The Purchasing Department issued a Request for Quote to obtain a lease agreement for one Harley-Davidson Motorcycle for Police Patrol use. On February 12, 2019, the City received one response from Coyote Motorsports Allen LTD d/b/a Harley-Davidson of Dallas located in Allen, Texas.

The Vehicle and Equipment Replacement Fund Committee has recommended the lease/ purchase of one (1) motorcycle to replace an existing Harley motorcycle that was recently totaled in an accident.  This lease/purchase will be appropriated in the 2019-2020 budget and funded through the Debt Service Fund. 

The Payment Terms of the proposed funding through Government Capital Corporation will be $864.60 monthly for 36 months at a fixed interest rate of 3.65%.  The final payment on the 37th month will be $5,000 if the City chooses to retain and purchase the vehicle. $33,908 is the total principal amount of the lease/purchase. 

This capital lease will be funded with Interest and Sinking rate and appropriated in the City's Debt Service Fund. Since this is a debt obligation supported by the tax rate it requires City Council approval. The annual impact for one Harley Davidson motorcycle is $10,375.20 for three years.

Staff recommends the City Council adopt a Resolution authorizing the City Manager to execute a Lease/Purchase of one 2019 Harley Davidson motorcycle for the Police Department through Government Capital in the amount of $33,908.

I make a motion to adopt Resolution No. __________ authorizing the City Manager to execute the Lease/Purchase of one 2019 Harley Davidson motorcycles for the Police Department through Government Capital Corporation in the amount of $33,908.