99-82 Resolution No. 99-82
RESOLUTION
AUTHORIZING EXECUTION OF AN EQUIPMENT LEASE AGREEMENT WITH
TEXTRON FINANCIAL CORPORATION FOR 10 E-Z-GO GOLF CARTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, be and is hereby
authorized and directed to execute an equipment lease agreement
with Textron Financial Corporation for 10 E-Z-GO golf carts, a
copy of which is attached hereto and made a part hereof by
reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: March 10, 1999
Adopted: March 10, 1999
Omnibus Vote: Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
TFC TEXTRON
?fie 7vule adiee
Textron Financial Corporation 40 Westminster Street
Subsidiary of Textron Inc. Providence,Rhode Island 02940
(401)621-4200
7/7/99
SPARTAN MEADOWS GC&WING PARK
150 DEXTER COURT
ELGIN,IL 60120-5555
RE: Account Number 001 0092336-01 00003 (hereinafter referred to as"Contract")
Dear Valued Customer:
Thank you for financing your equipment with Textron Financial Corporation("TFC")where Customer Service is
our number one priority. We will continue to strive to make TFC The First Choice for your commercial fmancing.
Enclosed please find a copy of the completed Contract for your review. The Contract identifies the obligations
which are owed by you to TFC. The appropriate UCC financing statements have been filed on your behalf as
provided for pursuant to the Contract terms.
TFC offers you two options for making payments. If you chose TFC Debit Direct,your loan or lease payments,and
insurance charges(if applicable),will automatically be deducted from your checking or savings account and will be
applied to your account,on time,each and every month. If you opted for monthly invoicing,you will receive an
itemized invoice approximately two weeks prior to the payment due date. Keep the lower portion of the statement
for your records and kindly include the remittance portion with your check. TFC can process your payment
electronically when you include the remittance portion and avoid potential delays in application to your account. In
addition,please be reminded that each payment has a 10 day grace period. Payments received after 10 days are
subject to a late charge which is equal to 5.00%of the past due payment.
As you know,your Contract requires you to provide evidence of insurance for the equipment which you are
financing. Please be advised that, in the event that you do not provide such insurance in accordance with the
Contract terms,TFC will purchase an insurance policy to cover TFC's interest in the equipment. The premium and
other related fees and charges will be added to your monthly payment. The insurance policy is administered for
TFC by the Lease Insurance Agency Services Corporation who will be sending you additional information about
TFC's insurance policy."
We thank you for choosing TFC for your financing needs. If you have any questions about your account or wish to
inquire about additional fmancing,please call our Customer Service Department at(800)343-0053. TFC also has
six other operating divisions that can finance an array of capital needs including aircraft/aerospace,inventory,
accounts receivable and working capital fmancing,machine tools,golf courses,and virtually any other business
capital requirement.
Sincerely,
Documentation Analyst
ITFC TEXTRON
Textron Financial Corporation
TAX-EXEMPT EQUIPMENT LEASE Lease No. TE1 -
Schedule No.
Purchase Order No.
Vendor Reference No.
SCHEDULE I
1. Description of Leased Equipment ("Equipment"):
10 ea E-Z-GO TXT-Gas
Top, Low oil indicator, Message holder, Center basket, Scuff plates
2. Location of Equipment
Spartan Meadows 1965 Spartan Drive. Elgin. IL 60123
3. This Schedule is subject to the following•addendums:
Addendum"A"= Payment schedule. Rider No. 1 -Tax Indemnity
SCHEDULE II
Total Principal: $ $33,049.50
Total Interest: $ $5,698.49
Total Payments: $ $38,748.00
Monthly Payment Date: I
Payment Schedule See Addendum "A"Attached
Special Instructions The Principal portion of each monthly payment is shown under the"Principal Paid"
t column; and the interest-portion is shown under the"Interest Paid" column.
