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HomeMy WebLinkAbout06/17/1997, 3 - LEASE OF REAL PROPERTY, 45 PRADO ROAD council June 17, 1997 ac En as REpont CITY O F SAN LUIS O B I S P O FROM: John E.Moss,Utilities Director1� SUBJECT: Lease of Real Property,45 Prado Road CAO RECOMMENDATION By Motion: 1. Approve and authorize the Mayor to execute,a lease of certain City owned real property located at 45 Prado Road, APN# 53-051-45,to the Environmental Center of San Luis Obispo County (ECOSLO),pursuant to the terms and conditions of the attached lease agreement. 2. Approve assignment of said lease by ECOSLO to RALCCO Recycling, a Nipomo based commercial recycling operator,pursuant to Section 22 of said lease. DISCUSSION On January 21, 1997 Council directed staff to develop a revised five year lease agreement with ECOSLO for use of the City property at 45 Prado Road. Council also directed that that lease be assignable by ECOSLO to a for profit recycler, such as RALCCO, for certain consideration to ECOSLO. Staff has developed the attached revised lease agreement in recognition of the proposed change from a non-profit recycling operation to a for profit operator. The revised lease agreement contains provisions for rent and assignment which were previously absent from our agreements with ECOSLO. Rent has been established at$700 per month based on estimates provided relative to the value per square foot of undeveloped commercial property and the rental value of a similar undeveloped property at the comer of Prado Road and Elks Lane. The assignment clause of the agreement allows assignment only once by ECOSLO. The new agreement is for a five year term commencing on July 1, 1997 and ending on June 30,2002. Some discussion has occurred relative to the total area to be leased. RALCCO has indicated that their operation may not require the full 23,450 square feet currently provided. Public Works has indicated an interest in any unneeded property at the site for expanded corporation yard storage. These discussions will continue and as the property is cleared of currently stored recyclables and RALCCO identifies their operational needs, staff may return to Council with a recommended amendment to this lease reducing the square footage leased and accordingly,the rem. CONCURRENCES This agreement has been reviewed by ECOSLO,RALCCO and the City Attorney and is acceptable to all parties. �-l Council Agenda Report-Lease of Real Property,45 Prado Road Page 2 FISCAL E%IPACT Approval of this lease agreement will result in City receipt of $700 per month rent from this property which has previously been provided to ECOSLO rent free in consideration for environmental services provided by ECOSLO. Over the term of the lease this results in an additional$42,000 revenue to the City. ALTERNATIVES Alternatives were previously presented to,and considered by, Council in the January 21, 1997 staff report. The recommended action completes the direction provided by Council at that time. Attachments A. Lease Agreement B. May 28, 1997 Letter from ECOSLO LEASE OF REAL PROPERTY 45 PRADO ROAD-APN 53-05145 This lease, made and entered into this day of 1997 by and between the CITY OF SAN LUIS OBISPO (hereinafter "Cityn) a municipal corporation, and the ENVIRONMENTAL CENTER OF SAN LUIS OBISPO (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 23 ,450 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 public benefit indirectly through the operation of a recycling center and directly through consideration paid as rent; 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 July 1, 1997, and extend for a period of five (5) years. 3 . RENEWAL Renewal of this lease shall be at the sole discretion of the City. No warranties or assurances as to the renewal of this lease are either express or implied. Should Lessee desire renewal of this lease, Lessee shall notify the City in writing of their desire for renewal no more than one (1) year and no less than six (6) months in advance of the date of expiration. Should renewal of this lease be denied by the City, or at such time as this lease expires, lessee shall remove all personal property from the premises and return said property to its original condition as requested by the City. J-3 ECOSLO Lease-APN#53-051-45 Page 2 4. RENTAL Lessee shall pay the City rent in the amount of $700 . 