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Home My WebLink About85-0828 U-46 Bus Lease LEASE By this Lease made and entered into this 28th day of August, 1985, between the City of Elgin, a municipal corporation of the State of Illinois, hereinafter called "Lessor" and School District U-46 of the State of Illinois, hereinafter called "Lessee;" Lessor, for and in consideration of the rent hereinafter specified and the covenants and agreements hereinafter contained, leases to Lessee the following personal property hereinafter referred to as Equipment: A) 1978 International Harvester Bus with 65 passenger Wayne Coach Body, vehicle identification number D0822HHB23780, commonly known as Bus #1039; B) 1975 International Harvester Bus with 66 passenger Superior Coach Body, vehicle identification number D0822EHA38497, commonly known as Bus #1038. I. The term of this Lease shall be from August I, 1985 to July 31, 1986. 2. Lessee agrees to pay without demand to Lessor, as rent for the above described equipment according to the below rental schedule. Bus 1039 - the sum of $170.00 per month; Bus 1038 - the sum of $120.00 per month; Total monthly payment - $290.00. Lessee shall pay the above specified amounts in full as rent for the months of September 1985 through May 1986. Rental payments for the months of August 1985 and June-July 1986 shall be the above specified amount prorated for the number of days which Lessee utilizes the above described equipment. All rental payments shall be made on or before the first day of the month for which the rentals are to be applied except the rental payment for the months of September and October which shall be paid on or before October 15, 1985. 1 All payments shall be sent to: Attn: Mr. Michael Sarro - Bus Rental City of Elgin 150 Dexter Court Elgin, IL 60120-5555 3. Lessee represents that Lessee has inspected and examined the Equipment and accepts them in their present condition, and agrees that Lessor shall not be required to make any improvements or repairs whatsoever on or to the Equipment or any part thereof. 4. Lessee covenants and agrees: a) To obtain and maintain in force and effect at all times a policy of insurance, acceptable to Lessor and naming Lessor as an additional insured, covering general and automobile liability and physical damage covering risk of loss or damage to the Equipment or to others or the property of others with limits in the aggregate of not less than $5,000,000 or per occurrence. b) To keep the Equipment in good repair, condition and working order and shall furnish any and all parts, mechanisms and devices therefor, which shall become the property of Lessor. Among other items Lessee shall be specifically liable for the maintenance of the following: I) tires; 2) exterior body and paint; 3) regular oil changes and tune ups; 4) brakes; 5) glass and windows; 6) interior seats, paint and condition generally. c) To not assign or sublet the Equipment. d) To return the Equipment in good working order to Lessor at the termination or expiration of this Lease. 2 5. If any default is made in the payment of rent in the performance of or compliance with any other term or condition thereof, this Lease, at the option of Lessor, shall terminate and be forfeited, and Lessor may seize the Equipment. Lessee shall be given written notice of any default or breach, and termination and forfeiture of the Lease shall not result if, within thirty (30) days of receipt of such notice, Lessee has corrected the default or breach or has taken action reasonably likely to effect such correction within a reasonable time. 6. This Lease is net, net in every respect, and no right, title or interest in the Equipment shall pass to Lessee, except the right to maintain possession and use of the Equipment during the term of, and in accordance with the provisions of, this Lease. 7. Upon any request by Lessor, Lessee shall make available for Lessor's inspection, at any reasonable time at the location(s) of the Equipment hereunder, the Equipment and Lessee's records as to the use, maintenance and repair thereof. 8. Lessor will not directly or indirectly create, incur or suffer to exist any mortgage, security interest, pledge, charge, lien, encumbrance or claim on or with respect to the Equipment, title thereto or any interest therein, except (a) the respective rights of Lessor and Lessee as herein provided; (b) liens or encumbrances which result from any action or inaction of Lessor or from any claim against Lessor (other than any such liens or encumbrances which arise from Lessee's failure to perform any obligation of Lessee hereunder); (c) liens for taxes either not yet due or being contested, in the opinion of Lessor, in good faith and by appropriate proceedings; and (d) inchoate materialmen's, mechanic's, workmen's, repairmen's, employee's or other like liens arising in the ordinary course of business and not delinquent. Lessee will immediately notify Lessor of, and Lessee will immediately at its own cost and expense take whatever action is necessary to duly discharge, any such mortgage, security interest, pledge, charge, lien, encumbrance or claim not excepted in (b),(c) and (d) above, when the same may arise at any time, until the return of the Equip- ment. 3 • 9. Waiver by Lessor of any default in performance by Lessee of any of the terms, covenants, or conditions contained herein, shall not be deemed a continuing waiver of the same or any subsequent default herein. 10. Lessee agrees to indemnify and hold harmless Lessor, its employees, officers and agents from any and all liability, claims, actions or damages arising out of or due to the negligent acts or omissions of Lessee, its agents or employees, or the existence and performance of this agreement or the condition of the Equipment. IN WITNESS WHEREOF, the parties have executed this Lease the day and year first above written. CITY OF LGIN By es J. Coo/ oo Manager Attest: ` CityClerk By s� Deputy Clerk SCHOOL DISTRICT U-46 By —c rte .6 1 � 1 i'%r� xtcsc �v 4 . CORPORATE POLICYHOLDERS COUNSEL, INC. 1460 RENAISSANCE DRIVE, PARK RIDGE, ILLINOIS 60068 312-298-1770 INDEPENDENT CONSULTANTS ESTABLISHED 1898 July 26, 1985 Michael A. Sarro, Purchasing Director City of Elgin 150 Dexter Court Elgin, Illinois 60120 Dear Mike: RE: BUS LEASE We have reviewed the bus lease agreement between the City of Elgin and School District U-46 and would like to offer a few comments and recommendations as outlined below. It is possible that some of these may have already been incorporated in the current lease contract. 1 . Since School District U-46 is in possession of the two buses all year, we recommend the term of the lease be amended to September 1 to September 1. The current arrangement contains a gap between June 14 and September 1. If a loss were to occur during this time period, there is some question as to the responsibilities of School District U-46 to protect the interests of the City. 2 . We suggest you attempt to incorporate a hold harmless/ indemnification clause in the City' s favor into the lease agreement. 3. The insurance requirements as contained in item 4 should be broadened to include automobile liability. 4 . Section 4 does not specify required minimum insurance limits of liability. We strongly urge you to incorporate a clause specifying minimum acceptable limits of liability. Due to the catastrophe potential associated with the use of these buses , we suggest the minimum acceptable limits selected be no less than $5,000,000 per accident. It is acceptable for the lessee to accomplish this through a combination of primary and umbrella insurance. 5 . We note the certificate of insurance which you submitted to us does not specify any coverage for the collision peril. If Management Consultants in Risk and Insurance Michael A. Sarro, 2 July 26, 1985 Purchasing Director City of Elgin 150 Dexter Court Elgin, Illinois 60120 you have not already done so, we suggest you obtain a current certificate and confirm that this coverage is in place. Should you have any questions, please do not hesitate to contact us. Very truly yours, STEVEN A. COOMBS SAC:lf October 17, 1985 MEMORANDUM TO: Jim Cook FROM: Ray Moller SUBJECT: Lease of City Owned School Buses to School District U-46 The City of Elgin Transportation Department owns two full-sized school buses. The City has leased the buses to U-46 since 1981. Adjustments were made to the proposed lease in order to reflect concerns raised by the City's insurance carriers ( see attached letter) . The attachment lease was prepared by the City' s Legal Department . The District has reviewed the lease and is prepared to sign it . The charge of $290 is the same. If you require additional information, please contact me. 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