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97-307 Resolution No. 97-307 RESOLUTION AUTHORIZING EXECUTION OF AN EQUIPMENT RENTAL AGREEMENT WITH WEST SIDE TRACTOR SALES COMPANY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert O. Malm, Interim City Manager, be and is hereby authorized and directed to execute an Equipment Rental Agreement with West Side Tractor Sales Company for a cat motor grader, a copy of which is attached hereto and made a part hereof by reference . s/ Kevin Kelly Kevin Kelly, Mayor Presented: December 17 , 1997 Adopted: December 17 , 1997 Omnibus Vote: Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk This STATEMENT is presented to a filing officer for filing pursuant to the Uniform Commercial Code. (Date,Time,Number,and Filing Office) Debtor(s)(Lost Name First)and address(es) Secured Party(ies)and address(ea) City Of Elgin Street Dente Waist SClis Tinder tides Vii. 150 Dexter Ct. 14 e Elgin, II. 60120 Noperslis.-1L 4106410 1. This financing statement covers the following types(or items)of property: ASSIGNEE OP SECURED PARTY arid One ( 1) Cali 1431I Motor Grader S/N 14L171 Asisrorto#' > ": `° Lz +0.41 tot 4tve 0 t arldfor fft Ae °w' l 1$ WSW 1 14 ft/Xi 14 st.11 rotasita $ 114 *Man.* We kE said pave* 2x Products of Collateral are also covered. Additional sheets presented. Filed with Office of Secretary of State of Illinois. By: Signature of(Debtor) Debtor is a transmitting utility as defined in UCC§9-105. (Secured Party)* *Signature of Debtor Required in Most Cases: Signature of Secured Party in Cases Covered By UCC§9402(2) (5)FILE COPY-DEBTOR(S) This form of financing statement is approved by the Secretary of State. STANDARD FORM-UNIFORM COMMERCIAL CODE-FORM UCC-1-REV. 10-91 • • • FOR OFFICE USE EQJIPMENT RENTAL AGREEMENT LESSEE NAME ('i ty Of F1c 1nSt,eet Dept. STREET ADDRESS . DATE GOVT.BID NUMBER DEALER ACCOUNT NUMBER 150 Dexter Ct. 12/20/97 CITY STATE ZIP CODE LESSOR NAME&ADDRESS Elgin, IL 60120 West Side Tractor Sales Co. TELEPHONE Area Code( 847 ) 931-5660 2425 20th Street NAME OF CONTACT PURCHASE ORDER NO. ;r Rockford, IL 61104 EQUIPMENT (County) (City) (State) COUNTY CODE LESSEE WILL NOT REMOVE THE EQUIPMENT FROM THIS WILL USEDBAT: Kane Elgin IL 089 LOCATION WITHOUT WRITTEN PERMISSION FROM LESSOR. Rentals are Payable in Advance of Use of Equipment RENTAL TERM RENTAL IS: Hour Day Week Month MINIMUM RENTAL ADDITIONAL CHARGES(Specify): Be in End =,!, GUARANTEED BY LESSEE Date: Date: $ 5000.00 Per: I I I ' ' $ $ DESCRIPTION OF RENTAL EQUIPMENT REFERENCE NO. MODEL DESCRIPTION OF EQUIPMENT PRODUCT IDENTIFICATION NO. HOUR METEING R PRESENT VALUE 143H gat Motor Grader 14L171 485 215,000.00 CUSTOMER 10 INSURE UNIT ON ALL RISK POLICY. TOTAL PRESENT VALUE • 215,000.00 PURCHASER TYPE(check one) MARKET USE(check one) Forestry Mining&Quarrying Underground Non-governmental Agriculture 21 Harvesting _ 34 Coal Mining 50 Energy Related Pipeline 24 Log Loading&Handling _ 31 Metallic Mining gg S Small Fleet(less than 10) 17 Specialty salt Utility 9 9 9 82 Sewer Gas/Water/Electric Util.Company M Medium Fleet(10-24) 13 Livestock/Feedlot/Dairy 22 Reforestation/Site Preparation_ 36 Stone/Aggregate 43 Sewer and Water Systems L Large Fleet(25-74) 15 Row Crop/Small Grain 23 Road Building&Maintenance❑ 80 Recycling 81 Telephone Company V Very Large Fleet(275) 16 Specialty Crop ❑ 93 Landscaping Rental&Lease Companies Other Fker Size-number of self propelled,oft-road, Building(above ground sauc/padilound)❑ 84 Landfill/Refuse 96 Independent Rental Company 71 Airports conseucoon machines f n the Oustomer's fleet 9 42 Non-residential Material Handling Li 90 John Deere Dealer ownedlcontrolled Rental Company 94 Golf Courses (owned,leased or rented for 3 months or longer) 41 Residential 75 Asphalt/Concrete Prod 97 John Deere Dealership 92 Highway Mowing Governmental p 95 Light Duty Maintenance ❑ 47 Demolition 77 Brick,Clay Stone,Glass Road Building 2 Federal Govt. 35 Oil Field Earthmovin kite 85 Chemical Plant 3 State/Province 9 preplpa6HOUnd) 48 Bridge Construction 87 Parks 4 Court 61 Manufacturing&Intl.Use County 40 Non-residential 56 Port/Steve./Bulk Hdlg 49 Highways&Streets Construction 74 Railroads 5 Cit/TownNilla a 39 Residential 51 Highways&Streets Paving 79 Cemeteries y g 12 Land Improvement 76 Sand&Gravel/Stone 6 Armed Forces 78 Environmental Cleanup 86 Steel Mill ❑ 67 Scrap Handling Lessor hereby leases to Lessee the equipment identified above ("Equipment")for the Lessee agrees to furnish a certificate of insurance evidencing its compliance with the term and with the rental payments set out above. Rental payments shall be made to foregoing requirement upon demand by Lessor. Lessor at the address shown above,subject to the provisions of Paragraph 4 on the re- verse side hereof.The Equipment will be transported to and from Lessor's place of busi- Lessee shall indemnify Lessor against