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HomeMy WebLinkAbout17-6 Resolution No. 17-6 RESOLUTION AUTHORIZING EXECUTION OF LEASE AGREEMENTS AND MAINTENANCE AGREEMENT WITH NADLER GOLF CAR SALES, INC. FOR LEASING ELECTRIC GOLF CARS AND MAINTENANCE OF GOLF CARS AT BOWES CREEK COUNTRY CLUB BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that pursuant to Elgin Municipal Code Section 5.02.020B(9) the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interest of the city; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute lease agreements and maintenance agreement on behalf of the City of Elgin with Nadler Golf Car Sales,Inc. for leasing electric golf cars and maintenance of the golf cars at Bowes Creek Country Club, copies of which are attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: January 25, 2017 Adopted: January 25, 2017 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk NADLER GOLF CAR SALES, INC. MAINTENANCE AGREEMENT This Agreement is hereby made and entered into in duplicate this 25th day of JANUARY, 2017 by and between Nadler Golf Car Sales, Inc., an Illinois Corporation hereinafter called "FIRST PARTY", and CITY OF ELGIN, ILLINOIS, a municipal corporation hereinafter called "SECOND PARTY"; both Parties hereby agree as follows: QUANTITY AND DESCRIPTION OF EQUIPMENT TO BE MAINTAINED: Thirty-Three (33), 2010 Model CLUB CAR PRECEDENT Electric Golf Cars. 1. During the term of this Agreement FIRST PARTY agrees to: maintain vehicles in first class mechanical condition, provide weekly service from May 1st through October 1st of each respective year, provide all mechanical parts and associated labor, provide winter reconditioning of said vehicles which includes attached check sheet, perform battery discharge tests, completely wash vehicles during reconditioning process, and provide transportation of vehicles for reconditioning. 2. During the term of this Agreement repairs/replacements may be required which are not covered under said Agreement. These repairs/replacements will be provided by FIRST PARTY on a TIME & MATERIAL basis. These repairs/replacements include but are not limited to: A) Any cosmetic repair B) Any battery charger repair C) Any tire repair D) Batteries not covered under warranty E) Battery wires F) Computers & Controllers not covered under warranty G) Electric motors not covered under warranty H) Any repairs necessary due to accidents, misuse, or abuse 3. Said vehicles are to be used at the Golf Course known as BOWES CREEK COUNTRY CLUB and only at said Golf Course for the purpose of providing transportation to golf players when playing golf. Said vehicles are not to be used at any other location or for any other purpose without consent of FIRST PARTY. 4. SECOND PARTY agrees to pay to FIRST PARTY according to the following Payment Schedule. PAYMENT SCHEDULE April 1, 2017 $ 7,425.00 April 1, 2018 $ 7,920.00 5. Said Agreement shall terminate OCTOBER 1, 2018. 6. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement,and signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be considered for the purposes as an original signature and shall have the same legal effects as an original signature. Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this agreement and shall forever waive such defense. 7. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the Agreement shall remain in full force and effect FIRST PARTY NADLER GOLF CAR SALES, INC. ADDRESS: 2700 N. FARNSWORTH AVE. BY AURORA, IL 60502 SECOND PARTY CITY OF ELGIN ADDRESS: 150 DEXTER COURT BY 7- i ELGIN, IL 60120 Richard G. Kozal, City Manager Attest Kimberly A. I-w - , City Clerk r NADLER GOLF CAR SALES,INC. LEASE AGREEMENT NAME OF LESSEE CITY OF ELGIN ADDRESS 150 DEXTER COURT CITY ELGIN COUNTY KANE STATE IL ZIP 60120 QUANTITY AND DESCRIPTION OF LEASED EQUIPMENT TWENTY(20),2017 MODEL CLUB CAR PRECEDENT i2 Electric Golf Cars equipped with: Canopy Tops, Fold Down Windshield,Bag Covers, 2 Divot Bottle Kits, UBS Ports,Custom Nameplate,Battery Watering System,Numbers,Automatic E.R.I.C. Chargers,&Atlantic Blue Body Color w/Beige Seats. THIS LEASE AGREEMENT, is hereby made and entered into and executed in triplicate this 25th day of JANUARY, 2017 by and between NADLER GOLF CAR SALES, INC. an Illinois Corporation,hereinafter called `LESSOR'. and CITY OF ELGIN, ILLINOIS a municipal corporation hereinafter called `LESSEE'. WITNESSETH WHEREAS,the Lessor is engaged in the business of the sale and leasing of golf cars; and WHEREAS,the Lessee is the operator of a Golf Course located as aforesaid. NOW,THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE MUTUAL PROMISES OF THE Parties hereto,the sufficiency of which is hereby mutually acknowledged, IT IS AGREED as follows,to wit: 1. LEASE. The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited herein. Lessor hereby leases to Lessee, and Lessee hereby rents from Lessor the golf cars herein above described. 