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HomeMy WebLinkAboutRES 15-061RESOLUTION NO.15-061 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a five (5) year Lease Agreement, with an option to purchase at the end of the lease term for the sum of $1.00 each, with Gulf Coast BMW, Inc., of Houston, Texas, for the lease of five (5) Solo Enforcement motorcycle units for use by the Police Department at a monthly lease rate of $490.20 per unit for an estimated annual amount of $29,412. The Lease Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. 2015. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of April, BrAIJ LEASE AGREEMENT BETWEEN The City of Beaumont, as Lessee, and , as Lessor. THIS LEASE AGREEMENT (the Lease), is by and between as Lessor (Lessor), a corporation duly organized and existing under the laws of the State of Texas, whose address is and the City of Beaumont, a political subdivision of the State of Texas, as Lessee (the City), whose address is 11. O. Box 3827, Beaumont, Texas 77704. WITNESSETH: WHEREAS, the City is authorized by law to acquire such items of personal property as are needed to carry out its governmental functions, and to acquire such personal property by entering into a lease; and WHEREAS, the City has determined that it is necessary for it to acquire under this Lease five (5) solo, certified, traffic law enforcement motorcycles; and WHEREAS, Lessor is willing to acquire and lease such Property to the City pursuant to this Lease; the parties hereto recite and agree as follows: ARTICLE I DEFINITIONS AND EXHIBITS Section 1.1. Definitions. The terms defined in this Section, shall for all purposes of this Lease, have the following meanings: Business Day: Each day on which the City is open for business. Contractor: Each manufacturer or vendor from whom the City has ordered or contracted for the manufacture, delivery, construction, and/or installation of the Property. Fiscal Year: The twelve (12) month fiscal period of the City which commences on October I in every IW41E EXHIBIT "A" year and ends on the following September 30. Net Proceeds: Any insurance proceeds or condemnation award, paid with respect to any Property, remaining after payment therefrom of all expenses incurred in the collection thereof. Non -appropriation: The failure of the City Council of the City to appropriate money for any Fiscal Year sufficient for the continued performance of this Lease by the City with respect to any Property Group, which may be evidenced by a budget ordinance or resolution which does not appropriate any moneys to pay the Rental Payments due under this Lease with respect to such Property Group for a designated Fiscal Year. Payment Date: The date upon which any Rental Payment is due and payable as provided in Exhibit "13" as now or hereafter constituted. Property: Individually or collectively as the context requires, the personal property designated by the City, which shall be described in the attached Exhibit "A-1" as now or hereafter constituted. Property Group: The Property listed on any addendum of Lease Exhibit "A-1," comprising a single purchase of a group of items, equipment, construction of building, or associated products. Rental Payment: The payment due from the City to Lessor on each Payment Date as shown on Exhibit Service Agreement: The manufacturer's recommended service schedule as specified herein, as bid and as incorporated into the Lease as Exhibit °°C". Specifications: The bid specifications and contract documents which the City has executed. Term of this Lease or Lease Term: The period during which this Lease is in effect as specified in Section 4.1. -26- Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Lease: Exhibit "A": Attached addendum comprising of a schedule describing each Property Group being leased by the City pursuant to this Lease, including serial numbers thereof which shall be inserted when available, each schedule comprising a number of pages numbered consecutively, each addendum containing the description of all Property comprising a Property Group. Exhibit "B", A schedule to be completed by Lessor as provided herein and furnished to the City, comprising pages to be consecutively numbered, and each page to contain the amount of each Rental Payment coming due during the Lease Term with respect to the Property Group listed on the corresponding addendum of Exhibit "A -I." Exhibit "C": A schedule to be completed by Lessor as provided herein and furnished to the City comprising pages to be consecutively, and each page to contain the manufacturer's recommended service schedule and the amount due for each as bid and awarded in this lease. ARTICLE 11 REPRESENTATION, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants, and Warranties of the City. The City represents, covenants, and warrants as follows: (a) The City is a municipalcorporation and political subdivision of Texas, duly organized and existing under the Constitution and laws of the State. (b) The City is authorized under the Constitution and laws of Texas to enter into this Lease and the transactions contemplated hereby, and to perform all of its obligations hereunder. (c) ''rhe City Manager has been duly authorized to execute and deliver this Lease by the official action -27- of the City's governing body, the City Council, (d) In