all loss or damage to the Equipment while it ness during the rental term at Lessee's expense. Lessee also agrees to pay any is out of Lessor's possession.The amount of any such loss or damage will be based additional charges noted above upon or before receiving the Equipment from the Lessor. on the value shown above.Damage to the Equipment,other than a total loss,will not abate or excuse the making of prescribed rental payments.Lessee agrees to use and It is contemplated that the Equipment will be operated for not more than: • care for the Equipment in a careful and prudent manner. NO.OF HOURS IN ANY ONE DAY NO.OF HOURS IN ANY ONE WEEK NO.OF HOURS IN ANY ONE MONTH , Lessee agrees to pay all operating and maintenance expenses while the Equipment 8 40 176 is out'of the Lessor's possession,and to make or secure any needed repairs.All re- Lessee agrees to pay additional rental prorated at the applicable daily,weekly or;- pairs shall be at Lessees expense,except to the extent that Lessor performs repairs monthly rate for each hour the Equipment is used in excess of such time. The and obtains compenseti t1''4d'tiBfng so from the manufacturer. To the extent per- additional rent for excess hours of use will be paid at the time the Equipment is miffed by law,neither Lessor,its assigns,the wholesale distributor or the manufac- returned or, if the Equipment is leased for more than thirty days, on the first day turer makes any representation or promise as to the quality,performance or freedom of the month following such use. If an hour meter is furnished, (1) Lessee agrees from defect of the Equipment,a iffNO IMPLIED WARRANTY OF MERCHANTABIL- I to keep it connected to the Equipment and in good working condition at all times, ITY OR FITNESS IS MADE. Neither Lessor, its assigns,the wholesale distributor and(2)it will be used as the conclusive measure of the number of hours of operation. or the manufacturer will be liable for any incidental or consequential damages which If Lessee fails to return the Equipment by the end of the rental term, Lessee will may result from the use,performance or failure of the Equipment.Lessee acknowl- pay additional rental,prorated at one and one-half times the normal rental,for each edges that the Equipment is of a size,design and capacity selected by Lessee and day that the Equipment remains unreturned. that Lessee is satisfied that the Equipment is suitable for Lessee's purposes. Lessee assumes all risk and liability for and agrees to hold Lessor and its assigns Lessee will return the Equipment to Lessor in as good condition as received,reason- harmless from all damages for injuries or death to persons or property arising out able wear and tear excepted.If-the Equipment is not in such good condition upon its of the use, possession or transportation of the Equipment. Lessee, at Lessee's return to Lessor and Lessor elects to repair it, Lessee will pay for such repairs at own expense, will carry general liability insurance with limits of liability not less Lessor's regular shop rates. _ - than$100,000 per person and$300,000 per occurrence for bodily injury including death, and $50,000 each occurrence for property damage (or in the alternative Upon or before expiration of the rental term, Lessee may elect to purchase the a combined single limit for both bodily injury and property damage not less Equipment for the"Total Present Value"specified on this Rental Agreement,and than$300,000 each occurrence)unless greater liability limits are specified below. may apply to such purchase price %of all rentals previously paid. BODILY INJURY PROPERTY DAMAGE . An election to purchase will be evidenced by execution of a purchase order form (Per Person) (Per Occurrence) (Per Occurrence) 500,000.000 I 500,000.00 500,000.00 supplied by Lessor. THIS EN T AL AGREEMENT IS SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET OUT ON THE REVERSE SIDE HEREOF. 1 i LE E(Custo , r)-All ne equipment rented hereunder was received with LESSOR(Dealer) —The Equipment rented hereunder was set up, inspected Operator's .- als .P a op/ation a d servicing have been expla ed to me. and, if new, adjusted according to factory recommendations before delivery. j , / Operafo and servici r g have been explained to the Lessee. • SIGNATURE ' ATE SIGNATURE • DA Df-2119 Stock(5-97)Printed in U.S.A. CUSTOMER COPY 1. Addition of Accessories: Lessee wit not, without Lessor's written consent, install any accessories or devices on the Equ pment if installation wit impair the originally intended function or use of the Equipment. All accessories or devices affixed to the Equipment wti become the property of Lessor unless such accessory or device can be removed without in any way affecting the originally intended function or use of the Equipment. Any damage to the Equipment caused by the removal of such accessories or devices wit be repaired at Lessee's expense. 