2. LOCATION. Said cars are to he used at the Golf Course known as BOWES CREEK COUNTRY CLUB and only at said Golf Course for the purpose of providing transportation to golf players when playing golf. Said golf cars are not to be used at any other location or for any other purpose without the written consent of the Lessor. 3. EQUIPMENT. Lessor represents that on delivery, said cars will be in first class mechanical condition, and agrees to maintain said cars in first class mechanical condition through the term of this Agreement,except as hereinafter otherwise provided. Lessor agrees to furnish servicing for said cars not less than once in each calendar week during the season when said cars are in use. Lessor agrees that in the event Lessee shall notify Lessor that any unit is inoperable,Lessor will within forty-eight(48)hours of such notification make examination thereof, and in the event that such unit cannot be made operable within forty-eight(48)hours of such examination,then Lessor will furnish an adequate temporary replacement within said period for such unit. Lessor shall make all repairs promptly and shall repair or replace all parts at their own expense. Lessor guarantees electric cars shall have a minimum 36-hole performance capability throughout the term of said Lease Agreement. 4. USE. Lessee agrees not to knowingly allow the use of said cars by persons under driver's license age or persons incapable of operating said units safely. 5. INSURANCE. Lessor agrees to furnish,at its own expense,bodily injury and property damage liability insurance with a minimum of 5500.000 combined single limit as a result of any one occurrence for the use, operation, and maintenance of leased golf cars. Said insurance shall name as additional insured Lessee,and a certificate thereof shall be filed with Lessee. Lessor shall carry adequate physical damage coverage for said cars. Lessee shall be liable for the first$20,000.00 of damage, per occurrence, resulting from vandalism and/or theft of said cars. Lessee must notify Lessor,via e-mail,(eric(anadlergolf.com) within(24) hours of any occurrence. Additionally,Lessee must notify the appropriate law enforcement agency within(24) hours of said occurrence. Lessee shall also be responsible for providing Lessor with a police report within one week of said occurrence. Should Lessee not provide such notification,Lessee is responsible for all costs for repairs/replacements of said golf cars. 6. OPERATION. Lessee shall provide for electric models, electricity and outlets as required, and shall properly charge and water batteries as needed. Lessee shall provide gasoline as required for operation of gasoline models. 7. STORAGE. Lessee shall provide adequate and secure storage for said golf cars when not in use. 8. TIRES. Lessor shall provide adequate spare tires and Lessor further shall be responsible for any flat tire repairs required by said cars. 9. DAMAGE AND REPAIRS. The cost of parts and labor required to repair any normal wear and tear shall be the responsibility of Lessor. Any abnormal damage,whether it be caused by accidents, caused by negligence, and/or improper operation of the vehicle on part of Lessee,employees or renter of said cars shall be invoiced to the Lessee at the normal prevailing rates charged. 10. MAINTENANCE. Lessee further agrees to keep said golf cars in a clean and orderly condition at all times so that their use will be encouraged,and that the cars will be maintained so as not to detract from the standard appearance and cleanliness of the Golf Course maintained by said Lessee. In addition,Lessee agrees that Lessee will not,without the prior written consent of Lessor,make an alteration, modification,or addition to any leased golf car, including,without limitation,the addition of any markings, advertising,placards,stickers,or GPS (Global Positioning Systems). Visage GPS by Club Car/GPSI is the ONLY approved GPS system approved by the Lessor at this time. Visage must be installed in accordance with Club Car's recommendations. 