91-0213 Boylan Sales 91- 0A13
RESOLUTION
AUTHORIZING EXECUTION OF AN ADDENDUM TO A LEASE AGREEMENT
WITH BOYLAN SALES, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to execute an addendum to a lease
agreement dated March 11, 1988 on behalf of the City of Elgin
with Boylan Sales, Inc. for golf cars, a copy of which is
attached hereto and made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: February 13, 1991
Adopted: February 13, 1991
Vote: Yeas 7 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
9174 e._.."-r/r- •
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,` ±.ZI AIO 1451 E. LATHEM • BATAVIA, ILLINOIS 60510
PHONE (708) 879-5670 • FAX (708) 879-5885
Addendum (A-1) 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 ontract to be extended in length by three (3) years to December 1,1994.
B. Lessor (Boylan) to provide forty two (42) new 1991 G9-A Yamaha vehicles to Lessee
at the beginning of 1991 golfing season.
C. Lessee (City Of Elgin) may add additional vehicles at same set established rates
as shown below, at beginning of 1991,1992,and 1993 seasons.
D. All teuns, conditions, payment schedules dates shall remain the same as existing
contract, except as shown below.
Exceptions
1. New vehicles will be new 1991 models with all standard equipment and hub caps.
2. Option to purchase provisions (Page #5) are no longer in effect.
3. Lessor (Boylan) may provide new current models cars at beginning of any golfing
season while this contract be in effect.
Rates
Based on 42 vehicles, placed at Spartan Meadows and Wing Park Golf Course.
Year 1991 - Same as existing contract $775.00 per car per year - six (6) payments
of $5425.00. Total Payment for 42 cars $32,550.
Year 1992,1993, & 1994 - $825.00 per car per year - six (6) payments of $34,650 for
42 car fleet. Note - Additional new cars may be added at beginning of
1991,1992, and 1993 at yearly rates in effect for that season.
Agreed
For. 'i y of Elk• For: Boyl Sales, Inc.
150 Dexter Co kt Larry Joseph, Vice President
Elgin, Illinois 60120 1451 E. Lathem Ave.
Batavia,Illinois 60510
Date: a//e/�/'7 Date: ` /,-7/
PLAINWELL, MICHIGAN • INDIANAPOLIS, INDIANA • DELRAY BEACH, FLORIDA
LEASE AGREEMENT
•
This agreement, made and entered into between Boylan Sales, Inc. ,
607 N. Main, Plainwell, Michigan 49080. hereinafter designated as "Lessor"
and City of Elgin - 150 Dexter Court - Elgin,Illinois 60120-5555
,hereinafter designated as "Lessee" made this
day of , 1988 for the purpose of renting to Lessee golf
cars with right and privilege of the Lessee to sublease said cars for
golfing purposes under the following terms and conditions:
1. Lessor agrees to provide Forty two (42) 1988 Yamaha G2-AB. 4 cycle
4 wheel gasoline golf cars equipped with Bench seats, Steering wheels ,
bumpers,Sweater baskets, Beverage holders, Indash storage, Hub caps ,
and Stand-up bag racks for a term of .4.4A months commencing March 15, 1988
and ending December 1 , 1991
2. The Lessee agrees to lease said cars at the following rates:
$775.00 per car per season during 1988 thru 1991 - Yearly rate for
42 car fleet is $32,550.00.The 1988 season as shown below has been
reduced by S13, 325 as a result of trades. See Page 5 under "Special Conditions"
and payable as follows: Six equal payments per season on the 10th
day of each,May,June,July,August,Sept. and Oct. The 1988 monthly payment
will be $3204 . 16 - The monthly payment during 1989, 1990,and 1991 will
be $5425.00.
3. Lessor shall provide all parts, service, and labor required
as a result of ordinary wear and tear to keep the cars in good repair,
without cost or obligation to the Lessee. Lessee agrees to perform
preventative maintenance as described in paragraph 5.
4. In order to insure a proper level of operation, performance,
and dependability, the Lessor shall furnish factory-trained service
to• the following extent:
A. The Lessors service department shall inspect and adjust
each car weekly during the regular playing season.
B. The Lessor's service department shall,during the regular
playing season, respond to any and all service calls or
emergency failures which might occur between weekly inspections.
Notification to be received at Boylan Service Center, Batavia,
II. with the understanding of 24 hr. lead time.
C. Each and every call made by Lessor shall carry a completed
inspection sheet which the Lessee shall sign or cause to
be signed confirming that the required work has been
satisfactorily completed.
