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Res. No. 107-09-12916RESOLUTION NO.: 107-09-12916 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWO YEAR LEASE AND MAINTENANCE CONTRACT FOR TWO POLICE MOTORCYCLES WITH PETERSON'S HARLEY - DAVIDSON OF MIAMI, DISBURSEMENT OF FUNDS UP TO $10,200.00 PER YEAR FROM ACCOUNT NUMBER 1910 -521 -4450 (PURCHASE/LEASE POLICE VEHICLES), PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Police Department is required to enforce the traffic laws of the State of Florida to provide for the public's safety, and police motorcycles play an important part in this enforcement effort which has been shown to reduce the number of traffic crashes, thereby making our community safer, and WHEREAS, motorcycles officers can quickly and safely respond to calls concerning traffic crashes where vehicle traffic is stopped, maintain preventive traffic enforcement programs, and provide escorts, and WHEREAS, the previous two -year lease will expire June 30, 2009 and the term of the new two year lease contract will commence July 1, 2009 and end on June 30, 2011, requiring monthly payments of $425.00 per motorcycle; and WHEREAS, Peterson's Harley- Davidson of Miami is the only vender in Miami -Dade County for the leasing of these police motorcycles; and WHEREAS, the annual contract is less expensive than their nearest competitor in Broward County and it is more efficient to use a local dealer for service and repairs. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA Section 1. The City manager is authorized to enter into a two year lease agreement and disburse funds in the amount of $2,550.00 from the 2008/09, $10,200.00 from the 2009/10 and $7,650.00 from the 2010/11 budgets respectfully, payable to Peterson Harley- Davidson of Miami, and charged to account number 1910 -521- 4450 (Purchase /Lease Police Vehicles), with current year (2008/09) account balance of $2,597.00. Section 2. That the City Manager is authorized to execute such contracts and documents as are necessary to continue the lease of said vehicles, providing for an effective date Pg. 2 of Res. No. 107 -09 -12916 Two Police Motorcycles Peterson Harley- Davidson 2 -Year Lease PASSED AND ADOPTED this 16th day of June , 2009. ATTEST: cy CITY CLERK READ AND APPROVED AS TO FORM: CITY. ORNEY APPROVED: COMMISSION VOTE­' 5 -0 Mayor Feliu: Yea Vice Mayor Beasley: Yea Commissioner Palmer: Yea Commissioner Newman: Yea Commissioner Sellars: Yea To: Via: From: Date: RE: CITY OF SOUTH MIAMI INTER - OFFICE MEMORADUM Honorable Mayor, Vice Mayor & City Commission W. Ajibola Balogun, City Manager Robert F. Richardson II, Chief of Police ,494- June 16, 2009 Motorcycle Rental Agreements Agenda Item No South Miami bftd NI•AmedcaCltY 1 2001 Resolution: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWO YEAR LEASE AND MAINTENANCE CONTRACT FOR TWO POLICE MOTORCYCLES WITH PETERSON HARLEY- DAVIDSON OF MIAMI, DISBURSEMENT OF FUNDS UP TO $10,200.00 PER YEAR FROM ACCOUNT NUMBER 1910 -521 -4450 (PURCHASE/LEASE POLICE VEHICLES), PROVIDING FOR AN EFFECTIVE DATE. Request: The Police Department is requesting the City to enter into a two year leasing agreement with Peterson Harley- Davidson of Miami for two police motorcycles. Reason/Need: The Police Department is required to enforce the traffic laws of the State of Florida to provide for the public safety. Our motorcycle officers are an important part of our enforcement effort. Research has shown the traffic enforcement help to reduce the number of traffic crashes. The motorcycle officers are able to respond to the scene of crashes, perform specialized traffic enforcement duties, and their presents acts as a deterrent for traffic violators. The current contract ends on June 30, 2009. This contract will be for July 1, 2009 to June 30, 2011. Peterson Harley - Davidson's leasing cost is $425.00 per motorcycle per month, Peterson's Harley- Davidson of Miami is the only vendor in Miami -Dade County for the leasing of these police motorcycles; and the annual contract is less expensive than their nearest competitor in Broward County and it is more efficient to use a local dealer for service and repairs; Cost: $2,550.00 (3 months) from the 2008/09 with a balance of $2,597.00 remaining in the account 1910 -521 -4450 $10,200.00 (12 months) from the 2009/10 and $7650.00 (9 months) from the 2010/11 budgets respectfully. Backup Documentation: O Draft Resolution, Agreement from Peterson Harley- Davidson of Miami and Quote from Ft. Lauderdale Harley- Davidson O O M N N N O M 2009 LEASE AGREEMENT FOR IIARLEY- DAVIDSON POLICE MODELS This agreement made and entered into between PETERSON'S HARLEY- DAVIDSON OF MIAMI, L.L C., desi�ated as the lessor, and the City of South Miami, designated as the lessee, made this day ofJLA!V- . 