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HomeMy WebLinkAboutC15-448 Power Equipment Companya..t+gmf,ryffi HtrUTFMEilT EUMPfiXY EQUIPMENT LEASE With Option to Purchase The following Lease is made by and between Power Equipment Company (Owner) whose address is 500 E. 62nd. Avenue, P.O. Box 28, Denver, CO 80201 and EAGLE COUNry (Lessee), whose address is: PO BOX 1705, GYPSUM, CO 81637 1. Lease: Owner agrees to lease the Customer the following items (the "Equipment") subject to the terms and conditions set forth below Stock # Year Make Model Serial Number Rental Rate Equipment Value 21040 2014 VOL LOSOGHO 0L90GC0S617478 $4,700.00 $210,000.00 Rental Total: $4,700.00 per Month 2. JOB LOCATION: The Equipment shall be used at the following job location, unless otherwise agreed to in writing by Owner. Job Location: , , , _County County 3. LEASE TERM: The term of this lease shall commence on the date of delivery, currenlly scheduled for Tuesday, December 1,2015, and shall continue until terminated by customer. 4. RENT: Lessee agrees to pay rent to Owner at the above address for the Equipment in Monthly Installments of $4,700.00, net due upon receipt of invoice. 5. HOURS OF OPERATION: Customer agrees lo operate the Equipment no more than 176 hours per month. lf the Equipment is operated more than the stated hours, Lessee agrees to pay additional rent of $26.70 per hour or part thereof. Lessee agrees to notify Owner in writing of all such excess hours within 30 days after such hours are accrued. Such additional rent is due net upon invoice. 6. DELIVERY AND POSSESSION: Lessee shall take possession of the Equipment at the Customer Job Location and shall pay all charges for loading, unloading, and transportation of the Equipment lo the iob location and ils return to Owner's possession at the Owner's localion. Lessee shall inspect the Equipment within forty-eight hours after taking possession. Unless Customer within that time gives written notice to the Owner specifiTing any objection to the Equipment, it shall be conclusively presumed that the Lessee has fully inspected the Equipment, has found the Equipment in good condition and repair, and has accepted the Equipment. 7. ADDITIONAL RENT: lf the Equipment has not been returned to Owner at the expiration of the term, Lessee agrees to pay rent from the expiration of the term until the Equipment is delivered to Owneas possession. Such rent shall be computed and paid on a monthly basis, at the same pro rata rate and upon the same terms as the original term of this Lease. 8. USE: Lessee shall: (a) Use the Equipment in a careful and proper manner, and not permit the Equipment to be neglected or abused or to be used for any purpose for which it is not designed or intended; (b) Comply with all laws, ordinances and regulations relating to the transportation, possession, use, or maintenance of the Equipment; (c) Keep affixed all Owner or Manufacturer supplied labels, plates, warning or olher markings in a proper and appropriate place on the Equipment; (d) Cause the Equipment to be operated by trained and competent employees only, knowledgeable in the function, operation and atl safety features of the Equipment; and (e) Pay all expenses of operation. 9. REPAIR AND MAINTENANCE: Lessee agrees to keep the Equipment in good repair and perform all manufacturers recommended periodic maintenance at Lessee's sole expense, and to return the Equipment in good repair and at the termination of this Lease. For the purpose of this Lease, "good repair'' shall mean in full operating condition and working order, with all parts of the Equipment in the substantially equivalent condition as when the Equipment was delivered to the Lessee. Lessee at its sole expense shall repair or replace any and all parts, mechanisms, or devices required to keep the Equipment in good repair. Any replacement parts incorporated into the Equipment shall immedialely become the property of the Owner. In the event the Equipment for any reason is not in good repairwhen returned to the Owner, Lessee agrees to pay all reasonable charges and expenses incurred by the Owner in repairing the equipment. 10. ADDITION OF ACCESSORIES: Lessee will not, without the w'itten consent of the Owner, install any accessories or devices on the Equipment if such installation will impair the originally-intended function or use of the Equipment. Such items installed on the Equipment shall automatically become the property of the Owner unless such item can be removed without in any way affecting the function, use or appearance of the Equipment. Any damage lo the Equipment caused by the removal of such items shall be repaired at Lessee's expense. 1 1 . PERSONAL PROPERTY: The Equipment is, and shall at all times remain, personal property. lf all or any part of the Equipment is attached to, imbedded in or permanently resting upon any real property or any building thereon, or attached in any manner to whal is permanent, by means of cement, plaster, nails, bolts, screws or otherwise, the Equipment shall nonetheless remain personal property. 12. INSPECTION BY OWNER: Lessee shall, whenever requested, advise Owner of the exact location of the Equipment. Owner and its representatives may, for the purposes of inspection, at all reasonable times, enter upon any job, building or place where the Equipment is located. Owner may remove the Equipment without notice to the Lessee if, in the opinion of the Owner, the Equipment is being used beyond its capacity or in any other manner improperly cared for or aouseo. 13. TITLE, ASSIGNMENTS, AND ENCUMBRANCES: All of this Equipment shall remain personal property and title thereto shall remain in Owner exclusively. Neither this Lease, nor lhe Lessee's rights hereunder shall be assignable except with the Owner's written consent. Lessee shall not lease, sublease, mortgage or otherwise encumber or part with possession of the Equipment or any part thereof, except with the written consent of the Owner. Lessee shall keep the Equipment free from any and all liens and claims, and shall not do or permit any act or omission whereby Owner's title or rights may be encumbered or impaired. Lessee agrees to pay all license fees and taxes applicable to the Lease, other than income taxes and personal property taxes and license fees on the Equipment. The Lessee shall also provide all permits, if any, necessary for the installation, movement and operation of the Equipment or any parts thereof. 14. WARRANTIES: lt is expressly agreed that, except as stated below, THE O!\NER HAS MADE AND MAKES NO EXPRESS OR IMPLIED WARRANTIES AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MECHANTABILIry, OR tTS FITNESS FOR ANY PARTICULAR PURPOSE. ANY DEFECT IN, OR UNFITNESS OF THE EQUIPMENT SHALL NOT RELIEVE THE LESSEE FROM THE OBLIGATION TO PAY RENT OR ANY OBLIGATION UNDER THIS LEASE. Lessee represents that it is skilled and experienced in the use and operation of the Equipment, and makes the selection and decision on whether to lease on the basis of Lessee's own judgment, without reliance on any statements or representations by Owner. lt is expressly agreed that Lessee shall take the equipment as is, except as stated herein. lt is further agreed that Owner extends no warranties or guarantees for new Equipment. Owner shall exlend and transfer unto Lessee all of the vendor's warranties and guarantees, if any, for new Equipment. Notwithstanding any failure of the vendor to honor any warranty or guaranlee, Lessee agrees to maintain the Equipment in good repair, as described herein, and to make all rental payments required herein. 15. INSURANCE: During all times the equipment is in Lessee's possession. Lessee shall keep the Equipment insured against all risks of loss or damage from every cause whatsoever for not less than the full replacement value of the Equipment as determined by Owner, and shall carry public liability, contractual liability, and prope(y damage insurance covering the Equipment, its operation and use. All such insurance shall be in the form and amount and with companies approved by the Owner, and shall designate Owner and Lessee as insureds under such policy. Lessee shall pay the premium for such insurance, and shall deliver to Owner a copy of such policy or a certificate of insurance executed by the insurer prior to taking possession of the Equipment. Such policies shall explicitly provide that the insurer shall give Owner thirty days written notice before the policy in question shall be altered or canceled. The proceeds of such insurance, at the option of the Owner, shall be applied: (a) toward the replacement, restoration, or repair of the Equipment, or (b) toward payment of the obligations of the C15-448 Q'.r'stofire'r'hdreunder. lf, within ten days following notice by the Owner to the Lessee, the Owner has failed to receive policies or certificates of insurance in accordance with this paragraph, lhe Owner shall, at Owne/s option, have the right to (a) declare this Lease in default and exercise its remedies as set forth below, or (b) procure such insurance, in which event Lessee shall reimburse Owner for the cost of procuring insurance, which amount shall be payable in its entirety on the next rental payment date or within thirty days, whichever is sooner. t6. 17. DEFAULT: lf Lessee fails to perform any obligation required herein or to pay any sum when due, or if an attachment is levied against the Equipment or attempted by a creditor of the Lessee, or if the condition of the affairs of the Lessee or any guarantor changes so as to, in the sole opinion of the Owner, significantly increase the Owner's risk of loss, the Owner shall have the right lo exercise one or more of the following remedies: (a) To declare the entire amount of rent hereunder immediately due and payable as lo any and all items of Equipment, without any notice or demand to the Customer; (b)To sue for and recover all rents, and other payments then accrued, or thereafler accruing with respect to any or all items of Equipment; (c) To take possession of the Equipment, without demand or nolice, wherever the same may be located, without any court order or other process of law. The Lessee hereby waives any damage occasioned by such taking of possession. Such taking of possession shall not constitute a termination of this lease unless the Owner expressly so notifies the Lessee in writing; (d) To terminate this Lease to any or all items of Equipment; (e) pursue any other remedy at law or in equity. Notwithstanding any such repossession or other action, which Owner may take, the Lessee shall remain liable for the full performance of all obligations under this Lease. In lhe event Owner regains possession of the Equipment, Owner may relet the Equipment for a term and at a rental which may be equal to, greater lhan, or less than the rental and term herein provided. Any rental payments received under the new Lease for the period prior to the expiration of this Lease, less Owneis expenses of taking possession, storage, reconditioning and releasing, shall be applied on Lessee's obligations here-under, and Lessee shall remain liable forthe balance of the unpaid aggregate rental set forth above. Lessee's liability shall not be reduced by reason of any failure of the Owner to relet. Lessee hereby agrees to pay all dxpenses, including all attorneys'fees and expenses, which may be incurred by Owner in enforcing this agreement, or in collecting lhe rent provided herein, or in repossessing the Equipment. 18. INTEREST AND ATTORNEY'S FEES: In the event that any amount due under the terms of this Lease is not paid when due, Lessee agrees to pay Owner, in addition to aff amounts due, interest at the rate of 24o/o pet annum, together with all costs, expert witness fees, and reasonable attorneys'fees incurred in collection these amounts. 1 9. CHOICE OF LAW AND FORUM: This agreement shall be enforced and construed pursuant to the laws of the State of Colorado. Any action to enforce, interpret, construe, or collect damages under this Lease, or for any claims arising our of the manufacture, sale, seleclion, use, operation, maintenance, or repair of the Equipment, shall be brought in the District Court for the City and County of Denver, Colorado. Owner and Customer, and any guarantors of this Lease, hereby agree to the jurisdiction of such court. 20. GENERAL CONDITIONS: (a) Time is of the essence to this Lease. (b) Owneds failure at any time to require strict performance by Lessee of any of the provisions of this Lease shall not waive or diminish Owne/s right thereafter to demand strict compliance therewith or with any provision. (c) Waiver of any default shall not waive any other default. (d) Any alteration or modification of this Lease shall be in writing and signed by the Owner and Lessee. (e) This Lease constitutes the entire agreement of the parties, and supersedes all prior represenlations or agreemenls between the parlies. 21. OPTION TO PURCHASE: (a) At any time during the term of this Lease, Lessee shall have the option to purchase the Equipment forthe price of 9210,000.00 togetherwith the higher of simple interest on this amount at the rate of 30/6 overthe floating prime rate of JPMorgan-Chase or 8.000/0. b) The price shall also include all charges for repairs to the Equipment made by Owner, at Owner's standard rates for such parts or services. (c) lf option to purchase is exercised, Lessee shall be given a credit against this price for Term Renl paid by Lessee as defined in (d.1), (d.2), and (d.3), and interest shall be compuled on the declining balance of the price. (d) So long as this option is exercised during the Term, the price shall be reduced by the following amounts: (d.1) 1 0O7o of all Term Rent paid by Lessee and received by the Owner during or prior to the sixth month of the Term; (d.2) 80% of all Term Rent paid by Lessee and received the Owner during seventh, eighth or ninth months of the Term; and (d.3) 60% of all Term Rent paid by the Lessee and received by the Owner during the tenth, eleventh and twelfth months of the Term. (e) This option to purchase shall terminate at the end of the term of this lease. Lessee shall thereafler have no right to purchase lhe Equipment, nor will Lessee be entitled to anv credit or other consideration for rent Daid. 22. OTHER CONDITIONS: (a) Eagle County may be referred to in the L€ase as.,Lssee" or.,Customer".(lr) The Job Location as s€t forah in paragraph 2 ofthe Lease shall be the Eagle County Regional Airport, Gypsum, Colorado.(c) Paragraph 3 ofthe Lease shall be revised to read as follows: "The term ofthis lease shall commence on the drte ofdelivery, currently scheduled for Tueday, December 1,2015, andshal|continuethroughMarch3l,20|6un|ess(i)customerreturnstheEquipmenttoownerpriortotheen satisfactory return of the EquiDment; or (ii) Cusaomer requests a longer term."(d) Attachment of Lessee's blade to the Equipment during the term of the Lease is expressly ruthorired by Owner.(e) Notwithstanding anything to th€ contrary in the Iaese, the partic acknowledge and agre€ that If,ss€e is a tax exempt entity.(f) The parties acknowledge that Less€e is a public entity and maintsins its insurance through a pmgram ofselfinsurance. |tisthecustomerlsintentiontopurchaseuntilin previous sale. Cusaomer may be required inaerim rental rate will be d€termined at end of this rental contract Power Equipment Company, Owner "'' \nelrew Digitally signed by Andrew L DN: cn=Andrew L Remmo, '''"'|_re,.,.,,,.' li,liiffiP Date: Date: 201 5.1 1.22 15:32:14 -07'OO' ntte: au* /f - 4o*f * o^t", tt/2,//t{ customerPo: Eagle County Comml*gloner$' Offtce