HomeMy WebLinkAbout09/03/1996, 2 - PRADO DAY CENTER LEASE AGREEMENT council Mem.D.
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CITYOF SAN LUIS O B I S P O
FROM: James M. Gardiner, Chief of Policd_�q4
SUBJECT: PRADO DAY CENTER LEASE AGREEMENT
CAO RECOMMENDATION
By motion, authorize the Mayor to sign a lease between the City of San Luis Obispo and the
Interfaith Coalition for the Homeless regarding the Prado Day Center.
DISCUSSION
On February 20, 1996, the City Council gave approval for staff to proceed with the funding
strategies and documents necessary to implement the proposed Homeless Services Center (now
identified as the Prado Day Center). Appropriate agreements for CDBG funds are currently being
completed for both the construction and operation components of the facility.
Concurrently, staff has been working with the Interfaith Coalition for the Homeless (ICH) on the
lease agreement for the site. The agreement follows the five-year commitment given by the City
Council during previous meetings. In order to facilitate the needs of both the City and the ICH,
we are recommending that renewal of the agreement be for three-year terms. Consistent with
previous commitments, we are also recommending that the City provide the water, sewer, and
trash pick up for the program during the first five years of the lease.
The agreement has been reviewed and approved by the attorney for the ICH and by our City
Attorney.
FISCAL IMPACT
Due to the non-profit nature of this project, there will be no rental fee charged to the ICH during
the term of the lease. Estimates on water, sewer, and trash fees for the site indicate that the City
is providing a subsidy of less than $2,000 annually to provide these services.
Attachment
1. Lease Agreement including Exhibit
LEASE OF A PORTION OF REAL PROPERTY LOCATED
AT 45 PRADO ROAD FOR THE PRADO DAY CENTER
APN 53-051-45
This lease, made and entered into this day of , 1996 by and between the CITY
OF SAN LUIS OBISPO (hereinafter "City") a municipal corporation, and the
INTERFAITH COALITION FOR THE HOMELESS (ICH) (hereinafter "Lessee"), a
community based non-profit organization.
WITNESSETH:
WHEREAS, the parties hereto desire to enter into an agreement whereby the City
will lease to Lessee approximately 29,400 square feet of the City's real property located at
45 Prado Road and known as a portion of APN 53-051-45, San Luis Obispo County,
California; and,
WHEREAS, the Council of the City of San Luis Obispo has determined that the
lease of said property to Lessee will provide,significant public benefit both directly and
indirectly through the operation of a homeless services center;
NOW, THEREFORE, in consideration of the promises and agreements, covenants
and conditions stated herein, the parties agree as follows:
1. 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 and/or easements as may be legally recorded
with the County Recorders Office for the County of San Luis Obispo.
2. TERM
The term of this lease shall commence on , 1996, and extend for
a period of five (5) years.
3. RENEWAL
This lease may be renewed for two (2) additional three (3) year periods, each
renewal period to be by mutual agreement of the Parties.
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Lease - APN #53-051-45
Page 2
4. RENTAL
Lease of this property for the purposes 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 (including any and all costs for connection charges) to or used by it on
the leased premises,provided however, the City shall provide water, sewer, and trash service
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.
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.
7. USE OF PROPERTY
Lessee shall be entitled to use said property for the purpose of operation of
a homeless services center, and for no other purpose. 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 purpose of supporting
Lessee's non-profit homeless services and programs and in no way shall be used for "for
profit" activities. Lessee further agrees that a full description of the use of said property,
and activities and improvements occurring on the property will be provided to the City
Administrative Officer 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
Lease - APN #53-051-45
Page 3
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 and/or
alterations.
9. MAINTENANCE OF PROPERTY
Lessee shall maintain property in an orderly and first class condition at all
times, satisfactory to the City Administrative Officer or his/her designee. Lessee shall
maintain adjacent properties free of litter resulting from Lessee's activities. Lessee shall at
all times maintain property in a manner consistent with any applicable federal,state, or local
laws, regulations, or grant requirements and in such a 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 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
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Lease - APN #53-051-45
Page 4
Lessee and shall not for any purpose be considered as employees or agents of City.
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 any 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,
officers 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,
attorney's fees and costs.
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Lease - APN #53-051-45
Page 5
17. 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 Lessees including additional coverage for Automobile liability and
Subcontractors as identified in Exhibit C to this lease,Insurance Requirements of Contractors.
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 at 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 Administrative Officer 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
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Lease - APN #53-051-45
Page 6
whatever actions are necessary to correct the violation. All violations shall be corrected
within 30 days from the date of Notice and Lessee shall provide to the City a report
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 any 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:
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Lease - APN #53-051-45
Page 7
Cit
Lessee
City Administrative Officer Interfaith Coalition for the Homeless
City of San Luis Obispo P.O. Box 1575
990 Palm Street San Luis Obispo, CA 93406
San Luis Obispo, CA 93401
(805) 781-7114 (805)
25. ENTIRE AGREEMENT
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
by their proper officers duly authorized, on the date first above written.
CITY OF SAN LUIS OBISPO, INTERFAITH COALITION FOR
a Municipal Corporation THE HOMELESS (ICH)
By. By:
Mayor Allen Settle
ATTEST:
City Clerk
APPROVED AS TO FORM:
U City A torney
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