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HomeMy WebLinkAbout08/15/2006, C4 - LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FOR TEMPORARY OVERFLOW PARKING FACILITY t council 8-15-06 j Agenda RepoiA CITY O F SAN L U I S O B I S P O FROM: Betsy Kiser,Parks and Recreation Director SUBJECT: LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FOR TEMPORARY OVERFLOW PARKING FACILITY CAO RECOMMENDATION Approve a lease agreement with SESLOC Federal Credit Union (SESLOC) for the use of property at 3807 and 3855 Broad Street for the use as a temporary overflow parking facility for the Damon-Garcia Sports Fields and authorize the Mayor to execute the lease agreement. DISCUSSION Background When the Damon-Garcia Sports Fields were designed, the Initial Environmental Study determined that additional parking spaces would be needed to meet the demands of users during peak usage(peak usage was then estimated to occur on about 10 Saturdays a year during youth soccer season). The report indicated that using parking management techniques such as scheduling gaps between games, staggering start times, and requiring youth sports leagues to carpool or add shuttle service, could meet most, but not all of the parking shortfall. To reduce the peak seasonal parking deficit even further, the Study indicated that the City could "enter into an agreement with the owner of the property immediately to the south of the site to provide Saturday overflow parking." This measure was the outcome of conversations with the then owner of the property; however the property was sold prior to the establishment of a formal agreement for overflow parking. Current Situation The Damon-Garcia Sports Fields have been in regular use for the past year giving staff sufficient time to evaluate the parking situation. During this time, overflow parking has occurred across the street from the fields in the Marigold Center and Goodwill parking lots. While the users have been instructed to park in the "center" of the Marigold parking lot, so patrons can park close to its retail shops, the reality of the situation is that it is impossible to police and retailers have complained that overflow parking takes place in spaces closest to the fields. Based upon the facility's use for the last year and anticipated uses over the next year, Parks & Recreation staff expects that there will be between 19-22 weekends (rather than the original estimate of 10 weekends) with scheduled events that may have an impact on the existing parking. The majority of these dates fall between August 1 and November 30, which happen to be the peak use time for local youth soccer organizations. Even by employing the previously mentioned mitigation strategies, staff estimates the need for an additional 75-100 parking spaces. Discussions with SESLOC c� SESLOC Lease Agreement Page 2 Discussions with SESLOC SESLOC is the current owner of the property immediately to the south of Damon-Garcia Sports Fields and is the site previously mentioned as a possible overflow parking area. Over the past several months Mayor Romero, Councilmember Ewan, and City staff from the Public Works, Parks and Recreation departments, and the Assistant City Attorney met on a number of occasions with members of SESLOC's Board of Directors and staff to discuss the possibility of collaborating on short and long-term parking solutions for Damon-Garcia Sports Fields. What has evolved is a plan to resolve parking issues for the short-term and an agreement to continue the dialogue relative to a long-term solution. Short-term Parking Solution To meet the present peak parking needs of Damon-Garcia Sports Fields, the SESLOC Board of Directors has agreed to allow the City to construct and manage a temporary overflow parking lot on SESLOC's property at the end of Industrial Way (Attachment 1, Vicinity Map and Conceptual Plan). To make this a reality, several actions need to occur: 1. A lease agreement must be entered into between the City and SESLOC (the subject of this report). 2. The Airport Area Specific Plan must be amended to allow temporary parking in the Business Park zone and an ordinance amending the City's Zoning Regulations to allow temporary parking in the Business Park zone must be introduced (these land use modifications will be considered as a separate item before Council at the August 15`I' Meeting). 3. The City must apply for a Director of Community Development's Use Permit for a temporary parking lot at the leased location. 