2009 for the purpose of leasing to the Lessee (2 )two HARL,EY- DAVIDSON Police motorey<,le under the following terms and conditions: EQUIPMENT-- 2009 HARLEY- DAVIDSON model FLHP ROADKING Police solo motorcycle with the complete description provided on attached specification sheet. A OREEMENT TERNI- The terms of this Agreement shall commence as of the date of deliver} of the aforesaid police motorcycles and ihereafter for a period of twenty -four (24) months. At the end of the Agreement Teem, the City shall have the option of returning the 2009 models and acquiring 2011 models under the same equipment items and for the same terras and conditions .as set forth herein. If Lessee decides not to retain tae 2009 model motorcycles, they must be returned to Peterson's Harley- Davidson of Miami, L.L.C. Motorcycles teased under this Agreement are to be used for police and related activities: off -duty details, funeral escorts and parades only. Any other use shall require the prior written consent of Lessor. PAYMENT PERIOD- Lessee shall pay mon'.hly payments in the amount of $425.00 for each motorcycle. Payments include the cost of equipmen , payment of interest, full maintenance and administrative costs less the residual value of the motorcycle. Monthly rental, per motorcycle, shall be payable by the Lessee to Lessor on the 5th day of each month during the term of this lease. i �LIWIJU1.L*a At its own expense, the lessee shall carry casualty insurance in the amount of $2,000,000 with respect to the motorcycle and shall carry Public Liability and Property Damage Insurance sufficient to protect the actual cash value of the equipment and to protect the Lessor from Liability in all events. The Lessee shall carry Worker's Compensation covering all its employees working on, in, or about the motorcycle. The Lessee shall famish to the Lessor certificates or other satisfactory evidence of all insurance coverage described above as required by the terms and conditions of this agreement. The Lessor shall be named as additional insured and loss payee. HOLD HARMLESS INDEMNIFICATION BETWEEN PARTIES- The Lessee shall and does hereby indemnify and save the Lessor harmless from any and all liability arising out of the leasing, renting, operation, control, use, delivery and/or return of the motorcycle including, but not limited to injuries causing personal injury, property damage and/or death, except for damages resulting from a design fault in the product, but shall be credited with any amounts received by the Lessee with respect thereto from liability insurance by the Lessee. That indemnification shall include all costs and expenses including Attorney's fees incurred by the Lessor in connection with any suits or actions resulting from any special liability. G. LIENS- The Lessee shall not directly or indirectly create, incur, assume, or suffer to exist any mortgage, pledge, lien, charge, and encumbrance or claim on or with respect to the motorcycle, except with respect to the respective rights of the Lessor as herein provided. Lessee shall promptly, as its own expense, take such actions as may be necessary to duly discharge any such mortgage, pledge, lien, charge, encumbrance or claim not excepted above if the same shall arise at any time due to the Lessee's action or inaction. T z 0 N K W W W a O 0 m N N O M 7. TAXES AND FEES- The Lessee shall pay any necessary taxes or fees, including but not limited to Sales and Use Tax, y Excise Tax, Personal Property Tax, assessments, penalties, licenses, fees, registration fees, N freight and transportation charges, permits and any similar charges imposed on the ownership, °m possession or use of the Motorcycle during the term of the Agreement. Both parties recognize = that the City of South Miami is Tax exempt under Florida Law. a 8. CARE AND USE OF EQUIPMENT- The Lessor agrees to maintain the Motorcycle pursuant to the Manufacturer's Standard Preventative maintenance Contract and/or recommendation. All repairs shall be made at PETERSON'S HARLEY- DAVIDSON OF MIAMI, L.L.C., 19400 NW 2ND AVE, MIAMI, FLORIDA 33169. The Lessee, at its own cost and expense, shall ensure delivery of the Motorcycle to PETERSON'S HARLEY- DAVIDSON OF MIAMI, L.L.C., 19400 NW 2ND AVE, MIAMI, FLORIDA 33169, at regular intervals set up by the Lessor in accordance with the Service Schedule attached hereto as Exhibit 2. The Lessee shall protect the motorcycle from deterioration other than normal wear and tear, shall use the Motorcycle for Police related activities only, without abuse, and shall not make modifications, alternations or additions