18-130 Resolution No. 18-130
RESOLUTION
AUTHORIZING EXECUTION OF A LEASE AGREEME T WITH NADLER GOLF CAR
SALES, INC. FOR 72 NEW GOLF CARS AT THE BOW S CREEK COUNTRY CLUB
BE IT RESOLVED BY THE CITY COUNCIL OF E CITY OF ELGIN, ILLINOIS,
that pursuant to Elgin Municipal Code Section 5.02.020B(9) t e City Council hereby finds that an
exception to the requirements of the procurement ordinance is ecessary and in the best interest of
the city; and
BE IT FURTHER RESOLVED BY THE CITY CO CIL OF THE CITY OF ELGIN,
ILLINOIS, that Richard G. Kozal, City Manager, be and is hereby authorized and directed to
execute a Lease Agreement on behalf of the City of Elgin wit Nadler Golf Car Sales, Inc., for 72
new golf cars at the Bowes Creek Country Club, a copy of hich is attached hereto and made a
part hereof by reference.
s/ Davis J. Ka stain
David . Kaptain, Mayor
Presented: December 5, 2018
Adopted: December 5, 2018
Omnibus Vote: Yeas: 8 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
a
NADLER GOLF CAR SALES,INC.
LEASE AGREEMENT
NAME OF LESSEE CITY OF ELGIN,ILLINOIS a municipal corporation
ADDRESS 150 DEXTER COURT
CITY ELGIN COUNTY KANE STATE IL ZIP 60120
QUANTITY AND DESCRIPTION OF LEASED EQUIPMENT
Seventy-Two(72),2019 MODEL CLUB CAR TEMPO Electric Golf Cars equipped with: Canopy Tops,
Fold Down Windshield,Bag Covers,2 Divot Bottle Kits,USB Ports,Logo,Info Holder,Battery Watering
System,Numbers,Automatic E.R.I.C.Chargers,Tow Plates,&Platinum Color w/Gray Seats&Black Top.
THIS LEASE AGREEMENT, is hereby made and entered into and executed in triplicate this Sth day of
DECEMBER,2018 by and between NADLER GOLF CAR SALES,INC. an Illinois Corporation,hereinafter
called `LESSOR',and CITY OF ELGIN,ILLINOIS a municipal corporation hereinafter called `LESSEE'.
WITNESSETH
WHEREAS,the Lessor is engaged in the business of the sale and leasing of golf cars; and
WHEREAS,the Lessee is the operator of a Golf Course located as aforesaid.
NOW,THEREFORE,IN CONSIDERATION OF THE PREMISES AND THE MUTUAL PROMISES OF THE
Parties hereto,the sufficiency of which is hereby mutually acknowledged,'IT IS AGREED as follows,to wit:
1. LEASE. The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited
herein. Lessor hereby leases to Lessee,and Lessee hereby rents from Lessor the golf cars herein above
described.
2. LOCATION. Said cars are to be used at the Golf Course known as BOWES CREEK COUNTRY CLUB
and only at said Golf Course for the purpose of providing transportation to golf players when playing golf. Said
golf cars are not to be used at any other location or for any other purpose without the written consent of the Lessor.
3. EQUIPMENT. Lessor represents that on delivery,said cars will be in first class mechanical condition,and
agrees to maintain said cars in first class mechanical condition through the term of this Agreement,except as
hereinafter otherwise provided. Lessor agrees to furnish servicing for said cars not less than once in each calendar
week during the season when said cars are in use. Lessor agrees that in the event Lessee shall notify Lessor that
any unit is inoperable,Lessor will within forty-eight(48)hours of such notification make examination thereof,and
in the event that such unit cannot be made operable within forty-eight(48)hours of such examination,then Lessor
will furnish an adequate temporary replacement within said period for such unit. Lessor shall make all repairs
promptly and shall repair or replace all parts at their own expense. Lessor guarantees electric cars shall have a
minimum 36-hole performance capability throughout the term of said Lease Agreement.
4. USE. Lessee agrees not to knowingly allow the use of said cars by persons under driver's license age or persons
incapable of operating said units safely.
5. INSURANCE. Lessor agrees to furnish,at its own expense,bodily injury and property damage liability
insurance with a minimum of$500,000 combined single limit as a result of any one occurrence for the use,
operation,and maintenance of leased golf cars. Said insurance shall name as additional insured Lessee,and a
certificate thereof shall be filed with Lessee. Lessor shall carry adequate physical damage coverage for said cars.
Lessee shall be liable for the first$20,000.00 of damage,per occurrence,resulting from vandalism and/or
theft of said cars. Lessee must notify Lessor,via e-mail,(eric(&,nadlergolf.com)within(24)hours of any
•
occurrence. Additionally,Lessee must notify the appropriate law enforcement agency within(24)hours of
said occurrence. Lessee shall also be responsible for providing Lessor with a police report within one week of
said occurrence. Should Lessee not provide such notification,Lessee is responsible for all costs for
repairs/replacements of said golf cars.
6. OPERATION. Lessee shall provide for electric models,electricity and outlets as required,and shall properly
charge and water batteries as needed. Lessee shall provide gasoline as required for operation of gasoline models.
7. STORAGE. Lessee shall provide adequate and secure storage for said golf cars when not in use.
8. TIRES. Lessor shall provide adequate spare tires and Lessor further shall be responsible for any flat tire
repairs required by said cars.
9. DAMAGE AND REPAIRS. The cost of parts and labor required to repair any normal wear and tear shall be
the responsibility of Lessor. Any abnormal damage,whether it be caused by accidents,caused by negligence,
and/or improper operation of the vehicle on part of Lessee,employees or renter of said cars shall be invoiced to the
Lessee at the normal prevailing rates charged.
