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Home My WebLink About05-183 Resolution No.05-183 RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT WITH WOODSTOCK HARLEY-DAVIDSON FOR TWO POLICE MOTORCYCLES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Olufemi Folarin, City Manager,and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to execute a Lease Agreement with Woodstock Harley-Davidson on behalf of the City of Elgin for two police motorcycles, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed S chock, Mayor Presented: June 8, 2005 Adopted: June 8, 2005 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk LEASE AGREEMENT This Agreement is made and entered into this % day of 2005, by and between WOODSTOCK HARLEY- DAVIDSON, an Illinois corporation (hereinafter "Lessor" ) and the CITY OF ELGIN, ILLINOIS, a municipal corporation (hereinafter "Lessee" ) . WHEREAS, Lessor desires to lease certain vehicles to Lessee and Lessee desires to lease from Lessor certain vehicles . NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the parties hereto hereby agree as follows : 1 . EQUIPMENT AND USE: Lessee shall lease from Lessor the following described vehicles (hereinafter referred to as "Vehicles" ) . QUANTITY YEAR MODEL VIN## 1 2005 FLHP RoadKing 1HD1FHW135Y663121 1 2005 FLHP RoadKing 1HD1FHW195Y670610 Lessee shall use Vehicles for municipal purposes only. Lessee shall at all times use and operate Vehicles in full compliance with all laws, ordinances, insurance regulations and manufacturer' s guidelines . Lessee shall maintain Vehicles and keep Vehicles in good repair and order. Lessee shall have Vehicles serviced in strict compliance with all manufacturing guidelines including, but not limited to, maintaining proper oil and fluid levels, undertaking proper oil changes and having the Vehicle serviced at all recommended mileage intervals . Lessee shall not permit Vehicles to be used as follows : A. To be operated by an unlicensed driver. B. Use or allow Vehicles to be used illegally or contrary to the provisions of any applicable insurance policy. C. Use or allow Vehicles to be used improperly, for hire, or as a public conveyance . D. Use the Vehicles to pull any trailers . E . Expose Vehicles to any act which could result in a seizure, confiscation, forfeiture, or other involuntary transfer, regardless of whether the Vehicle was the subject of formal judicial or administrative proceedings . F. No Vehicle shall be removed from the State of Illinois for more than 30 days without the prior written consent of Lessor. 2 . TERM OF LEASE: This lease shall commence on the 14 day of „DIA 2005 , and terminate on the 30+k.• day of ..-„,,Nfati 2006 . 3 . CONSIDERATION: Lessee shall pay rental payments of $ 2 , 150 ($1, 075 each times 2) by the first day of the month following execution of this lease . Lessee shall pay the total sum of $2 , 150 to Lessor on or before , 2005 . 4 . MAINTENANCE, REPAIR, AND MODIFICATIONS : Lessee shall not modify, paint, or in any manner change or alter Vehicles without first obtaining Lessor' s prior written consent . Should Vehicles be modified, altered, damaged, or changed in any manner, absent normal wear and tear, Lessor reserves the right to repair or return the Vehicles back to its original condition and Lessee shall be liable for all costs and expenses on the same . Lessor consents to the addition of police decals and the equipment typically used on police vehicles, (i .e . emergency strobe lights and siren) to Vehicles . Lessee acknowledges that it has received a copy of the Vehicles' manufacturer' s guidelines for maintenance and care of the same . A copy of said manufacturer' s guidelines is incorporated into this lease in their entirety and is made a part hereof as Group Exhibit "A„ All repairs, modifications and/or alterations of Vehicles shall be undertaken by Lessor unless otherwise agreed in writing by Lessor. 2 5 . EXCESS MILEAGE CHARGE: Lessor and Lessee acknowledge that there shall be no mileage restrictions with regards to the use of Vehicles during the lease period. 6 . VEHICLE INSURANCE: Lessee shall maintain insurance for public liability and property damage through Lessee' s self-insurance which shall be applicable to Vehicles during Lessee' s possession of Vehicles . 7 . RISK OF LOSS : Lessee shall have the risk of loss of Vehicles once Lessee has taken possession of Vehicles . 8 . FINES, LIENS, AND ENCUMBRANCES : Lessee agrees to keep Vehicles free from all fines, liens, and encumbrances . If Lessee does not promptly pay any fine and/or remove any liens or encumbrances, Lessor may do so and declare this lease void while seeking all other damages as set forth under the terms of this agreement . Lessee shall reimburse Lessor any and all amounts incurred by Lessor in paying such fines, liens, and encumbrances, specifically excluding any and all attorney' s fess incurred therein. 9 . EARLY TERMINATION: Lessee may terminate this lease at any time if Lessee notifies Lessor at least fifteen (15) days in advance . So long as Lessee is not in default under the terms of this agreement, there shall be no penalty or early termination fee . 