to the Motorcycle (other than normal operating accessories or controls) without written consent of the Lessor, which shall not be unreasonably withheld. The Lessor, shall have the right, during regular business hours to enter upon the premises where the Motorcycle is located in order to inspect, observe or otherwise protect the Lessor's interest and the Lessee shall afford them the opportunity to do so. 9. DAMAGE OR DETERIORATION OF MOTORCYCLES- In the event the Motorcycle is partially damaged or destroyed due to the actions of the Lessee or its employees prior to the end of this agreement, the Lessee will promptly have the Motorcycle repaired and restored to its original condition and working order. Any damage done to lease motorcycles during the officers training will be repaired as soon as the training is completed at Lessee's expense. This includes damage done to engine, transmission, clutch, brakes and not to 0 0 0 W N W 0 O just the paint and body parts. All repairs must be done at the Lessor's repair facility. In case of theft or total loss of the Motorcycle, the replacement value of the Motorcycle shall be $20,500.00 minus 2% for each month the agreement is in effect. 10. SELECTION OR RID> R- The Lessor reserves the right to reject any rider of his Motorcycle so as to be assured that proper handling and care is exercised. 11. RIDER RESPONSIBILITY AND PRIVILEGES- The rider will be responsible for keeping the motorcycle clean and is required to report any defects or abnormalities. The rider shall be allowed to use the motorcycle to go back and forth to work provided that it is fully insured at all times by the lessee and the distance is no more than thirty (30) miles each way. 12. EVENTS OF DEFAULT AND REMEDIES- Lessee shall be deemed to be in default hereunder upon the happening of any of the following events of default A. Lessee shall fail to make any periodic payment, or to pay any other payments required to be paid hereunder, or B. Lessee shall fail to keep any such other term, covenant or condition contained herein. Upon the occurrence of an event of default as specified above, and upon the failure of Lessee to remedy such event of default with all reasonable dispatch within a period of thirty (30) days, Lessor or its assigns shall have the right, at its option without any demand or notice, to pursue any of the following remedies: 1) by written notice to Lessee, declare an amount equal to all payments due during the agreement term to be immediately due and payable as liquidated damages and not as a penalty, whereupon the same shall become immediately due and payable. i 2) re -enter and take possession of the equipment, enforce this agreement or terminate the agreement, and repossess the equipment and sell or lease the equipment for the account of the CD Lessee, holding Lessee liable for all payments up to the effective date of such leasing or selling In and for the difference in the purchase price, rental and other amounts paid by the Lessee or purchaser pursuant to such lease or sale and the amounts payable by Lessee hereunder, and 0 M a 3) any action at law or in equity as may appear necessary to collect the payments then M due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Lessee under this agreement upon failure to comply with any term, M covenant or condition contained herein. 13. MAINTENANCE AND EQUIPMENT- Lessor shall provide full maintenance of the motorcycle at no cost to the Lessee. Lessor shall not supply Lessee with gasoline, tires, radios and clutches worn due to training. All maintenance shall be done at PETERSON'S HARLEY - DAVIDSON OF MIAMI, L.L.C., 19400 NW 2ND AVE, MIAMI, FLORIDA 33169. 14. SUBLEASE OR ASSIGNMENT - Neither the Lessor, nor the Lessee may assign this lease. Neither the Lessor nor the Lessee may effect the subleasing of the motorcycle. 15. TERMINATION- This agreement may be terminated by either party for any cause, upon thirty (30) days written notice by the terminating party. Lessor shall be entitled to lease payments due or incurred to the date of such termination. V z 0 N K W W W IL N N N 0 m x a In witness whereof, Lessor and the Lessee have caused this instrument to be signed, all on the day and year first above written. WITNESS: By: 4a 4 —rew Print Name: 4a+kyThom-as WITNESS: Maria M. Menenk Print Name: LESSOR: Peterson's Harley-Dayadson of Miami, LLC By: Print Name: e 614- /1Qdlls^ LESSEE: CITY OF SOUTH MIAMI CITY MANAGER -WONNE &-. MCKINLFY --- W. AJIBOLA BALOGUN April 3, 2009 City of South Miami Police Department Via Email: dsalemo @cityofsouthmiami.net Lease Proposal Peterson's Harley- Davidson of Miami, L.L.C. proposes to lease the City of South Miami Police