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Home My WebLink About03/04/2003, C4 - TENANT LEASE FOR JOHNSON RANCH HOUSE � 1 council MR° D. tvfaron 4,2603 j acEnaa izEpoRt Im.N°.b�.04 C I T Y O F SAN LU IS O B I S P O FROM: Paul LeSage, Parks and Recreation Director Neil Havlik,Natural Resources Manager SUBJECT: TENANT LEASE FOR JOHNSON RANCH HOUSE CAO RECOMMENDATION 1. Approve a reduced rate tenant lease with an employee of the City's Ranger Program for the house on the Johnson Ranch Open Space, in exchange for the performance of caretaking.responsibilities. 2. Authorize the City Administrative Officer to sign the lease: DISCUSSION In December 2001, the City acquired the Johnson Ranch Open Space. The ranch is located southwest of the City, at the lower Higuera freeway off ramp. A first for the City, the ranch contains a viable older house that until recently has been occupied by a long-term tenant. Additionally, the previous owners had allowed a second individual to park and live in a travel trailer behind the•house. Immediately adjacent to the house are several historic farm structures in various states of repair. Pictures of the house, floor plans, and site plan of the structures are included as Attachment 1. The house can be seen off Highway 101. The complex is next to the Apple Farm billboard,just north of the lower Higuera on ramp. The ranch house is approximately 1,000 square feet in area, has three connected bedrooms, a living room, a kitchen, and a bathroom. While it appears to be structurally sound, some sinking has been noted, due to the lack of a proper foundation. Local civil engineer Bob Vessely is evaluating these conditions and will present recommendations aimed at correcting them. Repair and clean up. Since the ranch house is potentially a historic structure, staff determined that some immediate repairs were required. This included installing a new roof and painting the outside of the house. These tasks have been completed. While the interior is a bit musty, due perhaps to old carpeting, everything works properly and the unit is in a tenantable condition. The area around the building was, to put it mildly, a disaster. As was reported to Council in a Council Note dated September 7, 2002,. staff from Ranger Services spent a week on site removing "junk" from the farm structures. The material removed filled five 13-yard waste haulers. This included disassembling an abandoned 30-foot motor home. Ranch house uses and greatest need The Parks and Recreation Director and Natural Resources Manager considered several uses for the house. This included: a nature center, an historic exhibit, and ranger station. However, since the Johnson Ranch Open Space is currently not open for public use, any activity requiring access was not viewed as appropriate at this time. The C� -t Council Agenda Report—Johnson Ranch House Page 2 Conservation Plan for the Johnson Ranch Open Space is in early stages of development. It is expected to be ready for public discussion this summer. At that time, it is expected that some permanent use for the house and outbuildings would be decided upon, although it might be several years before that use could be established at the site. At the same time, staff has been increasingly concerned about the security of the site. With no one living at the ranch, it could become an attractive location for parties or for transient individuals to take up residence. Rangers, who patrol the ranch, have noted on occasion that individuals have gained entry to the ranch house. There is further concern that someone might smoke or start a fire in the farm structures. These structures are dry and would bum very quickly once ignited. Anyone inside would likely be trapped. With this in mind, it was determined that the best use of the ranch house would be to place a tenant in the building. Having someone on site would deter most inappropriate uses. Houses in open space. Public agencies often acquire open space that was previously a farm or ranch, and comes with one or more homes. The Monterey Peninsula Regional Park District, for example, owns four old ranch houses. Typically, the agencies place staff in the houses, as tenants. The rents vary, depending on the arrangements. They fall into three categories: ■ Tenants who occupy the residence and provide no service or benefit to the agency pay a full rent. This could be a house located on an isolated open space with little or no public contact. The tenant is simply a renter with no added responsibilities. ■ In the case where a mutual benefit is provided, rents are set at '/2 of the market rate. On the Johnson Ranch, the tenant would be expected to serve as caretaker and emergency