R2014-58 AUTHORIZING EXECUTION OF TIRE LEASE AGREEMENT

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Only new tires and retreaded tires shall be accepted or utilized by the City; regrooved tires shall not be accepted or utilized by the City. Tires and tire sizes to be supplied by Bridgestone under this Agreement shall include, but not be limited to the following, as designated at the time of the execution of this Agreement: • 315/80R22.5CTR - Firestone City Transport Radial CTR AZ (article number 233126); • 275/70R22.5 - Bridgestone R192 (article number 224-490); and • 9R22.5 - Bridgestone R250F (article number 292-885). 2. RATE--The City agrees to furnish Bridgestone by the tenth (10th) day of each month a report consisting of the following: vehicle number, the beginning and ending Hubodometer/Odometer readings and total miles operated the preceding month on all vehicles fitted with Bridgestone tires ("Monthly Operating Miles"). Bridgestone or its agents shall have the right at any reasonable time during business hours to audit the City's records for the purpose of verifying actual vehicle mileage. The amount of the regular monthly payment shall be computed by using the applicable billing rate per tire mile in effect during such preceding month, as set forth below. The City shall remit payment by check within thirty (30) days after receipt of Bridgestone's completed invoice. The City agrees that no amounts shall be deducted from or charged back against payments otherwise due Bridgestone hereunder by virtue of claims of any nature which the City may have or allege against Bridgestone; Bridgestone and the City agree that such claims shall be resolved by good faith negotiations between the parties wherever possible. The billing rate per tire mile for other vehicles which may be acquired by the City shall be determined in line with the billing rate then in effect, taking into consideration the weight of vehicles, carrying capacities, sizes and types of tires, and such additional billing rate shall be included in this Agreement by amendment. The billing rate shown below assumes Bridgestone's ability to procure and use such materials and manufacturing methods as were procured and used prior to the date of this Agreement, and are based upon proven experience of mileage delivered thereunder. If laws, changes in vehicles, governmental regulations or other causes beyond Bridgestone's reasonable control require any change in such materials, performance or methods which reduce the mileage available from the tires to be furnished hereunder or which increase Bridgestone's costs, the City agrees that the billing rate shall be adjusted to compensate therefor by an amendment of this Agreement. ANNUAL TIRE MILE RATES TIRE YEAR YEAR YEAR YEAR YEAR SIZE ONE TWO THREE FOUR FIVE 315/80R22.5 0.005857 0.006091 0.006335 0.006589 0.006852 275/70R22.5 0.004964 0.005163 0.005369 0.005584 0.005808 9R22.5 1 0.008311 1 0.008643 1 0.008989 0.009349 0.009723 Bridgestone- July 1,2014 Page 2