4. The temporary parking lot design must receive all requisite permits and approvals from the SESLOC Board and the City. 5. The necessary contractual agreements to facilitate construction must be bid, approved, and entered into by the City. Once all issues are resolved, the intent is to complete the temporary parking lot by early December, 2006. Terms of the Proposed Lease Agreement The proposed Lease Agreement (Attachment 2) has been reviewed and approved by the SESLOC Board of Directors. Highlights of the agreement include, but are not limited to, the following:. 1. Lighting. The City will install and pay for the cost of providing lighting for the lot area. 2. One-year agreement with option to extend. The agreement has been limited to a one- year term, subject to extension in one year increments, not to exceed a total of three years to reflect the temporary nature of the facility.. 3. Cost. The City will pay SESLOC an annual rent of$1.00 per year. 4. Security. The City will provide for supervision of the lot area during use of the premises for City sponsored functions. G:\Staff\Stanwyck\Council Agenda Reports\CAR-SESLOC Agreement 8.01.06.doc SESLOC Lease Agreement Page 3 5. Maintenance. The City will maintain the lot and perform weed abatement on areas surrounding the lot. 6. Hold Harmless and Indemnification. The City agrees to hold harmless, indemnify and defend SESLOC in the event of a claim for damages by a third party. Long-term Parking Solution SESLOC and the City discussed various options for a long-term parking solution, including developing a long-term lease agreement with SESLOC to use its future parking lot for the overflow parking needs of the Damon-Garcia Sports Fields, as was recommended in the initial Environmental Study and envisioned by the City and the former property owner; and negotiating the purchase of a portion of the SESLOC property to build the City's own permanent parking area. Both organizations agreed that, in time, we could further examine both (and other) options in greater detail. SESLOC has also indicated that they have development plans for the site, and would be willing to work with the City on some type of a shared parking arrangement. CONCURRENCES The Assistant City Attorney and Public Works Director assisted with the development of the agreement. The SESLOC Board of Directors reviewed the terms of the agreement at its July 18, 2006 meeting and approved of the terms. FISCAL IMPACT There is minimal fiscal impact associated with the approval of the lease agreement. SESLOC has offered to lease the lot to the City for a fee of$1.00 per year. A preliminary cost estimate of the construction of the temporary parking lot is $90,000 based on staff from the Public Works Department performing a portion of the work. Staff is investigating these costs further and will bring back to Council a proposed project budget for consideration in the near future. ALTERNATIVES Do not enter into a lease agreement with SESLOC for use of its premises for a temporary overflow parking facility. This is not recommended because of the critical need to address this issue in a timely and effective manner. The temporary lease of SESLOC's property presents the best short term solution to the problem. ATTACHMENTS 1. Vicinity Map and Conceptual Plan 2. Lease Agreement G:\Staft\Stanwyck\Council Agenda Reports\CAR-SESLOC Agreement 8.01.06.doc v©oao 1 .r • ,`� r_� 1 r 3 � � I r �yf 1 A r y S r C y Y u S t it r .d K a, 1 x / i T • lip r r1 1- Z �. n�.0 .sl�� �G'"�• rl���' 4s�... Cr }�� �w yti'�� Y 'f i 5 .-F to d.� t•� ',,• � �t�^ti �..y�',. � �!' 3"r � X4 ..�y t a r �aY aNy a��.1_�'��' M't}�'. 1r=�,�r `�•. . 17 ":.t >�'d'° �� � . � r.y F sS���A.. 1• :��u��i'`�.� ' Fry `� ��'«�n •L }F� 7 Y '{�ty��i� 1'. i�} Y. "" J, 't �- � �r 1r r t 11_�!__c+.P x• "yr,J4 '!, 1 Y yrs" > A4� ( e�1' ✓ - moi'! 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Y .E •..• ^� nJL Y�- �� � '1y x2._ `ar(' s�~nRJf?J.Ja,j ti4. 7s.�{•,... ? }4 • A S1�A�� i Sx•.,A.iti$5 ... .c..�EF.�,• a�Y•li.ti✓ k., S� :r ff.l• -.+w�AF�_`s.1c iw_.�.aV-..1.I�w��a�'�:*3y W���„_t-.«���j'A•1"`v.