contact. Depending on the time of the year, this could be a significant responsibility. ■ In open space areas that are heavily used, including activities such as camping, tenants (usually park rangers) are expected to respond to all public disturbances. This can become a 24-hour a day job during certain times of the year. In these cases, no rent is charged. Terms of the Rental Agreement Given the need of the City for site security, staff is proposing a mutual benefit agreement at fifty percent (50%) of the market rate. The agreement would have a term of one year, with a City option to renew. The value of the full rental amount is considered to be in the neighborhood of$1,000 a month. A mutual benefit rent would be $500 per month. In consideration for the reduced rent, the tenant will expect to serve as caretaker of the property and emergency contact. These duties include a weekly walking inspection of the ranch, checking: fence conditions, roads, pond and creeks, cattle grazing, and evidence of unauthorized use. The caretaker would be expected to contact anyone who has entered the property, and is not authorized to be there. Such contact would be expected regardless of the time or day. While staff expects to replace the carpet in the house, and make other minor repairs, the house would be rented as is. The tenant is expected to keep the interior of the house in a clean and neat C:IWINDOWSO.sk.pICARJohnronRmsh 03.0{03 "Idw eq -a Council Agenda Report—Johnson Ranch House Page 3 condition. The tenant is also responsible to maintain the grounds around the house, as this property is in the public view. As would be expected, the City will make all necessary repairs to the house. The City will be able to inspect the property, at any time, with proper notice. Selection of Lessee. The Ranger Services Coordinator has expressed an interest in renting the house, along with a Ranger as roommate due to the remote location of the house. Under the Council's adopted policy on leasing City-owned buildings, interim residential properties should normally be rented through the Housing Authority. In this case, staff is recommending that the selection of a member of the Ranger Program would be more appropriate, based on the expected mutual benefit activities to be performed. Rangers have been trained to deal with potentially hostile unauthorized individuals who must be asked to leave the property. Rangers are also very familiar with the Johnson Ranch Open Space, and would be more easily able to recognize problems with fencing, cattle grazing, ponds and creeks than would an untrained member of the public. The downside of mutual benefit agreements. Some agencies have reported problems with renting of homes to staff. Long-term residents can develop a proprietary attitude about the house. Some agencies have not been able to remove residents even after they left their employment. This agreement has carefully addressed those issues, and staff anticipates that this rental will be short-term in length if the Conservation Plan determines a better use for the facility. Should the mutual benefit arrangement with an employee of the Ranger Program prove unsuccessful, the City would then revert to its policy of leasing through the Housing Authority, with policing and maintenance of the Open Space being performed less regularly by City employees.. FISCAL IMPACT At fifty percent of market rental value, the Johnson Ranch Lease (Attachment 2) will collect rent of$500 a month and will generate $6000 in additional annual revenue for the City of San Luis Obispo. ALTERNATIVES 1. The Council could determine not to rent the house at this time. That would preserve future options, but would not provide necessary security. 2. The Council could direct staff to rent the house through the Housing Authority. Staff does not recommend this approach due to the nature of the work expected to be performed under the mutual benefit agreement. ATTACHMENTS 1. Photos and site plans of Johnson Ranch. 2. Johnson Ranch Lease. C:IWW0WSDeAkpICAR./uhmwlRm h03.0I.03R"2.db, f,,{/� C l r2) _Y j ,r.�&- �C?'t • �� ,�_r Si,�1r2 `a. Y~ " F �t J;iIF.> �� ry uladffigtpm ~ —rat- 1'4' y^ R i r � r } r� �! Eli MAI •. "�'- ��.w \t �a� A [ i0. L'!�z-" - :.r+ .. "�. y -{tet\ •-��r.`ai,1`1. '.Cs y �a ..�� .�, �Yi v .. L♦ y' .,. ..� •z �,^ �� e�^r [ .y 4�4pyt� X /! ^1..X l,K . ATf ACHMQIT� 29'-7" 24A37 D11 21.3704 34620H v-BOARD O v-BO CEILW0 O CERIFG. PAIMEDWALLS.VM PANTED FLOC RWI WAILS VMYL fLAORNG EAU � - PLASTER-BOARD CELNG. �j PALMED WALLS.CARPEF V-BOARD FLOOR' CHLLNG. 70,79 3479 PANT® WALLS V-SOARDSCREW CONCR WOOD w/DROP CFRM(' PAD FLOOR wl DROPPED CBIMG BELOW. PARTIED WALLS VNYL FLOOIWG N a a 7479 IMIBEADBOARDCEIMG. MBEAD-0OARDCEILW. PAthMWALLSGRPET PANTED WAILS CARPET V•BOARD CEBMC, FLOOR FLOOR P PAMI®WALLS, � N CARPETFLOOR SO®7 27MDM 27x64 OH FILLED#! 