City Commission Agenda Cover Memorandum

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City Commission Agenda Cover Memorandum Originating Department: Police (PO) Meeting Type: Regular Agenda Date: 08/01/2016 Advertised: Required?: Yes No ACM#: 20983 Subject: Resolution No.

1 City Commission Agenda Cover Memorandum Originating Department: Police (PO) Meeting Type: Regular Agenda Date: 08/01/2016 Advertised: Required?: Yes No ACM#: Subject: Resolution No authorizing the City to enter into an Agreement with Rossmeyer Daytona Motorcycles, Inc. for the two (2) year lease of eight (8) police motorcycles. Ordinance/Resolution: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, APPROVING AN AGREEMENT BETWEEN THE CITY OF WEST PALM BEACH AND ROSSMEYER DAYTONA MOTORCYCLES, INC., FOR THE LEASE OF EIGHT (8) POLICE MOTORCYCLES, FOR A TWO YEAR TERM IN ACCORDANCE WITH SECTION OF THE CITY CODE OF ORDINANCES; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. Staff Recommended Motion: Approve Resolution No Background: The City currently leases nine Harley Davidson police motorcycles from Bruce Rossmeyer Harley Davidson, Inc. The City's lease agreement expires November 30, The current vendor, Bruce Rossmeyer Harley Davidson, has supplied pricing for an additional two (2) year lease term. The proposed lease for the new term reduces the number of motorcycles leased from nine (9) to eight (8). The price proposal offers to lease the motorcycles at a price of $ per month, per vehicle, which includes customary maintenance as per the manufacturer's recommendation, as well as tire and brake replacement. The Procurement Division performed market research and found the prices offered to the City by Bruce Rossmeyer Harley Davison to be significantly lower than other recently awarded competitive bids. Rossmeyer has been supplying the motorcycles to the Police Department for several years, which has enabled the City keep costs down by re-using much of the equipment upon lease renewals. The Department has been very happy with the service provided by the current vendor and the vendor's local servicing contractor, and had worked with other local vendors in the past who did not provide the service consistently provided by Rossmeyer. The Police Department believes that continuing to lease motorcycles from Rossmeyer is in the City's best interest, as they have developed a process with Rossmeyer that assures the installation of lights and accessories is done to the City's standards for the safety of the officers, and would result in a significant cost savings. A copy of the market study which supports continued use of Rossmeyer

2 AGENDA COVER MEMORANDUM Page 2 C.M. # Date: Harley-Davidson as the City's provider is attached. Section of the Code of Ordinances allows the City Commission to approve selection of a contractor where the requirements of the procurement code have not been met. Resolution No approves an Agreement with Rossmeyer Daytona Motorcycles, Inc. for the lease of eight (8) motorcycles. Fiscal Note Current Year: $0.00 Annualized: $50, Budgeted: Fully Budgeted Unbudgeted: Funding Source: Operating Comment: Exchange in November, already budgeted. Electronic Attachments: Click here for assistance with naming convention Police Motorcycle Lease.docx Ex. A Harley-Davidson Police Motorcycle Lease.pdf Rossmeyer Market Study.docx Is this ACM related to a Grant? Yes No Is this ACM related to Housing? Yes No Originating Department - Approved by: Bryan Kummerlen on 07/27/ /27/2016 Finance Department 07/27/2016 City Attorney's Department 07/28/2016 City Administrator

