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HomeMy WebLinkAboutPrado Day Center Extension 11.22.13cffy o[ san Lurs oBrspo CITY MANAGER REPORT Final City Manager Approval Approver Name Date Approved City Administration Michael Codron December 4,2013 Reviewer Routins List Reviewer Name Date Reviewed CityAttomey içd t2t3 Finance & hrformation Technology mwP tlt27/13 November 22,2013 VIA: FROM PREPARED BY SUBJECT: Kim Murry, Deputy Director Tyler Corey, Housing Programs Manager I(Fgvr ll-25-13 Erik Berg-Johansen, Planning Technician Prado Day Center Lease - Second Extension RECOMMENDATION Request the Mayor to execute the second extension of the property lease agreement for the Prado Day Center with Community Action Partnership of San Luis Obispo (CAPSLO) pursuant to Council authorization. DISCUSSION Background In late 1993, the City took the lead in identifying possible alternative locations for the Peoples' Kitchen noontime meal program served in Mission Plaza. The commitment was made to work with representatives from community organizations to find a longer term and more acceptable location than the portico at the Old Mission Church for this service. As a result of these initial efforts, the City Council gave conceptual approval in 1994 to use City property on Prado Road near the Corporation Yard for this pu{pose. The Prado Day Center was subsequently constructed, with financial help from the City, the County, and donations of money and labor from the community atlarge. The Center opened for operation on September 15,1997. On October 25,2007, staff received a letter of intent from CAPSLO conhrming its commitment to provide service at the Prado Day Center and willingness to continue its administration, During its Novemb er 20, 2007 , Council Meeting, the City Council approved the lease agreement with an initial term to expire on December 1,2010. The agreement allows for two additional three-year periods by mutual agreement of the parties. Prado Day Genter Lease - Second Extension Page2 On October 13, 2010, City staff received a letter from Dee Torres, Homeless Services Manager for CAPSLO, indicating CAPSLO's intent to exercise the first 3-year lease extension. This extended the lease until December 1,2013. New Lease Agreement On October 18, 2013, staff received a letter from Elizabeth Steinberg, CEO for CAPSLO, requesting to exercise the second and final extension of the three (3) year term stated in the License Agreement (Attachment 1). This extension will commence on December 2,2013, and will expire November 30,2016. Continuing the lease arrangement with CAPSLO for the Prado Day Center implements Task 3 of the Council-identified Major City Goal to implement comprehensive strategies to address homelessness; namely to "continue, and increase where feasible, financial support for Maxine Lewis, Prado, Safe Parking Program, GIA Program, Housing Programs and Warming Station." FISCAL IMPACT The City provides the property on 43 Prado Road to CAPSLO for the purposes of maintaining the Prado Day Center at no charge. The City will continue to assume the responsibility for water, sewer and trash services, which amounts to approximately $28,000 per year paid for through the Building Maintenance Division budget. ATTACHMENTS 1. CAPSLO Lease Extension Request Letter dated October 18, 2013 2. Original Lease Agreement 3. First Lease Extension Agreement 4. Draft Second Lease Extension Agreement T:\City Manager Repofts\Conununity Development90l3\Prado Lease Agleernent - Second Extension\CM Report for 2013-2016 Pndo Agreetnent.doc SECOND EXTENSION OF LEASE OF A PORTION OF REAL PROPERTY LOCATED AT 45 PRADO ROAD FOR THE PRADO DAY CENTER APN 53-051-45 This lease is made and entered into this day of ,2013, by and between the CITY OF SAN LUIS OBISPO (hereinafter "CITY"), a municipal corporation, and the COMMUNITY ACTION PARTNERSHIP of San Luis Obispo (hereinafter "CAPSLO"), a community b as ed non-pro f,rt or ganization. WITNESSETH: WHEREAS, the CITY entered into a lease with the EOC, dated January 12,2000, for the operation of a homeless seryices day center (Prado Day Center) located on 43 Prado Road and known as a portion of APN 53-051-45, San Luis Obispo County, California; and WHEREAS, this lease agreement including two three (3) year extensions expired on December l, 2007 , and the City Council authorized a new lease on November 20, 2007; and WHEREAS, the initial lease term was for three years and the lease will expire on December 1,2010, and WHEREAS, the lease term allows for two three-year extensions, and WHEREAS, CAPSLO was granted the first lease extension to December I,2013, and WHEREAS, CAPSLO requested to continue the lease agreement and extend the lease for a second time to November 30,2016, and WHEREAS, CAPSLO is the County's Head Start and Community Action program agency and also the administrator of the Maxine Lewis Memorial Emergency shelter, 1 Prado Day Center Lease WHEREAS, CAPSLO (formerly know as the Economic Opportunity Commission - EOC) has the expertise, service agreements and work force required to provide the necessary services to run the Homeless Services Day Center. NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions stated herein, the parties agree as follows: I. PREMISES LEASED City leases to Lessee that portion of APN #53-051-45, real property as shown on Exhibit A to this lease, subject to any rights andlor easements as may be legally recorded with the County Recorders Offrce for the county of San Luis Obispo. 