers M A62 $29.95 1.00 SAE USB Power Adaptor-Cell Phone Power Port $53.95 1.00 Harley-Davidson Chrom Tie Down Brackets 93500011 Page 2 of 3 $107.95 1.00 Harley-Davidson W nd Deflectors 57000529 $953.95 1.00 Harley-Davidson Em rgency Response Kit 69000057 (siren, siren am , m unts) $89.95 1.00 Billet Foot Peg M unt 0601-1818 (Front Take Down/W gW g Lights) $275.00 Shop Supplies/Custom Em rgency Harness $3,960.00 Installation of Existing Em rgency Equipm nt, Cam ra, Radar, Opticom $595.95 Graphics Package (HOUSTON BLACK/W ITE W ap all police departm nt m rkings) $1,524.00 48 M nth Extended W rranty Police (POLICE ESP) $12,165.84 Total Harley-Davidson Equipm nt Per Unit $60,829.20 Total for(5) Five Harley-Davidson Equipm nt/Installation Labor $80,809.20 G and Total Net 30 Due After Delivery, Year 1 Lease and Equipm nt/Labor All proposed FLHTP m torcycles to be in full com liance as follow. This bid includes the City of Southlake purchase/lease and installation of listed equipm nt for five (5) Police Harley-Davidson Electra G ide M torcycles. The installation of the new em rgency equipm nt shall be done in a m nner that it appears to be factory Harley- Davidson (no butt splices, no crim connector, no split loom shrouding). All connections will either use factory Harley-Davidson Deutsch Connectors or soldered connections with heat- shrink wrap. Harley-Davidson factory connectors shall be used in the areas that regularly need rem ved for service/replacem nt of parts (e.g. front PAR36 ern rgency light housing with LINV W elen lightheads or W elen windshield array) The installation shall include a w rkmanship/install w rranty for the term of at least 2 years and all work shall be corn leted by a currently certified Harley-Davidson Level 5 Electrical Technician. Installation of W elen lightheads requires the sync function w re is connected in series front and rear to all lightheads so the flash pattern is synchronized and set to a departm nt approved pattern. There shall not be any equivalent equipm nt subm tted, only use of the below specified equipm nt is approved. All Installed equipm nt other than emergency equipm nt rem ins with the lease unit when turned in at lease end. Em rgency Equipm nt Installation is covered by the factory 2yr and extended 3yr factory warranty if equipm nt is purchased from LHD and installed at the tim of new bike delivery. David M gers Police & Fleet Account M nager Longhorn & M verick Harley-Davidson Harley-Davidson Police Advisory Board M m er 972-935-6904 m torofficer@ onghornhd.com Page 3 of 3 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;