Concluding payments are shown under the"Balance Remaining"
•
06-23-1999 Page 1
City of Elgin, Illinois Addendum A Payment Schedule
Compound Period • Monthly
Nominal Annual Rate. . : 5.573 %
Effective Annual Rate: 5.717 %
Periodic Rate • 0.4644 %
Daily Rate • 0.01527 %
CASH FLOW DATA
Start How
Event Date Amount Many Period End Date
1 Loan 07-15-99 33,049.50 1
2 Payment 08-15-99 1,091.60 3 Monthly 10-15-99
3 Payment 11-15-99 0.00 6 Monthly 04-15-00
4 Payment 05-15-00 1,091.60 51 Monthly 07-15-04
Amount to Skip. . : 0.00
Number to Make. . : 6
Number to Skip. . : 6
5 Payment 08-15-04 6,000.00 1
AMORTIZATION SCHEDULE - Normal Amortization
Date Payment Interest Principal Balance
Loan 07-15-1999 33,049.50
1 08-15-1999 1,091.60 153 .48 938.12 32,111.38
2 09-15-1999 1,091.60 149.13 942.47 31,168.91
3 10-15-1999 1,091.60 144.75 946.85 30,222.06
4 11-15-1999 0.00 140.35 140. 35- 30,362.41
5 12-15-1999 0.00 141.00 141.00- 30,503 .41
1999 Totals 3 ,274.80 728.71 2,546.09
.
6 01-15-2000 0.00 141.66 141.66- 30,645.07
_ ._ 7 _ 02-15-2000 0.00 _ - 142.32 - 142.32- _ _30,787.39
8 03-15-2000 0.00 142.98 142.98- 30,930.37
9 04-15-2000 0.00 143.64 143 .64- 31,074.01
10 05-15-2000 1,091.60 144.31 947.29 30,126.72
11 06-15-2000 1,091.60 139.91 951.69 29,175.03
12 07-15-2000 1,091.60 135.49 956.11 28,218.92
13 08-15-2000 1,091 60 131.05 960.55 27,258.37
14 09-15-2000 1,00.60 126.59 965.01 26,•293.36
15 10-15-2000 1,031.60 122.11 969.49 25,323.87
16 11-15-2000 0.'00 117.60 117.60- 25,441.47
17 12-15-2000 0.00 118.15 118.15- 25,559.62
2000 Totals 6,549.60 1,605.81 4,943 .79
18 01-15-2001 0.00 118.70 , ._ 118.70-. 25,678.32
19 02-15-2001 0.00 119.25 119.25- 25,797.57
20 03-15-2001 0.00 119.80 119.80- 25,917.37
21 04-15-2001 0.00 120.36 120. 36- 26,037.73
22 05-15-2001 1,091.60 120.92 970.68 25,067.05
23 06-15-2001 1,091.60 116.41 975.19 24,091.86
24 07-15-2001 1,091.60 111.88 979.72 23,112.14
06-23-1999 Page 2
City of Elgin, Illinois Addendum A Payment Schedule
Date Payment Interest Principal Balance
25 08-15-2001 1,091.60 107.33 984. 27 22,127.87
26 09-15-2001 1,091.60 102.76 988.84 21,139.03
27 10-15-2001 1,091.60 98.17 993.43 20,145.60
28 11-15-2001 0.00 93 .56 93 .56- 20,239.16
29 12-15-2001 0.00 93.99 93 .99- 20,333.15
2001 Totals 6,549.60 1, 323.13 5,226.47
30 01-15-2002 0.00 94.43 94.43- 20,427.58
31 02-15-2002 0.00 94.87 94.87- 20,522.45
32 03-15-2002 0.00 95.31 95. 31- 20,617.76
33 04-15-2002 0.00 95.75 95.75- 20,713.51
34 05-15-2002 1,091.60 96.19 995.41 19,718.10
35 06-15-2002 1,091.60 91.57 1,000.03 18,718.07
36 07-15-2002 1,091.60 86.93 1,004.67 17,713.40
37 08-15-2002 1,091.60 82.26 1,009. 34 16,704.06
38 09-15-2002 1,091.60 77.57 1,014.03 15,690.03
39 10-15-2002 1,091.60 72.86 1,018.74 14,671.29
40 11-15-2002 0.00 68.13 68.13- 14,739.42
41 12-15-2002 0.00 68.45 68.45- 14,807.87
2002 Totals 6,549.60 1,024. 32 5,525.28
42 01-15-2003 0.00 68.77 68.77- 14,876.64
43 02-15-2003 0.00 69.09 69.09- 14,945.73
44 03-15-2003 0.00 69.41 69.41- 15,015.14
45 04-15-2003 0.00 69.73 69.73- 15,084.87
46 05-15-2003 1,091.60 70.05 1,021.55 14,063.32
47 06-15-2003 1,091.60 65.31 1,026.29 13 ,037.03
48 07-15-2003 1,091.60 60.54 1,031.06 12,005.97
49 08-15-2003 1,091.60 55.76 1,035.84 10,970.13
50 09-15-2003 1,091.60 50.95 1,040.65 9,929.48
51 10-15-2003 1,091.60 46.11 1,045.49 8,883.99
-. 52 _ 11-15-2003 0.00 - 41.26 - 41.26- ___8,925.25
53 12-15-2003 0.00 41.45 41.45- 8,966.70
2003 Totals 6,549.60 708.43 5,841.17
54 01-15-2004 0.00 41.64 41.64- 9,008.34
55 02-15-2004 0.00 41.83 41. 83- 9,050. 17
56 03-15-2004 0.00 42.03 42.03- 9,092.20
57 04-15-2004 ;,'�.`.00 42.22 42.22- 9,134.42
58 05-15-2004 1,091.60 42.42 1,049.18 8,085.24
59 06-15-2004 1,091.'60 37.55 1,054. 05 7,031.19
60 07-15-2004 1,091.60 32.65 1,058.95 5,972.24
61 08-15-2004 6,000.00 27.76 5,972.24 0.00
2004 Totals 9,274., 0 308.10 8,966.70
brand Totals 38,748.00 5,698.50 33 ,049.50
RIDER NO. 1
Re: Tax Exempt Equipment Lease dated the date hereof (the "Lease"), between Textron Financial
Corporation ("Lessor")and City of Elgin, Illinois ("Lessee").
