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HomeMy WebLinkAboutAnnual Harley Davidson Lease Agreement for Police Department for 7 MotorcyclesPOLICE MOTORCYCLE, LEASE AGREEMENT This Police Motorcycle Lease Agreement ("Lease") is made effective on this I" day of June, 2012, by and between C.H.D. Partners, L,,L.C., a Louisiana limited liability company, d/b/a Chicago Harley-Davidson, herein represented by its duly authorized Manager, Bret Irvine ("Lessor"), and City of Evanston, Evanston Police Department, a governmental municipality, herein represented by its duly authorized officer, IVAI-yV 606(Li fotez-("Lessee"). Lessee hereby accepts and leases for itself, its successors and assigns, and acknowledges due delivery and possession of the following described property, to -wit: See attached list of those certain motorcycles and other equipment and accessories attached thereto more specifically described on Exhibit "A", attached hereto and made a part hereof (collectively the "Motorcycles,,); this Lease is made and accepted for and in consideration of all the terms, conditions, and stipulations hereinafter set forth: I. Term. Lessor hereby leases to Lessee the Motorcycles for a term of twelve (12) consecutive months beginning on the date hereinabove ("Term"). The Lessee shall have up to two (2) additional options to renew the Lease for a period of twelve (12) consecutive months each by giving written notice to Lessor at least thirty (30) days prior to the end of the initial term or any renewal term. 2. Rent. The rent for the Motorcycles is $24,780.00 per year for the first year, $26,019.00 per year if the first renewal term is exercised by Lessee, and $27,319.00 per year if the second renewal term is exercised by Lessee (collectively the "Rent"). Rent shall be payable by Lessee to Lessor on the first day of the initial term or any renewal term on June 1, 2012, June 1, 2013, and June 1, 2014, respectively. The rental amount includes the cost of installation or transfer of police equipment and accessories purchased by Lessee at the beginning of the Lease, as well as the cost of removal of such police equipment and accessories at the end of the Lease. The Rent shall not be reduced or abated for any damaged or out -of -service Motorcycles during the Term of this Lease. Lessee agrees that Lessor has purchased the current equipment on the Motorcycles and that Lessee's annual Rent includes the cost of this equipment amortized over five (5) years (i.e. $4,200 a year for 5 years is a total of $21,000). The effective date of this Lease is year 2 of that 5 year amortization period on the equipment. If for any reason this Lease is nullified or not renewed, then the Lessee shall owe Lessor the remaining balance of the equipment cost immediately. Prior to the effective date of this Lease, the remaining balance of the equipment is $16,800.00. 3. Maintenance and Repairs. The Lessee is solely responsible to maintain the Motorcycles in good working order and to use them responsibly in comprehensive police operations for the City of Evanston. For the entire Term hereof, the Lessor assigns the full manufacturers' warranty to the Lessee. The Lessee shall use only original manufacturer's parts in required maintenance and repairs to the Motorcycles. 1031962.12 4. Use. The Lessee will use the Motorcycles in comprehensive police operations for the City of Evanston. The Lessee's use is subject to no mileage limitation. 5, Inspection. After reasonable notice to the Lessee, and in reasonable circumstances, the Lessee shall make the Motorcycles available to Lessor for inspection and the Lessor may inspect the Motorcycles at the Lessee's premises. 6. Insurance. At its own expense, Lessee shall carry casualty insurance with respect to the Motorcycles and shall carry public liability and property damage insurance sufficient to protect the full value of the Motorcycles and to protect the Lessor from and and all liability. Lessee shall name Lessor as an additional insured on all such policies covering the Motorcycles. The Lessee shall carry worker's compensation insurance covering all employees working on, in, near or about the Motorcycles and shall require any other person working on, in, near or about the Motorcycles to carry such coverage. The Lessee shall furnish to the Lessor upon request certificates or other satisfactory evidence of all insurance coverages described above as required by the terms and conditions of this Lease. 7, Indemnity. The Lessee shall and does hereby indemnify and hold the Lessor harmless from any and all liability arising out of the leasing, renting, operation, control, use, delivery and/or return of the Motorcycles, including but not limited to injuries causing personal injury, property damage and/or death. Such indemnification shall include any and all costs and expenses, including reasonable attorneys' fees, incurred by Lessor in connection with any suits, claims or causes of actions arising out of this Lease and/or use of the Motorcycles. 