19606_attachment B_lease details_sample lease.pdf

Pierre DOT Tractor Lease Program (Attachment B)

The Lessor will deliver the tractors between June 1st and June 15th of 2027 and pick up the tractors following the inspections after the lease end of November 30th of 2027. The Lessor will provide forty-eight (48) hour notice to State contact personnel prior to pickup and delivery.

In the event that an individual tractor will be used for more than 250 hours during the lease period, the State will notify the Lessor. If the Lessor desires to substitute the tractor, the Lessor will be responsible for hauling both tractors to and from the State-assigned location and transfer fuel and Diesel Exhaust Fluid (“DEF”) to the replacement tractor.

Tractors will be assigned to maintenance facilities throughout the Pierre Region geographical area. Contact and locations will be made available on Attachment D.

Lessor will provide at least one hour of training to each of the State’s operators and provide proof that such training was completed. Proof sufficient under this requirement is a statement of completion signed by participating State employees. Upon completion of the training, the Lessor or the Lessor’s authorized representative will provide documentation, signed by participating State employees, that a minimum of one (1) hour training on the operation and service of the leased tractors delivered to South Dakota Department of Transportation took place.

The Lessor or the Lessor’s authorized representative is responsible for handling any warranty claims.

The State will be responsible for daily minor adjustments, greasing, checking fluids, and keeping the tractor clean. The Lessor, however, may perform major repairs at the Lessor’s service facility. If a tractor becomes inoperable and needs to be returned to the Lessor’s service facility for such major repair or maintenance, the State will transport the tactor to the Lessor’s facility and, upon repair, the Lessor will return the tactor to the DOT shop to which the tractor is assigned, unless other arrangements are agreed upon by both parties. For any tractor out of service for five (5) days or more, the Lessor will provide a replacement tractor, upon the request of authorized DOT personnel, of similar features and horsepower to be setup the same and delivered to the tractor’s assigned location.

The Lessor or the Lessor’s authorized representative will provide 24-hour parts availability. The Lessor or the Lessor’s authorized representative will provide oil and filters for service work and for routine maintenance.

The Lessor will provide and mount a strobe light to the cab. It may be a factory installed or dealer installed strobe light.

Rear wheels of the tractor shall be set out to the widest position possible, but not to exceed 8’6” to allow transportation of the tractors on a DOT trailer.

SOUTH DAKOTA DEPARTMENT OF TRANSPORTATION

TRACTOR EQUIPMENT LEASE FOR 2027 MOWING SEASON

This Lease is made and entered into by and between the State of South Dakota, Department of Transportation (the “Lessee” or “State”), and the following Lessor:

(Business Name)

(Mailing Address)

IN CONSIDERATION of the mutual covenants contained in this Lease, the parties agree as follows:

A. THE LESSOR AGREES THAT:

1. Lessor will furnish and lease the following tractor equipment to the State:

Item No. Equipment Description With Fuel & Operator?

(yes or no)

Additional Stipulations Rental Rate

(tach hour, hour, day, week, month, or year)

(20) New or never owned by anyone other than the dealer 100-150 PTO HP Tractors

No See Attachments A, B, C, and D (incorporated in this Lease by reference)

See attachment A

2. Lessor will deliver and pick up the tractor and equipment at the beginning and end, respectively, of the Lease term at Pierre Region Department of Transportation yard, 104 South Garfield Avenue, Pierre, South Dakota 57501

(Enter the delivery and pick up location or enter “Not Applicable” if the State agrees to pick up and return tractor equipment.)

3. Lessor will submit an itemized invoice to the State monthly or at the end of the Lease term, if applicable. The Lessor will not charge the rental rate during any period of time the tractor equipment is non-operable.

4. Lessor will maintain all tractor equipment, provide normal service, and make all repairs and adjustments due to normal wear and tear that are deemed necessary by the Region Engineer, including the purchase and installation of parts, at the Lessor’s expense. The State will perform minor adjustments and will apply oils, grease, and other lubricants.

5. If the Lessor observes damage or defects to the tractor equipment leased to the State upon conclusion of the Lease term, which damage and defects were not documented and notice provided by the State as addressed in Paragraph B.5., the Lessor will submit documentary proof of such damage or defects to the Region Engineer within sixty (60) days of conclusion of the Lease term. Documentary proof includes, but is not limited to, photographs, estimates of repair, or invoices for repair. Failure of the Lessor to submit documentary proof within the given timeframe will constitute a waiver of any claims for damage or additional compensation the Lessor may have against the State for alleged damage or defects as a result of the State’s errors or omissions.

6. The Lessor will provide services in compliance with the Americans with Disabilities Act of 1990 and any amendments.

B. THE STATE AGREES:

1. At the end of this Lease, the State will ensure that the leased vehicles and equipment are available for Lessor to retrieve them at 104 South Garfield, Pierre, SD 57501.

(Enter the pick-up and return location or enter “Not Applicable” if Lessor is furnishing the tractor equipment with operator or agrees to deliver and pick up the tractor equipment).

2. The State will pay the rental rate specified in Section A. above (if applicable) for the described tractor equipment, provided, however, the State will not be required to make any payment for any period of time the tractor equipment is non-operable. The State will notify the Lessor when the tractor equipment is non-operable.

3. The State will provide liability coverage for personal injury and property damage resulting from the operation of the tractor equipment. The State will maintain property insurance coverage or equivalent form for any fire, theft, and other property damage to the leased tractor equipment while the tractor equipment is in the custody and control of the State.

4. The State will apply oils, grease, and other lubricants and make minor adjustments to the tractor equipment if the State is furnishing the operator.

5. The State will visually inspect the tractor equipment prior to use. In the event the tractor equipment does not appear to be in good repair, acceptable condition, and working order, the State will notify the Lessor about the visible damage or defects prior to using the tractor equipment.

C. BOTH PARTIES AGREE:

1. This Lease is effective beginning June 1, 2027, and ending on November 30, 2027, unless terminated sooner on ten

(10) days’ written notice from either party to the other. The tractor equipment is rented on an as-needed basis. The Pierre Region Operations Coordinator will advise the Lessor when and where the tractor equipment is needed.

2. The total amount to be paid to Lessor under this Lease will not exceed___________________________________ Dollars, unless amended, in writing, by the below-signing parties. In no event will this Lease, or any amendment hereto, contemplate a lease amount of $100,000.00 or more being paid to Lessor or any successor.

3. This Lease may not be amended, except in writing, which writing will be expressly identified as a part of this Lease, and be signed by an authorized representative of each of the parties.

The parties signify their agreement by signatures affixed below.

Lessor State of South Dakota Department of Transportation Legal Name of Entity

By: By:

Its: Its:

Date: Date:

[Corporate Seal]