authorizing and executing this Lease, the City -has complied and/or will comply with all public bidding laws applicable to this Lease and the acquisition of the Project by the City. (e) The City will not pledge, mortgage, or assign this Lease, or its duties and obligations hereunder to any other person, firm, or corporation except as provided under the terms of this Lease. (f) The City will use the Property during the Lease Term only to perform essential governmental functions. Section 2.2. Representations, Covenants and Warranties of Lessor. Lessor represents, covenants, and warrants as follows: (a) Lessor is a corporation duly organized, existing and in good standing under and by virtue of the laws of the State of Texas, or is duly qualified and in good standing as a foreign corporation authorized to transact business in the State of Texas; has power to enter into this Lease, is possessed of full power to own and hold personal property, and to lease the same; engages in the leasing of personal property such as the Property in the ordinary course of business; and has duly authorized the execution and delivery of this Lease and all addenda thereto. (b) Neither the execution or delivery of this Lease, nor the fulfillment of or compliance with the terms and conditions thereof, nor the consummation of the transactions contemplated thereby, conflicts with or results in the breach of the terms, conditions, or provisions of any restriction, agreement, or instrument to which Lessor is now a party or by which Lessor is bound, constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of Lessor, or upon any part of the Property except permitted encumbrances. -28- ARTICLE CII LEASE OF PROPERTY Section 3.1. Lease. Lessor hereby leases all Property made subject to this Lease to the City, and the City hereby leases such Property from Lessor, upon the terms and conditions set forth in this Lease. Section 3.2. Possession and Enjoyment. Lessor hereby covenants to provide the City during the Term of this Lease with the quiet use and enjoyment of the Property, and the City shall during the Term of this Lease peaceably and quietly have and hold and enjoy the Property, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Lease. Section 3.3. Lessor's Access to Property. The City agrees that Lessor shall have the right at all reasonable times to examine and inspect the Property. The City further agrees that Lessor shall have such rights of access to the Property as may be reasonably necessary to cause the proper maintenance of the Property in the event of failure by the City to perform its obligations hereunder. ARTICLE IV TERM OF LEASE Section 4.1. Lease Term. This Lease shall be in effect for a Term commencing upon its date of execution and ending as provided in Section 4.5. Section 4.2. Termination by the City_ In the sole event of Non -appropriation relating to any particular Property Group or specific item within a Property Group, the City small have the right to terminate this Lease with respect to such Property Group or specific item, at the end of any Fiscal Year of the City. The City may effect such termination by giving Lessor a written notice of termination with respect to such Property Group and by paying to Lessor any Rental Payments and other amounts with respect to such Property Group which are due and have not been -29- paid at or beforethe end of its then current Fiscal Year. The City shall endeavor to give notice of such termination not less than sixty (60) days prior to the end of such Fiscal Year, and shall notify Lessor of any anticipated termination. in the event of termination of this Lease, the City shall deliver possession of such Property Group to Lessor in accordance with Section 11.3, and shall convey to Lessor or release its interest in such Property Group within ten (10) days after termination of this Lease with respect to such Property Group. Section 4.3. Intent to Continue Lease Term: Appropriations. The City presently intends to continue this Lease for its entire Term with respect to all Property Groups made subject hereto and to pay all Rental Payments relating thereto specified in Exhibit "B." Section 4.4. Effect of Termination. Upon termination of this Lease with respect to any Property Group, the City shall not be responsible for the payment of any additional Rental Payments coming due, but if the City has not delivered possession and conveyed to Lessor or released its interest in the Property Group within ten (10) days after the date of termination, the termination shall nevertheless be effective, but the City shall be responsible for the payment of the Rental Payments thereafter coming due under the page of Exhibit "B" attributable to the number of days after such ten (10) day period during which the City fails to take such action. Section 4.5. Termination of Lease Term. The Term of this Lease will terminate upon the occurrence of the first of the following events: (a) the termination thereof by the City with respect to all Property Groups in accordance with Section 4.2; (b) a default by the City with respect to all Property Groups and Lessor's election to terminate this Lease with respect to all Property Groups; (c) the payment by the City of all Rental Payments and all other amounts authorized or required to be paid by the City