88-0311 Boylan Sales LEASE AGREEMENT X31`
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This agreement , made and entered into between Boylan Sales, Inc. ,
607 N. Main;, Plainwell, Michigan 49080, hereinafter designated as 'Lessor"
and City of Algin - 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 441 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 $13, 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,
I1. 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.
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B. Remove, repair, and replace all flat tires, and perform
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.
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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 past due payments in the event of such
circumstances.
17. c,\ 441°
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.
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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 .
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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 t'o 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/WITNESS WHEREOF, the parties hereto have executed this Lease this
// day of #G`� �`"1 ,19 del.
In the Presence of: Boylan les , I ` . , Lessor
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By: #
In the Presence of: Ck-r oc S. _ k Lessee
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BY:
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.. . . . _ . . ..
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. . e_Woyd,i2Vig/h. : .
a;e:
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Age,
` 1451 E. LATHEM, BATAVIA, ILLINOIS 60510
PHONE (312) 879-5670
-.0:741r7
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January 12, 1988
Mr. Mike Sarro
Director of Purchasing
c/o Purchasing Dept.
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
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Dear Mr. Sarro,
We here at Boylan Sales, Inc. , Batavia, Illinois are pleased to hear •
that your department is giving strong consideration to the golf car
lease proposal by us to the City of Elgin for Spartan Meadows Golf Course.
As previously stated by us , the responsibility of insurance for these
golf cars will be the burden of Boylan Sales, Inc. , during the selected
lease period.
We want you to know that we do carry the following insurance policies
and coverage to protect both the City of Elgin and ourselves in the
event of a claim.
Name of Carrier - New Hampshire Insurance Company
Manchester, New Hampshire 03107
Name of Agent - Kapnick & Company, Inc.
1801 West Maumee Street
P.O. Box 899
Adrian, Michigan 49221-0899
Phone - ( 517 ) 263-4600
We have "All Risk Coverage" for the golf car fleet.
Deductible is the cost of Boylan Sales, Inc.
Basic Policy # POP637-85-91 - Liability $1 ,000,000
Physical Damage I SPF595 -20-25
Umbrella Policy I UL510-11-98 - Additional $1 ,000, 000
The City of Elgin will be shown as Additional Insured on Basic Policy.
Overall Liability results in $2 ,000, 000 liability coverage during
lease.
PLAINWELL, MICHIGAN • INDIANAPOLIS, INDIANA • 'SANFORD, FLORIDA
DELRAY BEACH, FLORIDA • SARASOTA, FLORIDA
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Cont . Page 2
Mr. Mike Sarro
Director of Purchasing
We trust this information will be of benefit in helping you decide
to lease your golf cars from us.
We thank you for your consideration, and will make ourselves available
to answer any further questions that might arise.
Sincerely yours ,
. V
Larry Joseph, Vice President
Boylan Sales, Inc
Batavia, Illinois 60510
LJ/cm
ADDENDUM TO LEASE CONTRACT
TRADE-IN UNITS
Equip. N, Inv. N Serial M
1 18713 1986 Columbia 3310176 $ /Icry
2 18714 1986 Columbia 3B10147 $ 1400
3 18715 1986 Columbiale O 0 3B10139 $ isao
1
4 18716 1986 Columbia 3310138 $ 110 0
5 18717 1986 Columbia 3B10168 $ 1/00
• 6 18718 1986 Columbia 3810161 $ /too
22 07560 1984 Columbia 3B10430C4 $ 7.50
27 ' 07561 1984 Columbia 381046504 $ 750
29 . 07562 1984 Columbia 3310478C4 $ 7J1)
32 07563 1984 Columbia 3B10183C4 $ 750
33 06939 1984 Columbia P ,4) 3B10333C4 $ 65-0
38 06942 1984 Columbia 3310362C4 $ 7 50
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28 06784 1983 Columbia 0°`�/J 3B12731C3 $ 1 SO
' 37 06785 1983 Columbia 3312648C3 $ 5:97
25 06774 1982 Harley-Davidson 0 ' 3811168J2 $ .3 7-5*
30 06773 1982 Harley-Davidson 3B11834J2 $ 1(-7
35 06772 1982 Harley-Davidson 3B11398J2 $ q7C
TOTAL (All 17 Cars) $ /33 25
All units are to be traded-in as is. Successful bidder is _also responsible
for pick-up of all units.
SIGNED L' dc...e....t.1.1. 9'� '� C -
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