7469011 1 1 OPEW G ' OF&Ja"PORCH RANCH HOUSE (REMOVED) SCALe:ur3t1• ----- ---a------�---- ------ ROBERTS. -----ROBERTS. VESSELY, P.E. 743 Pacific Street.Suite B.San Luis Obispo.CdBamia 93401 (W51541-mm JOHNSON RANCH DB12/11102RSVt82 Br. RANCH HOUSE SCALE:I Ar=V .1ph;M1,MWw.11�9 4 jh v)aV ATrACRIVIENT SHED#4 \ GRAVEL ROAp SHED#3 SHED#I HOUSE SHED#2\ "OLD"BARN @(--SHED#5 � SITE OF 2nd � HOUSE (REMOVED) SEASONAL CREEK Ems_- -NEW" BARN SITE PLAN SKETCH SCALE:1"=W+/, - - - - - -Bo_ _ _ \ n v/ r � RENTAL AGREEMENT This Rental Agreement, made and entered into by and between the City of San Luis Obispo, State of California, hereinafter referred to as "CITY", and , an employee of the City of San Luis Obispo, hereinafter referred to as"TENANT"; WITNESSETH WHEREAS, City is the owner of certain described real property located in the City of San Luis Obispo, State of California, as more fully described herein; and WHEREAS, Tenant is currently an employee of the City of San Luis Obispo; WHEREAS, the monthly rental value placed on this home as of March 1, 2003 is $1,000.00; NOW THEREFORE, FOR AND IN CONSIDERATION of the following covenants and conditions, it is hereby agreed as follows: 1. PREMISES: Tenant hereby rents from the City of San Luis Obispo the residence located at the Johnson Ranch and commonly known as the "Ranch House", upon the following terms and conditions. 2. TERM. The term hereof shall commence on and unless earlier terminated as provided herein, terminate on . This Agreement is solely a rental agreement and it shall not be construed as an employment contract between City and Tenant. In the event Tenant is terminated from employment with City, or should Tenant give City his notice of resignation from his employment with City, this Agreement shall be deemed to terminate on the earlier of either (1) the 30` calendar day following the effective date of such termination or resignation, or(2) without need for notice by either party of the termination of this Agreement. If Tenant remains in possession of all or any part of the Premises after the expiration of the term hereof, with the express or implied consent of City, such tenancy shall be from month to month only, and not a renewal hereof or an extension for any further term, and in such case, monthly rent shall be payable in the amount specified in this Agreement. Such month-to-month tenancy shall be subject to every other provision, covenant and agreement contained herein. Acceptance by City of rent after such expiration or earlier termination shall not constitute a holdover hereunder or result in a renewal. The foregoing provisions are in addition to and do not affect the right of re-entry or any rights of City hereunder or as otherwise provided by law or in equity, and in no way shall affect any right which City may otherwise have to recover damages from Tenant for loss or liability incurred by City resulting from such failure by Tenant to surrender the Premises. Nothing contained in this section shall be construed as consent by City to any holding over by Tenant, and City expressly reserves the right to require Tenant to surrender possession of the Premises to City as provided in this Agreement upon the expiration or other termination of this Agreement. This lease may be renewed at the discretion of the City. 3. CONSIDERATION: Tenant shall pay the sum of$500.00 per month beginning on the date of occupancy with rent due on the first of each month. In the event tenant holds over in possession of the premises after termination described above, tenant shall be obligated to pay the full rental value of the premises, namely, $1,00.00 per month. The tenant is not entitled to and shall not be paid additional compensation from City for fulfilling the conditions of this Agreement. Tenant Ci`i" Johnson Ranch House Lease ATTACHMENT Page 2 of 4 hereby acknowledges and agrees that he/she agrees to the duties of caretaker and emergency contact for the Johnson Ranch property. These duties include a weekly walking inspection of the ranch, checking: fence conditions, roads, pond and creeks, cattle grazing, and evidence of unauthorized us. The caretaker would be expected to contact anyone who has entered the property, and is not authorized to be there. These duties are expected to take eight(8)hours a week. Tenant shall not perform these duties during such times as he/she is being paid as an employee of the City. Tenant hereby acknowledges and agrees that he/she is solely responsible for all tax obligations, if any, including but not limited to all reporting and payment obligations, which may arise as a consequence of this Agreement. Tenant agrees to indemnify, defend (upon request by City) and hold City, its elected officials, agents, officers and employees harmless from and against any and all and all losses, costs, expenses, claims, liabilities, actions or damages arising out of any dispute over the tax treatment of the benefits received by Tenant as a result of this Agreement. 