11. LEASE PAYMENTS. Lessee agrees to pay to Lessor $900.00 dollars per car per season. Both Lessor and Lessee acknowledges the length of a season will vary from year to year but in no way does this variation effect the Payment Schedule,hereinafter written,and agreed upon by both Parties. Lessee further agrees to keep records and receipts of all golf car rentals. A 1.25% MONTHLY SERVICE CHARGE(15% ANNUALLY)WILL BE CHARGED ON ALL ACCOUNTS OVER THIRTY(30)DAYS OR MAXIMUM RATE PERMITTED BY LAW,WHICHEVER IS LESS. PAYMENT SCHEDULE May 10, 2017 &2018 $1,375.00 June 10, 2017 &2018 $1,375.00 July 10, 2017 &2018 $1,375.00 August 10, 2017&2018 $1,375.00 September 10,2017&2018 $1,375.00 October 10,2017&2018 $1,375.00 May 10, 2019 through 2024 $3,000.00 June 10, 2019 through 2024 S3,000.00 July 10, 2019 through 2024 $3,000.00 August 10, 2019 through 2024 $3,000.00 September 10, 2019 through 2024 $3,000.00 October 10, 2019 through 2024 $3,000.00 TOTAL LEASE COST FOR TERM-$124,500.00 A trade value of$19,500.00 for Lessee's owned CLUB CAR Golf Car fleet consisting of Twenty(20), 2010 Club Car Electric Golf Cars has been applied to the above payment schedule for the 2017 and 2018 payments. 12. LEASE TERM. This Agreement shall terminate DECEMBER 1,2024. 13. LEASE TERMINATION OPTION. Lessee may, at its option,terminate this Agreement at the conclusion of the 2021 Golf Season. Upon exercising this option,Lessee shall be responsible for a$2,175.00 per car penalty totaling S43,500.00. Written notification must be received by Lessor from Lessee no later than August 1,2021 with full penalty payment of$43,500.00 due by October 10,2021. Should Lessee exercise this option, all duties and obligations of Lessee and Lessor within this Agreement shall cease December 1,2021. 14. FORCE MAJEUR. Lessor shall not be liable for any part of this Agreement due to any occurrence or contingency beyond their reasonable control, including but not limited to war,hostility, insurrection,riot or other act of civil disobedience, accident, fire,explosion,flood, storm,or other such weather conditions. 15. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement, and signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be considered for the purposes as an original signature and shall have the same legal effects as an original signature. Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this agreement and shall forever waive such defense. 16. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the Agreement shall remain in full force and effect. 17. MISCELLANEOUS. (a) It is understood that this Agreement is one of rental and not one of sale. (b) In the event Lessee defaults in the performance of any of the terms hereof,or fails to make any payment when due, Lessor, in addition to any other remedy accorded by law,shall have the right to declare this Agreement terminated and shall have the right to enter upon the golf course premises and take possession of and remove the golf cars subject to this Agreement. Lessee shall pay all costs and damages incurred by Lessor, including reasonable attorneys fees and costs, in enforcing the terms hereof. The minimum of 24 hours notice from Lessor prior to entry of Lessee's property is required. (c) This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. The parties hereto further agree that any action on this Agreement shall be brought in the Circuit Court for the 16`h Judicial District, Kane County,Illinois without jury and the undersigned specifically and expressly waive the right to transfer jurisdiction and venue to the Federal Court system. (d) Lessee agrees to pay to Lessor, replacement cost(parts only), for any option or accessories that require replacement during the term of this Agreement. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written. LESSOR: NADLER GOLF CAR SALES INC. ADDRESS: 2700 N. FARNSWORTH AVE. BY AURORA, IL 60502 LESSEE: CITY OF ELGI LINOIS a munici+al cot+oration ADDRESS: 150 DEXTER COURT BY 1 �/� A/l ELGIN, IL 60120 'ic and G. ozal, City Manage Attes : Kimberly Lewis, ty Clerk NADLER GOLF CAR SALES, INC. LEASE AGREEMENT NAME OF LESSEE CITY OF ELGIN ADDRESS 150 DEXTER COURT CITY ELGIN COUNTY KANE STATE IL ZIP 60120 QUANTITY AND DESCRIPTION OF LEASED EQUIPMENT TWO(2),2017 MODEL CLUB CAR PRECEDENT i2 Electric Villager 4 Transportation Vehicles Equipped with Tops,Fold Down Windshield, Standard Light Package,Fold Down Rear Seat,USB Ports, Automatic E.R.I.C. Chargers,Battery Watering System&Black Body Color w/Beige Seats. THIS LEASE AGREEMENT, is hereby made and entered into and executed in triplicate this 25th day of JANUARY, 200 by and between NADLER GOLF CAR SALES,INC. an Illinois Corporation, hereinafter called `LESSOR',and CITY OF ELGIN, ILLINOIS a municipal corporation hereinafter called `LESSEE'. WITNESSETH WHEREAS,the Lessor is engaged in the business of the sale and leasing of golf cars; and WHEREAS,the Lessee is the operator of a Golf Course located as aforesaid. NOW,THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE MUTUAL PROMISES OF THE Parties hereto,the sufficiency of which is hereby mutually acknowledged,IT IS AGREED as follows, to wit: 1. LEASE. The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited herein. Lessor hereby leases to Lessee,and Lessee hereby rents from Lessor the golf cars herein above described. 