5. Lessee hereby agrees to perform or cause to be performed the
following service to the cars:
A. Keep the cars clean, orderly, and adequately stored or
garaged, during playing season.
PAGE -1-
B. Remove, repair, and replace all flat tires, and perform
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minor adjustments, when necessary, to keep cars safe for
customer use. Otherwise, cars may not be rented and Boylan
is to be notified.
C. Furnish adequate hand tools to the maintenance personnel
in order to properly and promptly discharge its
responsibilites as herein set forth.
D. Furnish gas.
6. Daily and adequate service attention to the said cars is mandatory,
and to that end, the Lessee agrees to assign one of its employees to
perform such service. Such employee shall be field trained by Lessor and
shall learn the functions of fleet management and maintenance. Upon
condition that said Lessee fulfills these maintenance and program
procedures, the Lessor hereby guarantees that its cars will be kept in
proper running order and appearance for the term of this contract .
7. All fire, theft and vandalism damage to said golf cars is to be
reported to proper police department within twenty-four (24 ) hours of
discovery, and a written copy of the police report furnished immediately
thereafter to Boylan Sales. Full no-deductible coverage for above .
Boylan Sales to repair and/or replace "major body damage" with no
deductible charge to the City of Elgin, and to be furnished with the name,
address and telephone number of the person who rented said vehicle involved
in any accident . Boylan Sales, in behalf of the City of Elgin, will
attempt to affect collection from the individual at fault for the sum
required to repair and/replace the damaged golf car. In the event this
sum has not been collected within ninety ( 90 ) days, Boylan Sales will
require a written acknowledgement from the golf course manager stating
the individual responsible for the damage to said Yamaha vehicle is to be
prohibited from the rental of any Yamaha golf car at either of the City
of Elgin golf courses. The City of Elgin will then be billed for 75% of
total damage to said golf car.
8. Lessee agrees to exercise reasonable judgement in selecting
sub-lessees to whom such cars may be rented. The cars shall not be rented
by Lessee to any person who Lessee knows, or reasonably should' know, by
observation or past action to be incapable or unwilling to exercise
reasonable care in the operation of such cars . Lessee shall be
responsible for instruction of users in the operation of the vehicle.
9. Lessee agrees to require proof of a valid motor vehicle
operator's license from sub-lessees operating such cars .
10. Lessor shall maintain and keep in effect adequate fire,and
extended coverage and theft insurance covering the golf cars; but such
coverage shall not extend to negligent operation of golf cars by Lessee
or by individual operators sub-renting from Lessee. Lessor shall maintain
public liability in the amounts of not less than $1 ,000,000 bodily
injury and $100, 000 property damage. See Copy of previous insurance
coverage letter attached. Boylan will show Lessee (City of Elgin)
as additionally insured on $1 ,000,000 basic liability policy and will
furnish proof of insurance prior to placing vehicles on city course
in March 1988.
PAGE -2-
11 . Lessee agrees to give written reports to Lessor of all accidents
involving these vehicles and give full cooperation to the insurance carrier.
12 . Any acts of vandalism, property damage, fire, theft , and injuries
related to said cars shall be reported, in writing, by Lessee to Lessor
within 72 hours from time of discovery and such list shall include a list
of cars by serial number with a brief description of the damage and the
name of the police department notified of such damage. Lessee must notify
the local police department within 24 hours of discovery of such damage.
Lessee must take all necessary precautions to avoid vandalism, property
damage, fire, theft , and injuries related to said cars.
13. Lessor reserves the right to withdraw cars at anytime for
maintenance, inadequate revenue, excessive vandalism, or any reasons and
abuses beyond normal wear and tear.
14. Lessee agrees that at no time will more than two persons be
permitted to operate or ride such vehicle and, further, that such vehicle
shall be used only to transport golfers and their golf equipment while
playing golf on Lessee's premises at the address provided above. •
15. Use of said cars by Lessee's personnel for the purpose of •
carrying refreshments, picking up balls from driving ranges, performing
duties as rangers or marshalls, transportation between residences and golf
courses , parades , or any uses on public thoroughfares is strictly
prohibited without approval from the Lessor, and insurance coverage does
not apply to these unauthorized uses , nor any use prohibited by
paragraph 14 hereof, of said vehicles without such approval.
