HomeMy WebLinkAboutCORRESPONDENCE - BID - 7101 GOLF CARTS - 2010 PHASE 2Sohn G. Halbert
Colorado District Sales Manager
March 8, 2010
Mr. Jim Hume
215 N. Mason Street, 2nd Floor
Fort Collins, CO 80522
Estimated Property Tax on Lease Option
Dear Jim,
As we have discussed previously, the Municipal Lease Option (contained in the bid packet) would
necesitate the City to pay property tax each year of the lease. The Conditional Sale Agreement with the
vendor addendum agreement would not. The following amounts are estimated for each year of the lease
agreement:
Year # 1 - $6,063.83
Year #2 - $5,943.44
Year #3 - $5,349.09
Year #4 - $4,679.22
Thank you once again for the opportunity to continue our relationship with the City of Fort Collins and to
meet your golf car needs for the courses at Collindale and Southridge.
Best regards,
John Halbert
District Sales Manager
Masek Golf Car Company
Yamaha Distributors for: Colorado, Wyoming, Montana, Nebraska, Kansas, and Missouri
*YAMAHA
YAMAHA MOTOR CORPORATION, U.S.A.
6555 KATELLA AVENUE CYPRESS, CALIFORNIA 90630-5101 800-551-2994 FAX 714-761-7363
February 23, 2010
CITY OF FORT COLLINS
Dear Yamaha Customer:
Enclosed you will find the documentation for your lease of 76 YDRE
Yamaha golf cars. The documents enclosed in the package include the following:
Master Lease Agreement — rc d ,-5eo j * n c1 m ni'l-t�
Equipment Schedule #95718
Request for Insurance
Certificate of Acceptance
Please have these documents signed by an Authorized City Official and return them to me in the enclosed prepaid overnight
return envelope.
The insurance form should be forwarded to your insurance company and a copy returned to us with the other documentation.
If the city requires the use of Purchase Orders, please provide one with your documents. However, if they are not required
please include a signed statement on official city letterhead stating that a purchase order will not be required for this
transaction.
We appreciate your business and look forward to the opportunity to service your leasing needs. If you should have any
questions, please give us a call at 800-551-2994.
Sincerely,
Stacey L. Stankey
YAMAHA
Commercial Customer Finance
YAMAHA4,
Commercial
MUNICIPAL MASTER LEASE AGREEMENT
Page 1 of 4
MLSED906
"MAMA
MOTOR CORPORATION, U.S.A.
MASTER LEASE AGREEMENT dated February 23, 2010 between YAMAHA MOTOR CORPORATION, U.S.A.,
having its principal place of business at 6555 Katelle Avenue, Cypress, California 90630 ('Lessor), and
CITY OF FORT COLLINS having its principal office at
215 N. MASON STREET, FORT COLLINS, CO 80522 (Lessee").
Lessor and Lessee hereby agree as follows:
1. Lease of Equipment. Lessor leases to Lessee the equipment described on each attached Equip r Schedule (the "Egyipmenf'), on
the terns and conditions of this Lease, the applicable Equipment Schedule, and each rider attached he r
2. Term. The term of this lease for the Equipment described on a particular Equipment Schedu mmen the date set forth on
such Equipment Schedule and shall continue for the number of months indicated on such Equipm of e. c•
3. Rent. Lessee shall pay Lessor rent for the Equipment (" W) in the amounts and at the times se' `r appficab t' quipment
Schedule. The amount of the Rent has been determined by amortizing the purchase price of the appii uipment (usi a prices
quoted in the Request for Proposal identified on the applicable Equipment Schedu""RFPL) together with' rest fa at the rate
specified in the applicable Equipment Schedule. Whenever any payment hereunder of made when due, Le terest on such
amount from the due date thereof to the date of such payment at the lower of then prevailing rate for la ents specified in
Lessor's invoice to Lessee for such payment or the maximum allowable rate of i ere itted by the law of �e sta ere the Equipment
is located.
