R2014-58 AUTHORIZING EXECUTION OF TIRE LEASE AGREEMENT

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five percent (5%) testing provision; and C) The City shall obtain from the owner of such Leased Vehicles acknowledgment to Bridgestone's ownership and right to possession of all tires supplied under this Agreement and a waiver of any and all rights to said tires. If the City were to lose possession of any of Bridgestone's tires on the Leased Vehicles, the City shall pay Bridgestone for each tire (including spares) as set forth in Paragraph 11 hereof. 7. SALE OR DISPOSITION OF VEHICLE--The City shall notify Bridgestone prior to any sale or disposition of any of the City's vehicles equipped with Bridgestone's tires and, unless Bridgestone requests otherwise, the City shall purchase the unused mileage in each tire and for any tires and extra tubes which remain in stock after such vehicles have been sold or disposed of which cannot be used on other vehicles in the City's fleet. Bridgestone shall have the right to request the removal of all serviceable Bridgestone tires on parked or inactive vehicles if they remain parked or inactive for more than ninety (90) days and the return of such tires to the City's reserve supply. The City shall then replace the removed tires with scrap tires (see Attachment I). Payment for the unused mileage and tubes acquired by the City under this paragraph shall be on the basis and within the time set forth in Paragraph 11 hereof. 8. LOSS OF TIRES--The cost for normal damage to tires shall be included in the rate per tire mile. "Normal damage" to a tire shall mean the partial or total destruction of a tire by means other than normal wear (cuts and bruises), including but not limited to irregular wear, damage from brake heat, curbing, road hazards, and misalignment. The City agrees to maintain buses' suspension and steering in accordance with bus manufacturers' alignment specifications and to keep brakes properly adjusted. Tires which have been damaged beyond repair by an accident, malicious abuse, fire, or which have been lost or stolen, shall be paid for by the City as of the date of accident, loss or theft on the basis, and within the time, set forth in Paragraph 11 hereof. 9. CONTINGENCIES--In the event of fire, strikes, accidents, consequences of foreign or domestic wars, terrorism, or any cause beyond either party's reasonable control which will delay or interfere with its performance of its obligations hereunder, such performance may, at the option of either party, be suspended during the period required to remove such cause. In the event Bridgestone discontinues the manufacture and marketing of any size or type tire supplied pursuant to this Agreement, Bridgestone shall so notify the City and, upon written notice by either party to the other, this Agreement and all related agreements between the parties shall be deemed terminated upon the same terms and conditions set forth in Paragraph 11 hereof, effective ninety (90) days from receipt of such written notice. This Agreement is subject to all present or future governmental regulations affecting production, delivery, sale, use or possession of the products leased hereunder. the City shall promptly notify Bridgestone of any accident or claims resulting from an alleged tire failure. The City agrees to defend, save and hold Bridgestone harmless from all claims or actions for damages to property or injury to persons, including death, arising out of the use or possession of products furnished hereunder or the performance of any service related thereto, except for claims or actions that result from defects in material or workmanship of any tire manufactured and furnished by Bridgestone under this Bridgestone- July 1,2014 Page 4