� �aa.PA�; �r'�� J:s IF Bit W,72�r 1 a 0©0' 00 _ • • f"'1 "• f ' ATTACHMENT 2 TEMPORARY OVERFLOW PARKING FACILITY LEASE This Lease is made and entered into this _ day of , 2006, by and between SESLOC FEDERAL CREDIT UNION, a member-owned financial institution (hereinafter referred to as "Lessor") and the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city, (hereinafter referred to as "Lessee"). RECITALS This Lease is made and entered into with respect to the following facts: A. Lessor is the owner of the property depicted in Exhibits"A"and`B," located at 3807 and 3855 Broad Street, San Luis Obispo, California(hereinafter, "Premises"). B. Lessee has requested permission to construct a temporary overflow parking lot to be located on Premises and Lessor is willing to lease a portion of Premises to Lessee for that purpose upon the terms and conditions hereinafter set forth. NOW THEREFORE,the parties hereto agree as follows: 1. Premises and fAuipment. Lessor is the owner of parcels of land located in the City of San Luis Obispo, County of San Luis Obispo, State of California, located at 3807 and 3855 Broad Street. The Premises are more particularly depicted in Exhibits "A" and 'B," attached hereto. Lessor hereby agrees to lease to Lessee and Lessee hereby agrees to lease from Lessor approximately 4845 square meters of Premises (hereinafter "Lot Area"), more specifically depicted as that area within the "new fence" line in Exhibit -B," which is attached hereto and by this reference made a part hereof. Lessor further agrees to permit Lessee access to and use of certain equipment (hereinafter "Equipment"), as depicted in Exhibit `B" hereto, located on the Premises in order to support the use, operation and maintenance of the Lot Area. This Lease is subject to the terms, covenants and conditions hereinafter set forth and Lessee covenants, as a material part of the consideration for this Lease, to keep and perform each and every term, covenant and condition of said Lease. During the term of this Lease, Lessor also grants to Lessee an irrevocable, nonexclusive right of ingress and egress, seven days a week, twenty-four (24) hours a day to the Premises, Lot Area and (7 4e �? ATTACHMENT. Equipment referenced herein as may be necessary or expedient to construct, operate and maintain the Lot Area,Equipment and portions of the Premises specified herein. 2. Improvements and Weed Abatement. A. Lessee shall perform, design, construct or erect or cause to be constructed or erected at its sole cost' the following improvements as shown on Exhibit `B" (hereinafter "Lot Improvements"): 1) Design Lot Area, including appropriate ingress as egress as specified herein, and install Lot Area surfaces, at or about location specified in Exhibit ..B „ 2) Design and construct enclosure of Lot Area, with gated access for ingress and egress,as specified in Exhibit`B.". B. The Lot Improvements shall be performed by Lessee after consultation with Lessor and Lessee shall permit Lessor to review and comment on construction plans prior to submitting the application and plans to the Community Development Department for processing and approval. C. The required enclosure shall be designed and constructed so as to permit Lot Area traffic ingress and egress simultaneously and shall include an additional gate access to provide Lessor with ingress and egress to the rear portion of the Premises at approximately the location of the agricultural crossing of the creek, as depicted in Exhibit `B,"as that crossing is now or may subsequently be located. D. Any grading necessary to the construction of the Lot Improvements shall be conducted so as to maintain the existing grade of the property to the extent possible. There shall be no offsite movement or storage of graded material and Lessee shall be permitted to store any graded material on site at the approximate location specified in Exhibit`B." E. Lessee shall remove weeds and debris in the Lot Area and limited surrounding areas, as more specifically depicted in Exhibit"A." �y 7 ATTACHMENT. 3. Liehtin . Lessee shall provide for lighting of the Lot Area during any nighttime event use. Lessor shall permit lessee to utilize, and/or relocate as necessary, an existing metered power pole on the Premises (as depicted in Exhibit `B") for the purpose of providing lighting for the Lot Area. Lessee shall be responsible for costs associated with the lighting use upon receipt of monthly invoices for such costs, which Lessor shall forward to Lessee at the address specified herein. 4. Term. The term of this Lease shall be for an initial term of one year commencing with the issuance of building permits and ("Commencement Date") may be subject to extension in one year increments, not to exceed a total term of three years, subject to annual review and mutual agreement of the parties. Any extension to which the parties may agree will be subject to City approval procedures. 