hereunder with respect to all Property Groups. -30- ARTICLE V RENTAL PAYMENTS Section 5.1. Rental Payments. The City agrees to pay Rental Payments during the Term of this Lease, in the amounts specified in Exhibit "B." All Rental Payments shall be paid to Lessor at its offices at the address specified in the first paragraph of this Lease, or to such other person(s) or entity to which Lessor has assigned such Rental Payments as specified in Article XI, at such place as such assignee may designate by written notice to the City. The City shall pay the Rental Payments exclusively from moneys legally available therefor, in lawful money of the United States of America. All payments by the City shall be made in accordance with the requirements of Texas Government Code §2251.021. First rental payment shall be due thirty (30) days from the latter of the invoice date oi• the date of inspection and acceptance of the property by the City. Consecutive dates shall be due on that same day each month for the duration of the ]ease. Due dates which fall on weekends, holidays or other days on which the City is closed for business shall be due on the next regular business day. Section 5.2. Current Expense. The obligations of the City under this Lease, including its obligation to pay the Rental Payments due with respect to the Property, in any Fiscal Year for which this Lease is in effect, shall constitute a current expense of the City for such Fiscal Year and shall not constitute an indebtedness of the City within the meaning of the constitution and Iaws of Texas. Nothing herein shall constitute a pledge by the City of any taxes or other moneys, other than moneys lawfully appropriated from time to time by or for the benefit of the City in the annual budget of the City and the proceeds or Net Proceeds of the Property, to the payment of any Rental Payment or other amount coming due hereunder. Section 5.3. Conditions of Payment. The obligation of the city to make Rental Payment or any other payment required hereunder is conditioned on no dispute.between the City and Lessor. The City may assert any right of set-off or counterclaim against its obligation to make such Rental Payments required under this Lease. -3 I - ARTICLE VI INSURANCE AND NEGLIGENCE Section 6.1. Liability Insurance. The City is self insured as to all liability. Section 6.2. Workers' Compensation Insurance. If required by State law, and unless self-insurance is provided by the City, as evidenced by a written certificate specifying the terms and amounts thereof delivered to Lessor, the City shall carry worker's compensation insurance covering all employees on, in, near, or about each Property, and upon request, shall furnish to Lessor certificates evidencing such coverage throughout the period when the City is required to make Rental Payments with respect thereto. Section 6.3. City's Negligence. Except as prohibited by law, the City assumes all risks and liabilities for loss or damage to any Property. Section 6.4. Casualty Loss and Insurance. If any loss, theft, damage or destruction occurs to any Property in whole or in part from any reason whatsoever ("Casualty Loss"), the City shall immediately notify Lessor of the same and the City shall, unless otherwise directed by Lessor, immediately repair same. If Lessor reasonably determines that any item of Property has suffered a Casualty Loss beyond repair ("Lost Equipment"), then the City shall pay lessor an amount equal to the value of the equipment at the time of loss less salvage value. ARTICLE VII OTHER OBLIGATIONS OF THE CITY Section 7.1. Use Permits. The City shall obtain all permits and licenses necessary for the installation, operation, possession, and use of the Property. The City shall comply with all state and federal laws applicable to the installation, use, possession, and operation of the Property, and if compliance with any such state and federal law requires changes or additions to be made to the property, such changes or additions shall be made by the City at its expense. -32- Section 7.2. Maintenance of Property by the City. The City shall maintain, preserve, and keep the Property in good repair, working order and condition, and shall make all repairs and replacements necessary to keep the Property in such condition. Section 7.3. Taxes. Other Governmental Charges and Utility Charizes. The City is tax exempt. The City shall not be required to pay any federal, state, or local income, inheritance, estate, succession, transfer, gift, franchise, gross receipts, profit, excess profit, capital stock, corporate, or other similar tax payable by Lessor, its successors or assigns. ARTICLE VIII TITLE Section 8.1. Title. The City shall have legal title to the Property and any and all repairs, replacements, substitutions, and modifications to it shall be by the City. Section 8.2. Installation of the City's Property. The City may at any time in its sole discretion and at its own expense, install other items of equipment in or upon the Property, which items shall be identified by tags or other symbols affixed thereto as property of the City. All such items so identified shall remain the sole property of the City, in which Lessor shall have no interest, and may be modified or removed by the City provided that the City shall repair and restore any damage to the