4. Selection. Delivery. and Acceotance. Lessee shall select th4Equi
dealer of Lessor (the "�_r7. All costs of delivery are the sole resulting from the delay or failure to have any Equipment availabEquipment is as ordered and has been equipped and preparedLessee to Lessor or Dealer. Lessee shall accept the Equipment and deliver to Lessor or Dealer a Certificate of Acceptan foEquipment. For all purposes of this Lease, acceptance c
Acceptance provided by Lessor. Lessee authorizes Less in each
date of the Equipment. .
5. Location. and Inspection. Lessee shall not move the Wi0ft
without Lessors prior written consent Lessor and its repre
upon the premises where the Equipment' to inspect th *q
Lease.
Ike delVandr
m Lessor or an authorized
cable for any loss or damage
Pee suipment to determine that the
he Rinstructions given in writing by
set fng sentence andshall execute
satisfath respect to each shipment of
d by Lessee's execution and deliver of a Certificate of
anent Schedule the serial numbers and other identifying
the I s specified in the applicable Equipment Schedule
eve the ght from time to time during business hours to enter
end _I, S 's records to confirm Lessee's compliance with this
B. Care. Use. and Maintenance. Lessee �'d`E'` all tjfs during the term of this Lease, keep the Equipment clean,
serviced, and maintained in good operating o repel ; and appearance in accordance with Lessor's manuals and other
instructions received from Lessor. Lessee will not uNnig
rate uipment, or permit the Equipment to be used or operated, in violation
of any law, ordinance or gov I regulations. pment will be used and operated only as golf cars. Lessee shall safely store the
Equipment when not in use rly secure it rid ch other times when the golf course on which the Equipment is used is
closed to play, and Lessee sh sponsible for so age and safekeeping. If the Equipment is electrical. Lessee shall provide
sufficient and adequate electri a and water lines for the batteries which are a part of the Equipment.
7. Insurance. le.. Effective upo
Lessee retie or of respo
During th. _ ritinua of this M
of Equip nt designated in ea
insurer in each case in amou
risk a
provide fo
expiration of a
bear the entire risk
obligation to pay th
damage to any Iter
operating condition.
time which may be I
h policies.
of loss, tl
total of I
nfEment
f th( ent to Lessee and until the Equipment is returned to Lessor as provided herein,
nsall risk physical damage to or loss or destruction of all the Equipment, howsoever caused.
as Lessen shall at its own expense, cause to be carried and maintained with respect to each item
dSchedule public liability insurance in an amount of not less then $1,000,000, and casualty
ntinst risk customarily insured against Lessee in similar equipment and, in amounts and against
9ont
spec[to such insurance shall nameLessor as additional insured and as loss payee, and shall
I rwritten notice by the underwriter or insurance company to Lessor in the event of cancellation or
shall, upon request of Lessor, furnish appropriate evidence of such insurance to Lessor. Lessee shall
truction or damage to the Equipment from any cause whatsoever and shall not be relieved of the
My payments or any other obligation hereunder because of any such occurrence. In the event of
nt leased hereunder, Lessee, at its sole expense, shall Immediately place the same in good repair and
shall Lessor be liable for any loss of profit, damage, loss, defect or failure of any item of Equipment or the
to recover, repair, service, or replace the item of Equipment.
8. Storage Lessee shall store the Equipment in such a manner as to prevent theft or damage from weather and vandalism.
9. Title. Title to the Equipment shall at all times remain with the Lessor. Lessee acquires only the interests of Lessee expressly described
in this Lease, the applicable Equipment Schedule, and the riders attached hereto. Lessee shall not remove, move, or cover over in any
manner any serial number on the Equipment Lessee shall keep all Equipment free from any marking or labeling which might be interpreted
as a claim of ownership thereof by Lessee or any party other than Lessor or anyone so claiming through Lessor.
10. Warranties. The Equipment is warranted only in accordance with the manufacturer's warranty. EXCEPT AS EXPRESSLY PROVIDED
IN THE MANUFACTURER'S WARRANTY, LESSOR DISCLAIMS ANY OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NOW
INTERFERENCE.
