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HomeMy WebLinkAbout10/19/2004, C6 - PARK MAINTENANCE AND OUTDOOR DINING AGREEMENT WITH VILLAGE HOST PIZZA AND GRILL, SLO, LLC council ��.D j agcnba REpoRt '=N� CITY O F SAN LUIS O B I S P O FROM: Wendy George,Assistant City Administrative Officer Prepared By: Shelly Stanwyck,Economic Development Manager Cp SUBJECT: PARK MAINTENANCE AND OUTDOOR DINING AGREEMENT WITH VILLAGE HOST PIZZA AND GRILL, SLO, LLC CAO RECOMMENDATION Approve an agreement with Village Host Pizza and Grill, SLO, LLC for park maintenance and outdoor dining on City-owned property. DISCUSSION Background In June 2003, Council approved an agreement with the Pizza Brokers Inc. for the donation of park improvements at 2163 Santa Barbara Street and the rental of the City's former Water Conservation Demonstration Garden for public art and outdoor dining. Upon receiving final architectural approvals, improvements were made to the park, an outdoor dining area was created and a pedestal for public art was installed. Unfortunately, the operators of this business have since gone out of business. The site, 2138 Broad Street (the former Pizza Hut building) has been vacant for many months and not all of the required conditions for the building were met by the original business. Proposed Agreement Under the proposed agreement (Attachment 1), Village Host Pizza and Grill would lease the former Water Conservation Demonstration Garden in exchange for maintaining the property to City standards, including providing water for the landscaping. All of the landscaping improvements required under the prior agreement have been installed at the former Water Conservation Demonstration Garden by the former owner. The public art (which was not installed by the first business) will be purchased and put in place by the new business owners (at an expense of over $12,000). Rather than charge the new business rent, staff believes a fair exchange is to have them maintain the property and complete all of the required architectural improvements. At the time the new owners acquired their interest in the business, they were unaware of the extent of the City conditions that needed to be fulfilled. The proposed maintenance agreement will allow for the enhanced operation of a business in this prime, formerly vacant location, and will alleviate a maintenance burden on the City. The term for the agreement is for five years. This period will give each side the opportunity to evaluate the arrangement. Should the business change hands again, the agreement is transferable, upon consent of the City. CONCURRENCES The Public Works and Parks and Recreation Departments concur with this recommendation. C� - /1 Y Park Maintenance and Outdoor Dining Agreement Page 2 . FISCAL IMPACT None. The tenant's maintenance of the property includes all utility costs and therefore the property will be "self-sufficient." ALTERNATIVES 1. Not Enter Into the Agreement. Council could determine that it does not want to enter into another agreement with a business at this location. This is not recommended at this time. The improvements for outdoor dining have been made. The public art is poised to be installed. Therefore, it makes sense to move forward with an agreement that will improve the restaurant's operation in return for maintaining our neighboring park property. 2. Modify the Terms of the Proposed Agreement. Staff does not recommend making substantial changes to the agreement, as it has been negotiated between the two parties. However, as is the case with all agreements, there may be minor modifications Council seeks to incorporate into the finally adopted agreement. ATTACHMENTS 1. Park Maintenance and Outdoor Dining Agreement G:File rmnw®�smftmycxw=Bmkm con -cue ATTACHMENT 1 PARK MAINTENANCE AND OUTDOOR DINING AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and VILLAGE HOST PIZZA & GRILL, SLO, LLC, hereinafter referred to as Contractor. This Park Maintenance and Outdoor Dining Agreement does not convey a long-term or permanent interest in public property. The uses may be revoked by the City of San Luis Obispo without cause. WITNESSETH: WHEREAS, Contractor wishes to offer outdoor dining, using City-owned park space adjacent to their restaurant at 2138 Broad Street,and WHEREAS,No City ordinance or regulation prohibits such an action,and WHEREAS, Contractor has offered to improve and maintain the City property known as the Water Conservation Demonstration Garden,and WHEREAS,the Parks and Recreation Commission endorsed this concept at their March 5,2003 meeting fora prior business and Council entered into a similar agreement with the prior business in June 2003. NOW THEREFORE,be it resolved that the City of San Luis Obispo does agree to permit Contractor to offer outdoor dining on an 800 square foot portion of the City property located at 2138 Broad Street,subject to the following conditions: 1. COMMUNITY DEVELOPMENT APPROVALS. All improvements shall be subject to the approval of the Community Development Department. At the Director's discretion, architectural review may be required. All work done related to the outdoor dining area shall comply with appropriate City, County, State, and Federal regulations. 