HomeMy WebLinkAboutC2013-280 - 7/17/2013 - NA LEASE AGREEMENT
This Lease Agreement(hereinafter referred to as "the Agreement") is made between the
City of Corpus Christi, a political subdivision of the State of Texas, (hereinafter referred to as
"the City") and C, P► R ll Lq ,a police officer
employed by the City of Corpus Christi, (hereinafter referred to as"Lessor"), and
WHEREAS,the use of motorcycles by Corpus Christi Police Officers to perform official
law enforcement duties such as traffic enforcement and trafr-ic control serves a governmental
purpose,
WHEREAS, the use of motorcycles by Corpus Christi Police Officers to provide funeral
escorts and other approved off-duty assignments also serves a governmental purpose;
WHEREAS, Section 142.006 (b)of the Texas Loral Government Code requires that the
City provide for insuring each police officer in its employ against liability to third persons
arising out of the operation, maintenance, or use of a motorcycle owned or leased by the
municipality;
WHEREAS, Section 142.006 (d)of the Texas Local Government Code provides that the
City may elect to be self-insured or to reimburse the actual cost of extended automobile liability
insurance endorsements obtained by a police officer on an individually owned automobile
liability insurance policy;
WHEREAS, the Texas legislature in Article 715 c of Vernon's Texas Civil Statutes
determined that it is imperative that local governments have the authority to provide coverage
against any insurable risk at the lowest possible costs;
WHEREAS, insurance companies are no longer providing liability insurance for B
motorcycles when they are used for law enforcement purposes;
WHEREAS,the costs of obtaining liability insurance through the assigned risk pool are
prohibitive;
NOW,THEREFORE, in consideration of the mutual covenants contained herein,the City
and Lessor agree as follows:
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ARTICLE 1. LEASE OF MOTORCYCLES t
Lessor agrees to lease to City,and City agrees to lease from Lessor, the motorcycle specified W
in Schedule A attached hereto. When used in this Agreement, the term"motorcycle"shall mean
a motorcycle leased hereunder. When used in this Agreement, the term "approved off-duty
assignments"shall mean those off-duty assignments which(i) serve a governmental purpose of
the City and (ii)have been approved by the Corpus Christi Police Chief or his designee.
2013-280 8
7117113
Earl E. Kronk Jr. ANDTJMD
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Any additions to or deletions from Schedule A, when agreed to by both parties, or any agreed
variation in models or types of motorcycle, shall be evidenced by a supplement to this
agreement.This agreement and its supplements thereto shall constitute the master lease
agreement.
ARTICLE x. OWNERSHIP OF MOTORCYCLES
This is an agreement of lease only and may not be construed as a contract for the sale of a
motorcycle. City acknowledges that Lessor is the owner of the motorcycle leased hereunder.
Lessor shall provide the City with evidence of ownership.
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ARTICLE 3.LEASE PAYMENTS
If the Lessor is assigned full time duties as a Corpus Christi Police Motorcycle Officer,the
City agrees to pay Lessor per mileage traveled in the performance of official duties, not to
exceed twelve hundred(1200)miles a month, the standard mileage reimbursement rate adopted
by the City in City Policy )~--1.0. The City shall make such payment monthly to Lessor.
If the Lessor is not assigned full time duties as a Corpus Christi Police Motorcycle Officer,
but has been authorized by the Corpus Christi Chief of Police or his designee to perform
approved off duty motorcycle assignments, the City agrees to make lease payments of$1.00 (one
dollar) to Lessor which shall be payable each time the lease is renewed.
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ARTICLE 4.TERM
The term of this Agreement shall be for a term of one year, commencing on the date the
agreement is executed by the City Manager or his designee. 'Unless terminated as herein
provided, the Agreement shall be automatically renewed for one year periods.