2. LOCATION. Said cars are to be used at the Golf Course known as BOWES CREEK COUNTRY CLUB and only at said Golf Course for the purpose of providing transportation to golf players when playing golf. Said golf cars are not to be used at any other location or for any other purpose without the written consent of the Lessor. 3. EQUIPMENT. Lessor represents that on delivery, said cars will be in first class mechanical condition, and agrees to maintain said cars in first class mechanical condition through the term of this Agreement, except as hereinafter otherwise provided. Lessor agrees to furnish servicing for said cars not less than once in each calendar week during the season when said cars are in use. Lessor agrees that in the event Lessee shall notify Lessor that any unit is inoperable, Lessor will within forty-eight(48) hours of such notification make examination thereof,and in the event that such unit cannot he made operable within forty-eight(48)hours of such examination, then Lessor will furnish an adequate temporary replacement within said period for such unit. Lessor shall make all repairs promptly and shall repair or replace all parts at their own expense. Lessor guarantees electric cars shall have a minimum 36-hole performance capability throughout the term of said Lease Agreement. 4. USE. Lessee agrees not to knowingly allow the use of said cars by persons under driver's license age or persons incapable of operating said units safely. 5. INSURANCE. Lessor agrees to furnish, at its own expense, bodily injury and property damage liability insurance with a minimum of$500,000 combined single limit as a result of any one occurrence for the use, operation,and maintenance of leased golf cars. Said insurance shall name as additional insured Lessee, and a certificate thereof shall be filed with Lessee. Lessor shall carry adequate physical damage coverage for said cars. Lessee is responsible to Lessor for the first$20,000.00 of damage,per occurrence, resulting from vandalism and/or theft of said cars. Lessee must notify Lessor,via e-mail,(ericAnadlergolf.com)within(24) hours of any occurrence. Additionally,Lessee must notify the appropriate law enforcement agency within(24)hours of said occurrence. Lessee shall also be responsible for providing Lessor with a police report within one week of said occurrence. Should Lessee not provide such notification,Lessee shall be liable for all costs for repairs/replacements of said golf cars. 6. OPERATION. Lessee shall provide for electric models,electricity and outlets as required, and shall properly charge and water batteries as needed. Lessee shall provide gasoline as required for operation of gasoline models. 7. STORAGE. Lessee shall provide adequate and secure storage for said golf cars when not in use. 8. TIRES. Lessor shall provide adequate spare tires and Lessor further shall be responsible for any flat tire repairs required by said cars. 9. DAMAGE AND REPAIRS. The cost of parts and labor required to repair any normal wear and tear shall be the responsibility of Lessor. Any abnormal damage,whether it be caused by accidents,caused by negligence, and/or improper operation of the vehicle on part of Lessee, employees or renter of said cars shall be invoiced to the Lessee at the normal prevailing rates charged. 10. MAINTENANCE. Lessee further agrees to keep said golf cars in a clean and orderly condition at all times so that their use will be encouraged,and that the cars will be maintained so as not to detract from the standard appearance and cleanliness of the Golf Course maintained by said Lessee. In addition, Lessee agrees that Lessee will not, without the prior written consent of Lessor,make an alteration,modification, or addition to any leased golf car, including, without limitation,the addition of any markings, advertising,placards, stickers,or GPS (Global Positioning Systems). Visage GPS by Club Car/GPSI is the ONLY approved GPS system approved by the Lessor at this time. Visage must be installed in accordance with Club Car's recommendations. 