Page 2 of 4 MLSE0906
11. Alterations and Attachments. Lessee may, with Lessor's prior written consent, make such cosmetic modifications to the Equipment as
Lessee may deem desirable in the conduct of its business; provided, however, that such alterations shall not diminish the value or utility of
the Equipment, or cause the loss of any warranty thereon or any certification necessary for the maintenance thereof; and provided, further,
that such modification shall be removable without causing damage to the Equipment. Upon return of the Equipment to Lessor, Lessee shall,
if Lessor so elects, remove such modifications which have been made and shall restore the Equipment to its original condition, normal wear
and tear and depreciation excepted.
12. Taxes. Lessee shall cooperate with Lessor in all reasonable respects necessary in order for Lessor to qualify for any exemption or
exclusion from.personal property tax on the equipment or sales or use tax on the leasing of the Equipment to Lessee hereunder. In the event
that any such tax becomes payable by Lessor during the term of this Lease, Lessee shall pay to Lessor as additional rent, promptly on receipt
of Lessors invoice therefor, an amount equal to such tax Lessee shall collect and remit any and all sales, use, and other taxes payable in
any state, county, or city in respect of the rental or other use of the Equipment by Lessee. I&I
13. Indemnity: Notice of Claim_ TO THE EXTENT PERMITTED BY LAW; Lessee shall be liable for, hereY�y indemnifies Lessor and
holds Lessor harmless from and against, any and all claims, costs, expenses, damages, losses, a iablities Qncluding, with limitation,
attorneys' fees and disbursements) arising in any way from the gross negligence or miscond : of Lessee ' Lessee's agents and
independent contractors, or their respective employees. Lessee shall give Lessor prompt w of any arising out of the
possession, leasing, renting, operation, control, use, storage, or disposition of the Equipment arid'` rat. all i6ason2ple respects
at Lessee's expense in investigating, defending, and resolving such claim. ".
14. Return of Eau'gLment. Upon the termination of an Equipment Schedule for any reason, unless LesNtear
on p 'asing the
Equipment from Lessor, Lessee shall make the Equipment available for Inspection a pick up by Lessor ore s location at
which the Equipment was used hereunder. The Equipment shall be returned to Le at the to
of thiame operating
order, repair, condition, and appearance as when received by Lessee, less nod wear anshall not include
damaged or missing tires or wheels).
15. Defaults. The occurrence of any one or more of the following events %N,t of Default" der this Lease:
(a) default by Lessee in the payment of any installment of re yLessee rany Equipment Schedule
as and when the same becomes due and payable; or i;
(b) default by Lessee in the performance of any other" term,
days after notice; or
(c) A petition under the Bankruptcy Code or and 'any other
against Lessee; or f
(d) The voluntary or Involuntary making of an ment of a
creditors shall occur, a receiver or trustee a or for Ld
proceeding for dissolution, liquidation, settlers s against
or a
(e) Lessee shall default under any her lease or ag f ant n U
(f) Lessee shall suffer a mat change In finan
deems itself or any of t 'nsecu
16. Remedies. Upon the occurrence of an E at its 'oi
such order or manner as Lessor determines, each rem cumulative
under applicable law:
cant or co is Lease, any for a period of 10
r providing foTerellef of debtors shall be filed by or
ial portion of its assets by Lessee for the benefit of
s assets shall be appointed; any formal or informal
00" up of the affairs of Lessee shall be commenced;
and Lessor or any of its assignees hereunder, or
from the date hereof, and as a result thereof Lessor
may pursue any one or more of the following remedies, in
and not exclusive of any other remedy provided herein or
(a) terminate all rtion of the Equipmeedules to this Lease;
(b) with or without Lease, take ession of the Equipment, with or without judicial process, Lessee hereby
granting Lessor rig to enter, on Lessee's premises where the Equipment Is located for such purpose;
(c) by approp to co a at law or in equity, to enforce performance by Lessee of the applicable covenants
arms of this to recov m Lessee any and all damages or expenses, including reasonable attorneys' fees,
essor shall h sustained b ason of Lessee's default in any covenant or covenants of this Lease, or on account of
Lessor'§ enforcement its remedies thereunder, without limiting any other damages to which Lessor may be entitled, Lessor
shall be entitled upon a vent of Default to damages in an amount equal to all Rent then due but unpaid, plus the aggregate
s an,�p ereaft " Ing due for the remaining term of this Lease, plus Lessor's costs and expenses of pursuing its
r ( ding, without limitation, attorneys' fees), minus all amounts received by Lessor after using
le eft sel or re -lease the Equipment after repossession or from any guaranty by the Dealer or any third=party;
and
(d) sell it* Equip r enter into a new lease of the Equipment. No delay by Lessor in pursuing any remedy shall be treated as
a waition on such remedy or any other remedy.