Department, Harley- Davidson FLHP police motorcycles. The motorcycles will include all equipment, i.e.: lights, box, siren etc. The lease term is twenty-four (24) months and will be billed monthly as per the pricing schedule below. Solid color black OR white $425.00 per month The price includes everything except tire replacement, physical damage and repairs from training usage. If you have any questions, please feel free to contact me at 305- 651 -4811 ext 501. Sincerely, Are Armstrong General Manager Peterson's Harley- Davidson of Miami (North) 2 If you have any further questions please feel free to contact me at any time. I can be reached on my cell phone 954- 257 -2073 at any time. Thanking you in advance, Barry T. Kuhnly Manager, Police and Fleet Sales Bruce Rossmeyer Harley- Davidson Ft.Lauderdale/DaytonaBoston May. 8. 2009 8:48AM cdiJlt u� May 7, 2009 Capt. Dan Salerno South Miami Police Department 6130 Sunset Drive South Miami, FL 33143 Dear Capt. Salerno: No. 1531 P. 1 Thank you for taking the time from your busy schedule to speak with me and discuss topics of mutual interest regarding the current fleet and related topics. Please consider this letter as a follow up to our conversation and an open proposal offered for your review and consideration. Ft. Lauderdale Harley- Davidson is prepared to make the following offer: Ft. Lauderdale Harley- Davidson is prepared to lease to the South Miami Police Department, `2010 FLHP Road King police motorcycles, two tone blue and silver, with anti -lock brakes on a two year lease for $350.00 per month per motorcycle, or $450.00 per month per motorcycle with maintenance. Ft. Lauderdale Harley- Davidson will install your police emergency equipment on the new motorcycles for $350.00. Harley - Davidson Motor Company is currently in the process of changing from 2009 model year to 2010 model year and delivery schedule is currently 60 -90 days. Should you decide to go forward with this offer I would need a letter of intent by July 1, 2009 to try and get the new motorcycles delivered by Septemberl, 2009. May. 14. 2009 1:58PM MOTORCYCLE LEASE AGREEMENT No, 1550 P. 2 This Motorcycle Lease Agreement (the "Lease") is made this 14th day of May, 2009 by and between Bruce Rossmeyer's Fort Lauderdale Harley Davidson, 2871 North Federal highway, Ft. Lauderdale, FL 33306, ("Dealer" or "Lessor ") and The City of South Miami, (the "Department" or "Lessee "), whose address is 6130 Sunset Drive, South Miami, FL 33143, for the lease of police motorcycles as described in Exhibit "A" attached hereto, for use by the Department's authorized employees in the performance of police related or law- enforoement duties. If department policy allows, police motorcycles may be used as take home vehicles. The terms and conditions of the Lease are as follows: 1. Term: The term of this Lease shall be twenty -four (24) months commencing on August 1, 2009 and ending on July 31, 2011. Lessee shall have the right to extend the term of this Lease, provided that Lessor agrees, upon the same terms and conditions as provided in the Lease. In the event Lessee elects to exercise its option to renew the terms of this Lease, then Lessee shall provide Lessor with written notice of its election. 2. Payment: Lessee shall make monthly lease payments to Lessor on or before the first day of each month to the Lessor in the amount of $450.00 for each vehicle commencing August 1, 2009 which includes customary maintenance as per manufacturer's recommendation. Maintenance will include all service, tires, brakes and cost of labor except to the extent that same are due to misuse, neglect or damage from accidents. Accident damage, training damage, and clutch repair are not included. 3. Miscellaneous Fees: Lessee agrees to pay for all official fees in connection with the certificate of title, registration and license fees and any applicable taxes, for each of the leased vehicles. Lessor agrees to waive all charges with respect to freight and dealer prep of the vehicles except those cost associated with the installation of a police package or any other additional equipment purchased by the Department, for the vehicles. 4. Maintenance, Repairs and Operating Expenses: Lessee is responsible to keep the vehicles in good working order. Lessee agrees to service the vehicles according to the manufacturer's recommendations as outlined in the owner's manual for the vehicles, and as requested by the manufacturer in any recall campaign. Lessee's use or repair of the vehicles must not invalidate any warranty. The Lessee has elected to participate in a Lease that includes maintenance by Lessor of the vehicle. The cost of May, 14. 