2. Compliance with Regulations: Lessee will comply with all laws and regulations relating to ownership, possession, use or maintenance of the Equipment. 3. Inspection: Lessee will, whenever requested, advise Lessor of the exact location of the Equipment. Lessor and its representatives may, for the purpose of inspection, enter upon any job, building or place where the Equipment is located at any reasonable time. Lessor may remove the Equipment without notice to Lessee if, in the opinion of the Lessor, it is being used beyond its capacity or in any other manner improperly cared for or abused. 4. Assignment:Lessee agrees that Lessor may assign this Rental Agreement and all right,title and interest of Lessor in and to the Equipment, and all sums due or to become due to Lessor hereunder (of which assignment Lessee hereby waives notice), and Lessee agrees to recognize such assignment. Lessee's obligation to pay rent under this Rental Agreement will not as to any such assignee be subject to any diminution arising out of any breach of any obligation hereunder or other liability of Lessor to Lessee. Lessee may not assign this Rental Agreement. • Lessee further agrees to make rental payments directly to John Deere Construction Equipment Company ("Deere"), if Deere becomes Lessor's assignee, upon and following receipt from Deere of evidence of assignment and a written request to do so, and Lessor agrees to recognize any payment so made as satisfaction of Lessee's obligation to make that payment hereunder. 5. Default; Termination of Rental Agreement by Lessor or its Assignee: If Lessee fails to make any rental payment when due, attempts to sell or encumber the Equipment, ceases operating, institutes or has instituted against it proceedings under any bankruptcy or insolvency law, makes an assignment for the benefit of creditors or fails to comply with any other provision of this Rental Agreement, or if any attachment, execution, writ or process is levied against the Equipment or any of Lessee's property, or if for any reason Lessor deems tseif insecure or the Equipment unsafe, Lessee agrees to deliver the Equipment to Lessor on demand, and Lessor may enter upon any job, building or place where the Equipment is located and take possession of it without notice to Lessee, and this Rental Agreement shall thereupon terminate and be forfeited at the option of Lessor. In the event of any such action, Lessee agrees to pay all guaranteed rentals and all other rentals due, damages for any injury to the Equipment, legal expenses,costs of removal of the Equipment from the possession • of Lessee, and all freight, storage, transportation and other charges incurred in such removal and return to Lessor at its place of business. The parties further agree that Deere, if Deere becomes Lessor's assignee, also may terminate this Rental Agreement and take possession of the Equipment upon any of the events specified above, including without limitation Deere's determination that its interest is insecure or the Equipment is unsafe, regardless of whether Lessor concurs in Deere's judgment or desires to terminate the Rental Agreement. The parties further agree that, in the event Deere elects to terminate this Rental Agreement, Lessee shall pay to Deere all rentals due,damages for any injury to the Equipment, legal expenses, and costs or removal of the Equipment from the possession of Lessee. 6. Construction: This is an agreement for rental only. Nothing herein will be construed as conveying to Lessee any right,title or interest in or to the Equipment, except as a lessee. • 7. Guaranteed Rental - Return of Equipment: Provided the guaranteed rental set forth on the reverse side is or has been paid, Lessee may return the Equipment and terminate this Rental Agreement on three days' notice to Lessor. 8. General: Time is of the essence of this Rental Agreement. Lessor's failure at any time to require strict performance by Lessee'of any provision of this Rental Agreement will not waive or diminish Lessor's right thereafter to demand strict compliance with that or any other provision.Waiver by Lessor of any default will not waive any other default.This Rental Agreement may not be modified except by a written revision signed by the parties hereto. Lessee acknowledges receipt of a signed copy of this Agreement. :3a"k' .t f iyx :i`p Kit«s.ty, ..,. "s CITY OF CHICAGO TRANSACTION TAX The City of Chicago imposes a six percent tax upon transactions involving the rental of equipment if either of the following occur: 1. The rental contract is signed or agreement entered into in Chicago and delivery or use is in Chicago -- see Note. or 2. 