R2014-58 AUTHORIZING EXECUTION OF TIRE LEASE AGREEMENT

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Agreement and/or the negligent acts or omissions of Bridgestone, its agents or employees. 10. DEFAULT--In the event the City should fail to make any payment required hereunder when due, fail to use or service tires furnished hereunder in accordance with Bridgestone's recommendations, fail to report a record of the daily revenue and non- revenue vehicle miles as required in Paragraph 2 hereof, or otherwise fail to comply with any of the terms and conditions of this Agreement, or in the event any voluntary or involuntary proceedings shall be filed against or by the City under any bankruptcy law or other law for the relief of debtors, or the City's credit shall in any manner become impaired, (a.) Bridgestone shall have the right, at its option, without prejudice to any other rights and remedies, to stop shipping tires, (b.) such event shall constitute a default by the City hereunder. Upon the occurrence of any such default, Bridgestone shall upon thirty (30) days' prior written notice to the City terminate this Agreement and, upon any exercise of such right to terminate, the City shall at the sole election of Bridgestone forthwith return Bridgestone's property furnished hereunder, or make payment therefore as of the date of termination on the basis and within the time set forth in Paragraph 11 hereof. Termination of this Agreement shall not relieve the City from its obligations to make all payments required hereunder or from liability for damages for breach of this Agreement in accordance with the terms thereof. Failure of Bridgestone to terminate this Agreement as herein provided on any breach by the City shall not operate as a waiver by Bridgestone of its right to terminate this Agreement as herein provided upon any subsequent breach by the City. 11. PAYMENT AT TERMINATION--Upon the termination by full performance and expiration of this Agreement, unless the parties enter into a new Tire Lease Agreement to become effective immediately, the City shall within thirty (30) days after termination pay for the unused mileage in each remaining tire on vehicles, in the City's garage, in process of repair or retreading, in transit or in stock, that have been assigned by Bridgestone to the City's fleet in accordance with the provisions hereof. The remaining mileage for original and retread tires shall be determined by multiplying the number of 32nds of an inch of available rubber remaining on each tire by the applicable cost per 32nd then in effect and shown below. CONTRACT FIXED COST PER 32ND - ORIGINAL TIRES TIRE YEAR YEAR YEAR YEAR YEAR SIZE ONE TWO THREE FOUR FIVE CITY 315/80R22.5 TRANSPORT $ 17.28 $ 17.97 $ 18.69 $ 19.44 $ 20.22 RADIAL 275/70R22.5 R192 $ 19.33 20.10 20.91 $ 21.74 22.61 9R22.5 R250F $ 18.54 $ 19.28 20.05 20.85 $ 21.69 CONTRACT FIXED COST PER 32ND - RETREAD TIRES TIRE YEAR YEAR YEAR YEAR YEAR SIZE ONE TWO THREE FOUR FIVE CITY 315/80R22.5 TRANSPORT $ 12.65 $ 13.41 $ 14.21 $ 15.07 $ 15.97 RADIAL 275/70R22.5 R192 10.96 11.61 $ 12.31 $ 13.05 $ 13.83 9R22.5 R250F 10.96 $ 11.61 1 $ 12.31 $ 13.05 $ 13.83 Example: 13/32nds remaining x $10.00/32nd = $130.00 Bridgestone- July 1,2014 Page 5