ARTICLE 5. OPERATION OF MOTORCYCLES
1. If the Lessor is assigned permanently as a foil time motorcycle officer for the Corpus
Christi Police Department, then the parties agree that Lessor shall operate the motorcycle in the
performance of official duties. The parties agree that Lessor may operate the motorcycle in the
performance of approved off-duty police assignments.
2. Lessor shall not permit the motorcycle Lobe used in violation of any federal, state or
municipal statutes, laws,ordinances,rules or regulations.
3. Lessor shall notify the City immediately of any and all accidents involving the
motorcycle. Such notice shall be by telephone and in writing and shall include full details of the
accident and the names and addresses of all parties and witnesses.
4. The City may inspect the motorcycle,upon the City's premises or elsewhere at any and
all reasonable times, and the Lessor shall cooperate fully to facilitate such inspections.
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5. Lessor shall not allow any other person to use the motorcycle in the performance of
official police duties or in the performance of approved off-duty assignments. In other words,
the parties agree that the only person who will use the motorcycle in the performance of police
duties or in the performance of approved off-duty assignments is the Lessor.
ARTICLE 6, SUBSTITUTION OF MOTORCYCLES
Lessor shall have the right to substitute for any motorcycle under lease a motorcycle of
comparable type and condition, subject to approval by Corpus Christi Chief of Police or his
designee.
ARTICLE 7. STATE, COUNTY AND CITY REGISTRATION AND LICENSES
Lessor shall accomplish the titling,registration and licensing in the State of Texas of
motorcycle in Lessor's name. Lessor shall accomplish and pay for any inspections of the
motorcycle required during the term of this Agreement by any governmental authority.
ARTICLE 8.TAXES
Lessor shall pay and bear all federal, state and local sales,use, excise,personal property and
other taxes and all governmental assessments, fees and charges imposed on or in connection with
the motorcycle, or on the lease, use, ownership or possession thereof pursuant to this Agreement.
ARTICLE 9. REPAIR AND MAINTENANCE
1. Lessor shall keep and maintain the motorcycle in good operating condition and working
order. It shall be the duty of the Lessor to make all necessary repairs and replacements to the
motorcycle, including but not be limited to tires,oil, lubricants and antifreeze required for the
proper operation and/or protection of the motorcycle. The City agrees to provide for electrical
repairs to the motorcycle if the Lessor is permanently assigned to the Motorcycle Division.
2. Lessor agrees to provide all gasoline necessary to operate said motorcycle and to
maintain all oils and lubricants at the proper level. Lessor further agrees to keep said motorcycle
properly stored and washed.
3. The City agrees to provide for the repair of a motorcycle which is damaged while being
operated by Lessor in the performance of official police duties or during approved off-duty
assignments. If the Corpus Christi Chief of Police or his designee determines that the
motorcycle is so damaged that it cannot economically be placed in good working order, then the
City shall, as soon as practicable afier such event, pay Lessor the value of said motorcycle as
listed in the then current issue of the N.A.D.A. Motorcycle/Snowmobile I ATV I Personal
Watercraft Appraisal Guide. Y
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ARTICLE 10.RISK OF LOSS
Lessor retains risk of loss of the motorcycle, including loss caused by theft of the motorcycle.
ARTICLE 11. INSURANCE
When the motorcycle is operated by Lessor in the performance of official police duties or in
the performance of approved off-duty assignments,the self-insurance fund of the City shall
provide coverage for property and casualty losses,general liability, auto liability,worker's
compensation and other miscellaneous risks to the extent not covered by contractual insurance or
other indemnification.
ARTICLE 12, INDEMNIFICATION
When the motorcycle is operated by Lessor in the performance of official police duties or in
the performance of approved off-duty assignments,the City shall indemnify Lessor as provided
in Section 39-16 of the Corpus Christi Code of Ordinances.