50% or more of use will occur within the City of Chicago. NOTE: When delivery or use of leased property takes place in Chicago, the transaction is taxable unless it is proved that the agreement was not entered into within the City and that 50% or more of the use did not occur within the City. * * * * * * * * * * * * * * * * * * * * * * f Rental Contract No. s/N 14L171 Customer Name city Of Elgin Street Department The equipment rented from WEST SIDE TRACTOR SALES CO. in this Rental Contract is not subject to the City of Chicago Transaction Tax. If upon audit it should be determined that the tax does apply to this contract, it is agreed that w- ' I I pa the tax plus any penalty and interest assessed on this transaction. J ■/*`� ,�j% /1/4 By: Wiliii I �..L . Date: Officer or Agent White - Accounting Yellow Rental File Pink - Customer t � WEST SIDE NOV SA CS D RENTER•S AGREEMENT Upon rental of a machine or attachment from West Side Tractor Sales Company, the renter is responsible for the following: • Daily checking of the unit's fluid levels. • Daily and periodic greasing per the unit's lubrication chart. •Servicing the unit's fluids and filters per the lube chart intervals and then notifying West Side Tractor Sales Company.The West Side Tractor Lube Truck is also available.Our Service Department will provide a quotation on request. • Costs to West Side Tractor Sales Company for unit clean-up upon return,and repair to the rental unit for damage while in the renter's possession,including tires.It is recommended that tires be repaired or replaced before returned from rental. Replacement tires must match original tires. • Notifying West Side Tractor Sales Company when the unit needs repair. • Notifying West Side Tractor Sales Company when the unit is involved with an accident,damaged, vandalized, or stolen. • Keeping the unit clean so it is safe for personnel. This includes cab and undercarriage. • Unit should be returned fueled, and key returned. When renting machinery with a hydraulic hammer,lubrication must be performed every four to six hours of hammer use.Damage to the hammer,due to neglect,will be charged to the lessee.Moil points damaged through neglect or prying will also be charged to lessee. •All normal wear and tear will be repaired by West Side Tractor Sales Company,and that cost added to the original price if the customer converts his rental to a sale. • Insurance of rental equipment is the customer's responsibility, and a Certificate of Insurance shall be provided to West Side Tractor Sales Company. City:Elgin Stx�t Dnpatrht�ent I CUSTOMER NAME MODEL: CAV 4 1 S/N: 14131.71 TAG: SIGNATURE;/ DATE: /7 /CI `'1 <0 OF f1.c 0 Agenda Item No. c City of Elgin November 11, 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: Leasing Motor Grader PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider leasing a motor grader for three months during this winter season. BACKGROUND The Street Division currently owns a 1969 Galion Motor Grader, but can no longer use this equipment due to damage to the cab te. and mechanical unreliability. During winter months this is a crucial piece of snow removal equipment primarily used in the Central Business District. A replacement grader has not been included in the proposed 1998 budget. As an alternative, three vendors were contacted to determine if they offer lease programs for motor graders . The following is a summary of the quotations obtained: * Howell Tractor and Equipment Company Contact Person: Ron Church (847-439-2150) Grader Model: All leased out * Patten Tractor Contact Person: Mark Longhurst (630-279-4400) Grader Model : Cat 140 H Cost: $6, 600 per Month (176 Hours) Comments : Not all wheel drive, no front/wing plow * West Side Tractor Sales Contact Person: Mike Klotz (815-398-1880) Grader Model: 1996 Cat 143VHP With Wing Plow Cost: $5, 000 per Month (176 Hours) Comments: All wheel drive w/wing & V plow COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. Leasing Motor Grader November 11, 1997 Page 2 cF: FINANCIAL IMPACT The cost of leasing the grader from West Side Tractor Sales would be $15, 000 for three months . Sufficient funding is available in the Equipment Rental Fund (601-4701-796. 43-04) . LEGAL IMPACT None. ALTERNATIVES 1 . Repair the 30-year-old motor grader (cost unknown, reliability unknown) . 2 . Perform snow operations without the use of a grader (grader is used primarily in the CBD) . 3 . Purchase a new or used motor grader (cost for new approx- imately $110, 000) . RECOMMENDATION Staff feels it is better to be prepared in the event of a large snowfall in the City. A motor grader is an important piece of snow removal equipment and without, snow removal F operations will be hindered. Therefore, it is recommended that City Council authorize the lease of a motor grader from West Side Tractor for $5, 000 per month starting mid-December and ending mid-March (a daily or weekly lease is not avail- able) . Respectf ly submitted, Day. : . Lawry, P. rec •r f Public rks Robert 0. Malmo Interim City Manager GWM:mg Attachments (100".