4. IMPROVEMENTS AND REPAIRS: Tenant hereby accepts the Premises in its "as is" condition existing as of the execution date of this Agreement subject to all applicable zoning, municipal, county, state, and other governmental laws, ordinances and regulations governing and regulating the use of the Premises, and any easements, covenants, restrictions or other matters of record, and accepts this Agreement subject thereto and to all matters disclosed thereby. City will make improvements and repairs to the Premises when considered necessary by City, including but not limited to the repair of roofs, heaters and water heaters, replacement of broken plumbing fixtures and water service pipes to fixtures. City shall provide drapes and carpets, and City may, at its option, provide stoves, ovens, and a refrigerator. City will provide only such additional maintenance as is deemed necessary by City. In the event Tenant encounters a condition, which, in his/her view, requires maintenance, he/she shall submit a written request to the designated Agent of the City Administrative Officer [Agent] to repair'such condition. City shall not be obligated to make such repairs unless it deems such repairs necessary to protect the Premises. Should Tenant replace drapes and carpets, stoves, ovens, refrigerator, roofs, heaters and water heaters, broken plumbing fixtures or water service pipes to fixtures without prior written approval from City's Agent any replacement costs and expenses shall be borne solely by Tenant, and such improvements shall become the property of City. Tenant is responsible for all minor repairs, including but not limited to clogged drains, leaky faucets, and broken windows. Tenant will properly use and operate all electrical, gas, and plumbing fixtures and keep them as clean and as sanitary as their condition permits. Tenant is responsible to maintain the exterior of the house and the surrounding grounds in a reasonable manner considering that the property is owned by City and is in the public view. 5. UTILITIES: City shall provide for and pay for all charges for water, sewer, gas, and electricity used on the Premises. Tenant shall reimburse City for all utilities paid by City. Tenant shall provide and pay any additional utilities such as telephone, cable television. 6. OCCUPANTS: Tenant shall not permit.anyone other than tenant and his/her immediate family, or other City Rangers, as designated on the Rental Agreement to reside on the Premises for more than five (5) consecutive days without first obtaining written consent of City's Agent. In any case, there shall not be more than three(3) occupants, including tenant. 7. ASSIGNMENT: Tenant shall not assign, sublet or otherwise transfer this Agreement or any portion thereof and any attempt to do so shall be void and of no effect for any purpose and shall famish grounds for immediate termination�ofthis Agreement. G:ICOn d Agmdu ReponsVokwon Ranch HoweILEASEforlohmonRanchdoc 64-S Johnson Ranch House Lease✓ ATTACHMENT- Page 3 of 4 8. USE OF PREMISES: Tenant agrees to occupy the Premises as Tenant's abode, and to utilize the portions thereof for living, sleeping, cooking and dining purposes only which were respectively designed or intended to be used for such occupancies; to keep the Premises in a neat, clean, sanitary, and orderly condition at all times during occupancy, and not to permit rubbish, tin cans, garbage, etc., to accumulate at any time; not to commit, suffer or permit any waste of the Premises, nor any acts to be done in violation of any laws or ordinances, nor to use or permit the use of the Premises for any commercial, illegal or immoral purposes; and to comply with all City laws and local ordinances concerning the Premises:and the use thereof 9. DAMAGES: Tenant waives the right to claim damages from City for any damage resulting to the Premises in the event that it is damaged or destroyed by fire and any other cause. City shall not be responsible for loss of any personal property on the Premises unless such damage or loss is due to City's sole negligence. 