3 AGENDA COVER MEMORANDUM Page 3 C.M. # Date: Return to Agenda

4 RESOLUTION NO A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, APPROVING AN AGREEMENT BETWEEN THE CITY OF WEST PALM BEACH AND ROSSMEYER DAYTONA MOTORCYCLES, INC., FOR THE LEASE OF EIGHT (8) POLICE MOTORCYCLES, FOR A TWO YEAR TERM IN ACCORDANCE WITH SECTION OF THE CITY CODE OF ORDINANCES; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. ******************* WHEREAS, the City desires to lease eight (8) 2017 FLHP Road King police motorcycles; WHEREAS, the City currently leases the 2015 model of these motorcycles from Rossmeyer Daytona Motorcycles, Inc. based off of a piggyback agreement from the Broward County Sheriff s Office; and WHEREAS, the City s current lease agreement expires November 30, 2016; and WHEREAS, Rossmeyer provided the City with a price proposal for an additional two year lease term; and WHEREAS, Rossmeyer has offered to lease the City eight (8) 2017 FLHP Road King motorcycles for a two year term at a price of $ per month, per vehicle, which includes customary maintenance as per the manufacturer s recommendation, as well as tire and brake replacement; and WHEREAS, the City s Procurement Division performed a Market Study to determine whether the proposed rates were competitive with recent competitive solicitations for the same vehicles, and determined that the rates offered by Rossmeyer were lower than the piggyback options available to the City; and WHEREAS, in order for the Police Department to receive these new vehicles by December 1, 2016, they must be ordered by August 1, 2016; and WHEREAS, Section of the Code of Ordinances allows the City Commission to approve the selection of a contractor where the requirements of the Procurement Code have not been met; WHEREAS, the City Commission of the City of West Palm Beach, Florida hereby deems the lease of eight (8) 2017 FLHP Road King motorcycles at the rates provided by Rossmeyer to be in the best interests of the health, safety, and welfare of the citizens and residents of the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, THAT: SECTION 1: The City Commission hereby approves the Motorcycle Lease Agreement with Rossmeyer Daytona Motorcycles, Inc., for eight (8) 2017 FLHP Road King motorcycles for a term of two (2) years.

5 SECTION 2: SECTION 3: SECTION 4: The City Commission hereby authorizes the Mayor to execute the Agreement in the form and substance similar to that attached hereto as Exhibit A. Upon receipt of two (2) fully-executed original Agreements from Rossmeyer Daytona Motorcycles, Inc., the Mayor is authorized to execute the Agreement. One fully executed Agreement shall be retained by the City Clerk as a public record of the City. The other fully executed original shall be forwarded to Stacey Weinger, Assistant City Attorney, for forwarding to Rossmeyer Daytona Motorcycles, Inc. SECTION 5: This Resolution shall take effect in accordance with law.

6 Matter No MOTORCYCLE LEASE AGREEMENT This Motorcycle Lease Agreement (the Lease ) is made by and between Rossmeyer Daytona Motorcycles, Inc., with an address of 1637 North US Highway 1, Ormond Beach, FL ( Dealer or Lessor ) and the City of West Palm Beach, a municipal corporation organized under the laws of the State of Florida, (the City or Lessee ), whose address is Post Office Box 3366, West Palm Beach, FL for the lease of police motorcycles (hereinafter referred to as the vehicles ) as described in Exhibit A attached hereto, for use by the City s authorized employees in the performance of police-related or law-enforcement duties. The terms and conditions of the Lease are as follows: WHEREAS, the City wishes to lease police motorcycles from Lessor; and WHEREAS, Lessor has agreed to lease the motorcycles, as described herein, to the City in accordance with the terms and conditions defined below. NOW THEREFORE, in consideration of the promises and mutual covenants and obligations herein contained, and subject to the terms and conditions herein stated, the parties to this Agreement understand and agree as follows: 1. Lease. Lessor leases to Lessee and Lessee agrees to lease from Lessor eight (8) factory new 2017 Harley Davidson motorcycles as identified on Exhibit A attached hereto. 2. Exchange of Equipment: For a fee of $1, per vehicle, Lessor shall exchange the police emergency equipment from the 2015 model year to the 2017 model year motorcycles. Lessor shall pick up the 2015 motorcycles, exchange the equipment and return them to Lessee at no additional expense. In addition, Lessor shall install the performance rush mufflers and grips selected by Lessee at no additional cost to Lessee. 3. Lease Payment: Lessee shall make monthly lease payments to Lessor in the amount of $ for each vehicle commencing on December 1, 2016 which includes customary maintenance as per manufacturer s recommendation, as well as tire and brake replacement. 4. Miscellaneous Fees: Lessee agrees to pay for all official fees in connection with the certificate of title, registration and license fees. Lessor agrees to waive all charges with respect to freight and dealer prep of the vehicles except those costs associated with the installation of a police package or any additional equipment purchased by Lessee for the vehicles 5. Term: The term of this Lease shall be twenty-four (24) months commencing on December 1, 2016 and ending on November 30, Lessee shall have the right to extend the term of this Lease, provided that Lessor agrees, upon the same terms and conditions as provided

7 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. 6. Maintenance, Repairs and Operating Expenses: 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 vehicles. The cost of 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. Accident damage, training damage and clutch repair are not covered under this maintenance agreement. Lessor agrees that Lessee is authorized to use South Florida Choppers, located at 3819 Westgate Avenue, West Palm Beach, FL for maintenance as provided for in this lease and that the cost for such maintenance is included in the monthly lease payment, 7. 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. Any additional equipment added by Lessee, with Lessor s consent, shall be the property of Lessee upon expiration or termination of the Lease. 8. 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 represents that the City s own liability and personal injury protection insurance will provide primary insurance coverage up to its full policy limits. Lessor acknowledges that Lessee self insures against property damage and personal injury and death, and Lessor agrees to accept Lessee s self insurance. In the event of a total loss or destruction of vehicles, Lessee s maximum exposure shall be the Dealer s cost of the vehicle as shown on its books/records. 9. 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 their possession and use of the vehicles. Lessee will make a complete report to Lessor within 48 hours after any accident, theft or loss involving the vehicles. 10. Indemnification: To the extent allowed by applicable law, 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 of the Florida Statues or any other indemnification protection provided by law. 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 Harley-Davidson Motorcycle Lease

8 11. 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 Lessee 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. 12. Return of the Vehicles: At the end of the Lease, the City 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. 13. Availability of Funds. This Lease is expressly conditioned upon the availability of funds lawfully appropriated and available for the purposes set out herein as determined in the sole discretion of the City. In the event funds to finance this Lease become unavailable, the City may terminate this Lease upon no less than thirty (30) days prior written notice to Lessor. The City shall be the sole and final authority as to the availability of funds. 14. Termination for Cause. In the event of a material breach, either party may provide the other party with written notice of the material breach. The other party shall have thirty (30) days from the date of its receipt of such notification to cure such material breach. If the material breach is not cured within that time period, the non breaching party may terminate this Lease immediately. 15. Ethics; Conflicts of Interest Lessor represents that it has not given or accepted a kickback in relation to this Lease and has not solicited this Lease by payment or acceptance of a gratuity or offer of employment Lessor represents that it has not solicited this Lease by payment of a gift or gratuity or offer of employment to any official, employee of the City or any City agency or selection committee Lessor represents that it does not employ, directly or indirectly, the mayor, members of the city commission or any official, department director, head of any City agency, or member of any board, committee or agency of the City Lessor represents that it does not employ, directly or indirectly, any official of the City. Lessor represents that it does not employ, directly or indirectly, any employee or member of any board, committee or agency of the City who, alone or together with his household members, own at least five percent (5%) of the total assets and/or common stock of Lessor Lessor represents that it has not knowingly given, directly or indirectly, any gift with a value greater than $100 in the aggregate in any calendar year to the mayor, members of the city commission, any department director or head of any City agency, any employee of the Harley-Davidson Motorcycle Lease

9 City or any City agency, or any member of a board that provides regulation, oversight, management or policy-setting recommendations regarding Lessor or its business Lessor represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with its performance under this Lease. Lessor further represents that no person having any interest shall be employed or engaged by it for said services Lessor, its officers, personnel, subsidiaries and subcontractors shall not have or hold any continuing or frequently recurring employment, contractual relationship, business association or other circumstance which may influence or appear to influence Lessor s exercise of judgment or quality of the services being provided under this Lease. Lessor, its officers, personnel, subsidiaries and subcontractors shall not perform consulting work for any third party that would in any way be in conflict with the Services to be provided to the City under this Lease In the event Lessor is permitted to utilize subcontractors to perform any services required by this Lease, Lessor agrees to prohibit such subcontractors, by written contract, from having any conflicts as within the meaning of this section. 16. Public Entity Crimes Act. Lessor represents that the execution of this Lease will not violate the Public Entity Crimes Act (Section , Florida Statutes), and certifies that Lessor and its subcontractors under this Agreement have not been placed on the convicted vendor list maintained by the State of Florida Department of Management Services within 36 months from the date of submitting a proposal for this Agreement or entering into this Lease. Violation of this section may result in termination of this Lease and recovery of all monies paid hereto, and may result in debarment from City's competitive procurement activities. 17. Governing Law. This Lease shall be construed and interpreted, and the rights of the parties hereto determined, in accordance with Florida law without regard to conflicts of laws provisions. Lessor and Lessee submit to the jurisdiction of Florida courts and federal courts located in Florida. The parties agree that proper venue for any suit concerning this Agreement shall be Palm Beach County, Florida, or the Federal Southern District of Florida. Lessor agrees to waive all defenses to any suit filed in Florida based upon improper venue or forum nonconveniens. TO ENCOURAGE PROMPT AND EQUITABLE RESOLUTION OF ANY LITIGATION, EACH PARTY HEREBY WAIVES ITS RIGHTS TO A TRIAL BY JURY IN ANY LITIGATION RELATED TO THIS AGREEMENT. 18. Non Discrimination. Lessor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, gender identity or expression, genetic information, national origin, age, disability, familial status, marital status or sexual orientation, or any other factor which cannot be lawfully used as a basis for service delivery Harley-Davidson Motorcycle Lease

10 IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement by their duly authorized representatives. ATTEST: CITY OF WEST PALM BEACH By: City Clerk CITY ATTORNEY'S OFFICE Approved as to form and legality By: By: Geraldine Muoio, Mayor Date:, ROSSMEYER DAYTONA MOTORCYCLES, INC. By: Name: Title: Harley-Davidson Motorcycle Lease

11 EXHIBIT A Lessee s Name: City of West Palm Beach Model Year: 2017 Model Description: FLHP Road King, solid black with anti-lock brakes Number of Units: 8 Vehicle Identification Numbers: Harley-Davidson Motorcycle Lease

12 To: Frank Hayden, Procurement Director From: Captain Amy Sinnott Date: July 22, 2016 RE: Renewal of Lease agreement for Police Motorcycles Mr. Hayden, The current lease agreement for 9 Harley Davidson police motorcycles is approaching expiration. The current vendor, Bruce Rossmeyer Harley Davidson, has supplied us with pricing for that renewal. It is important that they have been supplying the bikes for the police department for several years. We are able to keep costs down by re using much equipment upon lease renewals. This year, we wish to decrease the number of motorcycles to eight. The Department has been very happy with the service from the current vendor and who they allow to service the motorcycles locally. Josephine did market research and found the prices to be significantly lower than other recently awarded competitive bids. The existing process with Rossmeyer took time to work out and assure the installation of lights and accessories is done to our standards for the safety of our officers. I have attached the information from that research to support continued use of Rossmeyer Marley Davidson as a single source provider (lower prices and consistent customer service). The Department tried other, local vendors in the past and could not obtain the service consistently provided by Rossmeyer. I did a market research for Police Dept. request for a two years lease of 8 each Harley Davidson Motor Cycles. PD received a renew lease for $525 per month with customary maintenance as per manufacturer's recommendation as well as tire and brake replacement from Bruce Rossmeyer's Harley Davidson for 2017 FLHP Road King model.

13 City of Doral issued a bid in June 2016 for 2 yr lease of up to 15 each 2017 FLHP or FLHTP Road King model: received total of one bid Peterson's Harley Davision of Miami $750/month (price included tire & brake replacement) City of Evanston, IL issued a bid in 2015 for 1 yr lease with 2 one year renew of 7 each new calendar year 2015, 2016, 2017 model of FLHP Road King received two bids (price did not include tire & brake replacement): $1, from City Limits Harley Davidson $2, from Chicago Harley Davision In conclusion, our PD receives a very competitive rate (30% 54% below market rate) with great customer satisfaction. Please consider continued use of Bruce Rossmeyer Harley Davidson as a single source provider for these leased motorcycles. Thank you, Captain Amy Sinnott asinnott@wpb.org

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