16. Lessor shall have the right to withdraw cars for default ,
nonpayment , insolvency, or bankruptcy, whereupon the Lessor can enter the
premises of the Lessee to take possession of the cars. The Lessee shall
not be relieved of liability of ast due payments in the event of such
circumstances. p
17. )(p
18. Lessor shall have the right to assign this contract.
19. Lessee may not assign .this Lease without consent of the Lessor,
Lessee's obligations hereunder shall be binding on his heirs, executors,
administrators, successors, or assigns.
20. Lessee, by the authority of this contract, agrees to collect and
pay all sales or other taxes if deemed applicable by State, Federal, or
local laws. Lessor will pay and file the necessary forms related to personal
property tax and Illinois State "Use Tax" on lease fleet if deemed applicable.
PAGE -3-
21. Lessee will not alter or modify vehicles, except with Lessor's
approval. Upon termination of the agreement, the Lessee agrees to return
said vehicles to the Lessor in substantially the same bondition as when
received by the Lessee, normal wear and tear excepted.
22. Upon the failure of Lessor or Lessee to perform any of the terms
and conditions of this Agreement, the party not at fault shall have the
rights to cancel this Agreement, by giving thirty ( 30) days written notice
to the party at fault, specifying therein the reason therefore, and if the
party at fault has not cured the fault within said thirty ( 30) days, then
this Agreement shall be terminated. All monies due and owing at 'the time
such termination shall become effective will be paid by the Lessee.
23. Throughout the term of the contract, title to the vehicles
covered herein will remain with the Lessor, with no ownership accruing
through Lessee.
24. All notices required herein shall be sent to the following
address:
To Lessor: Boylan Sales, Inc.
1451 E. Lathem Ave.
Batavia, Illinois 60510 Phone ( 312 ) 879-5670
To Lessee: City of Elgin (Purchasing Dept. )
150 Dexter Court
Elgin, Illinois 60120 Phone ( 312 ) 695-5600 Ext .
206
25. Lessee does hereby agree to indemnify Lessor against any suit oil
claim brought or instituted against Lessor for any loss, damage, or injury
incurred as a result of the Lessee's failure to perform all Lessee ' s
obligations pursuant to this Lease Agreement , whether such suit or claim
be rightfully or wrongfully brought.
PAGE -4-
• SPECIAL CONDITIONS
The rates shown in this lease contract reflect the purchase by Lessor
( Boylan) during the first season of 17 used golf cars previously owned
by the City of Elgin. The amount deducted from the 1st years lease
payment is $13, 325. The cars purchased by Boylan, and the amounts
given for said cars, are listed on the attached addendum page which
is the last page of this contract.
Lessor (Boylan) to provide weekly scheduled service - Emergency service
with 24 hours notification - Winter indoor storage of fleet - Flat
tire repair on scheduled service day - Spare tires - Rental agreements-
State of Illinois USE TAX if deemed applicable by State of Illinois -
Full insurance with $1 ;000,000 liability coverage of basic policy with
City of Elgin shown as additionally insured - Repair of normal wear
and tear body damage - Logo's for front of carts with numbers - plus
Lessor will furnish all oil for cart fleet.
PURCHASE OPTION
The forty two (42 ) 1988 Yamaha vehicles being furnished with this
lease may be purchased by the City of Elgin (Lessee) after the completion
of this lease (4 years ) at a price of $1250.00 each - Notification
of intent to purchase must be received by Boylan (Lessor) prior to
9/1/91 and payment in full must be received by Boylan prior to 11/1/91 .
All payments for this lease must have been received by Boylan prior
to the purchase.
IN WI'15.SS WHEREOF, the parties - Ohave executed this Lease this
// GG � �p
day of r/4;"419
In the Presence of: Boylan Sales Inc. ,Lessor
• By: _ a,
In the Presence of: COY , , Lessee
By: 2M,Wita
#111 • ,
•
PAGE -5-
ADDENDUM TO LEASE CONTRACT
TRADE-IN UNITS
Equip. N Inv. N Serial N
1 18713 1986 Columbia 3810176 $ 1/00
2 18714 1986 Columbia 3810147 $ 1100
3 18715 1986 Columbia 00 3810139 $ /100
1116
4 18716 1986 Columbia 3310138 $ <<a0
5 . 18717 1986 Columbia 3810168 $ 1100
6 18718 1986 Columbia 3810161 DDM $ /100
22 07560 1984 Columbia 381043004 $ 750
27 ' 07561 1984 Columbia 3810465C4 $ 750
29 , 07562 1984 Columbia 3310478C4 $ 7.5-b
32 07563 1984 Columbia 3810183C4 $ 7-9)
33 06939 1984 Columbia Doc").4.) 3810333C4 $ ea;5-0
38 06942 1984 Columbia 3810362C4 $ 7 So
•
28 06784 1983 Columbia pp`.+r/J 381273103 S 1/Ca
0
' 37 06785 1983 Columbia 381264803 $ S.�
25 06774 . 1982 Harley-Davidson Pow" 381116832 $ 3 75-
30
S30 06773 1982 Harley-Davidson 381183432 0131 $ If-7C
35 06772 1982 Harley-Davidson 3B11398J2 $ 417C •
TOTAL (All 17 Cars) $ /3 3 25'
All units are to be traded-in as is. Successful bidder is also responsible
for pick-up of all units.
