HomeMy WebLinkAboutCapital OutlayCHICAGO HARLEY~DAVIDSON
POLICE MOTORCYCLE LEASE AGREEMENT
Inc.,This Agreement made and entered into between Chicago Harley-Davidson,
designated as the Lessor, and the City of Evanston, Evanston Police Department,
designated as the Lessee, made this I 51h day of April 2010, for the purpose of leasing to
the Lessee seven (7) Harley-Davidson police motorcycles under the following terms and
1) EQUIPMENT
Seven (7) Harley-Davidson FLHTP police motorcycles with abs (anti -lock
braking system). Color: black and white with gold stripe. Vehicle Identification
Numbers on each of the seven (7) motorcycles to be determined upon receipt
from Harley-Davidson Motor Company. Police equipment supplied by the
Lessee: tour -pack, lights, engine guards, siren and radio equipment, etc.
Police equipment listed above to be installed by the Lessor prior to delivery of
motorcycles.
2) AGREEMENT TERM
This Agreement shall be effective as of the date of execution for a period of
twelve (12)months, June 1,201OtoJune 1.2U11.Motorcycles leased under
this Agreement are to be used for Police and related activities only.
2) PAYMENT PERIOD
Upon delivery of motorcycles to Leaoee. Lessee ohoU make o one-time
payment in the amount of nineteen thoueend, seven hundred fnhY do||one
($10.740.00). Payment shall be nediofootnry compensation for the use of all
seven motorcycles, cost of the equipment installation (as listed in Paragraph
1 of this mQnaement), plate transfer and tU|e, and administrative cost |oeo the
residual value of all seven (7) motorcycles. Pn|ioo equipment ehu|| be
installed byLessor prior todelivery ofthe motorcycles toLessee.
zQ INSURANCE
/t its own expense, Lessee shall carry Casualty Insurance with respect tothe
motorcycle and ohuU carry Public Liability and Property Damage Insurance
sufficient to the protect the full value of the equipment and to protect the
Lessor from liability in all events. The Lnoone shall carry Worker's
Compensation |naumnma covering all employees working on. in, near, or
about the motorcycle and shall require any other person working on, in, near,
nrabout the motorcycle to carry such coverage. The Lessee ahn|| furnish to
the Lessor, upon request, certificates or other satisfactory evidences of all the
insurance coverages described above as required by the terms and
conditions ofthis Agreement.
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� INDEMNITY
The Lessee shall and does hereby indemnify and save the Lessor harmless
from any and all liability arising out ofthe |eaeing, renUng, opemdon, contno\,
use, delivery and/or return of the motorcycles inc|uding, but not limited to
injuries causing poranno| injury, property damage and/or death, but nhoU be
credited with any amounts received by the Lessor with respect thereto from
liability insurance secured by the Lessee. That indemnification ohoU include
all costs and expenses including attnrnay'a fees incurred by the Lessor in
connection with any suits oractions resulting from any special liability.
6) LIENS
The Lessee shall not directly orindirectly create, incur, assume or suffer to
exist any mortgage, pledge, |ien, nharge, encumbrance or claim on or with
respect to the equipment, except with respect tothe respective rights of the
Lessor as herein provided. Lessee shall prompt|y, utits own expense, take
such actions as may be necessary to duly discharge any such mortgage,
pledge, |ien, charge, encumbrance or claim not excepted above if the same
shall arise at any time.
7) TAXES
The Lessee shall comply with all lawn and shall pay all haxee, if any,
including, but not limited to, Sales and Use Taxes, Excise Taxes, Personal
Property Taxes and Aooeoomonie and Penalties, Licensee` Registration
Fees, Freight and Transportation charges, Permits and any similar charges
imposed on the mwnomhip, poaoono|on or use of the motorcycles during the
term ufthis Agreement.