Property resulting from the installation, modification, or removal of any such items. Section 8.3. Modification of Property. The City shall, at its own expense, have the right to make repairs, replacements, substitutions and modifications to all or any of the parts of the Property. All such work and any part or component used or installed to make a repair or as a replacement, substitution or modification, shall thereafter comprise part of the Property and be subject to the provisions of this Lease. Such work shall not in any way damage the Property or cause it to be used for purposes other than those authorized under the provisions of state and federal law or those contemplated by this Lease; and the Property, upon completion of any such work shall be of a value which is not less than the value of the Property immediately prior to the commencement of -33- such work. Any property for which a replacement or substitution is made pursuant to this Section may be disposed of by the City in such manner and on such terms as are determined by the City. Section 8.4. Personal Property. The Property is and shall at all times be and remain personal property notwithstanding that the Property or any part thereof may be or hereafter become in any manner affixed or attached to or embedded in or permanently rested upon real property or any building, ARTICLE IX OPTION TO PURCHASE Section 9.1, Option to Purchase. The City shall have the option to purchase Lessor's interest in the Property or Property Group at the end of the sixty (60) month term of the lease for the sum of one dollar ($1.00) per motorcycle. ARTICLE X ASSIGNMENT, SUBLEASING, MORTGAGING, AND SELLING Section 10.1, Assignment of Lessor. All of Lessor's rights, title and/or interest in and to any Property Group or the Rental Payments relating thereto due hereunder, and the right to exercise all rights under this Lease relating to such Property Group may be assigned and reassigned in whole or in part to one or more assignees or subassignees by Lessor at any time, without the consent of the City. No such assignment shall be effective as against the City unless and until the assignor shall have filed with the City a copy of written notice thereof identifying the assignee. The City shall pay all Rental Payments due hereunder relating to such Property Groups to or at the direction of Lessor or the assigned named in the most recent assignment or notice of assignment with respect to such Property Group filed with the City. During the Lease Term, the City shall keep a complete and accurate record of all such assignments. In the event Lessor assigns participations in its right, title, and/or interest in and to any Property Group, the Rental Payments and other amounts due with respect thereto, and the rights granted under this Lease relating thereto, such participants shall be considered to be Lessor with respect to their participated shares thereof. -34- Section 10.2. Assignment or Subcontract of Service Portion of Lease. The Lessor may not assign or subcontract the service agreement portion of the lease contract without the prior written consent of the City. Section 1.0.3. Assignment and Subleasing by the City. Neither this Lease nor the City's interest in the Property may be assigned by the City without the written consent of Lessor. However, the Property may be subleased by the City, in whole or in part, without the consent of Lessor, subject, however, to each of the following conditions: (i) This Lease and the obligation of the City to make Rental Payments hereunder, shall remain obligations of the City. (ii) The sublessee shall assume the obligations of the City hereunder to the extent of the interest subleased. (iii) The City shall, within thirty (30) days after the delivery thereof, furnish or cause to be furnished to Lessor a true and complete, copy of such sublease. (iv) No sublease by the City shall cause the Property to be used for a purpose other than a governmental function authorized under the provisions of the Constitution and laws of Texas. ARTICLE XI EVENTS OF DEFAULT AND REMEDIES Section 11.1. Events of Default Defined. The following shall be "events of default" under this Lease with respect to any Property Group and the terms "events of default" and "default" shall mean, whenever they are used in this Lease, with respect to any Property Group, any one or more of the following events: (i) Failure by the City to pay a Rental Payment or other payment required to be paid under.this Lease with respect to any Property Group at the time specified herein and the continuation of said failure for period of sixty (60) _days after telephonic or telegraphic notice given by Lessor that the payment referred to -35- in such notice has not been received, such telephonic or telegraphic notice to be subsequently confirmed in writing. (ii) Failure by the City to observe and perform any covenant, condition, or agreement on its part to be observed or performed with respect to any Property Group, other than as referred to in Clause (i) of this Section, for a period of sixty (60) days after written notice specifying such failure. Such notice to the City by the Lessor shall request that the default be remedied, unless Lessor shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by the City within the applicable period