5. Rent. Rent shall be paid annually in advance as follows: A. Lessee shall pay to Lessor as annual rent, on or before the Commencement Date of the Lease, the sum of$1 ("Annual Rent") without deduction, setoff,notice or demand provided. 6. Use. A. Lessee shall use the Premises for the sole purpose of constructing, maintaining, securing and operating a temporary parking lot as overflow parking for scheduled events held at Damon Garcia Sports Fields. Any other use of the Premises or use of Equipment not depicted in Exhibit `B," is not authorized and shall constitute a breach of this Lease. Lessee shall have first priority of use, but shall permit reasonable use of the Lot Area by Lessor, upon request made at least two business days in advance,and on such dates and at such times as may be accommodated by Lessee's event schedule. B. Lessee shall provide for supervision of the Lot Area by a lot attendant or security staff during use of the Premises associated with Lessee's scheduled events. C. Lessee must obtain all permits and approvals necessary to construct, maintain, secure and operate the Lot Improvements. Lessor shall reasonably cooperate (at no expense to Lessor) with Lessee in connection with Lessee's efforts to obtain all such permits and approvals; provided, however, Lessor shall not be obligated to apply for any permits or approvals with Lessee. Construction of Lessee's Lot Improvements shall be at Lessee's sole expense. Further, Lessee shall maintain those �y ATTACHMENT__.-_ _ portions of the Premises subject to its use free from hazards or risk to the public health, safety and welfare. D. At all times throughout the term of this Lease, Lessee's use of the Premises shall be in conformance with, and subject to all conditions of, any and all discretionary permits and approvals in effect. E. In the event Lessee is unable to obtain any necessary permit or other approval in order to operate or construct the Lot Improvements, either party may terminate this Lease as provided herein, upon thirty (30)days prior written notice. 7. Nondiscrimination. Subject to applicable laws, rules, and regulations, Lessee shall not discriminate against any person or group on the basis of age, sex, sexual orientation, medical condition, marital status,race,religion,creed,ancestry, national origin,disability,or handicap. 8. Maintenance. A. Lessee shall, at Lessee's sole cost and to the satisfaction of Lessor, maintain the Lot Improvements and Equipment, as depicted in Exhibit "B,' in good condition, free of weeds, noxious plants and wild growth, in substantial repair, in a safe and sanitary condition, and in compliance with all applicable laws and regulations and shall promptly repair any damage caused by Lessee. If Lessee fails to maintain any portion of the Premises as required herein, Lessor may notify Lessee of said failure. If Lessee fails to correct the situation within thirty (30) days after notice or such longer period as may be established by Lessor, Lessor may make the necessary correction and the cost thereof, including but not limited to the cost of administration, and labor, materials,equipment, shall be paid by Lessee within thirty (30)days after receipt of a statement of said cost from Lessor. If said statement is not timely paid,Lessor may, at its option,choose any remedy available herein or by law, including the termination of this Lease. B. Lessor shall have no duty to maintain or repair the Lot Area or Lot Improvements, except that Lessor shall bear the expense of any damage to the Lot Area and/or Lot Improvements caused by Lessor's use or use by parties authorized by Lessor. 9. Hold Harmless and Indemnification: Lessee agrees to defend, indemnify, protect and hold Lessor, its agents, officers and employees harmless from and against any and all claims asserted or Ay � -� ATTACHMENT liability established for damages or injuries to any person or property, which arise from, relate to or are connected with or are caused or claimed to be caused by the acts or omissions of Lessee, its agents, officers,employees, or authorized parties in the design, construction, use, operation or maintenance of the Premises, Lot Area, Lot Improvements or Equipment. Lessee shall assume, in addition, all expenses of investigating and defending against same, including reasonable attorney's fees, of any kind or nature whatsoever; provided, however, that the Lessee's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the Lessor, its agents,officers or employees. Lessor agrees to defend, indemnify, protect and hold Lessee, its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Lessor, its agents, officers, employees or authorized parties related to Lessor's use or occupation of the Premises, Lot Area, Lot Improvements or Equipment. Lessor shall assume, in addition, all expenses of investigating and defending against same, including reasonable attorney's fees, of any kind or nature whatsoever; provided, however, that the Lessor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the Lessee, its agents, officers or employees. 