O; CARE AND USE OFEQUIPMENT
The Lessee at its own cost and expense shall maintain the motorcycles in
good operating oondition, repair and mppeenanoe, and protect them from
deterioration other than wear and tear incurred as o n*ou|t of the motorcycle
being used an an official police vehicle; shall use the motorcycle for police
and related activities only, without abuse,; shall not make modif|oationo,
alterations or additions to the motorcycle (other than routine maintenance and
necessary rnpe\rn` normal operating eoceaaorieo, or controls) without the
written consent of Chicago Harley-Davidson, Inc., which shall not be
unreasonably withheld. Chicago Harley-Davidson, Inc. shall have the right
during normal hours toenter upon the Evanston Police Department premises
where the motorcycle is located in order to inopuot, observe or otherwise
protect their interest and the Lessee oheU reasonably cooperate in affording
them the opportunity to do the same. No motorcycle, hnwevor, ohoU be
removed from eemioo while on official police business for the purpose of
Lessor enforcing its rights to inspect orobserve the motorcycle. The Lessee
agrees to maintain the motorcycle pursuant to the Manufacturer's Standard
Preventative Maintenance Contract and/or Recommendations and may donn
without additional authorization nrpermission from Lessor.
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9) DAMAGE ORDETERIORATION OPEQUIPMENT
|nthe event the equipment ispartially damaged or destroyed prior hothe end
of this Agneemont, wear and tear incurred as e result ofuse an an ofhdo|
police vehicle excepted, if reasonably pooeib\*, and tothe extent reasonably
practicable, the Lessee will, in atimely fashion, have the Equipment repaired
and restored to its condition and working order aoa City ofEvanston Police
motorcycle.
10) EVENTS OPDEFAULT AND REMEDIES
Lessee shall be deemed to be in default hereunder upon the occurrence of
any ofthe following events ofdefault:
m. Lessee shall fail to make its one payment specified in paragraph 3
hereinobnve.
h. Lnenae aho|| fail to keep any such other torm, covenant, or condition
contained written heroin.
11) NOTICE AND CURE
Upon the occurrence of an event of default as specified abovo. Lessor shall
give written notice to Lessee that it is in default. |fLessee fails hn remedy
such default within thirty (30)dayo after written notice of default in iesuad.
Lessor or its assigns ohoi\ have the right, at its option without any further
demand ornotice, topursue any one ormore ofthe following remedies:
a. Re-enter and take possession nfthe equipment enforcing this Agreement
or terminating this Agreement, and repossess the equipment and ee|| or
lease the equipment for the account ofLessee, holding Lessee liable for all
payments up to the effective dote of such leasing or selling and for the
difference in the purchase prioe, nanto| and other amounts paid by Lessee
hereunder. This remedy shall not be available during the time which said
motorcycle(s) is on official police business, but this remedy shall become
available to Lessor immediately after that motorcycle(s) is removed from
service orionolonger onofficial police business.
b. Take whatever action at |avv or in equity may appear necessary or
desirable tocollect the payments then due and thereafter tobecome due,
urtoenforce performance and observance ofany obligation, agreement or
covenant ofLessee under this Agreement.
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THE LESSEE STATE THAT BYSIGNING THIS LEASE AGREEMENT, |THAS BEEN GIVEN A
COMPLETED COPY OFTHE LEASE AGREEMENT AND NOTICE OFASSIGNMENT 0FTHIS
LEASE AGREMENT BY THE LESSOR TO A PARTY OF HIS CHOICE.
LESSEE CITY OFE\ANSTON
202V8GBURYAVENUE
E\V\NGTON.|LL|N0|GOO2O1 '
c~�
DATE: 7'////«' BY:
TITLE
THIS LESSOR ACCEPTS THIS LEASE AGREEMENT. THE LESSOR ASSIGNS THIS LEASE
AGREEMENT T0APARTY OFITS OWN CHOOSING UNDER THE ASSIGNMENT SHOWN ON
THE COVER PAGE OF THIS LEASE AGREEMENT,
LESSOR CHCAGOHARLEY-D/V/DSON.INC
2g28PATRIOT BLVD.
GLENV
DATE: � BY: �^--- /
TITLE Pmn�nm�n�
Approved as to form:
W. Grant Farrar
Corporation Counsel
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