The Following are added as additional terms and agreements of the above-identified Lease.
TAX INDEMNITY. Lessor and Lessee acknowledge and agree that the Lease terms offered by Lesor to
Lessee hereunder contemplate certain tax benefits consisting of the exemption from income of interest on
state and local bonds described in Section 103 of the Internal Revenue Code of 1986, as amended from
time to time (the "Code") being available to Lessor or its assigns over the term of the Lease (the "Tax
Benefits"). Lessee shall indemnify Lessor in the event (a "Disallowance") that the Tax Benefits are
disallowed, disqualified, recaptured or reduced for any reason by the Internal Revenue Service (the
"IRS"), including failure to file the appropriate informational returns concerning the Lease or to otherwise
satisfy the reporting requirements of Section 149(e) of the Code. Such indemnification shall be
accomplished by an adjustment to the scheduled payments under the Lease to an amount equal to
$ per month to be effected as follows: (a) the adjusted payments shall be
payable monthly beginning with the first payment date scheduled 15 days after Lessor's notice to Lessee
of the Disallowance, and (b) with respect to all interest and penalties, if any, incurred by Lessor with
respect to a Disallowance, and the aggregate amount of the difference between the adjusted payments
stated above and all payments previously made under the Lease, Lessee shall have the option of paying
such amounts in a lump sum payment to Lessor (which shall be paid within 30 day after notice of the
Disallowance) or having such amounts financed over the remaining term of the Lease at Lessor's then
current rates.
Lessee represents and warrants that attached hereto is an executed original of IRS Form Number 8038-GC
which accurately describes the terms of the Lease, and the amount financed under the Lease is less than
$100,000.00, Lessee agrees that the information described in the attached form shall be appropriately
incorporated into an annual consolidated informational return or other reports required by the IRS which
shall be filed by the Lessee in a timely manner.
Lessor and Lessee have caused this Rider No. 1 to be executed by their duly authorized representatives as
of ,19
LESSOR: LESSEE:
Textron Financial Corporation City of Elgin , Illinois
By. � I �� By:
Name:Paul Rossi Name: ,t?r1.
0:,1% %
Title: Leasing Manager Title:
-
-
AININNINIP 27 for 'VEH ORDER ' u0RK5RV1 printer YA
Pg 5/61
Jar 39t3)76:1751
31G075 70:8474395511 PAGE:04
s Cit of Elgin
1i . ---
or
t'• .r SsvKety
7Q 3 ` Council Mambera
el-id / Tarry Gavin
Pobar!Gilliam
John Z McKovitr
Zd 6chock
John Ws/tvrp •
Marls vsannpm
January 19, 1998
1
E--z-Go
P 0 Sox 48
24404 No th Higway 12
Lake Zur ch, IL 50047
Gentleme ,
Please b advised that the City of Elgin, like all gov-
ernmentall bodies, is exempt from salsa tax under the [;
Illinois f dminl.strative code, Section 130 .2080. Accord- 1
ingly, o1 r Illinois Sales Tax exemption Identification 1
Number islE9996-0771.03.
Also, tor, information, our Federal Employer Identifica- C,
tion Numb4r is 35-6005862.
i
Sincerely,\ .