and diligently pursued until the default is corrected. (iii) The Cling by the City of a voluntary petition in bankruptcy, or failure by the City promptly to lift any execution, garnishment, or attachment of such consequence as would impair the ability of the City to carry on its governmental function or adjudication of the City as a bankrupt, or assignment by the City for the benefit of creditors, or the approval by a court of competent jurisdiction of a petition applicable to the City in any proceedings instituted under the provisions of the Federal Bankruptcy Statute, as amended, or under any similar acts which may hereafter be enacted. (iv) Failure by the Lessor to observe and perform any covenant, condition, or agreement on its part to be observed or performed with respect to any Property Group, including the service agreement portion of the lease contract, for a period of thirty (30) days after written notice specifying such failure. The provisions of this Section 11.1 and Section 11.2 are subject to the following limitation: if by reason of force majeure either party is unable in whole or in part to carry out its obligations under this Lease with respect to any Property Group, that party shall not be deemed in default during the continuance of such inability. The term "force majeure" as used herein shall mean, without limitation, the following: acts of God, strikes, lockouts, or other labor disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States of America or the State or their respective departments, agencies or officials, or any civil or military authority; insurrections, riots; landslides; earthquakes; fires; storms; droughts; floods, explosions; breakage or accident to machinery, transmission pipes or canals; or any other causes or events not reasonably within the control of the party and not resulting from its negligence. Each -36- party agrees, however, to remedy with all reasonable dispatch the cause or causes preventing the party from carrying out its obligations under this Lease; provided that the settlement of strikes, lockouts and other labor disturbances shall be entirely within the discretion of the City and the City shall not be required to make settlement of strikes, lockouts, and other Iabor disturbances by acceding to the demands of the opposing party or parties when such course is in the judgment of the City unfavorable to the.City. Section 11.2. Remedies on Default. Whenever any event of default referred to in Section 11.1 hereof shall have happened and be continuing with respect to any Property Groups, the other party shall have the right, at its option and without any. further demand or notice, to take one or any combination of the following remedial steps: (i) Other party may terminate this Lease with respect to such Property Group and the City shall return the property to Lessor. Section 11.3. Return of Property. Upon the expiration or termination by the City of this Lease with respect to any Property Group prior to the payment of all Rental Payments in accordance with Exhibit "B", if the City decides not to exercise its option to purchase, the City shall allow lessor to remove the property or property group from lessee's property at lessor's cost and expense, provided, however, that such property shall be retrievable from a central location. Section 11.4. No Remedy Exclusive. No remedy conferred upon or reserved to Lessor by this Article is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof but any such right and power may be exercised from time to time and as often as may be deemed expedient by Lessor or its assignee. -37- ARTICLE XII ADMINISTRATIVE PROVISIONS Section 11.1. Notices. All notices, certificates, legal opinions, or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in registered form with postage fully prepaid to the addresses specified in this Lease; provided that Lessor and the City, by notice given hereunder, may designate different addresses to which subsequent notices, certificates, legal opinions, or other communications will be sent. Unless otherwise changed by the City, all notices required under this Lease and directed to the City shall be mailed to the following address; LESSEE: LESSOR: CITY OF BEAUMONT Accounts Payable City of Beaumont P.O. Box 3827 Beaumont, Texas 77704-3827 Section 11.2. Severability. In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 11.3. Amendments, ChanLyes, and Modifications. This Lease may be amended or any of its terms modified only by written document duly authorized, executed, and delivered by Lessor and the City. Section 11.4. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit, or describe the scope or intent of any provisions, Articles, Sections, or Clauses of this Lease. Section 11.5. Further Assurances and Corrective Instruments. Lessor and the City agree that they will, from time to time, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be, or for otherwise carrying out the expressed intention of this Lease. The Purchasing Agent, or the designee thereof, is hereby authorized by the City Manager to execute such addenda as -38- attached hereto as Exhibits for each Property Group and such other instruments, including, but not limited to, UCC statements, Bill of Sales, etc. that are necessary to carry out the responsibilities, duties, and obligations required of the City in accordance with the terms and conditions of this Lease. SECTION 11.6. Entire Agreement. This Lease and all addenda and exhibits; as may hereafter be executed, with the addition of the bid documents and purchase order, constitute the entire agreement between the parties and shall supersede all previous negotiations, commitments and contracts. Section 11..7. Execution in Counterparts. This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 11.8. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of Texas. Venue of any legal action brought under this agreement will be solely in .lefferson County, Texas. IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its corporate name by its duly authorized officer; and the City has caused this Lease to be executed in its name by its duly authorized City Manager. LESSOR: Name of Lessor's Company Signature LESSEE: City of Beaumont Name of Lessee's Company Signature Kyle Haves, City Manager Typed Name and Title of Signee Typed Name and Title of Signee ATTEST: APPROVED THIS THE DAY OF , 2015. -39- EXHIBIT "A-1" PROPERTY DESCRIPTION The following Property comprises a Property Group which is the subject to the terms and conditions of the Lease Agreement entered into by and between the City of Beaumont and (Lessor) dated the day of 201 5_. I Quantity I Description I Vehicle Identification Numbers (VIN) 1 5 1 Solo Enforcement Police Motorcycles I I All Property made subject of this Agreemcnt is owned by and under the sole and exclusive use of the City of Beaumont, a political subdivision of the State of Texas, and is used as part of the City's governmental services in furtherance of its public purpose. The City asserts all exemptions provided for political subdivisions of the State of Texas as authorized under the Constitution and laws of the State of Texas against the assessment, levy, or charges for ad valorem taxation, personal property taxation, or any other charges. LESSOR: Name of Lessor's Company Signature Typed Name and Title of Signee LESSEE: City of Beaumont Name of Lessee's Company Signature Kyle Hayes, City Manager Typed Name and Title of Signee APPROVED THIS THE DAY OF , 2015. -40- EXHIBIT "B" SCHEDULE OF RENTAL PAYMENTS RELATING TO PROPERTY The following schedule of Lease Payments constitutes the applicable payments for the Property Group described on Exhibit "A" attached to the Lease Agreement entered by and between the City of Beaumont and (Lessor) dated the day of 2015. SCHEDULE OF PAYMENTS: Sixty (60) Monthly Payments at: $ First rental payment shall be due thirty (30) days from the latter of the invoice date or the date of inspection and acceptance of the property by the City. Consecutive dates shall be due on that same-day each month for the duration of the lease. Due dates which fall on weekends, holidays or other, days on which the City is closed for business shall be due on the next regular business day. LESSOR: Name of Lessor's Company Signature Typed Name and Title of Signee LESSEE: City of Beaumont Name of Lessee's Company Signature Kyle Haves, City Manager Typed Name and Title of Signee APPROVED THIS THE DAY OF 12015. -41- EXHIBIT "C" SERVICE SCHEDULE AND MAINTENANCE COST Service and Maintenance Costs: $­ per motorcycle at miles. $_ per motorcycle at miles. $ per motorcycle at miles. $ _per motorcycle at _miles. per motorcycle at miles. $ per motorcycle at miles. $ per motorcycle at -,__miles. $ per motorcycle at miles. 1. Maintenance shall be provided by a factory authorized dealer according to manufacturer's recommended schedule as provided with bid to maintain warranty and also to maintain equivalent service throughout the duration of the lease term. Lessors outside of a f fty (50) mile radius shall be responsible for equipment transportation to and from their site for all maintenance and service work. 2, Most service and repairs should be accomplished within three (3) working days and the maximum down time for any motorcycle under any circumstances shall be no more than thirty (30) days. Repeated instances ofexcessive down time shall be considered a default of contract on the part of the Lessor. If any individual motorcycle exceeds ninety (90) days of downtime within twelve (12) months, such shall be considered a default of contract and the City shall have the right to terminate the lease for that unit. 3. No additional transportation, fees or surcharges relating to any part of the lease contract are allowed under the terms of this lease. 4. Service may be provided locally by a qualified service provider for minor maintenance and/or repairs not included in scheduled maintenance by the contractor. 5. In order to provide timely service, Bidder must have a business location with full service capability within 120 miles of the City of Beaumont to be considered for award. 6. Lessor shall provide, in addition to the manufacturer' standard warranty, an additional extended thirty-six (36) month, 60,000 mile warranty of identical coverage that shall remain in effect for the duration of the lease contract following expiration of manufacturer's warranty. LESSOR: Name of Lessor's Company Signature Typed Name and Title of Signee APPROVED THIS THE DAY OF -42- LESSEE: City of Beaumont Name of Lessee's Company Signature Kyle Haves, City Manager Typed Name and Title of Signee