11. LEASE PAYMENTS. Lessee agrees to pay to Lessor $1,380.00 dollars per car per season. Both Lessor and Lessee acknowledges the length of a season will vary from year to year but in no way does this variation effect the Payment Schedule, hereinafter written,and agreed upon by both Parties. Lessee further agrees to keep records and receipts of all golf car rentals. A 1.25% MONTHLY SERVICE CHARGE (15% ANNUALLY)WILL BE CHARGED ON ALL ACCOUNTS OVER THIRTY(30)DAYS OR MAXIMUM RATE PERMITTED BY LAW,WHICHEVER IS LESS. PAYMENT SCHEDULE May 10,2017 &2018 $280.84 June 10, 2017 &2018 $280.84 July 10, 2017 &2018 $280.84 August 10,2017 &2018 $280.84 September 10, 2017 &2018 $280.84 October 10, 2017 &2018 $280.84 May 10, 2019 through 2024 $460.00 June 10, 2019 through 2024 $460.00 July 10, 2019 through 2024 $460.00 August 10, 2019 through 2024 $460.00 September 10,2019 through 2024 $460.00 October 10, 2019 through 2024 $460.00 TOTAL LEASE COST FOR TERM-$26,670.24 A trade value of$1,075.00 for Lessee's owned CLUB CAR Golf Car fleet consisting of Two(2),2010 Club Car Villager 4 Electric Golf Cars has been applied to the above payment schedule for the 2017 and 2018 payments. 12. LEASE TERM. This Agreement shall terminate DECEMBER 1, 2024. 13. LEASE TERMINATION OPTION. Lessee may,at its option,terminate this Agreement at the conclusion of the 2021 Golf Season. Upon exercising this option,Lessee shall be responsible for a$2,950.00 per car penalty totaling$5,900.00. Written notification must be received by Lessor from Lessee no later than August 1,2021 with full penalty payment of$5,900.00 due by October 10,2021. Should Lessee exercise this option, all duties and obligations of Lessee and Lessor within this Agreement shall cease December 1,2021. 14. FORCE MAJEUR. Lessor shall not be liable for any part of this Agreement due to any occurrence or contingency beyond their reasonable control, including but not limited to war, hostility, insurrection, riot or other act of civil disobedience, accident, fire,explosion,flood, storm, or other such weather conditions. 15. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement, and signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be considered for the purposes as an original signature and shall have the same legal effects as an original signature. Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this agreement and shall forever waive such defense. 16. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the Agreement shall remain in full force and effect. 17. MISCELLANEOUS. (a) It is understood that this Agreement is one of rental and not one of sale. (b) In the event Lessee defaults in the performance of any of the terms hereof, or fails to make any payment when due, Lessor, in addition to any other remedy accorded by law, shall have the right to declare this Agreement terminated and shall have the right to enter upon the golf course premises and take possession of and remove the golf cars subject to this Agreement. Lessee shall pay all costs and damages incurred by Lessor, including reasonable attorneys fees and costs, in enforcing the terms hereof. The minimum of 24 hours notice from Lessor prior to entry of Lessee's property is required. (c) This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. The parties hereto further agree that any action on this Agreement shall be brought in the Circuit Court for the 16`h Judicial District, Kane County,Illinois and the undersigned specifically and expressly waive the right to transfer jurisdiction and venue to the Federal Court system. (d) Lessee agrees to pay to Lessor,replacement cost(parts only),for any option or accessories that require replacement during the term of this Agreement. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written. LESSOR: NADLER GOLF CAR SALES,INC. ADDRESS: C n � -1—e 2700 N. FARNSWORTH AVE. BY L ! �l AURORA, IL 60502 LESSEE: CITY OF ELG ► ILLINOIS a municipal co .orati.+, ADDRESS: 150 DEXTER COURT BY ��� �/�j� ELGIN,IL 60120 Richard G. Kozal, City Man. :er k .