‘......---... 4-'(...- C-P; 44'
Michael A. Sarco i.
PurchaeinglDirector _
1 - ff
MAS/db
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1
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\ .. . -1: - : - ,
150 Dexter court • Elgin, 1 60120-5555• Phone 847/931.6100• Fax 947/931.5610•TOD 847/931.5618
rrNna•n ixrurd Ma, 1 .
- TFC TEXTRON
Textron Financial Corporation I
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TAX EXEMPT EQUIPMENT LEASE Lease No.: TE1 - 33( 7
This Lease is entered into as of the date set forth below by the parties identified below.
1. LEASE-Subject to the terms hereof, Lessor leases to Lessee, and Lessee leases from Lessor, the equipment and other personal property together with all repairs,
accessions,replacements and accessories(collectively"EQUIPMENT")set forth on Schedule I attached hereto.
2. SELECTION,DELIVERY AND ACCEPTANCE-Lessee will select and take delivery of all EQUIPMENT leased hereunder directly from the EQUIPMENT'S vendor,and at
locations agreed upon by the Vendor and Lessee. Lessee shall inspect the EQUIPMENT at the place of delivery,and upon acceptance execute and deliver to Lessor a
Certificate of Acceptance with respect to each shipment of EQUIPMENT. For all purposes under this Lease,EQUIPMENT will be considered accepted upon execution of
the Certificate of Acceptance.
3. TERM AND RENTALS-The rental term of the EQUIPMENT shall commence on the date Lessee executes the Certificate of Acceptance therefor, and, except as set
forth in Section 6,below,shall terminate upon payment of all of the rent specified in Schedule II. Lessee agrees to pay rent in the amount and at the times set forth in
Schedule II. Rent shall be paid to Lessor, but if this Lease or rentals due hereunder shall be assigned, then rent shall be paid in accordance with the provisions of
Section 17 below. Interest shall be paid on each delinquent installment of rent and other sums from the due date until paid at the rate of Lessor's then prevailing late
payment charge,or the highest rate legally permissible,whichever is less. Lessee agrees that except as set forth in Section 4 below,its obligation to pay rent and any
other sums payable hereunder, and the rights of Lessor thereto, are absolute and unconditional and are not subject to any abatement, reduction, setoff, defense,
counterclaim,or recoupment(collectively"Abatements")for any reason whatsoever. Except as otherwise expressly provided herein,this Lease shall not terminate nor
shall the respective obligations of Lessor or Lessee be affected by reason of any defect in,or damage to,or any loss or destruction of the EQUIPMENT from any cause
whatsoever,or the interference with the use thereof for any reason whatsoever.
4. NON-APPROPRIATION-In the event no funds or insufficient funds are appropriated and budgeted or are otherwise available by any means whatsoever in any fiscal
period for rent due hereunder,Lessee will immediately notify Lessor or its assignee of such occurrence and this Lease shall terminate on the last day of the fiscal period
for which appropriations were received without penalty or expense to Lessee of any kind whatsoever,except as to the portions of the rental payments herein agreed upon
for which funds shall have been appropriated and budgeted or are otherwise available. In the event of such termination, Lessee agrees to peaceably surrender
possession of the EQUIPMENT to Lessor on the date of termination and that Lessor shall have all legal and equitable rights and remedies to take possession of the
EQUIPMENT. Upon such termination,and at anytime thereafter,Lessor may enter any premises with or without legal process where the EQUIPMENT may be and take
possession thereof. Lessee agrees that:(i)any funds authorized or appropriated to it for the rental or acquisition of this or functionally similar equipment in any fiscal
appropriation period shall be applied to the payments of rent hereunder until such funds are exhausted;(ii)it has not to date and will not in the future agree to give priority
or parity to the application of such funds to the lease,hire,or acquisition of other functionally similar equipment;and(iii)it will use its best efforts to obtain authorization
and appropriation of such funds including,without limitation,the inclusion in its budget for each fiscal appropriation period during the term hereof,a request for adequate
funds to meet its obligations under this Lease in full. This provision shall not be construed so as to permit Lessee to terminate this Lease in order to acquire similar or
competitive equipment from another party or manufacturer or to allocate funds to directly or indirectly perform essentially the same functions for which this EQUIPMENT
is intended. Lessee warrants that it has adequate funds to meet its obligations hereunder during its current fiscal appropriation period.