ARTICLE 13.TERMINATION
1. If the motorcycle is stolen, the Agreement shall terminate.Notwithstanding the previous
provision, the Lessor reserves the option to offer a replacement or substitute motorcycle which
motorcycle shall be subject to the terms of this Agreement and approval by the Corpus Christi
Chief of Police or his designee,
2. If the Corpus Christi Chief of Police or his designee determines that the motorcycle is so
destroyed or damaged that it cannot economically be placed in good working order, this
Agreement shall terminate. Notwithstanding the previous provision,the Lessor reserves the
option to offer a replacement or substitute motorcycle which motorcycle shall be subject to the
terms of this Agreement and approval by the Corpus Christi Chief of Police or his designee.
3. If the Lessor ceases to be employed as a police officer by the City of Corpus Christi, the
agreement shall terminate immediately.
4. If the Lessor is no longer authorized to operate the motorcycle in the performance of
official police duties or in the performance of approved off-duty assignments, the agreement
hall terminate immediately.
5. The agreement may terminate upon the mutual agreement of the parties.
6. A default by Lessor with respect to any of the responsibilities outlined in this agreement
shall terminate the agreement.
7. Notwithstanding anything to the contrary herein, this agreement terminates automatically
and without notice on(a) an attempted assignment by Lessor of this agreement, or(b) an
assignment by Lessor for the benefit of creditors.
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8. Either party may terminate this Agreement by providing the other party with thirty(30)
days advance written notice of termination.
ARTICLE 14. GENERAL PROVISIONS
1. This instrument has been executed in duplicate original copies and constitutes the entire
agreement between the parties hereto. This agreement shall not be effective until authorized by
the City Council and executed by the City Manager. This agreement cannot be amended or
altered in any manner unless such amendment be signed by the City Manager(or his designee)
and by Lessor. No forbearance to exercise any right or privilege under this Agreement or waiver
of any breach of any of its terms shall be construed as a waiver of any such terms,rights or
privileges, but the same shall continue and remain in full force and effect the same as if no such
forbearance or waiver had occurred.
2. Neither this Agreement nor any interest herein may be assigned by either party. Nothing
contained in this instrument shall be deemed to prevent the Lessor from pledging his interest in
said motorcycle to secure financing for the purpose of said motorcycle.
3. Any notice given by one party to the other under this Agreement shall be given in writing
at the address of the other party as set out below or at such other address as may have been
furnished in writing for such purpose.
For the City: Corpus Christi Police Department
Attn: Police Chief
321 John Sartain St.
Corpus Christi, Texas 78401
For Lessor:
4. Lessor shall notify the City immediately in writing of any charges or liens of any kind
whatsoever imposed upon the motorcycle,
5. This agreement shall be interpreted under and governed by the laws of Texas. If any
provisions hereof or the application of any provisions to any person or circumstances is held
invalid or unenforceable,the remainder hereof and the application of such provision to other
persons or circumstances shall remain valid and enforceable.
G. Any payments to be made by the City in accordance with the terins of this agreement
shall be made from current revenues available to the City and any future payments shall be
subject to appropriations.The parties recognize that the continuation of any contract after the
close of any fiscal year of the City of Corpus Christi,which fiscal year ends on July 31 of each
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year, shall be subject to budget approval providing for or covering such contract item as an
expenditure in said budget. The City does not represent that said budget item will actually be
adopted, said determination being within the sole discretion of the Corpus Christi City Council at
pq the time of the adoption of a City budget.
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Agreed to by:
THE CI"'" OF CORPUS CHRISTI LESSOR
By: By: ltL
Cit Manager Nam . E L EdZaa K�
Date: Date: S-L9—
B
r, ' ' hief of Police
Da .
Attest by: ,
Armando Chapa, City Secretary
Approved as to legal form this day of j i� L
By:
Assistant City At ornery
for City Attorney
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SCHEDULE A
Attached to and made part of the Lease Agreement
between the City of Corpus Christi and
Description of Motorcycle
Make:
Model: GL j
VIN: `#F9C q 7015
License Plate Number; L,
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