„... Attest• 4 d'Zeze Kimberly A. is, City Clerk NADLER GOLF CAR SALES,INC. LEASE AGREEMENT NAME OF LESSEE CITY OF ELGIN ADDRESS 150 DEXTER COURT CITY ELGIN COUNTY KANE STATE IL ZIP 60120 QUANTITY AND DESCRIPTION OF LEASED EQUIPMENT One(1),2017 MODEL CLUB CAR CARRYALL 300 GASOLINE UTILITY VEHICLE equipped with: Driving Range Protective Enclosure,Heavy-Duty Front Suspension,Headlights,Ball Picker Adaptor, Heavy-Duty Front Bumper, Fuel Gauge/Hour Meter,Four Wheel Brakes,&Green Front Body Color. THIS LEASE AGREEMENT, is hereby made and entered into and executed in triplicate this 25th day of JANUARY,2017 By and between NADLER GOLF CAR SALES, INC. an Illinois Corporation,hereinafter called `LESSOR', and CITY OF ELGIN,ILLINOIS a municipal corporation hereinafter called `LESSEE'. WITNESSETH WHEREAS,the Lessor is engaged in the business of the sale and leasing of golf cars, beverage and utility vehicles. WHEREAS,the Lessee is the operator of a Golf Course located as aforesaid. NOW,THEREFORE,IN CONSIDERATION OF THE PREMISES AND THE MUTUAL PROMISES OF THE Parties hereto, ,the sufficiency of which is hereby mutually acknowledged, IT IS AGREED as follows,to wit: 1. LEASE. The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited herein. Lessor hereby leases to Lessee, and Lessee hereby rents from Lessor the vehicle(s)herein above described. 2. LOCATION. Said vehicle(s)are to be used at the Golf Course known as BOWES CREEK COUNTRY CLUB and only at said Golf Course for the purpose of driving range us . Said vehicle is not to be used at any other location or for any other purpose without the written consent of Lessor. 3. EQUIPMENT. Lessor represents that on delivery, said vehicle(s)will be in first class mechanical condition,and agrees to maintain said vehicle(s) in first class mechanical condition on a Time&Material basis through the term of this Agreement. 4. USE. Lessee agrees not to knowingly allow the use of said vehicle(s)by persons under driver's license age or persons incapable of operating said vehicle(s)safely. 5. INSURANCE. Lessor agrees to furnish,at its own expense, bodily injury and property damage liability insurance with a minimum of$500,000 combined single limit as a result of any one occurrence for the use, operation,and maintenance of leased vehicle(s). Said insurance shall name as additional insured Lessee,and a certificate thereof shall be filed with Lessee. Lessor shall carry adequate physical damage coverage for said vehicle(s). Lessee is responsible to Lessor for replacement cost for any stolen or missing vehicle(s). Lessee shall be liable for the first$20,000.00 of loss or damage,per occurrence, resulting from vandalism of said vehicle(s). Lessee must notify Lessor,via e-mail,(eric(anadlergolf.com)within (24) hours of any occurrence. Additionally,Lessee must notify the appropriate law enforcement agency within (24)hours of said occurrence. Lessee shall also be liable for providing Lessor with police report within one week of said occurrence. 6. OPERATION. Lessee shall provide gasoline as required for operation of said vehicle(s). 7. STORAGE. Lessee shall provide adequate and secure storage for said vehicle(s)when not in use. 8. DAMAGE AND REPAIRS. Any abnormal damage,whether it be caused by accidents,caused by negligence, and/or improper operation of the vehicle(s)on part of Lessee or its employees, shall be invoiced to the Lessee at the normal prevailing rates charged. 9. MAINTENANCE. Lessee further agrees to keep said vehicle(s) in a clean and orderly condition at all times. In addition, Lessee agrees that Lessee will not,without the prior written consent of Lessor,make any alteration or modification to said leased vehicle(s). 10. LEASE PAYMENTS. Lessee agrees to pay to Lessor $1,810.00 dollars per vehicle per season. Lessor and Lessee acknowledge the length of a season will vary from year to year but in no way does this variation effect the Payment Schedule, hereinafter written,and agreed upon by both Parties. A 1.25% MONTHLY SERVICE CHARGE(15% ANNUALLY)WILL BE CHARGED ON ALL ACCOUNTS OVER THIRTY(30)DAYS OR MAXIMUM RATE PERMITTED BY LAW,WHICHEVER IS LESS. PAYMENT SCHEDULE May 10, 2017 $310.00 June 10,2017 $ 0.00 July 10,2017 S 0.00 August 10,2017 $ 0.00 September 10, 2017 S 0.00 October 10, 2017 S 0.00 May 10,2018 through 2024 $301.67 June 10,2018 through 2024 $301.67 July 10,2018 through 2024 $301.67 August 10, 2018 through 2024 $301.67 September 10, 2018 through 2024 $301.67 October 10, 2018 through 2024 $301.67 TOTAL LEASE COST FOR TERM-$12,980.14 A trade value of$1,500.00 for the Lessee's owned 2010 CLUB CAR TURF 2 BALL PICKER has been applied to the June through October 2017 payment schedule. 12. LEASE TERM. This Agreement shall terminate DECEMBER 1, 2024. 13. LEASE TERMINATION OPTION. Lessee may,at its option,terminate this Agreement as the conclusion of the 2021 Golf Season. Upon exercising this option,Lessee shall be responsible for a$4,950.00 penalty. Written notification must be received by Lessor from Lessee no later than August 1, 2021 with full penalty payment of $4,950.00 due by October 10,2021. Should Lessee exercise this option, all duties and obligations of Lessee and Lessor within this Agreement shall cease December I,2021. 