17. Assianment. NeitWK&essee nor Lessor shall transfer, assign, or sublease (except for rentals to players as contemplated hereunder in
the ordinary course of business), or create, incur, assume, or permit to exist any security interest, lien, or other encumbrance on, the
Equipment, this Lease, or any interest of Lessee therein.
18. Lessee's Representations and Warranties. Lessee represents and warrants to Lessor that: (a) Lessee has the authority under
applicable law to enter into and perform this Lease and each Equipment Schedule and rider hereto; (b) Lessee has taken all necessary action
to authorize its execution, delivery, and performance of this Lease and each Equipment Schedule and rider hereto; (c) the Lease and each
Equipment Schedule and rider hereto have been duly executed and delivered by an authorized signatory of Lessee and constitute Lessee's
legal, valid, and binding obligations, enforceable in accordance with their terms; (d) adequate funds have been budgeted and appropriated to
enable Lessee to make all payments required under each Equipment Schedule to this Lease during the first twelve months of the term
hereof, and (a) interest paid on indebtedness of Lessee held by Lessor would be excluded from Lessor's income for U.S. federal income tax
purposes.
Page 3 of 4 MLSE0906
19. Non -Appropriation of Funds. Notwithstanding anything contained in this Lease to the contrary, in the event no funds or insufficient funds
are budgeted and appropriated or are otherwise unavailable by any means whatsoever for Rent due under the Lease with respect to a
Equipment Schedule in any fiscal period after the period in which the term of the lease with respect to such Equipment Schedule
commences, Lessee will immediately notify Lessor in writing of such occurrence and the Lessee's obligations under the Lease shall terminate
on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Lessee, except as to (1)
the portions of Rent for which funds shall have been budgeted and appropriated or are otherwise available and (i) Lessee's other obligations
and liabilities under the Lease relating to the period, or accruing or arising, prior to such termination. In the event of such termination, Lessee
agrees to peaceably surrender possession of the Equipment to Lessor on the date of such termination in
the manner set forth in the Lease and Lessor will have all legal and equitable rights and remedies to take possession of the Equipment.
Notwithstanding the foregoing, Lessee agrees (1) that it will not cancel the Lease and the Lease shall not terminate under the provisions of
this section if any funds are appropriated to it, or by it, for the acquisition, retention or operation of the Equipment or other equipment or
services performing functions similar to the functions of the Equipment for the fiscal period in which such to ination would have otherwise
occurred or for the next succeeding fiscal period, and (ii) that it will not during the Lease term gi4Equi
' pplication of funds to any
other functionally similar equipment or to services performing functions similar to the functions of nt is section is not intended
to permit Lessee to terminate the Lease in order to purchase, lease, rent or otherwise acquire nyo r equipment or services
performing functions similar to the functions of the Equipment, and if the Lease terminates pursuection, ssee agrees that prior
to the end of the fiscal period immediately following the fiscal period in which such termination o not so ase, lease, rent or
otherwise acquire the use of any such other equipment or services.
20. Bindina Effect• Successors and Assigns. This lease and each Equipment Schedule and rider herelS
inure to the benefit of Lessor and Lessee and their respective successors and permitted assigns. All ag
Lessee contained in this Lease or in any document delivered pursuant hereto or ip,610nnection herewith st
delivery of this Lease and the expiration or other termination of this Lease. r
21. Notices. Any notice, request or other communication to either party by thar6tA I be given in writing
only upon the earlier of receipt or three days after mailing if mailed postage prepaid by mail to Lessor o
at the address for such party set forth in this agreement or at such chang ss as subsequently
either party. _„Gk
22. Goveming Law. This Lease and each Equipment Schedule
the laws of the State where Lessee's principal administrative offi
rider her II be
Qcated wit giving
be binding u and shall
its and repr tations of
Abvive th ion and
N deemed received
as the case may be,
i by written notice of
construed in accordance with
Gets of laws principles of such
state.