10. HOLD HARMLESS: Tenant agrees to indemnify, defend (upon request by City), and save harmless City, its elected officials, agents, officers and employees and each of them from and against any and all losses, costs, expenses, claims, liabilities, actions or damages, including liability for injuries to Tenant's family members, or other person or persons or damage to property of Tenant's family members or other persons arising out of or in any way connected with the use or occupancy of the Premises by Tenant or Tenant's family members, guests and invitees. Tenant shall not be responsible for any damage to the Premises by park users. City will provide only insurance as is deemed necessary to protect City's interest in the Premises. 11. ADMITTANCE: Tenant shall permit City or its agents to enter the Premises in the company of the Tenant at reasonable times and upon reasonable notice for the purpose of making necessary or convenient repairs or for inspection of the Premises. In the event of an emergency, City shall have access to Premises at any time when necessary to protect City property where advance notice to Tenant of such access is not practical. 12. BREACH: Noncompliance with provisions of this Agreement shall constitute a material breach thereof, and, in addition to any other remedies provided by law or this Agreement in the event of such noncompliance, City shall have the right to terminate this Agreement, and the interest hereby created,without liability therefore. 13. POSSESSORY INTEREST TAX: Pursuant to sections 107 et seq. of the Revenue and Taxation Code, this Rental Agreement may subject Tenant to the payment of a possessory interest tax. If such a possessory interest tax is levied against Tenant, City agrees to reimburse Tenant for the amount of the tax paid by Tenant. 14. GENERAL PROVISIONS: The failure of City or Tenant to insist in any instance on the strict keeping, observance or performance of any covenant or agreement contained in the Agreement, or the exercise of any election contained in the Agreement shall not be construed as a waiver or relinquishment for the future keeping, observance or performance of such covenant or agreement, but the same shall continue and remain in full force and effect. If any provision or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other provision and condition of this Agreement shall be valid and enforceable to the fullest extent possible permitted by law. This Agreement and the rights and G:ICoancil Agenda Repamtlohwon Ranch HoweV.EASEfor.1oh=onRanch.doe (.,fir 4 Cq, l ATTACHMENT Johnson Ranch House Lease Page 4 of 4 obligations of the parties set forth herein shall be govemed by, construed and interpreted in accordance with the laws of the State of California. The prevailing party in any action filed arising out of the terms of this Agreement or any alleged violation thereof shall be entitled to recover that party's reasonable attorneys' fees and costs incurred in such an action. 15. ADDRESSES: All notices,requests and letters should be sent to: Director Parks and Recreation Department City of San Luis Obispo 1341 Nipomo St. San Luis Obispo, Ca. 93401 Names of persons residing on Premises: 16. ENTIRE AGREEMENT: This Agreement constitutes the sole and entire agreement between the parties with respect to the subject matter hereof. This Agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this Agreement. All agreements or representations respecting the subject matter of this Agreement not expressly set forth or referred to in this Agreement are null and void. IN WITNESS WHEREOF, the parties hereto set their hands the day and year opposite their signatures. CITY OF SAN LUIS OBISPO Dater By: Ken Hampian City Administrative Officer Date: By: Tenant APPROVED AS TO Cterim City Attorney, Gilbert Trujillo G:IC.M Agertdn R p mLl h...R..h H...UE.ASE forJoh.Rmreh.d. c4 p Dave Romero -Johnson Ranch House 4 From: "D. & E. Dollar' <ddollar@pacbell.net> To: John Ewan <jewan@slocity.org>, Allen Settle <asettle@slocity.org>, Ken Schwartz <kschwartz@slocity.org>, Christine Mulholland <cmulholland@slocity.org>, <dromero@slocity.org> Date: Mon, Mar 3, 2003 3:23 PM Subject: Johnson Ranch House City Council, RECEIVED Using the Johnson Ranch House as Ranger housing is an excellent idea. MAR 0 4 20�� The National 3 Park Service and Forest Service use this idea to help protect resources nationwide. Having someone around makes a difference. The Public will know that the City cares for the area. The Ranger(s) SLO CITY CLERK living there will develop a fuller understanding of issues, problems and resources in that area by nature of spending more time there. I urge you to support the proposal. Thank you, Don Dollar SLO 781-0118 CC: Neil Havlik<nhavlik@slocity.org>, Paul LaSage<plasage@slocity.org> RED FILE MEETING AGENDA DATE„ / 0ITEM # (2,4 )02 74ATTOR CDD DIR CAO 8 FIN DIR ea FIRE CHIEF PO DIR LICE CHIF 8 REC Dg/UTIL DIR H I DIR