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Item 5BCity of Southlake, Texas MEMORANDUM January 2, 2003 TO: Billy Campbell, City Manager FROM: Rick Black, Director of Public Safety (Ext. 2421) SUBJECT: Authorize the Mayor to enter into a Lease Agreement for ten police traffic motorcycles between Harley- Davidson of Dallas and the City of Southlake. Action Requested: City Council approval of a lease agreement for ten police traffic motorcycles and related maintenance between Harley- Davidson of Dallas 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. This number reflects the addition of three motorcycles this year for three additional traffic officers approved in the budget. 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. Harley- Davidson of Dallas was the only bidder because of the inclusion of maintenance in the agreement. Financial Considerations: This lease agreement provides a fee of $299.00 per month per motorcycle for a total of $35,880.00 for the year. Funds were budgeted for this expense. Financial Impact: There is a $35,880. financial impact annually. 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 January 2, 2003 Page 2 Supporting Documents: Lease Agreement with Harley- Davidson of Dallas. Staff Recommendation: Place the Lease Agreement for leasing ten motorcycles from Harley- Davidson of Dallas on the January 7, 2003 City Council meeting agenda for approval. RB /mrp Please advertise in Wednesday, November 20, and Wednesday,, November 27, 2002, newspapers. ADVERTISEMENT FOR BIDS CITY OF SOUTHLAKE Separate sealed bids for the lease of ten (10) certified police motorcycles will be received by the City of Soudilake addressed'to the City Secretary, 1400 Main Street, Suite 270, Southlake, Texas, 76092, until 10:00 am. local time, Thursday, December 5, 2002, and then publicly opened and read at the same time at Office of the City Secretary, 1400 Main Street, Suite 270, Southlake, Texas. Each successful bidder must provider • 12 month lease of ten (10) Solo Certified Police Traffic Enforcement Motorcycles to be equipped with emergency equipment consisting of strobes front/rear, siren, and amplifier. • Unlimited mileage. • Responsibility for all expenses (including regular maintenance and any reasonable wear and tear) fees and costs such as state inspection and licenses. Excluding all losses as a result of accident or negligence. • Pick up and deliver each motorcycle for any repair or scheduled maintenance. • The City of Southlake considers the "Delivery Date" of each motorcycle to be a primary factor in the consideration of each proposal. The owner reserves the right to waive any informality or to reject any or all bids. No bidder may withdraw his/her bid within sixty (60) days after the actual date of the opening thereof NACity Se<r Mry\Up1slbidopeninp motorcycles.doc 3 DALLAS HARLEY- DAVIDSON, LTD. 1334 West Centerville Road I Garland, Texas 75041 � (972) 270 -DYNA (3962) Buell FAX (972).2'70_5300 AMERICAN MOTORCYCLES Made this day of A.D. 2002 BY AND BETWEEN Harley- Davidson of Dallas, Inc. herein called lessor and the City of Southlake Police Department herein called the lessee, WrMESSETH, that in consideration of the covenants herein contained, on the part of said lessee to be kept and performed, the said lessor does lease to the said lessee the following described property: 1HD1FHW FLHPI 2003 1HD1FHW FLHPI 2003 IHDIFHW FLHPI 2003 IHDIFHW FLHPI 2003 1HD1FHW FLHPI 2003 1HD1FHW FLHPI 2003 1HD1FHW FLHPI 2003 IHDIFHW FLHPI 2003 IHDIFHW FLHPI 2003 iHDiFHW FLHPI 2003 TO HAVE AND TO HOLD the same for the term of 12 months from the day of A.D. 2002, the said lessee herefor the Monthly rent of $299.00 per motorcycle, for a total of $35,880.00._ And the said lessee covenant with the said lessor to pay the said rent in 12 payments of $2,990.00 each on the 15th day of each and every Month for the said term. The first payment to be made in 2002. 