2. TERM The term of this second extension of the initial lease shall commence on December 2, 2013, and extend until November 30, 2016. RENEWAL This lease may not be renewed again, unless authorized by the City Council. 4. RENTAL Lease of this property for the pu{poses described herein shall be at no charge to the Lessee. Lessee agrees to provide homeless services at no charge to the City and community as a public benefit. 5. UTILITIES Lessee shall make all arrangements for any payment due for all utilities and services furnished to or used by it on the leased premises. However, the City shall provide water, sewer, and trash services at no cost to Lessee. The City assumes no responsibility and makes no warranties regarding any utilities, and Lessee hereby holds the City harmless in this regard. J 2 Prado Day Center Lease 6, PROPERTY OR POSSESSORY INTEREST TAX If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, Lessee agrees that any tax liability will result in an increase in the amount of rent due to the City, equal to the amount of any such tax liability. ]. USE OF PROPERTY Lessee shall be entitled to use said property for the pu{pose of operation of a homeless day services center, and for no other pulpose. Operation of the center shall consist of the provision of social services to the homeless, including food services. Lessee agrees that the use of said property as described shall be for the sole pu{pose of supporting Lessee's non-profit homeless services and programs and in no way shall be used for "for profit" activities. Lessee further agrees thaL a full description of the use of said property, and activities and improvements occurring on the property will be provided to the City Manager annually, and, any change in use will be submitted to the City for approval prior to commencement of that use or improvement. 8. ALTERATIONS AND REPAIRS Lessee shall be responsible for any and all alterations, improvements, or repairs to the property necessary for the orderly conduct of Lessee's operations. Lessee shall provide to the City for approval, prior to commencement of any work or activity, a complete description of any physical alteration of the property. Lessee further agrees to remove and return to original, any alterations to said property made by Lessee as requested by the City upon termination of this Lease at Lessee's sole cost. Lessee shall be responsible for any and all repairs of said property and improvements there-on. Any and all improvements and alterations to said property shall be made in conformance to applicable laws and requirements. Lessee shall be responsible for obtaining any necessary permits and the cost of such permits as may be necessary to complete the improvements andl or alterations. 9, MAINTENANCE OF PROPERTY Lessee shall maintain property in an orderly condition at all times, satisfactory to the City Manager or his/her designee. Lessee shall maintain adjacent properties free of litter resulting from Lessee's activities. Lessee shall at all items maintain property in a manner consistent with any applicable Federal, State, or City laws, regulations, or grant requirements and in such a ^J Prado Day Center Lease manner as to ensure the protection of the public, lessee's employees, volunteers, invitees, and the environment. 10. TRAFFIC CONTROL Lessee shall be responsible for control of traffic related to Lessee's operations. Lessee shall establish adequate controls, traffic flow, parking locations and procedures so as not to interfere with the flow of traffic on Prado Road and the Water Reclamation Facility (WRF) access road. Lessee shall provide and maintain the controls, clearances and visibility necessary to ensure the safe and orderly ingress and egress of the public, employees, volunteers and invitees to and from the property. All vehicles shall be properly parked within the boundaries of the leased property. No vehicles shall be parked on the WRF access road. Lessee shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 11. COORDINATION WITH CITY Lessee shall coordinate with the City any activities which have the potential to impact in any,way City operations. Upon notification by the City, Lessee shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. 12. PERMITS Lessee shall maintain any and all permits necessary for the conduct of the Lessee's business at the site as required by Law. 13. INDEPENDENT CONTRACTOR Lessee and all of its agents, representatives, and participants in any manner connected with Lessee's operations shall be independent contractors or volunteers for Lessee and shall not for any pu{pose be considered as employees or agents of City. 4 Prado Day Center Lease 14. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all Federal, State and City laws, rules, regulations and grant requirements, including aîy and all conditions imposed by the City Council. 15. TERMINATION FOR CAUSE Each of the terms, covenants and conditions of this lease are mutual and dependant, and any breach of any of the said terms, covenants or conditions shall constitute grounds for the termination, cancellation or forfeiture of this lease. 16. INDEMNIFICATION Lessee shall defend, indemnify and save harmless the City and its agents, off,rcers and employees against any and all claims, demands, damages or liabilities (whether or not caused by negligence) including civil or criminal fines, arising out of or relating to any of the following: a) any damage, injury or death suffered by any person or corporation and caused by any act or omission of Lessee, its agents, employees, volunteers, tenants, invitees or assigns under this agreement; b) any damage caused by any act or omission of Lessee, its agents, employees, volunteers, tenants or assigns under this agreement to any property of the City and its agents, officers and employees ; c) any damage, injury or death suffered by Lessee, its agents, employees, volunteers, tenants, invitees or assigns under this agreement , except for claims and demands resulting from the sole negligence or willful misconduct of the City and its agents, officers, and employees; d) Lessee's violation of any law, any regulation or any term or condition of any permit. Lessee shall also defend, indemnify and save harmless the City and its agents, officers and employees against any and all expense of investigating and defending against such claims and demands, including, but not limited to, attomey's fees and costs. 5 Prado Day Center Lease T], INSURANCE Lessee shall provide insurance, including but not limited to workers compensation insurance, if necessary, as described in Exhibit B to this lease, Insurance Requirements for Operation & Maintenance Contracts, including additional coverage for Automobile . 18. ASSIGNMENT Lessee shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the prior written consent of the City. If the City consents to a sublease, Lessee shall remain responsible for the performance of all the terms, covenants and conditions of this lease including and in particular the use of the property as described in Paragraph 7 of this agreement. If Lessee assigns or subleases said lease or any portion thereof without the prior written consent of the City, then said sublease or assignment shall be void, and the option of the City, this lease shall immediately cease and terminate. No interest of Lessee in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a) If lessee is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b) If a writ of attachment or execution is levied on this lease; c) If, in any proceeding or action in which Lessee is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment shall constitute a default by lessee and City shall have the right to elect to terminate this lease. 19. INSPECTION The City shall have the right at all reasonable times to enter upon the property for the purpose of inspecting the same, determining that all the terms, covenants and conditions of this lease are being kept and performed by Lessee. 20. ENFORCEMENT The City Manager or his/her designee shall have all necessary authority to enforce the terms, covenants and conditions of this lease. Upon notice of violation of any of the terms, covenants and conditions of this lease, Lessee shall take whatever actions are necessary to 6 Prado Day Center Lease correct the violation. All violations shall be corrected within thirly (30) days from the date of Notice and Lessee shall provide to the City areport outlining the cause of the violation and corrective measures taken to remedy the violation and prevent its recurrence. Significant violation shall be defined as any violation of the terms, covenants and conditions of this lease occurring and noticed more than two times in any calendar year, or, violation and notice of violation of any three terms, covenants and conditions of this lease occurring within an calendar year, or, failure to correct a violation of any of the terms, covenants and conditions of this lease within 90 days from the date of Notice. Significant violations as defined herein will result in a hearing before the Council of the City of San Luis Obispo to determine appropriate remedies up to and including termination of this lease as defined under Paragraph 15 of this agreement. 21, LIENS Lessee shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by Lessee and shall hold City harmless against the same. 22, TERMINATION WITHOUT CAUSE The City Council may by motion terminate this agreement at its sole discretion after a public hearing held upon thirty (30) days written notice to Lessee. Said termination shall be effective ninety (90) days after City council action to terminate the Lease. 