00_ per month for use of said property as a recycling buy-back center limited to the purposes as described herein. Lessee further agrees to provide recycling buy-back and environmental education services to the City and community as a public benefit at no charge to the City. Payment of such rent shall be due and payable, in-advance, on the first day of each month without offset or deduction. Rent for any period during the term hereof which is for less than one month shall be prorated based upon the actual number of days of the calendar month involved. S. UTILITIES Lessee shall make all arrangements for any payment due for all utilities and services furnished to or used by Lessee on the leased premises, including, without limitation, gas, electric, water, sanitation, telephone service, and trash collection. This . includes any and all costs for connection charges. 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 POSESSORY INTEREST TAS If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest tax, Lessee shall be solely responsible for payment of such taxes. Upon execution of this lease and/or any subsequent approval of assignment of this lease, the City shall notify the Tax Assessor' s Office for the County of San Luis Obispo of the lease agreement, the parties involved, and the terms of the lease. Failure to pay any and all taxes required herein shall be considered a default of this agreement and may result in termination for cause as identified in Section 20 of this lease agreement. 7. USE OF PROPERTY Lessee shall be entitled to use said property solely for the purpose of operation of a recycled product buy-back center, and for no other purpose. Operation of the center shall consist of purchase of recyclable materials from the general public, processing of materials so purchased and/or collected by Lessee at the center, and storage and transfer of those processed recyclable materials from the center. Purchase, collection and/or storage of white goods, scrap metals, and other large items typically collected for salvage or scrap is expressly prohibited. Under no circumstances shall the leased property be used for purposes other than those described herein. Under no ECOSLO Lease-APN#53-051-45 Page 3 circumstances shall the property be used for processing, storage or transfer of materials purchased or collected from other locations. Materials storage shall only be allowed to the extent that it can be reasonably accommodated within the boundaries of the leased property, does not interfere with the orderly flow of .traffic through the buy-back area, does not exceed the height of the perimeter fencing, or otherwise interfere with the operations and appearance of the site. All stored materials shall be properly bundled, crushed and/or bailed prior to storage so as to eliminate any off-site migration. 8. ALTERATIONS AND REPAIRS Lessee shall be responsible for any and all alterations 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 including: modifications to fencing, construction of structures, outbuildings, sheds, installation of concrete, paving, excavations, landscaping, plumbing and similar improvements or alterations. 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 or 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. DESCRIPTION OF ORIGINAL PROPERTY CONDITION For the purpose of sections 3 and 8 of this lease agreement, the original condition of the leased property is described as; Unimproved commercial property with soil surfaces and limited asphalt. Perimeter fencing consisting of 6 foot chain link with redwood slats and three chain link access gates located on the northern (one) and western (two) sides of the property. No other physical improvements or modifications to the property shall be considered as original. All improvements, structures, trailers, equipment etc. not expressly described in the foregoing description of original property condition shall be removed by Lessee, at the sole cost of Lessee, upon request by the City or upon termination or expiration of this lease. 10. MAINTENANCE OF PROPERTY Lessee shall maintain property in a clean, orderly and first class condition at all times, satisfactory to the City I_Z!50� ECOSLO Lease- APN#53-051-45 Page 4 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 and regulations, and in such a manner as to ensure the protection of the public, Lessee' s employees and the environment . 11. CONTROL OF MATERIALS Lessee shall be solely responsible for control of materials received and/or processed at the property. Materials shall be controlled in such a manner as to eliminate any off-site migration of materials caused by wind, rainfall run-off, seepage, etc. Materials received shall be processed, bailed, or otherwise stored to ensure control of said materials the same day the materials are received. No materials subject to migration shall be left loose during non-business hours. 