1. PURPOSE The lessee wishes to enter into a contract to lease motorcycles for use by the Police Department for 12 months. The City of Southlake Police Department reserves the right to Extend the contract for one year period (not to exceed two extensions). Providing: both parties agree to the extension, that all the specifications, terms, and conditions remain the same, and such extension(s) is approved by both parties. 2. EXPENSES The lessee will be responsible for all gasoline costs. All other expenses, fees, and costs such as state inspection and licenses will be the responsibility of the lessor as the contractor. y,. 4 DALLAS HARLEY- DAVIDSON, LTD. 1334 West West Centerville Road Garland, Texas 75041 4e ���'� (972) 270 -DYNA (3962) FAX (972) 270-5300 AMERICAN MOTORCYCLES 3. MAINTENANCE All maintenance and repairs will be the responsibility of the lessor. EXCEPTION: repairs as a result of an accident or negligence on the part of the Police Department will be the responsibility of the lessee (the City). The Police Department will make the cycle available under any scheduled maintenance program. 4. USE The Police Department reserves the right to use the cycle as required in order to perform their required duties. 5. INSURANCE/INDEMNIFICATION a. Control of Vehicles The lessee shall be presumed to have control of leased cycles when the keys to such cycle are entrusted to the City and until such time as the keys are returned to the contractor for maintenance or their care, custody, or control b. Cycle Physical Damage Insurance The lessee shall be responsible for all losses to leased cycles while under the care of the lessee. Should the contractor as the lessor or his designee repair a damaged leased cycle, the City's liability for payment of such expense shall be based on the same reasonable standards and practices as employed be insurance companies in the area. The City win not be responsible for any damages to the leased cycle while it is under the care, custody or control of the contractor (lessor). The City, however, will also not be responsible of reasonable wear and tear to said leased cycle. In the event of a total loss, the City's maximum exposure to the lessor shall be the wholesale value of the cycle at the time of loss (less salvage) as indicated by the "RED BOOK" or it necessary as determined lessor and the City of Southlake Police Dept. c. Notwithstanding the provisions of subsections a. and b. above, Lessee shall not be. responsible for losses to leased cycles while under the care of the Lessee if the loss or damage is caused by a negligent act or omission of Lessor, its agents, officers, or employees. WITNESS our hands and seals this day of 2002. Signed, Sealed, and Delivered in Presence of: Steven P. Bell General Manager Signature 5 DALLAS HARLEY- DAvIDSON, LTD. -- - 1334 West Centerville Road .0 Garland, Texas 75041 4& B (972) 270 -DYNA (3962) FAX (972) 270-5300 ' AMERICAN MOTORCYCLES HIGHLIGHTS DALLAS HARLEY- DAVIDSON, LTD. AND THE CITY OF SOUTHLAKE POLICE DEPARTMENT - 2003 FLHPI SOLO POLICE ROADKING ONE YEAR FIXED END LEASE. NO CAPITAL INVESTMENT. UNLIMITED MILEAGE. LEASE PAYMENT OF $299 PER MONTH PER 2003 MOTORCYCLE COVERS EVERYTHING BUT A RADIO, GAS, INSURANCE, UNUSUAL WEAR & TEAR, AND WRECKS. - FIXED & PREDICTABLE COST. UNIT WILL BE EQUIPPED WITH FRONT & REAR STROBES, SIRENS AND AMPLIFIER. - NO INVESTMENT REQUIRED IN PARTS INVENTORY OR MAINTENANCE PERSONNEL. - BIKE COMES IN ONCE A MONTH FOR MANDATORY PREVENTATIVE MAINTENANCE_/ WITH PICKUP & . DELIVERY AVAILABLE WHEN SCHEDULED IN ADVANCE - MOTORCYCLE DELIVERY SCHEDULE - MID DECEMBER STEVEN P. BELL j t 6 Bid Opening Bid Opening: Lease of ten certified police motorcycles Date: December 5, 2002 at 10 a.m. V Company Bid Bond Bid Alternate Bid/Misc. Hcri e,, YorN $ a°�� r rriGit�� �o�'ke $ YorN $ 3S 6<6 kIU,",Q $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ YorN $ $ Persons Attending Bid: pp Lori Farwell, Rusty Daniels , N no Npg fJu 5