2009 1.58PM No. 1550 P. 3 2 such maintenance is included in the monthly lease payment. The maintenance plan covers parts and labor for all service and maintenance recommendations as set forth in the Harley Davidson Owner's Manual as well as tire replacement and brake repair not necessitated by misuse, neglect, or damage from accidents. 5, Use and Subleasing: Lessee agrees that the vehicles (a) will be operated only by authorized licensed drivers employed by Lessee as law - enforcement officers; (b) will be kept free of all fines, liens and encumbrances; (c) will not be used illegally, improperly; for hire, or contrary to the manufacturer's recommendations; and (d) will not be altered, marked or have equipment installed on them without Lessor's consent. The installation of police equipment and department's police markings will be allowed. 6. Insurance: During the term of the Lease Lessee must maintain public liability and physical damage insurance on the vehicles that covers both Lessee and Lessor. Lessee agrees that the Department's own liability and personal injury protection insurance will provide primary insurance coverage up to its full policy limits. Lessor must be named as "additional insured" on your insurance policy and "loss payee" for physical damage to the equipment. Lessee will provide Lessor will evidence of this insurance. Lessee's insurance policy must provide that Lessor will be notified in writing at least 10 days before the insurance is cancelled or coverage altered and that Lessor, or its representatives, may have full access to any claim file in the event of an insurable loss. In the event of a total loss, Lessee's maximum exposure shall be the Dealer's cost of the vehicle. 7. Notice of Accidents and Cooperation: Lessee agrees to cooperate fully with Lessor and any insurance company in the investigation and defense of any and all claims arising from possession and use of the vehicles. Lessee will make a complete report to Lessor within a reasonable time period after any accident, theft or loss involving the vehicles. 8. Indemnification: Lessee agrees to indemnify and hold Lessor, its affiliates, assignees, officers, agents and employees harmless from all losses, liability, damages, injuries, claims, demands and expenses; including attorneys fees, arising out of the use of the vehicles while in the care, custody or control of the Lessee. Lessee does not waive its right to sovereign immunity under 768.28 of the Florida Statues. Lessor agrees to indemnify and hold Lessee, its affiliates, assignees, officers, agents and employees harmless from all losses, liability, damages, injuries, claims, demands and expenses, including attorneys fees, arising out of the use of the vehicles while in the care, custody or control of the Lessor. May. 14. 2009 1:59PM No. 1550 P. 4 9. Limitation of Liability: Lessor shall not be liable for any indirect or Consequential damages or inconvenience (except for those relating to personal injury) which may result to Lessor from any damages to, or defect in, the vehicles for the time needed to repair or service the vehicles. Monthly lease payments shall continue and not be reduced or delayed during this time. Lessor makes no express warranties covering the vehicles. In particular, Lessor makes no express warranties of vehicle condition, merchantability, durability or fitness for a particular purpose of use covering the vehicle, and Lessor expressly disclaims any such express warranties. 10. Return of the Vehicles: At the end of the Lease, the Department must return the vehicles to Lessor in good condition, without damage, excessive wear or use and with all the original equipment installed by the manufacturer. FORT LAUDERDALE HARLEY DAVIDSON By: By: Barry Kubtily, Manager Police/Fleet Sales R Leasing Title: CITY OF SOUTH MIAMI Signature Print Name May. 14. 2009 1:59PM No, 1550 P. 5 EXHIBIT "fi" May 13, 2009 Lessee's Name: City of South Miami Model Year: 2010 Model Description: i±LHP, solid black in color with anti -lock bzakes Number of Units: 2 Vehicle Identification Numbers: 1. 2. 