R2014-58 AUTHORIZING EXECUTION OF TIRE LEASE AGREEMENT

Home Browse Search

PROPOSED TIRE LEASE AGREEMENT THIS Agreement, made in Akron, Ohio, this 1st day of July, 2014 by and between BRIDGESTONE AMERICAS TIRE OPERATIONS, LLC, a Delaware Limited Liability Company, with its principal offices at 535 Marriott Drive, Nashville, Tennessee 37214, with the administrative contract office at 10 E. Firestone Blvd. — Mileage Sales, Akron, OH 44317 ("Bridgestone") and CITY OF DECATUR, ILLINOIS/DECATUR PUBLIC TRANST SYSTEM, a government agency in the state of Illinois, having an office in Decatur, Illinois ("Operator"). WITNESSETH: 1. TIRES--Bridgestone agrees to lease to Operator and Operator agrees to lease from Bridgestone and use such number of tires as may be sufficient to keep all of Operator's vehicles fully equipped and to provide an adequate reserve supply; provided, however, that Operator shall have the right at any time during the term of this Agreement upon thirty (30) days' prior written notice to Bridgestone, to equip for testing purposes up to five percent (5%) of its vehicle fleet with tires obtained from other suppliers. As used in this Agreement, "tires" shall mean a casing, tube and flap for a tube type tire and a casing only for a tubeless tire, and "Operator's vehicles" shall, unless otherwise indicated, mean all vehicles referenced in "Bid Specifications" that are owned or operated by Operator, its subsidiaries and affiliated companies at any time during the term of this Agreement. Tires will be delivered within thirty (30) days of written order. Bridgestone will be responsible for proper disposal of its leased tires. Rims shall be the property of Operator and extra rims shall be provided by Operator. 2. RATE-- Operator 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 reading 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 Operator'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. All invoices shall be due and payable on the fifteenth (151h) of the following month. Operator 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 Operator may have or allege against Bridgestone; Bridgestone and Operator 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 Operator 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. Bridgestone- July 1,2014 Page 1