12 . HAZARDOUS WASTE Lessee shall be solely responsible for the proper storage and disposal of any hazardous waste received or produced as a result of Lessee' s operations. Lessee shall not knowingly receive or store any hazardous waste, including but not limited to used motor oil, on said property. Lessee shall be responsible for the immediate legal and proper disposal of any hazardous waste received, and any and all costs associated with the disposal of said waste. Within 120 days of the execution of this lease, Lessee shall present to the City Lessee's Hazard Communication Plan and Hazardous Waste Control and Disposal Plan for any hazardous waste received and/or handled. The plan shall at a minimum identify procedures and provide instruction to employees in the event hazardous wastes are found on the premises or in the recyclables in the possession of Lessee. The purpose of the plan will be to ensure that any hazardous waste found and possessed by Lessee is handled and disposed of in compliance with Federal, State and local laws, rules and regulations. Lessee shall be solely responsible and liable for any and all costs associated with clean-up of any soil, water or other contamination resulting from Lessee's operations. Lessee further waives and relinquishes any indemnification by or from City, express or implied, for any costs or liabilities arising out of or related to the discharge, release, or presence of any hazardous or toxic wastes, substance, or constituent, on , in, or from said property. Lessee shall indemnify, hold harmless and defend City against and in respect of any and all liability , claim , loss, cost, damage, expense (including attorney' s fees and remedial costs) , fine, penalty, suit, demand or other action, including but not limited to those matters related to death, dismemberment or other injury to any person, asserted against . 41-4 ECOSLO Lease-APN#53-05145 Page 5 City resulting from, arising out of, related to or in conjunction with the (i) release by Lessee, its agents, contractors, employees or assigns from or upon said property, of any hazardous or toxic substance, waste, constituent or other substance into the environment; (ii) any arrangement by Lessee, its affiliates, or agents for the treatment, recycling, storage or disposal at any facility owned or operated by any person or entity of a hazardous or toxic substance which has been or may be deposited at, disposed on or released onto said property; and (iii) cleanup or other remedial measures with regard to environmental pollution caused by Lessee, its affiliates or agents, which may be required by any governmental agency pursuant to federal, state or local statutes or regulations, including without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. 9601 et sea. ("CERCLA") . 13 . TRAFFIC CONTROL Lessee shall be responsible for control of traffic related to Lessee' s operations. Lessee shall establish adequate controls, traffic flow, parking, and materials transfer locations and procedures so as not to interfere with the flow of traffic on Prado Road, the Water Reclamation Facility (WRF) access road, the operations of the City Corporation Yard and the Prado Day Center. Lessee shall provide and maintain the controls, clearances and visibility necessary to ensure the safe and orderly ingress and egress of the public, employees and contractors to and from said property. All materials, vehicles and equipment shall be properly stored or parked within the fenced boundaries of the leased property. No materials, vehicles or equipment shall be stored or parked on the WRF access road. Lessee's operations related to the transfer and loading of materials for transport shall be conducted in such a manner and at such times as to not interfere with the orderly flow of traffic in and around the property. No loading of materials shall occur on the WRF access road during normal hours of operation of the City transit system (currently Sept. through June, 6 :30 am to 10:30 pm; July through August, 6 :30 am to 7 :30 pm. , times subject to change at the sole discretion of the City. ) Lessee shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 14 . 