14. FORCE MAJEUR. Lessor shall not be liable for any part of this Agreement due to any occurrence or contingency beyond their reasonable control, including but not limited to war,hostility, insurrection,riot or other act of civil disobedience, accident, fire,explosion, flood,storm or other such weather conditions. 15. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement,and signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be considered for the purposes as an original signature and shall have the same legal effects as an original signature. Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this agreement and shall forever waive such defense. 16. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the Agreement shall remain in full force and effect 17. MISCELLANEOUS. (a)It is understood that this Agreement is one of rental and not one of sale. (b)In the event Lessee defaults in the performance of any of the terms hereof,or fails to make any payment when due, Lessor, in addition to any other remedy accorded by law, shall have the right to declare this Agreement terminated and shall have the right to enter upon the golf course premises and take possession of and remove the vehicle/s subject to this Agreement. Lessee shall pay all costs and damages incurred by Lessor, including reasonable attorneys fees and costs, in enforcing the terms hereof.The minimum of 24 hours notice from Lessor prior to entry of Lessee's property is required. (c)This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. The parties hereto further agree that any action on this Agreement shall be brought in the Circuit Court for the 16`h Judicial District,Kane County,Illinois and the undersigned specifically and expressly waives the right to transfer jurisdiction and venue to the Federal Court system. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written. LESSOR: NADLER GOLF CAR SALES, INC. ADDRESS: !� ��+!��� 2700 N.FARNSWORTH AVE. / BY (/ AURORA, IL 60502 LESSEE: CITY OF ELGIN,ILLINOIS a municipal corporation ADDRESS: 150 DEXTER COURT BY <<<Lit ELGIN,IL 60120 Richard G. Kozal, C ty Manager Attest: imberly A. 'wis, City Clerk NADLER GOLF CAR SALES,INC. LEASE AGREEMENT NAME OF LESSEE CITY OF ELGIN ADDRESS 150 DEXTER COURT CITY ELGIN COUNTY KANE STATE IL ZIP 60120 QUANTITY AND DESCRIPTION OF LEASED EQUIPMENT One(1),2017. MODEL CLUB CAR CARRYALL 500 GASOLINE UTILITY VEHICLE equipped with: Canopy Top,One Piece Windshield,Portable Refreshment Center Insert,Turf Package,Headlights, Heavy-Duty Front Bumper,Fuel Gauge/Hour Meter,Four Wheel Brakes,&Green Front Body Color. THIS LEASE AGREEMENT,is hereby made and entered into and executed in triplicate this 25th day of JANUARY,2017 _ By and between NADLER GOLF CAR SALES, INC. an Illinois Corporation, hereinafter called 'LESSOR',and CITY OF ELGIN, ILLINOIS a municipal corporation hereinafter called `LESSEE'. WITNESSETH WHEREAS,the Lessor is engaged in the business of the sale and leasing of golf cars,beverage and utility vehicles. WHEREAS,the Lessee is the operator of a Golf Course located as aforesaid. NOW,THEREFORE,IN CONSIDERATION OF THE PREMISES AND THE MUTUAL PROMISES OF THE Parties hereto,the sufficiency of which is hereby mutually acknowledged, IT IS AGREED as follows, to wit: 1. LEASE.The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited herein. Lessor hereby leases to Lessee,and Lessee hereby rents from Lessor the vehicle(s)herein above described. 2. LOCATION. Said vehicle(s) are to be used at the Golf Course known as BOWES CREEK COUNTRY CLUB and only at said Golf Course for the purpose of providing food and beverages to golf players when playing golf. Said vehicle(s)are not to be used at any other location or for any other purpose without the written consent of Lessor. 3. EQUIPMENT. Lessor represents that on delivery, said vehicle(s)will be in first class mechanical condition,and agrees to maintain said vehicle(s) in first class mechanical condition on a Time&Material basis through the term of this Agreement. 4. USE. Lessee agrees not to knowingly allow the use of said vehicle(s) by persons under driver's license age or persons incapable of operating said vehicle(s) safely. 