0 RESOLUTION NO. 27-07-12412 A RESOLUTION OF THE MAYOR AN THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWO YEAR LEASE AND MAINTENANCE CONTRACT FOR TWO POLICE MOTORCYCLES WITH PETERSON'S HARLEY DAVIDSON OF MIAMI; DISPERSEMENT OF FUNDS ($800.00 PER MONTH FOR TWO MOTORCYCLES) FROM ACCOUNT #001 - 1910 -521 -4450, PURCHASE/LEASE POLICE VEHICLES; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the police department must enforce the traffic laws of the State of Florida and to provide for public safety; police motorcycles play an important part in this enforcement effort which has been shown to reduce the number of traffic accidents, thereby making our community safer; and WHEREAS, motorcycle officers can quickly and safely respond to calls concerning accidents in heavy traffic, maintain preventive traffic enforcement programs and provide escorts; and WHEREAS, the previous lease expires on April 30, 2007, the new lease is two year lease with Peterson's Harley Davidson of Miami that requires monthly payments of $400.00 per month per motorcycle; and WHEREAS, the funding for this request is from the Purchase /Lease Police Vehicles Account # 001- 1920- 521 -4450, with an account balance of $8,677.69 before this request; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: Section 1. The City Manager is authorized to disperse $4,800.00 to Peterson's Harley Davidson to implement a two lease /maintenance agreement. Section 2. That the dispersement be charges to account 4001- 1910 - 521 -4450 that has a current balance of $8,677.69. Section 3. This resolution shall take effect immediately upon execution. PASSED AND ADOPTED this 20 day of February , 2007. TEST: APPROVED: 1MM CITY CLERK ' Commission Vote: 5 -0 READ AN I? AS TO FO Mayor Yea Vice Mayor Wiscombe: Mayor Yea _ Commissioner Palmer: Yea CITY AT EY Commissioner Birts: Yea Commissioner Beckman: Yea W 0 0 0 N N O m X Q W Co a N N N O m z 2007 Lease Agreement Between Peterson's Harley Davidson of Miami And South Miami Police Department For 2 Police Motorcycles IHDIFHM187Y704445 1HD I FHM177Y704906 THIS AGREEMENT is entered into this _L day o t 007_, between PETERSON'S HARLEY - DAVIDSON OF MIA L. . ( "Lessor ") and Police Department, a municipal corporation organized and existing under the laws of the State of Florida ( "Lessee "). NOW, THEREFORE, in consideration of the mutual terms and conditions, promises, covenants and payments hereinafter set forth, the Lessor and Lessee agree as follows: W 0 0 m ro N m N O m X Q W a N N O m 2 D. ARTICLE I EQUIPMENT 2007 HARLEY- DAVIDSON model FLHP -I ROAMING Police solo motorcycle with the following specs: w a' - Black Color °z - Performance Package N - Black Storage Light Box - LED Light Package (Front, Side and Rear LED) 0 - Harley Davidson Siren °a - PA System - Anti -Lock Brakes u - Extra Rear Brake Lights - Oil Cooler 2 W O 0 m ro N lD N O m X Q a N O m S a TT ARTICLE lI TERM The term of Agreement shall be for a period of twenty -four (24) months. At the end of iL the agreement term, the Lessee shall have the option of returning the 2007 and models a and acquiring 2007 models under the same equipment items and conditions set forth w herein. If the Lessee decides not to retain the 2007 models, they must be returned to > Lessor. a 0 z N ARTICLE III z PAYMENT PERIOD Lessee shall pay monthly in the amount of $425.00 for each motorcycle. Payments include the cost of equipment, payment of interest, full maintenance and administrative costs less the residual value of the motorcycle. Monthly rental, per motorcycle, shall be payable by the Lessee to Lessor on the 5"' day of each month during the term of the lease. ARTICLE IV NOTICE Whenever either party desires to give notice to the other, it must be given by written notice, sent by certified United States mail, with return receipt requested, hand delivered or by facsimile transmission with proof of receipt, addressed to the party for whom it is intended, at the place last specified, and the place for giving of notice in compliance with the provisions of this paragraph. For the present, the parties designate the following as the respective places for giving of notice, to -wit: 0 0 0 CO M N O N O M X 4 W N a N l0 N O M s a w 0 O a m T, Z 0 N K W F W a FOR LESSOR: Ace Armstrong, General Manager Peterson's Harley- Davidson of Miami, L.C. 19400 NW 2nd Ave. Miami, FL 33169 Telephone: 305-651-4811 Facsimile: 305- 653 -8006 11 O O LL W W W rc J J O N N O O W m N N N O m x a a CO N W N O V) i d ARTICLE V INSURANCE At it's own expense, the Lessee shall carry casualty insurance in the amount of $2,000,000 with respect to the motorcycle and shall carry Public Liability and Property Damage Insurance sufficient to protect the actual cash value of the equipment and to protect the Lessor from liability in all events. The Lessee shall carry workers' compensation covering all employees working on, in or about the motorcycle. The Lessee shall furnish to the Lessor certificates or other satisfaction evidence of all insurance coverage described above as required by the terms and conditions of this agreement. The Lessor shall be named as additional insured and loss payee. ATRICLE VI HOLD HARMLESS INDEMNIFICATION BETWEEN PARTIES o To the extent permitted by law, the Lessee shall and does hereby indemnify and save the N Lessor harmless from