23. Severability. In the event any one or more of the
isions of t`r or any Equipmeirschedule or rider hereto shall for any
reason be prohibited or unenforceable in any jurisdiction,
provision', as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability, without invalidating the remai
visions her such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in
urisdiction: rr
24. Signed Countemarts. The parties agree that this Lease m in counte that delivery of an executed counterpart of the
signature page to this Lease by fax, email or her electronic
sh s as delivery of a manually executed counterpart, and
any failure to deliver the original manually unterpart t by f 01 other electronic means shall not affect the validity,
v
enforceability or binding effect of this Le
any r provr this Lease, the sole original of this Lease shall be the
Lease bearing the manually executed signatu
b� aking any payment required under this Lease ratifies all of
the terms of this Lease/Agreemerrt.
by
law, Le any and all rights and remedies conferred by Sections 2A-
25. Article 2A. To the full extent permitted ap
waives
508 through 2A-522 of Arti a Uniform Comme
Code in effect in the state designated in Section 26 below, except to the extent
that such right or remedy is ex tact to Lessee he
26. Status of Limitations. An ctio against
sor or Dealer for any breach or default under this Lease must be commenced
within one year after the cause of ion
�k Y
27. EntireAgakent This all Equip. t Schedules and riders hereto constitute the entire agreement between Lessor and
Lessee the subject hereof, a here are
no agreements, representations, warranties, or understandings with respect to
such matter except as exp set forth herein and
therein. No alternation or modification of this Lease or any Equipment Schedule
or rider %eto shall be effective unless in writing and signed by Lessor and Lessee.
IN WITTY .M*J or a0lessee have caused this Lease to be executed on the date first above written.
CITY OF FORT COLLINS , as Lessee YAMAHA MOTOR CORPORATION. U.S.A. as Lessor
Print Name:
By:
Print Name:
Title: Title:
Page 4 of 4
MLSE0906
EXHIBIT A
EQUIPMENT SCHEDULE # 95718
Dated 02/23/2010
1. This Schedule covers the following property ("Equipment"):
76 YDRE GOLF CARS
2. Location of Equipment:
CITY OF FORT COLLINS
215 N. MASON STREET
FORT COLLINS, CO 80522
3. The Lease term for the Equipment described herein shall commence on April 15, 2010 and shall
consist of 48 months from the first day of the month following said date.
4. Rental payments on the Equipment shall be in the following amounts, payable on the following schedule:
16 MONTHLY PAYMENTS IN THE AMOUNT OF S14,136.00 (APPLICABLE TAXES TO BE BILLED).
STARTING APRIL 2010 AND ENDING JANUARY 2014. DUE THE 15TH DAY OF
THE MONTH AS FOLLOWS:
Apr-10 $14,136.00 3an-11$14,136.00 3an-12 $14,136.00 ]an-13 $14,136.00 ]an-14 $14,136.00
Jul-io $14,136.00 Apr-11$14,136.0D Apr-12 $14,136.00 Apr-13 $14,136.00
Oct 10 $14,136.00 3ul-11$14,136.00 ]ul•12 $14,136.00 3u1-13 $14,136.00
Oct-11 $14,136.00 Oct-12 $14,136.00 Oct-13 $14,136.00
5. Interest Factor: 4.88% %
6. Other Terms:
Lessee agrees to reimburse Lessor, who shall pay any assessed property taxes due on the equipment
leased pursuant to Section 12 of the Master Lease Agreement.
Yamaha is not obligated to perform or provide any service, under any circumstances under the terms of the lease
agreement. Service is the responsibility of the Lessee. Failure by Lessee to maintain or service the equipment consistent
with the terms of the Master Lease Agreement shall not relieve Lessee of the responsibilities under the Master Lease
Agreement.