,.. /1 1 / d ..
/ x/2.14?
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Elm
rft. n P41y Agenda Item No.
qe-.
December 31, 1990
TO: Mayor and Members of City Council
FROM: Larry Rice, City Manager •
SUBJECT: Golf Car Lease Contract
PURPOSE
The Parks and Recreation Board requests approval of an
addendum to the present golf car lease contract with Boylan Sales,
Inc.
BACKGROUND
For the last three years, Wing Park and Spartan Meadows Golf
Courses have had a lease contract with Boylan Sales, Inc. As
stated in the attached letter to Rick Bell, we currently lease
forty-two cars at $775 per car which is part of our four year
lease contract.
An addendum would cover 1991 through 1994 at an increase cost
of $50 per car ($825/car) in 1992 through 1994 . This increase is
equivalent to 6 .4% over the current rate (see attached addendum. )
The Legal Department has reviewed and approved the addendum.
This arrangement is a continuation of what we have but does
provide us with brand new cars next year and will enable us to
increase our revenues over the next four years for the golf
course. In 1991, it will produce approximately 11% increase in
revenue or $7,000.
Rick Bell has found the quality of the Yamaha G9A Golf Cars
to be superior to others available in this area. The service
offered by Boylan Sales, Inc. has been excellent and in many cases
superior to other such vendors.
r
1
Al,
Page 2 .
FINANCIAL IMPACT
There will be $34,000 in expenses versus $67,000 in revenues
for a net of $33,000 realized in 1991.
RECOMMENDATION
The Parks and Recreation Board recommends approval of the
addendum to the golf car lease contract with Boylan Sales, Inc.
L *ice City Manager
41440016
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=���� 1451 E. LATHEM • BATAVIA, ILLINOIS 60510
�����✓�,� PHONE (708) 879-5670 • FAX (708) 879-5885
A •Nit September 11 , 1990
Spa Meadows Golf Course
Spar Drive
Elg.in;Zllinois 60120
Rick Bell, Manager/Professional
Dear Rick,
We are closing in on the completion of the "third" season of our "four
year" golf car lease contract with the City of Elgin.
It is a pleasure for us to be your golf car supplier. We feel that it
has been a successful partnership for both of us the last three seasons .
We propose to "Extend" the existing golf car contact at this time for
four seasons . This would not mean signing a new lease , it should only
necessitate the signing and addition of an "Addendum" to the existing
contract which is in force through the end of 1991.
CBy doing this , we (Boylan ) can provide you with new 1991 Yamaha G9A •
Golf Cars at the beginning of next season. Your cost during 1991 will
not change and will remain at $775 . 00 per car. Your present contract
calls for forty two ( 42 ) cars and this would be a good time to either
"add or decrease" the number of vehicles you feel you need for both
Spartan Meadows and Wing Park Golf Courses . This would also be a great
reason to perhaps increase your rental rates to your customers with the
new Fleet and _mage. Your rates are some of the lowest in the area and
costs do go up.
During the years 1992 , 1993 ,and 1994 we propose to increase our rate to
you by $50. 00 per car per year. That would be a rate of $825.00 per car
per year for those seasons . That certainly could be offset by a small
rate increase or adjusting the number of cars needed. In any case, the
$825. 00 is below current rates for new cars and will certainly be
below rates for 1992.
A piece of literature is provided with this letter. If you are
interested in changing to new 1991 cars `oc next season, please give me
a call and I ' ll be available at your convenience to work out the details.
Thank you for your consideration. We look forward to providing the City
of Elgin with a quality golf car fleet And service during 1991 and for
. many years to come.
rSincerely,
I •-7/
Larry Joseph
Vice President
AINWELL. MICHIGAN • INDIANAPOLIS. INDIANA • DELRAY BEACH, FLORIDA
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