Item-5E MemoCity of Southlake, Texas
MEMORANDUM
November 3, 2004
TO: Billy Campbell, City Manager
FROM: Rick Black, Director of Public Safety (Ext. 2421)
SUBJECT: Authorize the City Manager to enter into a Lease Agreement for ten police traffic
motorcycles between Dallas Harley- Davidson and the City of Southlake.
Action Requested: City Council approval of a two (2) year lease agreement for ten police traffic
motorcycles and related maintenance between Dallas Harley- Davidson and the
City of Southlake.
Background
Information: The City of Southlake Department of Public Safety utilizes ten Harley -
Davidson motorcycles for traffic enforcement and response to accidents and
other calls for service. Detailed cost analysis has shown that it is more cost
effective to lease these vehicles with maintenance included than to purchase
and maintain them internally. Dallas Harley- Davidson was the only bidder
because of the inclusion of maintenance in the agreement.
Financial
Considerations: This lease agreement provides a fee of $350.00 per month per motorcycle for a
total of $42,000.00 for the year 2005 and $375.00 per month per motorcycle
for a total of $45,000 for the year 2006. Funds were budgeted for this expense
for the year 2005. Funds for the year 2006 expense have not been budgeted.
Financial Impact: There is a $42,000 financial impact annually for the year 2005 and $45,000 for
the year 2006. This is significantly less than the cost of purchasing and
maintaining motorcycles. Small increases are likely in future years but typical
increases are less than five percent annually.
Citizen Input/
Board Review: No citizen input has been received. Not subject to any Board review.
Legal Review: This agreement has been reviewed and approved by City Attorney Debra
Drayovitch.
Alternatives: Purchase price for these motorcycles is $17,500 each with standard equipment.
Most police agencies replace motorcycles after three years or 45,000 miles
prior to large expenditures for overhauls. After the first year warranty,
maintenance averages $2,200 annually for a three year cost of ownership of
$219,000 or $608 per month per motorcycle.
Billy Campbell
November 3, 2004
Page 2
Supporting
Documents:
Staff
Recommendation:
Lease Agreement with Dallas Harley- Davidson.
Approve the Lease Agreement for leasing ten motorcycles from Dallas Harley -
Davidson at the November 9, 2004 City Council meeting.
RB /mrp