95-31 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
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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
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TRANSACTION REPORT
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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
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