R2004-88 AUTHORIZING EXECUTION OF A TIRE LEASE AGREEMENT

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6. PURCHASE AND LEASE OF VEHICLES Buses purchased by the CITY during the term of this agreement may be purchased with tires, or ' equipped with lease tires. Upon notification by the CTI'Y, the MANUFACTLJRER shall furnish to the North American bus manufacturer the size and types of tires required to be placed on the new buses. Tires fumished to the bus manufacturer become the responsibility of the CTI'I', and if lost, stolen or damaged after delivery to the bus manufacturer shall be paid for by the CITY on the basis set forth in"Attachment A". If the new buses are driven from the manufacturing facility to the CITY on lease tires, rather than shipped, the CITY shall pay the MANUFACTLJRER for the use of such tires at the normal billing rate set in"Attachment A". The CITY shall notify the MANUFACTLTRER whenever it acquires buses, either by purchase or by lease so that the MANUFACTLJRER can supply lease tires for that vehicle. Unless the acquired bus is excluded under the five percent (5%) testing provision, the provision of tires for such new bus shall be under the terms of this Agreement. If the CTI'Y should terminate the bus lease or otherwise lose possession of a leased bus equipped with the MANUFACTLJRER's tires, then the CITY shall pay for each tire (including spares) as set forth in"Attachment A". 7. SALE OR DISPOSITION OF BUSES AND LOSS OF TIRES The CTTY shall notify the MANUFACTLTRER prior to the sale or disposition of any of the CITI"s buses equipped with the MANUFACTURER's tires, and, unless MANUFACTURER requests otherwise, the CTI'Y shall purchase the unused mileage in each tire that remains in stock after such bus has been sold or disposed of,which cannot be used on other buses in the CITY's fleet. The MANUFACT'URER has the right to request the removal of all serviceable tires on parked or inactive buses, if they remain parked or inactive for more than ninety(90) days, and return such tires to the CITY's reserve supply. Said removed tires shall then be replace with scrap tires, if available (see "Attachment B"). Payment for the unused mileage and tubes a uired b th cq y e CITY under this paragraph shall be on the basis as specified for the termmation of this Agreement, in"Attachment A". Any tires which have been lost, stolen or damaged beyond repair by an accident, malicious abuse, or fire shall be paid for by the CITY as of the date of the occurrence on the basis as specified for the termination of this Agreement, in "Attachment A". The term "malicious abuse" shall include damage to a tire by extraordinary causes, such as vandalism, fork lift accident, etc. The term "normal abuse" shall refer to the partial or total destruction of a tire by means other than normal tire wear, including,but not limited to, destruction resulting from underinflation, overinflation, overloading, misalignment, excessive brake heat, using bent rims, using chains of the wrong design or that are improperly applied, curbing and road hazards. Normal abuse shall be included in the rate. 8. CONTINGENCIES In the event of any cause beyond either party's reasonable control which will delay or interfere with its performance of its obligations under this Agreement, such performance may, at the option of either party,be suspended during the period required to remove such cause. In the event that the MANUFACTLTRER discontinues the manufacture and marketing of any size and type of tire supplied pursuant to this Agreement, the MANUFACTURER shall so notify the CITY and, upon written notice, this Agreement shall be deemed terminated with respect to that size and type of tire, or, at the option of the CITY, may be deemed terminated in its entirety, effective ninety (90) days from receipt of such written notice. Decatur Public Transit System 3 Tire Lease Agreement