23. APPEALS Actions and determinations by the city Administrative Officer or his/her designee, relative to the terms, covenants and conditions of this lease may be appealed to the City Council pursuant to the provisions of Municipal code chapter 1.20. 24. NOTICE Any notice required or permitted to be given or served under the terms hereof shall be considered delivered when sent registered, return receipt requested, through the United States mail to: l Prado Day Center Lease City City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 -1'h Þþl'u/L Moylu,h N ,&L Lessee Community Action Partnership of San Luis Obispo County 1030 Southwood Drive San Luis Obispo, CA 93401 25. ENTIRE AGREMENT This lease and attached Exhibits A and B contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. ATTEST:CITY OF SAN LUIS OBISPO A Municipal Corporation Anthony Mejia, City Clerk APPROVED AS TO FORM Dietrick, City Attomey By: Jan Marx, Mayor COMMLINITY ACTION PARTNERSHIP OF SAN LUIS OBISPO U 8 \Homeless Facilities Exh ibit A Prado Day Center Location GIS Division Psb¡rc Workr 0ep¿rtmêhl qLr e*1æ t. Exhibit B INSURANCE REQUIREMENTS 1 Operation & Maintenance Contracts The Contr-actor sliall procure and m.aintain for the duration of the contract insurance against claims for iniut:ies to persors or datnages to property thât may arise fiom ol'in connection with the performance of the wot'k hereuuder by the Contractor, its agents, replesentatives, etnployees or subcontt'actors. Minilnum Scope of Insurance. Coverage shall be at least as broad as: Insurance Services Office Commelcial General Liability coverage (occun'ence forni CG 0001). I¡rsurattce Services Office form nurnbel CA 0001 (Ed. 1/S7) covering Automobile Liability, code 1 (any auto) Workers' Contpensation insur:ance as required by the State of California and Enployer's LiabiliLy Inslu'ance. N{inimuur Linrit.s of Insurance. Contractor shall maintain linrits no less thalr General Liability: $1,000,000 per occurïence for bodily injury, personal injury arrd propert)r damage. If Colnrnercial General Liability o¡ other forrn rvith a genelal aggt'egate lirnit is used, either the geueral aggregate limit shall apply separately to ttris projecUlocation or the general aggregate limit shall be twice the rcqrúred occurrence limit, Autorrobile Liabitity: $1,000,000 per accidenr fol bodily injury and property damage. Employer''s Liabìlity: lj1,000,000 per accident for bodìly ir¡nr'1, s¡ disease. Detluctiblcs alrd Self-lnsured Rctcntions. Any deductibles or self'-insr¡r'ecl retention.s rnust bc clcclarccl to and approved by ttte Cif:y. At the option of the City, either.: the iusulel shaÌl reduce or elinrinare such deductibles ol self-insured retentions as rsspects the City, its officers, officials, ernployees ancl voJuttteers; ot' the Coutractor sltall procure a bond guaranteeing paymeni of losses and relatecl investigations. claíln administra(ion aud defense expeuses. Other Iustlrance Provisions- The general liabitity and autornobile liabitity policies are to corìrain, ol be endorsed to contain, the folJoq,i¡rg provisions: The City, its officers, officials, employees, agents and volunteers are to be covered as insurecls as respeÇts: liability arising out of activities performed by or on behalf of the Contractor; producrs and completed operations of the Contlactor; premises owned, occupied ol used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on tlre scope of protection affolded to the Cit5,, its officers, official, ernployees, agents or volunteers. For any claims related to this project, the Contractor's insurance coverage shall be primary itlsuLauce as rcspects the City, its officers, officials, employees, agents and volunteels. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agenrs or volunteers shall be excess of the Contlactor's insurarce and shall not contribute with it. The Contractor's insurance shall apply separately to each insured against whom clairl is made or suit is brought, except with respect to the limits of the insurer's liability. 2. 3. T 2. 3. 1 2. l 4.Ëach insurance policy röquired by this clause shall be e¡dorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return leceipt requested, has been given to the City. Acceptability of Insurers, Insurance js to be placed with insurers with a curreut A.M. Best's r-aling of no less than A;Vil. Verificafion of Coverage. Contractor shall furnish the City with a cet'tificate of insulance showing required coverage. Original endorsements effecting general liability and automobile liability coverage ate also requited by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. AII endo¡sements are to be received and approved by the City before work commences. Subcontractors. ConÍactor shall include all subcontractors as insured under its policies or shall funrish sepärate certificates and endorsements fol each subcontLactor. A]l coverages for subcontlactors shall be subject to all of the requircinents stated herein.