10 . PROHIBITION OF TRANSFER OF LESSEE' S INTEREST: Lessee shall not sublease, rent, assign, grant a security interest in, or otherwise transfer Lessee' s interest under this lease in any way that affects Lessee' s possession or use of the Vehicles or equipment or any other right in the Vehicles . Lessee shall not attempt to transfer any other right or interest under this lease or in the Vehicles . Lessor, upon request, may give prior written consent to allow any such transfer. 3 11 . SEVERABILITY: Should any part or portion of this agreement be determined to be void or otherwise unenforceable for any reason, that portion shall be stricken and the remainder of this agreement shall survive in full force and effect . 12 . GOVERNING LAW: This agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois . 13 . NO OPTION: This is a lease agreement to lease the Vehicles and this is not a purchase agreement . 14 . RETURN OF VEHICLES : Lessee shall return the Vehicles at the lease end to the Lessor at the address of the Lessor and Vehicles shall be in good operating condition. Lessee shall allow Lessor to inspect Vehicles at any reasonable time and place . If Lessor asks to inspect Vehicles, Lessee shall tell the Lessor the location of the Vehicles . The undersigned acknowledge that they have read this lease and agree to all of its terms and conditions . The parties signing on behalf of either party hereto hereby represent and warrant that they are authorized to execute this lease agreement on behalf of the respective parties hereto . LESSOR LESSEE 741.1.LVN. \CICLAA-A--= �kvL R. S-ce+,1ta)J5 Date : tAkqiial. Date : Attest: City Clerk 4 `,c, OF Ezcs G"X0.4` ,./.1, Agenda Item No. CD t", -' ; City of Elgin g %, 4TED vt, E *to L G May 20, 2005 N N SAFE COMMIJNlTY TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager Robert Duffy, Police Deputy C of for Operations SUBJECT: Lease with Woodstock Harley-Davidson for Two Police Motorcycles. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider entering into a lease with Woodstock Harley-Davidson for two police motorcycles. rik. RECOMMENDATION It is recommended that the City Council authorize a lease agreement with Woodstock Harley- Davidson in the amount of$2,150 for two police motorcycles. BACKGROUND Harley-Davidson Motorcycle Corporation has made available to their dealerships a special program to allow police departments the opportunity to lease Harley-Davidson police special motorcycles for a lease price of $1,075 per unit per year. This is a nation-wide program and Woodstock Harley-Davidson is supplying motorcycles to a number of other Illinois cities. These units retail in the $20,000 range and they are only available at this lease rate due to the special program offered through the corporate offices of Harley-Davidson and Woodstock Harley- Davidson. In 2004, two motorcycles were leased for one year at $1,075 each. In 2005, two motorcycles will be leased at the same rate to replace the last year models. The Police Department is deploying these motorcycles for traffic enforcement and for special events such as parades and the parks patrol. There are no additional costs for the use of the motorcycles for this purpose. They are an alternative means of transportation and the personnel costs would be the same whether a motorcycle or patrol unit was put into use. The Police Department only utilizes licensed motorcycle riders who are trained internally. T rik Lease of Police Motorcycles May 20, 2005 Page 2 The Department purchased the lights for the motorcycles in 2001. Woodstock Harley-Davidson will retrofit them at no cost. The lights remain the property of the City. The City is responsible in the event that there are any unanticipated repair costs due to negligent operation. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None gai,„. FINANCIAL IMPACT The $2,150 is currently budgeted and available in the 2005 General Fund police department budget under account number 010-2308-731.92-46, Service/Other Equipment. The light system is owned by the City of Elgin. Woodstock Harley-Davidson will reinstall the lights at no cost on each new motorcycle, with ownership of the lights to be retained by the City of Elgin. The cost for regularly scheduled maintenance is approximately $350 annually for each motorcycle depending on the amount of usage. This is budgeted under account number 010- 2308-731-45-99, Other Miscellaneous Services. riA:gG—AL IMPACT None. ALTERNATIVES 1. The City Council may choose to enter into an agreement with Woodstock Harley- Davidson for the lease of two police motorcycles. 2. The City Council may choose not to enter into this lease and the Police Department will not deploy these police motorcycles. Respectfully submitted for Council consideration. RD/sp Attachment r LEASE AGREEMENT This Agreement is made and entered into this day of 2005, by and between WOODSTOCK HARLEY- DAVIDSON, an Illinois corporation (hereinafter "Lessor") and the CITY OF ELGIN, ILLINOIS, a municipal corporation (hereinafter "Lessee" ) . WHEREAS, Lessor desires to lease certain vehicles to Lessee and Lessee desires to lease from Lessor certain vehicles . NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the parties hereto hereby agree as follows : 1 . EQUIPMENT AND USE : Lessee shall lease from Lessor the following described vehicles (hereinafter referred to as "Vehicles" ) . QUANTITY YEAR MODEL VIN# 1 2005 FLHP RoadKing 1HD1FHW135Y663121 1 2005 FLHP RoadKing 1HD1FHW195Y670610 Lessee shall use Vehicles for municipal