8. Sublease. The Lessee shall not sublease the Motorcycles or use them except as provided herein. 9. Acceptance. The Lessee has inspected the Motorcycles and found them free of obvious defects, and accepts them for the purposes hereof. 14. Default, Should Lessee at any time violate any of the conditions or covenants of' this Lease, or discontinue the use of the Motocycles for the purpose for which they are rented, or fails to pay the rent punctually as stipulated herein; or upon the adjudication of Lessee in bankruptcy, the appointment of a receiver for Lessee, or the filing of bankruptcy, receivership or respite petition by or for Lessee; or upon Lessee's suspension, failure or insolvency; and should any such violation continue for a period of five (5) days after written notice has been given Lessee, then, at the option of Lessor, the rent for the whole unexpired term of this Lease shall at once mature and become immediately due and payable; and Lessor shall have the further option to at once demand the entire rent for the whole term, or to immediately cancel this Lease, or to proceed for past due installments only, reserving Lessor's rights to later proceed for the remaining installments, all without putting Lessee in default, Lessee to remain responsible for all damages or losses suffered by Lessor, Lessee hereby assenting thereto and expressly waiving any legal notices to surrender the Motorcycles. Lessor shall also have the right to enter Lessor's premises and take possession of the Motorcycles and to re -rent the Motocycles at the best obtainable price, and Lessee shall remain liable to Lessor for any difference in the rent price in the event the re -renting is for a lesser rental. Lessee shall also be responsible to Lessor for any expenses, commissions or fees in connection with such repossession and re -renting. Exercise of 2 1031962 12 this right of re-entry and privilege to re -let shall not in any way prejudice Lessor's right to hold Lessee liable for any amount due under this Lease in excess of the amount for which the Motorcycles are re -let. All rights and remedies of Lessor under this Lease shall be cumulative and none shall exclude any other rights or remedies allowed by law, 11, Non-Anorouriation. This Lease is subject to non -appropriation. If, for any reason, the Lessee does not appropriate sufficient funds to pay rent as herein provided, this Lease shall terminate at the end of the then current fiscal year for which funds had been appropriated. hi such case, the Lessee shall promptly thereafter return all Motorcycles to the Lessor without payment, penalty, or further amount due beyond unpaid monthly rents due prior to the Lease termination and the Lessor's reasonable and documented expenses required to restore the returned Motorcycles to their original condition. 12. Ex iration. At the expiration of the lease Term, the Lessee shall immediately return the Motorcycles to the Lessor in good working order. The Lessee shall promptly reimburse the Lessor for reasonable and documented expenses required to restore the returned Motorcycles to their original condition. Motorcycles are to be returned in the same condition as delivered. Any police equipment or accessories paid for by Lessee and installed on the Motorcycles by Lessor shall be returned to Lessee in "as is" condition at the termination of the Lease. 13, Solicitation. The Lessor has not employed or retained any company or person, other than a bona fide employee working solely for him, to solicit or secure the subject contract. The Lessor has not paid or agreed to pay any person, other than a bona fide employee working for him, any fee, commission, percentage, gift or any other consideration contingent upon or resulting from this lease. M. Jurisdiction, The Lessor herein consents and yields to the j urisdiction of the State Civil Courts of the Parish of Orleans, and does hereby formally waive any pleas of jurisdiction on account of the residence elsewhere of the Lessor. 15, Governing Law. This Lease is governed by the laws of the State of Illinois. 16. Amendments. This lease may not be modified or terminated except in writing signed by all parties hereto, and shall be binding upon the successors and assigns of the parties hereto. 17. Counterparts. This Lease may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one in the same instrument. r� IN WITNESS WHEREOF the parties hereto have made and executed this Lease on this day of �� , 2012. LESSOR: LESSEE: 3 103196212 C.H.D. PARTNERS, L.L.C. CITY OF EVANSTON, EVANSTON d//b/a CHICAGGO H RLEY-DAVIDSON POLICE DEPARTMENT Bret Irvine, Its Duly Authorized Manager Print Name and Title; . 1,044 LLL 1 v1 G 2 CorporationApproved as to form; W. Grant Farrar 103 062 12 EXHIBIT "A" LISTOF MOTORCYCLES Model No. bescription Notes /J�9y /C-Zfwz=- v 1031962 12