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HomeMy WebLinkAbout95-31 Resolution No. 95-31 RESOLUTION AUTHORIZING EXECUTION OF A GOLF CAR LEASE EXTENSION WITH BOYLAN SALES, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, City Manager, be and is hereby authorized and directed to execute a Golf Car Lease Extension to a lease agreement dated March 11, 1988, on behalf of the City of Elgin with Boylan Sales, Inc. for the lease of golf cars to December 1, 1997, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: February 22, 1995 Adopted: February 22, 1995 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk IOW N Boylan Sales , Inc . ,,, 1451 E. Lathem • Batavia, Illinois 60510 • Phone (708) 879-5670 • Fax (708) 879-5885 GOLF CAR LEASE EXTENSION Addendum (A-3)to Existing Golf Car Lease Contract (signed 3-11-88 ) Between City of Elgin, Illinois (Lessee) and Boylan Sales, Inc. (Lessor) - to be Attached To Current Contract A. Present Contract to be extended in length by three (3 ) years to December 1, 1997 . B. Lessor (Boylan) to provide fifty (50) new 1995 G14-A Yamaha vehicles to Lessee at the beginning of 1995 golfing season. C. Lessee (City of Elgin) may add additional vehicles at same set established rates at beginning of 1996 season. D. All terms, conditions, payment schedule dates and per car rates, shall remain the same as existing contract. Based on 50 vehicles, placed at Spartan Meadows and Wing Park Golf Course, all conditions remain the same except Lessee receives new fleet. Year 1995, 1996, and 1997 - $825 . 00 per car per year - six ( 6 ) payments totaling $41,250 .00 yearly for 50 car fleet. Note -Additional new cars may be added at beginning of 1996 at yearly rates in effect for that season. AGREED '3 . lc:LC i/9 A(bpi" '.-*'----`1 r°-1241 For: City of Elgin I For. Boy ales, Inc. 150 Dexter Court Larry Joseph, Vice President Elgin, Illinois 60120 Batavia, Illlinois 60510 Date 2-12-'1 IQs- Date / --.01‘.- g..S Plainwell, MI • Greenfield, IN • Delray Beach, FL r TRANSACTION REPORT MAR— 6-95 MON i * SMT RECEIVER TX TIME PAGES TYPE NOTE * is 16:4F J4381103 1'50" 3 SEND OK **yyr.y W yyvv��..yyyy yy +� yy�Wy.Wy,y yyyy�yyyW. yyyy �y.y Way. �yyyy .y�r�y .yy�y�y �y�y�y�r�y�y�y.y �►r �y�{..y.y �yy y.�{.�y�y�y�y�{r.yy.y �y�y If*�.A,IT.4....: ,J�i„T11�R�/*I �11*******mm******?*********�I.?�A1If*****A�A�****1l�II�II�A1********1�l1�*****11�11�A1A1A1A�TlA****** r •, Agenda Item No. N Ake7 January 31, 1995 TO: Mayor and Members of City Council FROM: Richard B. Helwig, City Manager SUBJECT: Addendum to the Golf Car Lease Agreement PURPOSE The purpose of this memorandum is to obtain City Council approval of an addendum to our present golf car lease with Boylan Sales, Inc. BACKGROUND For the past seven years, the City has had a lease contract with Boylan Sales, Inc. of Batavia to provide golf cars for both Spartan Meadows and Wing Park golf courses . City Council ' s original award prior to the 1988 golf season was for 42 new Yamaha golf cars at a leased cost of $775/car/year for four years; then, prior to the 1991 golf season, City Council approved a three-year extension to this lease which provided for the replacement of the existing three-year old fleet with new 1991 Yamaha golf cars at a leased cost of $825/car/year. The current fleet is now four years old and at numerous times during the past season (especially weekends and outings) , the number of cars available has been insufficient to meet demand. Pursuant to the City's request, Boylan Sales has proposed another three-year extension to our current lease. As de- tailed in their attached letter, Boylan would replace the existing 42-car four-year-old fleet with 50 new 1995 Yamaha golf cars at no increase to our current leased cost of $825/car/year. Rick Bell, City Golf Professional, has found both the quality of Yamaha golf cars and the service provided by Boylan Sales on the maintenance of these vehicles to be excellent. Mayor and Members of City Council January 31, 1995 Page Two Our review of the pricing structure finds this proposal to be most reasonable as the City has our 1991 approved price of $825/car/year guaranteed through the 1997 golf season while meeting our goals of upgrading the fleet with new cars and increasing the number of cars to fifty. COMMUNITY GROUPS/INTERESTED PARTIES None FINANCIAL IMPACT Funds for this lease agreement are included in the Golf Oper- ating Fund under the heading "Rental-Golf Cart" (Acct# 540-5801-775-4305) , while the revenue generated by the renting of these cars to our golf patrons is found under the general heading "Equipment Rental (Revenue Acct # 540-0000-546-0100) . In 1994, the average golf car, which cost $825 to lease, generated over $2,000 in rental revenues . Staff is confident that the additional cost necessary to lease the 8 additional cars will be more than offset by the increased revenue they are projected to provide. LEGAL IMPACT None. RECOMMENDATION The recommendation is to approve the proposed addendum to the current golf car lease with Boylan Sales, Inc. for a total annual cost of $41, 250 . 00 (50 cars at $825 each) Respectfully Submitted, Michael A. Sarro Purchasing Director Richard B. Helwig City Manager MAS/rh cc• Rick Bell eft Greg Bayor 11110" ;,. (06. Boylan Sales , Inc . 1451 E. Lathem • Batavia, Illinois 60510 • Phone (708) 879-5670 • Fax (708) 879-5885 January 26, 1995 Mr. Mike Sarro Director of Purchasing 150 Dexter Court Elgin, Illinois 60120-5555 Dear Mr. Sarro, Enclosed please find our offer to extend the Golf Car Lease Contract for the City of Elgin for three seasons to cover 1995 . 1996 , and 1997 . Boylan will place up to 50 new 1995 vehicles at your Spartan Meadows and Wing Park locations at the same yearly rate of $825.00 per car per season as you have been paying the last three years. If you agree, kindly sign the enclosed addendum A-3 and we will attach to existing contract. Knowing that you must have golf cars during March, makes it necessary that this signed contract be returned to us before February 24, 1995 . Thank you for your business in the past, we look forward to serving your golf car needs at the City of Elgin, for many years to come. S7rreely, Larry J eph Vice President r Plainwell.MI • Greenfield. IN • Delray Beach FI