any and all liability arising out of the leasing, renting, operation, 0 a control, use, delivery and/or return of the motorcycle including, but not limited to injuries o causing personal injury, property damage and/or death, except for damages resulting W from a design fault in the product, but shall be credited with any amounts received by the Lessee with respect thereto from liability insurance by the Lessee. The indemnification = shall include all costs and expenses including Attorney's fees incurred by the Lessor in N connection with any suits or actions resulting from and special liability. Nothing z 0 N W 5 F W a. 0 0 0 N N O M Ln contained herein is intended nor shall be construed to waive Lessee's right and N immunities under common law and Section 768.28, Florida Statutes. 0 M S a U T, Z 0 N rc w F W a ARTICLE VII LIENS The Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the motorcycle, except with respect to the respective rights of the Lessor as herein provided. Lessee shall promptly, as its own expense, take such actions as may be necessary to duly discharge any such mortgage, pledge, lien, charge, encumbrance or claim not excepted above if the same shall arise at any time due to the Lessees action or inaction. ARTICLE VIII TAXES AND FEES The Lessee shall pay any necessary taxes or fees, including but not limited to Sales and Use Tax, Excise Tax, Personal Property Tax, assessments, penalties, licenses, fees, registration fees, freight and transportation charges, permits and any similar charges imposed on the ownership, possession or use of the Motorcycle during the term of the Agreement. Both parties recognize that the is tax exempt under Florida Law. O 0 m M N t0 0 O M X Q LL d N N N O M i IL ARTICLE IX CARE AND USE The Lessor agrees to maintain the Motorcycle pursuant to the Manufacture's Standard Preventative Maintenance Contract and/or recommendation. All repairs shall be made at PETERSON'S HARLEY DAVIDSON OF MIAMI, L.C, 19400 NW 2 °d Ave, Miami, Florida 33169. The Lessee, as its own cost and expense, shall ensure delivery of the motorcycle to PETERSON'S HARLEY - DAVIDSON OF MIAMI, L.C., 19400 NW 2 "d Ave., Miami, Florida 33169, at regular intervals set up by the Lessor in accordance with the Service Schedule attached hereto as Exhibit 2. The Lessee shall protect the motorcycle from deterioration other than normal wear and tear, shall use the motorcycle for Police related activities only, without abuse, and shall not make modifications, alterations or additions to the motorcycle (other than normal operating accessories or controls) without written consent of the Lessor, which shall not be unreasonably withheld. The Lessor, shall have the right, during regular business hours to enter upon the premises where the motorcycle is located in order to inspect, observe or otherwise protect the Lessor's interest and the Lessee shall afford them the opportunity to do so. N N N N O O w w K LL J J O N W O O W M N N N O M X ib 4 N N N O m I a ARTICLE X DAMAGE OR DETERIORATION OF MOTORCYCLES N In the event the motorcycle is partially damaged or destroyed due to the actions of the Lessee or its employees prior to the end of this agreement, the Lessee will promptly have z the motorcycle repaired and restored to its original condition and working order. Any °O damage done to lease motorcycles during the officers training will be repaired as soon as m the training is completed at the Lessee's expense. This includes damage done to engine, u transmission, clutch, brakes and not just the paint and body parts. All repairs must be done at the Lessor's repair facility. In case of theft or total loss of the motorcycle, the a replacement value of the motorcycle shall be $19400.00 minus 2% for each month the agreement is in effect. ARTICLE XI SELECTION OR RIDER The Lessor reserves the right to reject any rider of his motorcycle so as to be assured that proper handling and care is exercised. N O M x LL m M M LL E a E w a r„ z 0 N X W F W a ARTICLE XII RIDER RESPONSIBILITY AND PRIVILEGES The rider will be responsible for keeping the motorcycle clean and is required to report any defects or abnormalities. The rider shall be allowed to use the motorcycle to go back and forth to work provided that it is fully insured at all times by the Lessee and the distance is no more than thirty (30) miles each way. ARTICLE XIII EVENTS OF DEFAULT AND REMEDIES Lessee shall be deemed to be in default hereunder upon happening of any of the following events of default: A. Lessee shall fail to make any periodic, or to pay any other payments required to be paid hereunder, or B. Lessee shall fail to keep any such other term, covenant or condition contained