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HomeMy WebLinkAbout07/15/2003, C6 - LEASE OF REAL PROPERTY -45 PRADO ROAD council -TU; agenda nepoat h-N-16 CITY O F SAN LUIS 0 B I S P O FROM: John Moss, Utilities Directo SUBJECT: LEASE OF REAL PROP TY -45 PRADO ROAD CAO RECOMMENDATION Approve lease of unimproved City owned property at 45 Prado Road to J. Fletcher Creamer and Son, Inc., at a lease rate of$500 per month. DISCUSSION The City is awarding the contract for the Water Reuse Project Distribution Pipeline construction. As part of the contract requirements, the contractor is required to locate a suitable location(s) for staging,equipment and materials storage. In discussions with the contractor,the use of the currently vacant, City owned property at 45 Prado Road was raised as a possible option. The property is currently vacant and has been so since the contract with Raalco was terminated a couple of years ago. Previous requests to use this property by others have been denied due to the City's plans to eventually construct the Prado Road overpass which will result in the need for this property to provide a new access to the City's Corporation Yard and Water Reclamation Facilities. The proposed use of the property as a staging area for our Water Reuse contractor is by its very nature temporary, and thereby will not conflict with the City's plans for the overpass. Should a conflict arise, the lease can be terminated by the City with 60 days notice. Additionally, the proposed use will not require any improvements to the property which could then become a future liability for the City. Approving the use of the property by J. Fletcher Creamer and Son, Inc. will benefit not only the contractor, but the City as well. Having the contractor staged and located on this location will ease communication with the project construction manager who will be located at the Water Reclamation Facility. Coordination with the other contractor working on the WRF Improvements component of the Water Reuse Project will be enhanced. The location is central to the Water Reuse Distribution Pipeline project and will thereby reduce vehicle traffic/trips associated with construction and reduce the overall disruption to the public associated with the project. The proposed rental rate of$500 per month will result in revenue to the City of approximately $9,000 over the estimated term of the project. CONCURRENCES The Public Works Department concurs with the recommended action. I A i FISCAL IMPACT The proposed lease will generate $500 per month revenue for the General Fund for the term of the lease which is estimated at 18 months. ALTERNATIVES Deny the request and require the contractor to locate a suitable yard on private property. This alternative is certainly feasible, however may be less than desirable since there are limited opportunities for lease of such property in the area of the project that have the positive and compatible qualities of this site. Additionally, the coordination and communication with the Contractor will not be as convenient. This alternative is not recommended. Attachments Lease Agreement 879MortdU6Gdes879/CwmcilAgendaReporw7W3CourtcilAgenda Reports/Creamalease45pmdoCAR elf ��, ATTACHMENT 1 AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND J. FLETCHER CREAMER AND SON, INC. FOR USE OF CITY PROPERTY AT 45 PRADO ROAD This Agreement is entered into this day of 2003, between the City of San Luis Obispo (herein referred to as "the City") and J. Fletcher Creamer and Son, Inc. (herein referred to as "Contractor"), for lease of unimproved City owned property at 45 Prado Road (herein referred to as "Premises.") WITNESSETH WHEREAS, the City is the legal owner of the property located at 45 Prado Road in the City of San Luis Obispo; and WHEREAS, the City has awarded a construction contract to J. Fletcher Creamer and Son, Inc. (Contractor) for construction of the Water Reuse Distribution Pipeline;and WHEREAS, the City considers the temporary use of the property at 45 Prado Road by contractor as a staging area and materials and equipment storage yard during the construction of the Water Reuse Project Distribution Pipeline to be appropriate and of mutual advantage to both City and Contractor and in the best interest of the public; WHEREAS, the City will allow the Contractor to have a construction office trailer on the property at 45 Prado Road; NOW,THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements herein set forth, the City and Contractor hereby agree to the following terms and conditions for use of the Premises: 1. Use of the Premises. The City will allow the Contractor to use the Premises for staging, materials and equipment storage for the construction of the Water Reuse Distribution. Pipeline for the term of this agreement. 2. Purpose of Agreement. Contractor agrees that the lease of the premises shall be for the sole purpose of the Contractor's use(s) related to staging, materials and equipment storage associated with the City's Water Reuse Distribution Pipeline Project. Any costs associated with the use and maintenance of the property by the Contractor for Contractor's purposes shall be at the sole expense of the Contractor. 3. Term of Agreement. The term of this agreement shall commence upon execution by both parties and occupation of the property by Contractor and shall extend for a period of 18 months or as otherwise required to complete the Water Reuse Distribution Pipeline Project. 1 Cly ^ 3 ATTACHMENT 1 4. Extent and Condition of the Premises. The Contractor shall accept the Premises "as is." This agreement shall not obligate the City to guarantee the condition of the Premises, the suitability of the Premises for the Contractor's intended use, the duration that the Premises may be safely occupied, or the availability of alternate facilities. 5. Rent. The City agrees to provide the Contractor with the use of the Premises for$500 per month, payable on the first day of each month for the term of this agreement. 6. Cost of Operations. The Contractor shall bear the entire cost of its operations on the Premises, including utility bills and any taxes and fees related to its occupancy of the Premises, such as possessory interest taxes. 7. Maintenance. The Contractor agrees to perform maintenance and housekeeping of the Premises as required during the term of the lease. Contractor shall maintain the Premises at all times in a reasonable manner and condition suitable to and as directed by the Utilities Director. 