purposes only. Lessee shall at all times use and operate Vehicles in full compliance with all laws, ordinances, insurance regulations and manufacturer' s guidelines . Lessee shall maintain Vehicles and keep Vehicles in good repair and order. Lessee shall have Vehicles serviced in strict compliance with all manufacturing guidelines including, but not limited to, maintaining proper oil and fluid levels, undertaking proper oil changes and having the Vehicle serviced at all recommended mileage intervals . Lessee shall not permit Vehicles to be used as follows : A. To be operated by an unlicensed driver. B. Use or allow Vehicles to be used illegally or contrary to the provisions of any applicable insurance policy. C. Use or allow Vehicles to be used improperly, for hire, or as a public conveyance . D. Use the Vehicles to pull any trailers . E. Expose Vehicles to any act which could result in a seizure, confiscation, forfeiture, or other involuntary transfer, regardless of whether the Vehicle was the subject of formal judicial or administrative proceedings . F. No Vehicle shall be removed from the State of Illinois for more than 30 days without the prior written consent of Lessor. 2 . TERM OF LEASE: This lease shall commence on the day of 2005, and terminate on the day of 2006 . 3 . CONSIDERATION: Lessee shall pay rental payments of $ 2 , 150 ($1, 075 each times 2) by the first day of the month following execution of this lease. Lessee shall pay the total sum of $2 , 150 to Lessor on or before , 2005 . 4 . MAINTENANCE, REPAIR, AND MODIFICATIONS : rft. Lessee shall not modify, paint , or in any manner change or alter Vehicles without first obtaining Lessor' s prior written consent . Should Vehicles be modified, altered, damaged, or changed in any manner, absent normal wear and tear, Lessor reserves the right to repair or return the Vehicles back to its original condition and Lessee shall be liable for all costs and expenses on the same . Lessor consents to the addition of police decals and the equipment typically used on police vehicles, (i . e . emergency strobe lights and siren) to Vehicles . Lessee acknowledges that it has received a copy of the Vehicles' manufacturer' s guidelines for maintenance and care of the same . A copy of said manufacturer' s guidelines is incorporated into this lease in their entirety and is made a part hereof as Group Exhibit "A„ All repairs, modifications and/or alterations of Vehicles shall be undertaken by Lessor unless otherwise agreed in writing by Lessor. (elk 2 5 . EXCESS MILEAGE CHARGE: (0"- Lessor and Lessee acknowledge that there shall be no mileage restrictions with regards to the use of Vehicles during the lease period. 6 . VEHICLE INSURANCE: Lessee shall maintain insurance for public liability and property damage through Lessee' s self-insurance which shall be applicable to Vehicles during Lessee' s possession of Vehicles . 7 . RISK OF LOSS : Lessee shall have the risk of loss of Vehicles once Lessee has taken possession of Vehicles . 8 . FINES, LIENS, AND ENCUMBRANCES : Lessee agrees to keep Vehicles free from all fines, liens, and encumbrances . If Lessee does not promptly pay any fine and/or remove any liens or encumbrances, Lessor may do so and declare this lease void while seeking all other damages as set forth under the terms of this agreement . Lessee shall reimburse Lessor any and all amounts incurred by Lessor in paying such fines, liens, and encumbrances, specifically excluding any and all attorney' s fess incurred therein. 9 . EARLY TERMINATION: Lessee may terminate this lease at any time if Lessee notifies Lessor at least fifteen (15) days in advance . So long as Lessee is not in default under the terms of this agreement, there shall be no penalty or early termination fee . 10 . PROHIBITION OF TRANSFER OF LESSEE' S INTEREST: Lessee shall not sublease, rent, assign, grant a security interest in, or otherwise transfer Lessee' s interest under this lease in any way that affects Lessee' s possession or use of the Vehicles or equipment or any other right in the Vehicles . Lessee shall not attempt to transfer any other right or interest under this lease or in the Vehicles . Lessor, upon request, may give prior written consent to allow any such transfer. 3 11 . SEVERABILITY: Should any part or portion of this agreement be determined to be void or otherwise unenforceable for any reason, that portion shall be stricken and the remainder of this agreement shall survive in full force and effect . 12 . GOVERNING LAW: This agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois . 13 . NO OPTION: This is a lease agreement to lease the Vehicles and this is not a purchase agreement . 14 . RETURN OF VEHICLES : Lessee shall return the Vehicles at the lease end to the Lessor at the address of the Lessor and Vehicles shall be in good operating condition. Lessee shall allow Lessor to inspect Vehicles at any reasonable time and place . If Lessor asks to inspect Vehicles, Lessee shall tell the Lessor the location of the Vehicles . The undersigned acknowledge that they have read this lease and agree to all of its terms and conditions . The parties signing on behalf of either party hereto hereby represent and warrant that they are authorized to execute this lease agreement on behalf of the respective parties hereto. LESSOR LESSEE rft. Date : Date : 4