Signed Counterparts: The parties agree that this Lease may be signed in counterparts, that delivery of an executed counterpart of the
signature page to this Lease by fW4 email or other electronic means shall be as effective as delivery of a manually executed counterpart,
and any failure to deliver the original manually executed counterpart sent by fax, email or other electronic means shell not affect the
validity, enforceability or binding effect of this Lease. Notwithstanding any other provision of this Lease, the sole original of this Lease
shall be the Lease bearing the manually executed signature of the Lessor. The Lessee, by nuking any payment required under this Lease
ratifies all of the terms of this l easclAuc melt.
This Equipment Schedule is issued pursuant to the Master Lease dated, February 23, 2010 (the
"Lease"). All of the terms and conditions, representations and warranties of the Lease are hereby incorporated herein
and made a part hereof as if they were expressly set forth in this Equipment Schedule and this Equipment Schedule
constitutes a separate lease with respect to the Equipment described herein.
LESSEE: CITY OF FORT COLLINS
By:
Signature
Name:
Type or Print
Title:
LESSOR: YAMAHA MOTOR CORPORATION, U.S.A.
By:
Patrick Breene
Name: - - - -- -
Vice President
Title: —
YAMAHA MOTOR CORPORATION, U.S.A.
COMMERCIAL CUSTOMER FINANCE
6555 Katella Avenue, Cypress, CA 9D630
(800) 551-2994, Fax (714) 761-7363
E-MAIL: Donna—Hennessy@yamaha-motor.com
NAME OF INSURANCE AGENT:
ADDRESS:
PHONE:
FAX:
February 23, 2010
Please Reference our Quote# 95718
RE: CITY OF FORT COLLINS (Customer) Account #
Gentlemen:
The Customer has leased or will be leasing equipment from Yamaha.
The Customer is required to provide Yamaha with the following insurance coverage:
"Ail Risk" Property Insurance covering the property owned by or in which Yamaha has a security interest, in an
amount not less than the full replacement cost of the property, with Yamaha named as LOSS PAYEE.
Public Liability Insurance naming Yamaha as an ADDITIONAL INSURED with the proceeds to be payable first
on the Behalf of Yamaha to the extent of its liability, if any. The amount of the Public Liability Insurance shall
not be less than $1,000,000.00 combined single limit.
Each policy shall provide that (i) Yamaha will be given not less than thirty (30) days prior written notice of cancellation
or non -renewal, (ii) it is primary insurance and any other insurance covering Yamaha shall be secondary or excess of the
policy and (iii) in no event shall the policy be invalidated as against Yamaha or its assigns for any violation of any term
of the policy or the Customer's application therefore.
A Certificate evidencing such overage should be mailed to Yamaha at the following address.
Yamaha Motor Corporation, U.S.A.
Attn: Commercial Customer Finance
6555 Katella Ave
Cypress, CA 90630
Your Prompt attention will be appreciated.
Equipment Covered:
76 YDRE GOLF CARS
Equipment Location:
215 N. MASON STREET
Very Truly Yours,
CITY OF FORT COLLINS
(Name of Debtor/Lessee)
By:
FORT COLLINS, CO 80522 Title:
(Signature of Authorized Officer)
J
CERTIFICATE OF ACCEPTANCE
This certificate is executed pursuant to Equipment Schedule No. 95713
dated February 23, 2010 to the Master Lease Agreement dated
February 23, 2010 between Yamaha Motor Corporation, U.S.A.
(the "Lessor") and CITY OF FORT COLLINS
(the "Lessee").
The Lessee hereby certifies that the Equipment set forth below, as also described in the above
Equipment Schedule, has been delivered and accepted by the Lessee on the Commencement Date
Shown below.
EQUIPMENT SERIAL
QUANTITY TYPE/MODEL NUMBER
76 YDRE GOLF CARS See
Attachment
ADDITIONAL CONDITIONS/SPECIAL TERMS:
NEWIUSED LOCATION
USED CITY OF FORT COLLINS
215 N. MASON STREET
FORT COLLINS, CO 80522
Please return this certificate as your acknowledgment of the above Commencement Date and acceptability
of the Equipment.
as Lessee
By: 40-.-
Name:
Title: