2022/09/21 Kellar Equipment Lease for Street Sweeper - 4 month lease - only executed by City EQUIPMENT BARE LEASE AGREEMENT
This “Agreement” is made by and between Kellar Equipment located at 34075 Avenue J, Yucaipa, CA
92399 and City of Menifee located at 29844 Haun Rd. Menifee, CA 92586 (hereinafter referred to as
“Lessee”).
The parties involved agree to the following:
1. Equipment / Term: Kellar Equipment in consideration of the satisfactory performance of the
terms and conditions of this “Agreement”, grants to Lessee the right to use a 2016
INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO 500X STREET
SWEEPER, during the following dates and times:
4 month lease, beginning September 8, 2022 and ending December 31, 2022. Lessee has the
option to lease month to month thereafter. A month is defined as a calendar month not to
exceed 160 hours in any given month. Additional hours will be pro-rated and charged at
$50.00 per hour for every hour over 160 hours in any given month. Equipment will be billed
upon acceptance of the equipment and at the start of each subsequent month. Payment is due
within 15 days of bill date. If payment is 30 days past due, the agreement will be terminated.
2. Rights and Responsibilities of Lessee: Lessee shall have the following rights, privileges, and
responsibilities:
Use of the Equipment based on the criteria agreed upon above in section 1. Kellar Equipment will
deliver the INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO 500X STREET
SWEEPER at the beginning of the rental term. Lessee must make sure the INTERNATIONAL
4300 VIN#1HTMMAAN0GH746677 TYMCO 500X STREET SWEEPER remains at the
Lessee’s job address located at 27860 Bradley Rd, Menifee, CA 92586 unless otherwise granted
by Kellar Equipment.
Routine engine maintenance (including necessary filters and fluids) will be the responsibility of
Kellar Equipment to be done on-site at 27860 Bradley Rd, Menifee, CA 92586 .
Normal adjustments per manufacturer recommended intervals will be the responsibility of Kellar
Equipment and performed at 27860 Bradley Rd, Menifee, CA 92586 . If it is unreasonable to
perform maintenance at this location, Kellar may move and return the equipment.
All consumable replacements will be the responsibility of Lessee. IE gutter brooms, main brooms,
elevator flight rubbers, fuel, def fluid, etc.
Lessee is responsible for providing an operator for the leased equipment as well as maintaining
appropriate insurance detailed in #6.
3. Direct Expenses: Lessee shall reimburse Kellar Equipment for all direct expenses associated
with Lessee’s use of the INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO
500X STREET SWEEPER. Such direct expenses shall include:
i. Equipment use = $12,500.00 monthly lease ( plus applicable state and local
sales taxes ) Rates are based on 8 hours per day, five days per week (during
any given month), not to exceed 160 hours total per month
ii. Repair of INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO
500X STREET SWEEPER if damaged due to Lessee’s misuse.
iii. Parts worn out due to Lessees use except for routine engine maintenance items
iv. Any damages caused by Lessee will be repaired as needed by Kellar
Equipment’s desired vendor and billed at their current labor and parts rates at
DocuSign Envelope ID: 0ACF1B75-368E-4949-9ACD-868A05346EEC
the vendor’s location.
v. $500 cleaning fee for vehicles returned dirty
vi. $150 fuel charge if unit is returned with less fuel than at the time of delivery
Section 3. Initial
4. Care of Equipment: Lessee shall take the necessary steps to assure that Lessee, it’s employees,
agents, represented, guests and invites shall not injure, mar, or in any way deface the Equipment,
nor cause or permit anything to be done whereby said INTERNATIONAL 4300
VIN#1HTMMAAN0GH746677 TYMCO 500X STREET SWEEPER shall be in any manner
injured, marred or defaced. Damages caused by improper fueling (IE def fluid in diesel tank,
diesel fuel in def fluid tank) will be charged to Lessee. All fluids and tire pressures must be
checked before each shift. Damages caused by negligence of the Lessee will be charged to
Lessee. Lessee will have the opportunity to inspect the equipment at delivery and sign off as to
its condition. Any damage due to Lessee’s misuse upon return will be the responsibility of
Lessee.
Section 4. Initial
5. Indemnification / Hold Harmless: Lessee shall indemnify and hold Kellar Equipment harmless
of and from any and all loss, damage or injury to any person or persons, or property, arising from
or connected with the INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO 500X
STREET SWEEPER or Lessee’s use thereof. Lessee further agrees to waive all claims against
Kellar Equipment on account of any loss, damage, or injury from whatever cause which may
occur to Lessee or its employees, agents, representatives, guest and invites in the use of the
INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO 500X STREET SWEEPER.
Lessee further agrees to indemnify Kellar Equipment for any damage done to the
INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO 500X STREET SWEEPER
during Lessee’s use of the same.
6. Insurance:
1. Lessee shall, at its own expense, procure and maintain Commercial General Liability, Business
Automobile, Excess Liability and Workers’ Compensation coverage issued by companies
satisfactory to Kellar Equipment. Lessor shall be named as an Additional Insured on Lessee’s
Commercial General Liability (endorsement required CG2026 07/04 or equivalent), Business
Automobile and Excess Liability policies and Loss Payee with respect to Hired Automobile
Physical Damage coverage for the full stated value of the INTERNATIONAL 4300
VIN#1HTMMAAN0GH746677 TYMCO 500X STREET SWEEPER on Lessee’s Business
Automobile policy. Lessee’s Commercial General Liability, Business Automobile and Excess
Liability policies insurance is to be primary and non-contributory with any insurance maintained
by Lessee. Certificate(s) of insurance including additional insured, loss payee,
primary/non-contributory and waiver of subrogation endorsements obtained by Lessee are to be
in force for the length of the Lease Term.
2. The limits of liability shall not be less than the following. If Lessee carries higher limits than
specified, then those limits shall apply and not be limited by the minimum requirements
specified herein.
a. Commercial General Liability coverage (“CGL”) with Limits of Liability of not less than
$1,000,000 each occurrence and $2,000,000 aggregate, including contractual liability for
bodily injury and property damage indemnity obligations. Coverage shall not contain any
action-over exclusions or limitations precluding indemnity for injury to an employee of
Lessee
b. Automobile Liability with limits of at least $1,000,000 Combined Single Limit
c. Hired Automobile Physical Damage Coverage for a minimum limit of $120,000. Certificate
must reflect the Hired Automobile Physical Damage Deductibles
d. Workers Compensation/Employer’s Liability with limits of at least $1,000,000 each accident
for bodily injury by accident/$1,000,000 policy limit for bodily injury by disease/$1,000,000
each employee for bodily injury by disease.
e. Umbrella/Excess Liability coverage on a “follow form” basis (including additional insured,
primary/non-contributory and waiver of subrogation endorsements) with Limits of Liability
not less than $3,000,000 each occurrence, including contractual liability for bodily injury and
DocuSign Envelope ID: 0ACF1B75-368E-4949-9ACD-868A05346EEC
property damage indemnity obligations. Coverage shall not contain any action-over
exclusions or limitations precluding indemnity for injury to an employee of Lessee.
f. Inland Marine Liability coverage for leased equipment.
3. The certificate holder/additional insured must
read:
Kellar Equipment
34075 Avenue J
Yucaipa, CA 92399
DocuSign Envelope ID: 0ACF1B75-368E-4949-9ACD-868A05346EEC
Leased Equipment Description:
Model INTERNATIONAL 4300 VIN#1HTMMAAN0GH746677 TYMCO
500X STREET SWEEPER
Delivery Date _____________
Pick up Date _____________
LESSEE
By:
Name:
Title:
Signature:
Date:
Purchase Order Number:
Kellar Equipment
By:
Name:
Title:
Signature:
Date:
DocuSign Envelope ID: 0ACF1B75-368E-4949-9ACD-868A05346EEC
Armando G. Villa
September 21, 2022
City Manager
City of Menifee