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Home My WebLink About4.08 MotorcyleBuyBackPgmCITY CLERK FILE # 350-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 21, 2000 SUBJECT: Approval of agreement with Harley Davidson of Vallejo for participation in the Police Motorcycle Buy Back Program Report Prepared by Amy Cunningham, Administrative Analyst ATTACHMENTS: 1. Resolution 2. Buy Back Program Agreement FINANCIAL STATEMENT: Through participation in the Buy Back Program3 the City will realize a savings to the General Fund in the amount of approximately $4,370 over a period of six years. DESCRIPTION: The Fiscal Year 2000-2001 Adopted Budget includes the purchase of two motorcycles to be utilized for traffic enforcement purposes. One motorcycle was authorized for purchase through the General Fund and the second through a grant from the Office of Traffic Safety. The second motorcycle will be purchased once the Office of Traffic Safety grant has been approved. Staff has researched the types of motorcycles designed for law enforcement use and has determined that the Harley Davidson FLHPI Police Road King best fits the City' s traffic enforcement needs. The Harley Davidson has been found to perform better on city streets than the other motorcycles available for enforcement purposes. Staff recommends that the motorcycle be procured through a Buy Back program that is offered solely by Harley Davidson of Vallejo. Dealer cost estimates showed that the purchase price of a police motorcycle through Harley Davidson of Vallejo's Buy Back program is significantly less than the cost offered for purchase of a motorcycle through the other dealerships. Through the Buy Back program the City is able to purchase a motorcycle in the first year for approximately $13,000 (including sales tax). In the second year, the City is able to return the motorcycle to the dealership and purchase a new motorcycle, paying only the sales tax on the regular price of the new motorcycle and costs to transfer emergency equipment. There are no annual mileage limitations on the motorcycle and the Buy Back agreement can be terminated at any time with the City retaining ownership of the motorcycle. H/cc-forms/agdastmt. doc COPIES TO: ITEM NO. There are several advantages to participation in the Buy Back program including: savings to the City in the amount of approximately $728 per year per motorcycle (or $4,370 over a six year period or 2 motorcycle life-cycles); the motorcycle is always covered under the factory warranty; utilization of a new motorcycle every year reduces annual maintenance and repair costs; and there will be a reduction in motorcycle "down time" associated with unanticipated repairs. The City will be responsible for outfitting the motorcycle with the necessary emergency equipment. RECOMMENDATION: Staff recommends that the City Council adopt the attached Resolution and authorized the City Manager to execute the agreement with Harley Davidson of Vallejo for participation in the Buy Back program. RESOLUTION NO. **-2000 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING THE EXECUTION OF THE AGREEMENT WITH HARLEY DAVIDSON OF VALLEJO FOR PARTICIPATION IN THE BUY BACK PROGRAM WHEREAS, the City Council of the City of Dublin has identified the reduction of collisions at major intersections in the City by 10% as a high priority goal for the year 2000, and has determined that the implementation of a motorcycle unit will assist in achieving said goal; and WHEREAS, Staff has determined that utilization of the Harley Davidson FLHPI Police Road King best meets the City's traffic enforcement needs and purchase through Harley Davidson of Vallej o's Buy Back program would save approximately $728 per year; and WHEREAS, the City wishes to participate in the Buy Back program offered by Harley Davidson of Vallejo; and WHEREAS, the agreement iS valid for one year at which time the City will be required to return the used motorcycle to Harley Davidson of Vallejo and execute a new agreement for a new motorcycle. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby authorizes the City Manager to execute the agreement attached as Exhibit A and by reference made a part hereof, with Harley Davidson of Vallejo for the purchase and subsequent buy back of one Harley Davidson FLHPI Police Road King. PASSED, APPROVED AND ADOPTED this 21 st day of November, 2000. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk ATTACHMENT 1 TERMS AND CONDITIONS OF BUY BACK AGREEMENT BETWEEN THE CITY OF DUBLIN AND HARLEY DAVIDSON OF VALLEJO This Agreement is made by and between the City of Dublin (hereafter "CITY") and Harley Davidson of Vallej o (hereafter "DEALERSHIP") for the purchase of motorcycles to be used by Dublin Police Services. The CITY agrees to purchase one (1) Model Year 2000 Harley Davidson FLHPI Police Road King (hereafter "2000 Motorcycle") from DEALERSHIP. DEALERSHIP agrees to buy back from the CITY the same 2000 Harley Davidson motorcycle(s) being sold to the CITY on , invoice # DEALERSHIP agrees to buy back the 2000 Motorcycle during the one-year period following the sale date stated above. DEALERSHIP shall buy back the 2000 Motorcycle for an amount equal to CITY's actual purchase price, not including taxes, plus ONE HUNDRED DOLLARS AND NO CENTS ($100.00). Upon return of the 2000 Motorcycle to DEALERSHIP, DEALERSHIP shall sell to City one (1) Model Year 2001 Harley Davidson FLHPI Police Road King or its equivalent (hereafter "2001 Motorcycle"). For the 2001 Motorcycle, CITY shall pay DEALERSHIP an amount equal to the sales tax on the then-current market price of r the 2001 Motorcycle, excluding all fees. During the one-year period following CITY's purchase of the 2001 Motorcycle, CITY may opt to use the 2001 MOtorcycle to continue to participate in DEALERSHIP's buy-back program under the same terms and conditions as provided for herein, or other terms and conditions to which the parties agree at that time. DEALERSHIP will perform all maintenance and required servicing of the motorcycles purchased by CITY under this Agreement. Warranty work or warranty repairs will be performed at no cost to the CITY. Harley-Davidson of Vallejo will perform the 1,000 mile service for a flat fee of $262.00; the 2,500 mile service for a flat fee of $95.00; and the 5,000 mile service for a flat fee of $262.00. Service appointments shall be set up through the City. of Dublin, Police Services. All repairs above and beyond routine servicing or outside of the warranty coverage will be charged at the labor rate of $62.50 per hour excluding parts and/or materials. The CITY retains the right to supply parts or materials needed for repairs. No repairs of this type shall be made without prior approval from a representative of the CITY. The CITY will ensure that the motorcycles purchased from Harley-Davidson of Vallej o under this Agreement are protected from any deterioration other than normal wear and tear. Prior to the buy back by DEALERSHIP a representative from Harley- Davidson of Vallejo and the CITY shall inspect the motorcycles to verify their condition. In the event the motorcycles purchased by CITY under this Agreement are partially damaged prior to the end of their respective one-year buy-back periods, the CITY shall repair and restore the motorcycles to working order for the purpose intended. IfHarley-Davidson of Vallejo makes any such restoration repairs for the CITY, the ATTACHMENT 2 repairs will be subject to the labor rate stated in Section 2 above, excluding any required parts or materials. The CITY retains the right to supply any parts or materials needed for repairs. No repairs of this type shall be made without prior approval from a representative of the CITY. If the motorcycles are destroyed beyond repair, Harley-Davidson of Vallejo is relieved of its obligation to buy back the motorcycles. Harley-Davidson of Vallejo shall not make any alterations or modifications to the' motorcycles purchased by CITY under this Agreement without prior authorization from a representative of the CITY. All CITY owned emergency equipment shall be installed on and removed from the motorcycles by the CITY prior to the CITY returning the motorcycles to DEALERSHIP. The CITY agrees to return the same motorcycle stated in Section 1 of this Agreement (the 2000 Motorcycle) to DEALERSHIP on or about 2000 MOTORCYCLE VIN: The identification and date for return of the 2001 Motorcycle shall be established by ~ the parties at the time of its purchase. ! · CITY OF DUBLIN BY: Richard C. Ambrose Date City Manager HARLEY DAVIDSON OF VALLEJO BY: Chris Caughman Date Sales Manager J:\WPDXATTYXSW'xdubl in\motorcycleterms5(revised 1116).doc