10. MAINTENANCE. Lessee further agrees to keep said golf cars in a clean and orderly condition at all times so
that their use will be encouraged, and that the cars will be maintained so as not to detract from the standard
appearance and cleanliness of the Golf Course maintained by said Lessee. In addition,Lessee agrees that Lessee will
not,without the prior written consent of Lessor,make an alteration,modification,or addition to any leased golf car,
including,without limitation,the addition of any markings,advertising,placards, stickers,or GPS(Global
Positioning Systems). Visage GPS by Club Car is the ONLY approved GPS system approved by the Lessor at this
time. Visage must be installed in accordance with Club Car's recommendations.
11. LEASE PAYMENTS. Lessee agrees to pay to Lessor $875.00 dollars per car per season. Both Lessor
and Lessee acknowledges the length of a season will vary from year to year but in no way does this variation effect
the Payment Schedule,hereinafter written, and agreed upon by both Parties. Lessee further agrees to keep records
and receipts of all golf car rentals. A 0.5% MONTHLY SERVICE CHARGE (6% ANNUALLY)WILL BE
CHARGED ON ALL ACCOUNTS OVER THIRTY(30)DAYS OR MAXIMUM RATE PERMITTED BY
LAW,WHICHEVER IS LESS.
PAYMENT SCHEDULE
May 10,2019 $5,966.67
June 10,2019 $5,966.67
July 10, 2019 $5,966.67
August 10,2019 $5,966.67
September 10,2019 $5,966.67
October 10, 2019 $5,966.67
May 10,2020 through 2026 $10,500.00
June 10,2020 through 2026 $10,500.00
July 10,2020 through 2026 $10,500.00
August 10,2020 through 2026 $10,500.00
September 10,2020 through 2026 -$10,500.00
October 10,2020 through 2026 $10,500.00
TOTAL LEASE COST FOR TERM-$476,800.00
A trade value of$27,200.00 for Lessee's owned CLUB CAR Golf Car fleet consisting of Thirty-Two(32),
2010 Club Car Electric Golf Cars has been applied to the above payment schedule for the 2019 payments.
12. LEASE TERM. This Agreement shall terminate DECEMBER 1,2026.
13.LEASE TERMINATION OPTION. Lessee may,at its option,terminate this Agreement at the conclusion of
the 2023 Golf Season. Upon exercising this option,Lessee shall be responsible for a$2,475.00 per car penalty
totaling$178,200.00. Written notification must be received by Lessor from Lessee no later than August 1,2023
with full penalty payment of$178,200.00 due by October 10,2023. Should Lessee exercise this option,all duties
and obligations of Lessee and Lessor within this Agreement shall cease December 1, 2023.
14. CURRENT LEASE CANCELLATION. Upon execution of this new Agreement dated 22❑d of October, 2018,
the current Lease Agreements between Lessee and Lessor dated 25th of January, 2017 for 20, 2017 Club Car
Precedent Electrics and dated 18`h of March,2015 for 20 2015 Club Car Precedent Electrics will become null and
void,and of not further effect. Lessee shall not be liable for any remaining lease payments and all duties and
obligations of Lessee and Lessor within those Agreements shall cease.
15. FORCE MAJEUR. Lessor shall not be liable for any part of this Agreement due to any occurrence or
contingency beyond their reasonable control,including but not limited to war,hostility, insurrection,riot or other act
of civil disobedience,accident,fire,explosion,flood,storm,or other such weather conditions.
16. EXECUTION. This Agreement may be executed in counterparts,each of which shall be an original and all of
which shall constitute one and the same agreement. For the purposes of executing this agreement, and signed copy
of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original
document. The signature of any part on a copy of this agreement transmitted by fax machine or e-mail shall be
considered for the purposes as an original signature and shall have the same legal effects as an original signature.
Any such faxed or e-mail copy of this agreement shall be considered to have the same binding effect as an original
document. As the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties
in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense of this
agreement and shall forever waive such defense.
17. SEVERABILITY. The terms of this Agreement shall be severable. In the event any of the terms or provisions
of this Agreement shall be deemed to be void or otherwise unenforceable for any reason,the remainder of the
Agreement shall remain in full force and effect.
18. MISCELLANEOUS.
(a) It is understood that this Agreement is one of rental and not one of sale.
(b) In the event Lessee defaults in the performance of any of the terms hereof,or fails to make any payment
when due,Lessor, in addition to any other remedy accorded by law, shall have the right to declare this
Agreement terminated and shall have the right to enter upon the golf course premises and take possession of
and remove the golf cars subject to this Agreement. Lessee shall pay all costs and damages incurred by
Lessor, including reasonable attorneys fees and costs,in enforcing the terms hereof. The minimum of 24
hours notice from Lessor prior to entry of Lessee's property is required.
(c) This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois.
The parties hereto further agree that any action on this Agreement shall be brought in the Circuit Court for
the 16`h Judicial District,Kane County,Illinois without jury and the undersigned specifically and expressly
waive the right to transfer jurisdiction and venue to the Federal Court system.
(d) Lessee agrees to pay to Lessor,replacement cost(parts only), for any option or accessories that require
replacement during the term of this Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written.
LESSOR:
NADLER GOLF CAR SALES,INC. ADDRESS:
BY L 1 /4--lZ 2700 N.FARNSWORTH AVE.
AURORA,IL 60502
LESSEE:
CITY OF EL • ILLINOIS a municipal corporation ADDRESS:
150 DEXTER COURT
BY ELGIN,IL 60120
Richard G. Kozal, y Manager