8. Improvements to the Premises. The City shall be notified before any improvements are made to the Premises. Any improvements required by the Contractor shall be provided at the sole expense of the Contractor. Contractor agrees that the Premises are provided "as is" and the City has no obligation to provide improvements to the Premises for the Contractor's use. 9. Termination of this Agreement by the City. The City reserves the right to terminate this agreement by notifying the Contractor in writing sixty days prior to termination, should the City need the property for official City business. Additionally, should the agreement between the Contractor and the City for construction of the Water Reuse Distribution Pipeline be terminated, this agreement shall also be terminated,unless the parties mutually agree that it should remain in effect. Upon termination, except for reasonable wear and tear, all improvements shall be removed at the sole expense of the Contractor and the property returned to its original condition as found at the initiation of this agreement. 10. Termination of this Agreement by the Contractor. The Contractor may terminate this agreement by notifying the City in writing sixty days prior to termination. 11. Non-discrimination of Lessee. There shall be no discrimination against or segregation of any person or group of persons on account of race, religion, sex, sexual orientation, national origin, age, physical, mental or economic status in the construction, operation, lease, sublease, use, occupancy, tenure or enjoyment of the Premises or the improvements thereon, or any part thereof, and the Contractor, or any person claiming under or through it, shall not establish or permit any such practice of discrimination or segregation with reference to the use of the Premises, or the selection, location, number, use or occupancy of employees, contractors, subcontractors, laborers or material men, tenants, lessees, subtenants, sub lessees, invitees or vendees of the Premises or the improvements thereon, or any part thereof. 2 CU � � ATTACHMENT 1 The Contractor shall not restrict access or use of the Premises or the improvements thereon, or any portion thereof, on the basis of race, religion, sex, sexual orientation,national origin, age, physical, mental or economic status of any person. 12. Relationship of Parties. Under this agreement,the City shall be solely and exclusively a lessor, and the Contractor shall be solely and exclusively a lessee. The Contractor shall not be considered a partner, agent, officer, or employee of the City. The Contractor's officers, members, affiliates, volunteers, employees and independent contractors shall not be considered agents, officers or employees of the City. 13. Assignment. The Contractor shall not assign this agreement to another party without the City's prior written consent. 14. Insurance. The Contractor shall provide proof of insurance in accordance with the requirements established in Exhibit A to this agreement. 15. Indernnification. The Contractor shall indemnify and save harmless the City, its officers, agents, and employees against: A. Any and all claims and demands which may be made against the City, its officers, agents or employees by reason of any injury or death of any person or corporation caused by any act or omission of the Contractor under this agreement or of the Contractor's employees or agents; B. Any and all damage to or destruction of the property of the City, its officers, agents, or employees, occupied or used by or in the care, custody, or control of the Contractor, or in proximity to the site of the Contractor's work, caused by any act or omission of the Contractor under this agreement; C. Any and all claims and demands which may be made against the City, its officers, agents, or employees by reason of any injury to or death of or damage suffered or sustained by an employee or agent of the Contractor under this agreement,however caused, excepting, any such claims or demands which are the result of the sole active negligence or willful misconduct of the City, its officers, agents, or employees; D. Any and all claims and demands which may be made against the City, its officers, agents or employees by reason of infringement or alleged infringement of any trademark or copyright rights or claims caused by the use of any apparatus, appliance, or materials furnished by the Contractor under this agreement; and E. Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit, when said violation of any law or regulation or of any term or condition of any permit is due to negligence on the part of the Contractor. 3 Cie ^� ATTACHMENT 1 The Contractor, at its own costs, expense, and risk shall defend any and all suits, actions, or other legal proceedings that may be brought against or for employees on any such claim or demand of such third persons, or to enforce any such penalty, and pay and satisfy any judgment or decree that may be rendered against the City, its officers, agents, or employees in any such suit, action, or other legal proceeding, when same were due to negligence of the Contractor. 16. Enforcement Costs and 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. 17. Notice. All notice provided relative to the terms and conditions of this agreement shall be in writing as follows: Contractor: J. Fletcher Creamer and Son, Inc. George C. Mallakis, Area Manager 12874 San Fernando Road Sylmar, CA 91342 City: City of San Luis Obispo John Moss,Utilities Director 879 Morro Street. San Luis Obispo, CA 93401 18. Entirety and Integrity of this Agreement. This document represents the entire and integrated agreement between the City and the Contractor. This document supersedes and negates all prior negotiations, representations, agreements and amendments, either written or oral, regarding the Premises and the use of the Premises by Contractor. Both parties also recognize that some issues may not have been anticipated or addressed herein, and that changes to the agreement may be warranted. This agreement may be amended upon written consent of both parties, to the approval of the City Administrative Officer and the City Attorney and as provided by law. This Agreement is executed this day of , 2003, in the City of San Luis Obispo, State of California. Contractor: George Mallakis, Area Manager 4 ATTACHMENT I City: Attest: Approved as to form: Lee Price,City Clerk an Lowell, City Attorney Mayor Dave Romero 5