2. CONTRACTOR SHALL PROVIDE: A. Proof of ownership or possessory interest in the adjoining property(a lease). B. A copy of the business license certificate issued to the business operator. C. Proof of public liability insurance in the amount of$1,000,000 which by an endorsement names the City as additionally insured for the term of the agreement, or as other meets the approval of the City risk manager. D. A detailed site plan noting dimensions and the area to be use for dining; the proposed number of tables,chairs and other furnishings to be used in the area, and the relationship of the outdoor dining area to the indoor dining area. C Lo -3 -t- E. A description of the types,colors,and materials,or all outdoor furnishings. F. An explanation of how any additional required parking will be provided. G. A statement of proposed days and hours of operation. 3. CONTRACTOR'S OBLIGATIONS. In exchange for maintaining (including watering at contractor's own expense) the park site to a standard acceptable to the Parks Maintenance Supervisor of the City, and installing the required public art at this location,Contractor shall be entitled to lease the previously described space at 2138 Broad Street A. The premises shall be maintained in a clean and safe manner at all times. B. Alcoholic beverages may be served on the premises, provided the appropriate permit is obtained form the Alcoholic Beverage Control Board. C. Items used for dining outdoors may not be left outside overnight. 4. TERM. The term of this agreement shall be for 5 (five) years. It will automatically end upon expiration of the business tax certificate or upon failure to perform the required maintenance. The City retains the right to cancel this Agreement with 30-days written notice,with or without cause. 5. RENT. In exchange for maintenance responsibilities undertaken by Contractor and the installation of required Public Art,no rent will be charge. 6. TRANSFERABILITY. This agreement is transferable upon written consent by the City and Contractor. 7. INDEMNIFICATION. Contractor shall indemnify the City, its officers, agents, and employees against, and shall hold them harmless from any loss, costs, damages, expense (including attorney fees) or liability by reason of injury or death of any person, or damages to or destruction of any property arising out of or in connection with this agreement. 8. INSURANCE. Contractor shall provide insurance coverage as set forth in INSURANCE REQUIREMENTS, OPERATION AND MAINTENANCE CONTRACTS, attached and incorporated herein by reference as Exhibit A. 9. TAXES. This Agreement creates an interest in real property that may be subject to a possessory interest tax. Contractor shall be responsible for payment of any taxes due. 10. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer of the City. IL COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral -2- c(o -4 agreement, understanding,or representation not reduced to writing and specifically incorporated herein shall be of any force or effect,nor shall any such oral agreement,understanding,or representation be binding upon the parties hereto. 12. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Village Host Pizza&Grill,SLO,LLC Ron Santero Jerome Gilmore Thomas Fleweger 2138 Broad Street San Luis Obispo,CA 93401 13. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such parry. IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation By: City Clerk Mayor,David F..Romero APPROVED AS TO FORM: CONTRACTOR: By: Ci ttorney,Jonathan Lowell Village Host Pizza&Grill,SLO,LLC G:\SLufi Stmwyck%Agrc==%VillugeHau_Owdwr D=g Agm dm CI -3- Exhibit A INSURANCE REQUIREMENTS Operation & Maintenance Contracts The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents,representatives,employees or subcontractors. 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. Minimum Limits of Insurance. Contractor 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. 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. Other Insurance Provisions. The general liability and 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 maintained 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. 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. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided,canceled by either party, reduced in coverage or in limits except after thirty LA-0 f �Xh , br =1- A Exhibit A (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANN. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general 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. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. r' I