herein. Upon the occurrence of an event of default as specified above, and upon the failure of Lessee to remedy such event of default with all reasonable dispatch within a period of thirty (30) days, Lessor or its assigns shall have the right, at its option without any demand or notice, to pursue any of the following remedies: 0 0 co LO W N N O M x a LL m M J LL a w a N N by notice to Lessee, declare an amount equal to all payments due during the agreement term to be immediately due and payable as liquidated damages and not as a penalty, whereupon the same shall become immediately due and payable; 2. re -enter and take possession of the equipment, enforce this agreement or terminate the agreement, and repossess the equipment and sell or lease the equipment for the account of the Lessee, holding Lessee liable for all payments up to the effective date of such leasing or selling and for the difference in the purchase price, rental and other amounts paid by the Lessee or purchaser pursuant to such lease or sale and the amounts payable by Lessee hereunder; and any action at law or in equity as may appear necessary to collect the payments then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Lessee under this agreement upon failure to comply with any term, covenant or condition contained herein. ARTICLE XIV MAINTENANCE AND EQUIPMENT Lessor shall provide full maintenance of the motorcycle at no cost to the Lessee. Lessor shall not supply Lessee with gasoline, tires, or radio. All maintenance shall be done at PETERSON'S HARLEY DAVIDSON OF MIAMI, L.C., 19400 NW 2nd Avenue, Miami, Florida 33169. 10 N N N a N O O N W W W LL J J O F m N N N O m x a to a N N N O C7 x a ARTICLE XV SUBLEASE OR ASSIGNMENT Neither the Lessor, nor the Lessee may assign this Lease. Neither the Lessor nor the Lessee may effect the subleasing of the motorcycle. ARTICLE XVI TERMINATION This agreement may be terminated by either party for any cause, upon thirty (30) days written notice by the terminating party. Lessor shall be entitled to ease payments due or incurred to the date of such termination. ARTICLE XVII ENTIRE AGREEMENT; AMENDMENTS This agreement constitutes the entire agreement between Lessor and the Lessee, and all negotiations and oral understandings are merged herein. No modification, amendment or alteration in the terms or conditions of this agreement shall be effective unless contained in a written document executed with the same formality as this Agreement and signed by all parties. II O 0 M N O N O M_ X a LL M V N O N O M x a B ARTICLE XVIII CONSENT TO JURISDICTION The parties submit to the jurisdiction of any Florida state or federal court in any action or proceeding arising out of, or relating to, this Agreement. Venue of any action to enforce this Agreement shall be in Broward County, Florida. 3 ARTICLE XIX z GOVERNING LAW 0 O It m This agreement shall be construed in accordance with, and governed by, the laws of the u State of Florida. f a ARTICLE XX o HEADINGS Headings are for convenience of reference only and shall not be considered in any interpretation of this Agreement. ARTICLE XXI SERVABILITY 12 N N N N O O W W W K J J O I- N O O c0 m N N N O LLx Q W CO M If any provision of this Agreement or the application thereof to any person or situation shall to any extent, be held invalid or unenforceable, the remainder of this Agreement, M - and the application of such provisions to persons or situations other than those as to which it shall have been held invalid or unenforceable shall not be affected thereby, and a. shall continue in full force and effect, and be enforced to the fullest extent permitted by m law. 01 T z O U) m w a ARTICLE XXII WAIVER The waiver by either party of any failure on the part of the other party to perform in accordance with any of the terms or conditions of this Agreement shall not be construed as a waiver of any future or continuing similar or dissimilar failure. ARTICLE XXIII COSTS AND ATTORNEY'S FEES If either Lessor or Lessee is required to enforce the terms of this Agreement by court proceedings or otherwise, whether or not formal legal action is required, the prevailing party shall be entitled to recover from the other party all such costs and expenses, including but not limited to costs and reasonable attorney's fees. 13 N N N O O 0 W W K 0. J J O F N O O Ln U! l0 N O M X Q W N N N O Z r, Z 0 N w F w L IN WITNESS WHEREOF, the Lessor and the Lessee have caused this instrument to be signed, all on the day and year first above written. WITNESS: Print Name: WITNESS: B'A PRINT NAME: LESSOR: PETERSON'SHARLEY DAVIDSON OF MIAMI, L.C. Ace Armstrong Date: LESSEE: OTY OF SO 33MIAMI MANAGER Yvonne S. McKinley 14