HomeMy WebLinkAboutItem 4.02 MotorcycleBuyBackPgm CITY CLERK
File # 600-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: October 16, 2001
SUBJECT:
Approval of agreement with Harley Davidson of Vallejo for
participation in the Police Motorcycle Buy Back Program
Report Prepared by Amy Cunningham, Administrative Analysl~
ATTACHMENTS:
1. Resolution
2. Buy Back Program Agreement
RECOMMENDATION;/', ~C,~ Adopt Resolution and authorize City Manager to execute the
agreement forparticipation in Buy Back Program
FINANCIAL STATEMENT:
Through participation in the Buy Back Program, 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 2001-2002 Adopted Budget includes the purchase of one
additional motorcycle to be utilized for traffic enforcement purposes. This motorcycle was authorized for
purchase through a State of California, Office of Traffic Safety grant. This will be the second motorcycle
purchased by Dublin Police Services for use by the Traffic Unit.
Staff recommends that this 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 $14,000 (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.
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
H/cc-forms/agdastmt.doc
COPIES TO:
ITEM NO.
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. **-2001
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING THE EXECUTION OF THE AGREEMENT WITH
HARLEY DAVIDSON OF VALLE JO FOR PARTICIPATION IN
THE BUY BACK PROGRAM
WHEREAS, the purchase of one motorcycle has been approved for purchase through a grant from the
State of California, Office of Traffic Safety; 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 Vallejo's Buy Back
program would be cost effective; 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 Vallej o 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 16th day of October, 2001.
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 VALLE JO
This Agreement is made by and between the City of Dublin (hereafter "CITY") and
Harley Davidson of Vallejo (hereafter "DEALERSHIP") for the purchase of motorcycles
to be used by Dublin Police Services.
The CITY agrees to purchase one (1)Model Year 2002 Harley Davidson FLHPI
Police Road King (hereafter "2002 Motorcycle") from DEALERSHIP.
DEALERSHIP agrees to buy back from the CITY the same 2002 Harley
Davidson motorcycle(s) being sold to the CITY on .,
Invoice # DEALERSHIP agrees to buy back the 2002
Motorcycle during the one-year period following the sale date stated above.
DEALERSHIP shall buy back the 2002 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 2002 Motorcycle to DEALERSHIP, DEALERSHIP shall sell
to CITY one (1) Model Year 2003 Harley Davidson FLHPI Police Road King or
its equivalent (hereafter "2003 Motorcycle"). For the 2003 Motorcycle, CITY
shall pay DEALERSHIP an amount equal to the sales tax on the then-current ·
market price of the 2003 Motorcycle, excluding all fees. During the one-year
period following CITY's purchase of the 2003 Motorcycle, CITY may opt to use
the 2003 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 $294.95; the 2,500
mile service for a flat fee of $125.00; and the 5,000 mile service for a flat fee of
$294.95. 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 $70.00 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 CITY.
The CITY will ensure that the motorcycles purchased from Harley Davidson of
Vallejo 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.
ATTACHMENT 2
o
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. If Harley Davidson of Vallejo makes any such restoration
repairs for the CITY} the repairs will be subject to the labor rate stated in Section
2 above, excluding any required parts or materials. The CITY retains the fight 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 purchase 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
retuming the motorcycles to DEALERSHIP.
The CITY agrees to return the same motorcycle stated in Section 1 of this
Agreement (the 2002 Motorcycle) to DEALERSHIP on or about
2002 MOTORCYCLE VIN:
The identification and date for return of the 2003 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 VALLE JO
BY:
Chris Caughman Date
Sales Manager