5. AUTHORITY AND AUTHORIZATION-Lessee represents,covenants and warrants,and if requested by Lessor,will deliver an opinion of counsel to the effect that
(i)Lessee is a fully constituted political subdivision or agency of the State indicated below;(ii)the execution,delivery and performance by Lessee of this Lease have
been duly authorized by all necessary action on the part of the Lessee;and(iii)this Lease constitutes a legal,valid and binding obligation of the Lessee enforceable in
accordance with its terms. Lessee agrees that(x)it will do or cause to be done all things necessary to preserve and keep the Lease in full force and effect;(y)it has
complied with all bidding requirements where necessary and by due notification presented this Lease for approval and adoption as a valid obligation on its part;and(z)it
has sufficient appropriations or other funds available to pay all amounts due hereunder for the current fiscal period.
6. PURCHASE OPTION-Upon thirty(30)days'prior written notice from Lessee to Lessor,and provided that Lessee at such time or at anytime thereafter,is not in default
hereunder,Lessee shall have the right to purchase all but not less than all the EQUIPMENT on the Lease Payment dates set forth in Schedule II by paying to Lessor on
such date,the Lease Payment then due together with the Concluding Payment amount set forth opposite such date. Upon satisfaction by Lessee of such purchase
conditions,Lessor will release its security interest in the EQUIPMENT to Lessee and will warrant to Lessee that the EQUIPMENT is free and clear of any liens created by
lessor
7. NATURE OF THIS AGREEMENT-Lessor and Lessee agree that it is their intention that the interest of Lessor in the EQUIPMENT is as a secured party,and that Lessor
neither has nor will have any equity in the EQUIPMENT. The parties agree that the aggregate rent due hereunder constitutes the purchase price of the EQUIPMENT
together with the interest on the unamortized amount thereof over the term of this Lease,that the installments of rent constitute principal and interest,as set forth on
Schedule II over the term of this Lease, that the concluding payment amounts shown thereon represent the unpaid principal amount of the purchase price of the
EQUIPMENT together with applicable premium on the payment dates to which they relate and that upon the due and punctual payment of the installments of rent and
other amounts due hereunder and the performance of Lessee's obligations under this Lease, Lessor's security interest in the EQUIPMENT shall be released. Lessee
will at all times protect and defend,at its own cost and expense,Lessor's interest in the EQUIPMENT against all claims,liens and legal processes of creditors of Lessee
and other persons,and keep the EQUIPMENT free and clear of all such claims,liens and processes. Lessee shall not,without Lessor's prior written consent,part with
possession or control of the EQUIPMENT or sell_pledge, mortgage or otherwise encumber the EQUIPMENT or any part thereof or assign or encumber any interest
- under this Lease.
8. DISCLAIMER OF WARRANTY-Lessor may,or may not,be the manufacturer or vendor of the Equipment. Without affecting Lessor's liability,if any,as manufacturer or
vendor of the Equipment,the parties agree that LESSOR,IN ITS CAPACITY OF LESSOR MAKES NO REPRESENTATION OR WARRANTY, EITHER EXPRESS OR
IMPLIED,AS TO THE DESIGN OR CONDITION OF THE EQUIPMENT,ITS MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE,OR ANY OTHER
REPRESENTATION OR WARRANTY OF ANY KIND,NATURE OR DESCRIPTION WITH RESPECT TO THE EQUIPMENT.
CONTINUED ON OTHER SIDE
IN WITNESS WHEREOF,the Lessor and Lessee have each_ caused this Lease to be duly executed.[G7
This Lease is executed and effective as of A , t
111
LESSOR: LESSEE:
Name:Textron Financial Corporation Name: •Y Elgin , Illinois
TYPE O INT TYPE OR�
By By. c
SIGNATURE ,,,,#.,. SIGNATURE
Name&Title: Paul Rossi - Name&Title:%/Jo.y E A , "A e K E C / rt
_
TYPE OR PRINT TYPE OR PRINT ( /41N G F 2
Leasing Manager
An Agency or Political Subdivision of the State of IL
Address: 40 Westminster Street Address: 150 Dexter Court
Providence RI 02903 Elgin, IL 60120
9. INSURANCE-During the term of this Lease,Lessee shall,at its expense,keep in effect an"All Risk"Property insurance policy covering the EQUIPMENT Such policy
shall be in form and amount and with insurers accept; Lessor. The All Risk Property insurance policy shall nam, '.essor as Loss Payee shall provide(i)for no
less than thirty(30)days prior written notice of cancer. or non-renewal to Lessor;(ii)that such policy shall not be .ated as against Lessor or its assigns for any
violation of any term of the policy or Lessee's application therefore,and(iii)such insurance is primary insurance and any other insurance covering Lessor or its assigns
shall be secondary and excess of such policy. The policy shall be maintained in an amount not less than the current replacement cost of the EQUIPMENT.