5. INSURANCE. Lessor agrees to furnish, at its own expense, bodily injury and property damage liability insurance with a minimum of$500,000 combined single limit as a result of any one occurrence for the use, operation, and maintenance of leased vehicle(s). Said insurance shall name as additional insured Lessee,and a certificate thereof shall be filed with Lessee. Lessor shall carry adequate physical damage coverage for said vehicle(s). Lessee shall be liable for replacement cost for any stolen or missing vehicle(s). Lessee is shall be liable for the first$20,000.00 of loss or damage,per occurrence, resulting from vandalism of said vehicle(s). Lessee must notify Lessor,via e-mail,(eric(a�nadlergolf.com)within (24) hours of any occurrence. Additionally,Lessee must notify the appropriate law enforcement agency within (24) hours of said occurrence. Lessee shall be liable for providing Lessor with police report within one week of said occurrence. 6. OPERATION. Lessee shall provide gasoline as required for operation of said vehicle(s). 7. STORAGE. Lessee shall provide adequate and secure storage for said vehicle(s)when not in use. 8. DAMAGE AND REPAIRS. Arty abnormal damage,whether it be caused by accidents,caused by negligence, and/or improper operation of the vehicle(s)on part of Lessee or its employees,shall be invoiced to the Lessee at the normal prevailing rates charged. 9. MAINTENANCE. Lessee further agrees to keep said vehicle(s) in a clean and orderly condition at all times. In addition,Lessee agrees that Lessee will not,without the prior written consent of Lessor, make any alteration or modification to said leased vehicle(s). 10. LEASE PAYMENTS. Lessee agrees to pay to Lessor $1,850.00 dollars per vehicle per season. Lessor and Lessee acknowledge the length of a season will vary from year to year but in no way does this variation effect the Payment Schedule,hereinafter written,and agreed upon by both Parties. A 1.25% MONTHLY SERVICE CHARGE(15% ANNUALLY)WILL BE CHARGED ON ALL ACCOUNTS OVER THIRTY(30)DAYS OR MAXIMUM RATE PERMITTED BY LAW,WHICHEVER IS LESS. PAYMENT SCHEDULE May 10,2017 through 2024 $308.34 June 10,2017 through 2024 $308.34 July 10,2017 through 2024 $308.34 August 10,2017 through 2024 $308.34 September 10,2017 through 2024 $308.34 October 10, 2017 through 2024 $308.34 TOTAL LEASE COST FOR TERM-$14,800.32 12. LEASE TERM. This Agreement shall terminate DECEMBER 1,2024. 13. LEASE TERMINATION OPTION. Lessee may, at its option,terminate this Agreement as the conclusion of the 2021 Golf Season. Upon exercising this option,Lessee shall be responsible for a$4,650.00 penalty. Written notification must be received by Lessor from Lessee no later than August 1, 2021 with full penalty payment of $4,650.00 due by October 10, 2021. Should Lessee exercise this option,all duties and obligations of Lessee and Lessor within this Agreement shall cease December 1, 2021. 14. FORCE MAJEUR. Lessor shall not be liable for any part of this Agreement due to any occurrence or contingency beyond their reasonable control, including but not limited to war,hostility, insurrection,riot or other act of civil disobedience,accident,fire,explosion,flood, storm or other such weather conditions. 15. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement,and signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be considered for the purposes as an original signature and shall have the same legal effects as an original signature. Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this agreement and shall forever waive such defense. 16. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the Agreement shall remain in full force and effect. • 17. MISCELLANEOUS. (a)It is understood that this Agreement is one of rental and not one of sale. (b)In the event Lessee defaults in the performance of any of the terms hereof,or fails to make any payment when due, Lessor,in addition to any other remedy accorded by law,shall have the right to declare this Agreement terminated and shall have the right to enter upon the golf course premises and take possession of and remove the vehicle/s subject to this Agreement. Lessee shall pay all costs and damages incurred by Lessor, including reasonable attorneys fees and costs, in enforcing the terms hereof. The minimum of 24 hours notice from Lessor prior to entry of Lessee's property is required. (c)This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. The parties hereto further agree that any action on this Agreement shall be brought in the Circuit Court for the 16th Judicial District,Kane County,Illinois and the undersigned specifically and expressly waive the right to transfer jurisdiction and venue to the Federal Court system. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written. LESSOR: NADLER GOLF CAR SALES,INC. ADDRESS: 7t°/(1 2700 N. FARNSWORTH AVE. BY AURORA,U RA, IL 60502 LESSEE: CITY OF ELGIN,ILLINOIS a municipal corporation ADDRESS: 150 DEXTER COURT i BY Aga��j" ELGIN,IL 60120 Richard G. 'ozal, ty a :ger Atte t• Kimberl A Dewis, City Clerk