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. ECOSLO Lease-APN#53-051-45 Page 6 15. REPORTING Lessee shall provide to the City reporting necessary for the City to evaluate compliance with the provisions of AB939. Lessee shall provide at a minimum a report of total tonnage of recyclable materials processed, a breakdown of material tonnage' s by material type and City of origin. City of origin may be determined by bi-annual surveys of not less than one week in duration. Surveys shall be completed in February and August of each year. Reporting shall be provided on a quarterly basis with reports due no later than 15 calendar days after the end of the quarter. Quarters end on March 30, June 30, Sept 30, and Dec. 30. Lessee further agrees to provide the City any additional reports or information requested by the City relative to Lessee's operations. 16. PERMITS Lessee shall maintain any and all permits necessary for the conduct of the Lessee's business at the site- as required by Law, including but not limited to; General Industrial Stormwater Discharge Permit for recycling operations issued by the California Regional water Quality Control Board, appropriate permit (s) issued by the California Division of Recycling, and a City Business License. Lessee shall provide to the City copies of all permits necessary for the conduct of Lessee' s business at the site. Failure of Lessee to obtain the necessary permits and provide copies to the City within 60 days of the commencement of this lease and/or notification of Lessee of the requirement to obtain such permits may be considered cause for termination of this lease as identified in Section 20 of this lease agreement. 17. INDEPENDENT CONTRACTOR Lessee and all of its agents, representatives, employees, assigns and participants in any manner with Lessee's operations shall be independent contractors or volunteers for Lessee and shall not for any purpose be considered as employees or agents of City. 18. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all laws, rules and regulations of the State of California and the City of San Luis Obispo, including any and all conditions imposed by the City Council. 19. TERMINATION City may terminate this lease at any time by giving Lessee 120 days written notice that the Council for the City of San Luis Obispo has determined that the use of said propertyis required ECOSLO Lease-APN#53-051-45 Page 7 for municipal purposes and such use would be incompatible with .the continued use of the property by Lessee. The City shall hold no obligations to Lessee for any loss by Lessee resulting from such termination consistent with the notice provisions contained herein. 20. 'VERMINATION FOR CAUSE Each of the terms, covenants and conditions of this lease are mutual and dependent, and any breach of any of the said terms, covenants or conditions shall constitute grounds for the termination, cancellation or forfeiture of this lease for cause. City may terminate this lease immediately for cause at any time by giving written notice to Lessee. "Cause" shall include a material default and breach of any of the terms, covenants and conditions of this lease by Lessee and shall include, but not be limited to: a. Failure to pay rent or other payment required hereunder; b. abandonment of said property; c. Failure to maintain the required insurance; d. Failure to obtain all required permits; e. Failure to pay any tax as required by law. f. A significant violation of the lease as defined in section 24 of this agreement. 21. IME NIFICATION 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, tenants, invitees or assigns under this agreement; b. any damage caused by any act or omission of Lessee, its agents, employees, 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 any agent, tenant, or assignee of Lessee 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. e. any generation, processing, handling, arranging, transportation, storage, treatment or disposal of solid wastes or hazardous wastes by Lessee . ECOSLO Lease-APN#53-051-45 Page 8 f. any releases by Lessee, including but not limited to any releases as defined under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, to the extent occurring or existing as a result of Lessee' s activities, including such releases to land, groundwater surface water or into the air. 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. 21. INSURANCE Lessee shall provide insurance, including but not limited to workers compensation insurance 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. 22 . ASSIGNMENT No transfer, sublet, or assignment of the rights or obligations under this agreement shall be made by Lessee without the prior written consent of the City. Further, only the Environmental Center of San Luis Obispo County (ECOSLO) as the initial lease holder, shall have any right or authorization to assign this lease. It is understood that ECOSLO, the initial lease holder, intends to assign its rights and obligations under this lease and that approval of such assignment shall be at the sole discretion of the City. It is further understood that the City does not intend this lease of certain real property to be further transferable to any other party after any transfer or assignment by ECOSLO approved by the City. Subsequent to transfer or assignment of this lease by ECOSLO, all other terms and conditions of this lease shall be binding in full force and affect upon the new lease holder/assignee. At such time as this lease is assigned or transferred, ECOSLO shall no longer retain any material interest in the use or lease of said property. 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; 3�a ECOSLO Lease-APN#53-05145 Page 9 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. 23 . 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. 24. 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 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 section 20 . of this agreement. 25. 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. 26. APPEALS All decisions, directions and notice by the City Administrative Officer or his/her designee, relative to the terms, covenants and conditions of this lease, shall be considered final by Lessee. Appeals may be presented to the Council of the City of San Luis Obispo, which decisions, directions and notice shall be -final. ECOSLO Lease-APN#53-051-45 Page 10 27 . 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: Lessee City Administrative Officer Environmental Center of San Luis City of San Luis Obispo Obispo County 990 Palm Street 45 Prado Road San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 (805)781-7114 (805)544-1777 28. WAIVER, VOLUNTARY ACTS No Waiver of any default shall constitute a waiver of any other breach or default, whether of the same or any other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by either party shall .give the other any contractual right by custom, estoppel or otherwise. The subsequent acceptance of rent pursuant to this lease shall not constitute a waiver of any preceding default by lessee other than default in the payment of the particular rental payment so accepted, regardless of City' s knowledge of the preceding breach at the time of accepting the rent, nor shall acceptance of rent or any other payment upon termination constitute a reinstatement, extension, or renewal of the lease or revocation of any notice or other act by City. 29. NUISANCE Lessee shall not commit or suffer to be committed any nuisance, waste, or unlawful act in or about the premises, including but not limited to excessive noise, light, glare, dust, litter or odor. 30. ATTORNEY'S FEES The prevailing party in any action between the parties to this agreement brought to enforce the terms of this agreement may recover from the other party its reasonable costs and attorney's fees in connection with such an action. 31. ENTIRE AGREEMENT This lease and attached Exhibits A, B and C contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. 3�� ECOSLO Lease- APN#53-05145 Page 11 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, ENVIRONMENTAL CENTER OF a Municipal Corporation SAN LUIS OBISPO COUNTY Mayor Ailen Settle ATTEST: City Clerk APPROVED AS TO FORM: **'T' Assigned by: ENVIRONMENTAL CENTER OF SAN LUIS OBISPO COUNTY Date: Assigned to: RALCCO RECYCLING Date: 3-13 E%SiBIT A LEGEND p 1• I.P y LS ; © 1' 1 o y _ 'E 1ERLY FnC1FlC C04S PAILRtY•O1 - - _ 0 E R.nQ.00, •+.la'12'lT;L•166.08•l De-II • MO? III.ICALC.1 ' ID4-0 — ... 77777 / � rrM ACCES! r �-2 tP W/TAC RCE 1.450 fire orooertr.as ranted 196. vER C•LTR•�5 nion Oil R4 665 OR 1041-E 69.74'(De-1) t 0' 104-1 CALCI-- 4 I x° PARCEL 'A' 7t16a'os'rr•6 \'' � 66.ZsACRESler 20 I °'•' oo'(56* - \\ 64*STRIP RESERFOR 2 II ROAO R1Gf Of WAY WAi' ' l • `fF '52'54(177,93'(R-I CALCI M 'y 4 , IRR SPE PER(R.21 Leased Property c •Ys9 \.\ I o At RCOAR W/ CAP LS 31377 L a77 Pr 3 abs `\ \ 2r2 W/TAC K-E 6923 ` \ PER (R.!) I / \ �L ID•Yi1L1TY -Z) ) (q-x1 I 26'1!'E 792.d)'IR-11 � 1 307.55,(8- N 21F 489.45 (CA,C) (/ T. n t:) VICINITY M N 73- 6'SO W G r a9.19'(R•21{ Io SEWER ESU 1� l 1631 OR 123 n, •W-o t\/ritr / NO SG::LF. r / i 1`L7 p ` •�-7 -_�4,:K'q� �r� I , N6 2]'30"W 97.10•lR•21 n = \ \ Q l N 64'2b'10-W 64,61(q\2), ^ _ p-z e- 1r +� J P-J aro r'c S 37'44'50"W II 51. R-2Y/. _•�• \ /'� HCf o 530'!8'30 W 14].50 R•5 rc5 •p �J `\`�C.� i /ted-r rzeJ Dal-.9 Zf07 3A STREET fOjr (FORMERLY AVILA ROAD) od-s 4'7/ od'G o'rS a -c cfrE_ of �9e • zoo' `u's YYY MINOR SUBJIVIS101 a 60 W zm .,4 ENG/NEER 5 CFi2T/F/GATE SL - 82-88 A I•-)' Combination of Me foliou/in5 7171s r.7oP )ros Prepared by /778 Or n7y 40/3 6, 9,/0.//, /6 end /9 acrd P01-el' e/reCt/On ono' WO-1 camp:/ed ;/-Om -ecot-e core Lor.! 6, 7, and /7 of the Son 4dlf-7 %n Cenro0-1n0,Xe a'%M rhe nequ"r• C7t5 of the Suburban Tomer-I end 13 Hop cer one /O:v/ ornf;`,inces of �y, Sin.:' 6 end pardon of LC Tin r�`_ the rr4ues7' of the City of Sc,7 Guts 0,645 0 ;�artford- Chapman Svbdivf3fc in ✓urre. of /96z. / here,.+• atote 7Y/O/ rhia por-ce/ mo/o subsror v/� conforms ro me C/fy and County Of Son Guis Oov3/ jI"�1myor ECOSLO Recycling Yard Lease San LUIS OBISp0 45 Prado Rd. 3�/y - Public Works Department A „__1e__ __ _ 77-7- INSURANCE xhIi tSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS) . Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. 1lfinimurn Limits of Insurance Lessee shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employers and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability policy is to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of premises owned, occupied or used by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official,�employees, agents or volunteers. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceotahility of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage Lessee shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. An original endorsement effecting general liability coverage required by this clause is also to be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before the lease commences. J-/S Exhibit c NSURANCE REQUIREMENTS FOR CONTRACTORS Contractor shall procure and Maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or is connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. ]Minimum Scooe of Insurance Coverage shall be at last as broad as: I. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). .2. Insurance Services Office form number CA 0001 (Ed. 1/0) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Nfinimtun Limits of Insurance Contractor shall mintain limits no loess than: 1. General Liability: 51,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general ag,;regate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Offer Insurance Provisions The general liability wad automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City,its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance rnairitarned by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of w•irranties shall not affect coverage provided to tho City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage sball not be suspended. voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified trail, return receipt requested, has been given to the City. Acceotahility of Insurers Insurance is to be placed with insurers v/ith a current A.M. Pest's rating of no less than ANLL Verification of C'nverare Contrzctor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effectini gensral liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. �� Suhcontractnrs Contractor.sball include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for eacb subcontractor. All coverages for subcontractors shall be suhject to all of the requirements stated herein. // BS-M 97 14:SO ECOSLO/FUCK SOLID T:761-3199 P:01 Environmental Center of San Luis Obispo County r"A SaEpla,Chao I=r talffin.sm May 2R, 1997 Tom Harrin ,Tnt^ Bob Lavelle Mealyn Faux: Carol Pimemal To: John Moss, Director of Utilities, City of San Luis ObispoRandyAd gi,� David Dara From: Geoffrey Land, ExecutiveDirector i Re: Sale of ECOSLO Recycling As a follow up to the City Council's January decision regarding the Prado Road properly, 1 would like to report that ECOSLO and RALCCO have reached an agreement whereby RALCCO will purchase l ECOSLO's assets and `good will' associated with its recycling Operations, contingent upon approval and assignment of the five-year lease for the Property deveJaped by City staff. We would request that the item be placed on the City Council's agenda at the earliest convenience, in order to allow for a transfer in management of the recycling outer when ECOSLO's present lease ends, on July 1, 1997. We would also request that the City allow for the possWity of a reduction in the lease Property size, along with a commensurate reduction in monthly lease costs, as RALCCO intends to cut the size of the yard in half. Thank you for your patience and cooperation during the past few months. 1 am confident that the transfer in management will benefit all parties involved. Please feel 8tee to can me with any questions. INTIN110102190 semen Mailing Addren R"Yc mg crarer 'IIU Mill gl Y.O.Banc 1014 l.ma(J%i9po,CA 93401 Sam Luis Obispo,CA 93406 an Sado Road ..+ (805)$4&1777 �].lila Mum CA 93401 fax.(805)544-1871 email aeor7o�lorldoryl 3-11