10. LOSS OR DAMAGE TO EQUIPMENT-
a. Lessee,hereby assumes the entire risk of any loss,theft,damage to,or destruction of the EQUIPMENT,or any part thereof,from any cause(hereinafter"Loss or Damage"). In the event of
Loss or Damage to the EQUIPMENT,Lessee shall promptly report same to the appropriate insurance companies,to Lessor,and to all concerned governmental agencies. Lessee shall not
be relieved from its obligations to pay rent or to perform any other of its obligations under this Lease by reason of any Loss or Damage;all of Lessee's obligations shall continue in full force
and effect notwithstanding such Loss or Damage.
b. In the event of any Loss or Damage,Lessee,at the sole option of Lessor,shall either.
(i) promptly repair the EQUIPMENT and place it in good repair and working condition in accordance with the standards set forth in Section 15,below;or
(ii) pay Lessor the Stipulated Loss Value,as hereinafter defined,within sixty(60)days of notification by Lessor that Lessor has elected to receive the Stipulated Loss Value rather than
require repair of the EQUIPMENT.
c. "Stipulated Loss Value"shall be(i)an amount equal to the total of all rent and any other amounts,if an due with respect to the lease of the EQUIPMENT as of the date of payment of the
Stipulated Loss Value plus(ii)the concluding payment amount shown on Schedule II for such payment date.
d. Lessor shall apply any insurance proceeds received pursuant to Section 9,above,to satisfy any obligation of Lessee to Lessor hereunder and remit the balance,if any,to Lessee
11. PAYMENT OF TAXES BY LESSEE -In addition to rent,Lessee shall pay promptly all taxes,assessments and other governmental charges levied or assessed upon
Lessee's interest in the EQUIPMENT, upon the use or operation thereof, or on the earnings arising therefrom and, as additional sums due, shall promptly pay or
reimburse the Lessor for all taxes, assessments and other governmental charges (including fees for titling and registration of the EQUIPMENT) levied or assessed
against and paid by the Lessor on account of its interest in the EQUIPMENT,or levied or assessed against the EQUIPMENT,or any part thereof,or the use or operation
thereof,or the leasing thereof to the Lessee,or the rent herein provided for,or the earnings arising therefrom,exclusive however of any taxes based on net income of
Lessor.
12. POSSESSION AND USE OF EQUIPMENT-Lessor covenants to Lessee that as long as Lessee shall not be in default under this Lease,Lessee may possess and use
the EQUIPMENT in accordance with this Lease.
13. PERFORMANCE OF OBLIGATIONS OF LESSEE BY LESSOR-If Lessee shall fail to promptly perform any of its obligations under this Lease,Lessor may,at any time
thereafter,perform the same without thereby waiving the default,and any expense or liability incurred by Lessor, together with Lessor's then prevailing late payment
charge,or the highest lawful rate,whichever is less,shall be payable by Lessee as additional rent hereunder.
14. INSPECTION-Lessor or its agents shall have the right from time to time during reasonable business hours to enter upon Lessee's premises, or elsewhere, for the
purpose of confirming the existence,condition,and proper maintenance of the EQUIPMENT.
15. OPERATION,MAINTENANCE AND MODIFICATION-Lessee shall operate,possess and maintain the EQUIPMENT and any records pertaining thereto in compliance
with all applicable Federal,state and local laws and regulations. Lessee shall not make any material alterations to the EQUIPMENT without the prior written consent of
Lessor. Lessee shall,at its own expense,maintain and keep the EQUIPMENT in good order and repair in accordance with the manufacturer's published manuals,and
other instructions. All parts,accessories and other personal property which are added to or become attached to the EQUIPMENT shall immediately become the property
of Lessor,at no cost,and shall be deemed incorporated in the EQUIPMENT and subject to the terms of this Lease.
