R98-90 ACCEPTING THE Firestone Bid Bus Tire Lease

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. _ , � . + ,� • TIRE LEASE AGREII�NT FIRM, FI]�D TIRE MILE RATE-DAI�,GE IN RATE THIS Agreement, made in Akron, Ohio, this lst day of July, 1998, by and between BRIDGESTONE/FIRESTONE, INC. , an Ohio corporation with its principal offices in Akron, Ohio, ("Firestone") and CITY OF DECATUR, a governmental agency in the state of Illinois, having an office in Decatur, Illinois ("Operator") . WITNESSETH: l. TIRES--Firestone agrees to lease to Operator and Operator agrees to lease from Firestone 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 Firestone, 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 RFP for Lease of Bus Tires ("Bid Specifications") that are owned or operated by Operator, its subsidiaries and affiliated companies at any time during the term of this Agreement. Rims shall be the property of Operator and extra rims shall be provided by Operator. 2. RATE--Operator agrees to furnish Firestone by the tenth day of each month a record of the daily revenue and non-revenue vehicle miles which each of Operator's vehicle has run during the preceding month, and to remit within thirty (30) days of receipt of invoice, a check in payment for the mileage run during such preceding month. Operator agrees that no amounts shall be deducted from or charged back against payments otherwise due Firestone hereunder by virtue of claims of any nature which Operator may have or allege against Firestone; Firestone and Operator agree that such claims shall be resolved by good faith negotiations between the parties wherever possible. The amount of the regular monthly payment shall be computed by using the applicable billing rate in effect during such preceding month, as set forth below. The billing rate per vehicle 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 letter amendment. Operator agrees to use a method of computing and recording tire mileage of its vehicles acceptable to Firestone, and Firestone 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.