16. INDEMNITY-Lessee shall indemnify Lessor and save, protect, defend, and hold Lessor harmless from any and all liability, loss, damage, expense(including legal
expenses and reasonable attorneys'fees),causes of action,suits,claims or judgments arising from injury to person or property or resulting from or based upon Lessor's
interest in the EQUIPMENT, or the actual or alleged selection, control, use, operation, maintenance, possession, delivery or transportation or any or all of the
EQUIPMENT or their location or condition or from Lessee's failure to qualify as an agency or political subdivision of the State identified below within the meaning of
Section 103 of the Internal Revenue Code of 1954,as amended;and shall,at Lessee's own cost and expense,defend any and all suits which may be brought against
Lessor,either alone or in conjunction with others,upon any such liability or claim(s).
17. ASSIGNMENT AND SUBLEASE-Lessee shall not sell,transfer,assign,pledge or sub-lease,its interest in the Lease or the EQUIPMENT,without the prior written
consent of Lessor. Lessor may assign this Lease and its rights hereunder,in whole or in part,without Lessee's consent.
18. EVENTS OF DEFAULT-The occurrence of any of the following shall,at the option of Lessor and without any notice other than provided herein,constitute an event of
default under this Lease:
a. Lessee fails to pay any rent or other sums due hereunder and such failure shall continue for ten(10)days;
b. Lessee fails to perform any other covenant herein and such failure continues for fifteen(15)days after written notice thereof by Lessor to Lessee;
c. Lessee files a petition in bankruptcy,or for reorganization,or for an arrangement pursuant to the U.S.Federal Bankruptcy Act,or any similar Law;
d. A receiver,trustee or liquidator(or other similar official)is appointed for or takes possession or charge of Lessee,substantially all of its assets,or any EQUIPMENT;
e. Lessee's interest in any EQUIPMENT is levied upon or attached in any proceeding,and such process is not vacated or discharges within ninety(90)days thereafter,
f. Lessee attempts to sell,transfer,encumber,sublet or part with possession of any EQUIPMENT without Lessors prior written consent;
19. REMEDIES OF LESSOR-
a. Upon the occurrence of any event of default,or at any time thereafter,Lessor,at its sole option may exercise one or more of the following remedies:
(i) Lessor may terminate this Lease upon written notice to Lessee,without prejudice to any other remedies hereunder;
(ii) Lessor at any time may enter any premises with or without legal process where the EQUIPMENT may be and lake possession thereof without such action constituting a termination
of the Lease unless Lessor notifies Lessee in writing of such effect;or
(iii) Proceed by appropriate action either at law or in equity to enforce performance by Lessee of the applicable covenants of this Lease or to recover damages for breach thereof.
b. Lessor,upon default hereunder,shall also be entitled to recover as liquidation damages for the loss of the bargain and not as a penalty an amount equal to the Stipulated Loss Value of the
EQUIPMENT,as defined in Section 10 above,as of the date of the event of default plus interest at Lessors then current late payment charge from the date of default to the date of
payment. After repossession of the EQUIPMENT by Lessor,Lessor shall attempt to mitigate Lessee's damages as hereinafter provided. Lessor,in its sole discretion,shall sell or release
the EQUIPMENT in a public or private transaction at which Lessor may be the Purchaser and Lessor may use Lessee's premises for the foregoing without liability for rents, costs,
damages,or otherwise. The proceeds of such sale or tease,it any,shall be applied first:
(i) to all of the Lessors costs,charges and expenses incurred in taking,removing,holding,repairing and selling or leasing the EQUIPMENT,then
-(ii)' to-the extent not previously paid by Lessee,to pay Lessor any damages then remaining unpaid hereunder;then
(iii) to reimburse Lessee any such sums previously paid by Lessee as damages hereunder,
(iv) any surplus shall be retained by Lessor. Lessee shah pay Lessor any deficiency in(i)and(ii)within ten(10)days of written request for same.
c. No remedy of Lessor hereunder shall be exclusive of any other remedy provided herein or by law. Each shall be cumulative and in addition to every other remedy. A waiver of default shall
not be a waiver of any other or subsequent default.
d. Any default on the terms of any other agreement executed between the parties(including any entity controlled by,controlling or under common control with Lessee)may be declared by
Lessor to be a default under the terms of this Lease or under the terms of any other agreement between Lessee and Lessor. Any default under the terms of this Lease may be declared by
Lessor to be a default under the terms of any other agreement between Lessee and Lessor.
20. FURTHER ASSURANCE-Lessee shall during the term hereof execute and deliver to Lessor such instruments and assurances as Lessor reasonably deems necessary
for the protection of Lessor's rights hereunder.
21. NOTICES-All notices shall be in writing and deemed,dejivered when posted in the U.S.Mails registered or certified,return receipt requested,to Lessor_or Lessee at
their respective address shown above or at any later+address last known to the sender.
22. SEVERABILITY-If any provision herein is invalid under any applicable law, such provision shall be inapplicable and deemed omitted, but the remaining provisions
hereof,including default remedies,shall be given effect in accordance with the manifest intent thereof.
23. ENTIRE AGREEMENT,NO AGENCY,TITLES-This instrument,including all appendixes,constitutes the entire Agreement between the parties. No term or provisions
of this Lease may be changed,waived,amended or terminated except by a written agreement signed by both parties. It is expressly agreed that no manufacturer or other
third party is authorized to act as an agent or on behalf of the Lessor. The titles of the Sections of this Lease are for convenience only and shall not define or limit any of
the terms of provisions hereof.
24. FINANCING STATEMENTS•At Lessor's request,Lessee.iwill join Lessor in executing any necessary or appropriate Financing Statements. A photographic copy of this
Lease may be filed as a financing statement under the Uniform Commercial Code.
25. 'JURISDICTION,APPLICABLE LAW-Any dispute arising out of this Lease not otherwise se$lea"'drticably shall be adjudicated in the courts of general jurisdiction and
the laws of the State indicated below shall apply.
26. TITLE-Title to the EQUIPMENT shall pass to and vest in Lessee upon the commencement of the term of the Lease. Lessor,however,shall retain a security interest in
the EQUIPMENT until Lessee shall have made all the payments required hereunder and shall have kept and performed all the agreements it has made herein,
notwithstanding the possession and use of the EQUIPMENT by Lessee as herein provided. Except as otherwise specifically provided herein,when Lessee shall have
paid Lessor all the rents and other payments provided herein,and all Lessee's obligations contained herein shall have been performed,Lessor shall release its security
interest in the EQUIPMENT without any further payment by Lessee and this Lease shall terminate.
( )
4 OF Etc - l
f 4,3 City of Elgin Agenda Item No.
ro ,7* � ilii
°RATEDF(�.;_
T
February 19, 1999
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Increase in Fleet of Golf Cars
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider
increasing the fleet of golf cars at Spartan Meadows Golf
Course .
BACKGROUND
With the increase in patronage by our residents, additional
golf cars must be purchased to maintain the current level of
service to each patron. Cars have been in short supply and
running out on a regular basis at Spartan Meadows. Each patron
should have an equal opportunity to rent a car no matter when
they play. Additionally, the City is not positioned to
maximize its revenue generation when golf cars are not avail-
able for rent .
In 1997, there were 40 revenue generating golf cars at Spartan
Meadows and ten revenue generating cars at Wing Park.
Revenue generated by a Spartan Meadows car was $2, 880 . 70/car.
Revenue generated by a Wing Park car was $2 , 473 . 60/car. In
1998, the City went through the competitive bid process and
entered into a five-year lease agreement for our golf cars
with EZ-Go Textron for the same number of cars . The new lease
agreement decreased the cost/car to $735 . 00 per car from
$825 . 00 per car in 1997 . Revenues generated by a car at
Spartan Meadows increased to $3 , 248 .23/car and at Wing Park
$2, 664 .40/car.
An additional 11 cars are being requested for 1999 at the same
unit price of $735 . 00 as last year' s bid price and the current
lease agreement . The cost of increasing the fleet by 11 cars
will total $8, 085 . 00 and is expected to generate an additional
$27, 000 . 00 in revenues for the golf fund.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
erk None.
,
Increase in Fleet of Golf Carts
February 19, 1999
Page 2
4,{11L FINANCIAL IMPACT
J,'/ The expense associated with the additional 11 cars totals
$8, 085 . 00 The 1999 Golf Fund budget, account number
540-5801-775 .43-05, includes a total of $48, 970 . 00 to pay for
both the existing cars ($40, 425 . 00) and the 11 new cars . It
is anticipated that approximately $187, 250 . 00 will be
generated in car rental revenue.
04/
LEGAL IMPACT
None .
ALTERNATIVES
Not to increase fleet size of revenue generating golf cars .
RECOMMENDATION
It is recommended that the City Council increase the golf car
fleet by 11 cars in 1999 by entering into a contract with EZ
Go for these additional vehicles .
Res.ectfully subm' ted,
rft.
//
Q•
Jo ' e •/ Parker
City Manager
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