10. Lessee Insurance. Concurrent with the execution of this Lease, Lessee shall provide Lessor with proof of the following insurance coverages: A. Comprehensive General Liability insurance with a combined single limit of at least One Million Dollars ($1,000,000) for each occurrence for bodily injury, personal injury and property damage. Lessor, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of this agreement performed or authorized by or on behalf of Lessee. Said insurance shall be primary and non-contributory insurance with respect to Lessor, its officers,employees, agents and representatives. B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Lessor, its officials, employees and agents shall be covered as additional insureds with respect to ATTACHMENT__ _ liability arising from activities within the scope of this agreement performed or authorized by or on behalf of Lessee. Said insurance shall be primary and non-contributory insurance with respect to Lessor, its officers,employees, agents and representatives. C. Workers'Compensation insurance as required by the State of California. D. Upon the execution of this Lease, Lessee shall deliver to Lessor certificates of insurance with original endorsements evidencing the coverage required by this Lease. E. The procuring of insurance shall not be construed as a limitation on Lessee's liability or as full performance on Lessee's part of the indemnification provision of this Lease. Lessee understands and agrees that, notwithstanding any insurance, Lessee's obligation to defend and indemnify Lessor, its officials and employees hereunder is for the full amount of any damage,loss cost or expense. F. Any modification or waiver of these insurance requirements shall only be made with the written approval of the Lessor's Risk Manager or designee. 11. Lessor Insurance: Concurrent with the execution of this Lease, or prior to any Lessor or Lessor-authorized use of the Lot Improvements, Lessor shall provide Lessee with proof of the following insurance coverages: A. Comprehensive General Liability insurance with a combined single limit of at least One Million Dollars ($1,000,000)for each occurrence for bodily injury,personal injury and property damage. Lessee, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of this agreement performed or authorized by or on behalf of Lessor. Said insurance shall be primary and non-contributory with respect to Lessee, its officers,employees, agents and representatives. B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Lessee, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities performed or authorized by or on behalf of Lessor. Lessee, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of this agreement performed or authorized by or on behalf of Lessor. Said ATTACHMENT. insurance shall be primary and non-contributory with respect to Lessee, its officers, employees, agents and representatives. C. Workers'Compensation insurance as required by the State of California. D. Upon the execution of this Lease or prior to any Lessor or Lessor-authorized use of the Lot Improvements, Lessor shall deliver to Lessee certificates of insurance with original endorsements evidencing the coverage required by this Lease. E. The procuring of insurance shall not be construed as a limitation on Lessor's liability or as full performance on Lessor's part of the indemnification provision of this Lease. Lessor understands and agrees that, notwithstanding any insurance, Lessor's obligation to defend and indemnify Lessee, its officials and employees hereunder is for the full amount'of any damage, loss cost or expense. F. Any modification or waiver of these insurance requirements shall only be made with the written approval of the Lessee's Risk Manager or designee. 12. Removal of Improvements. On the expiration or sooner termination of this Lease, or at such time as Lessee procures permanent overflow parking accommodations,Lessee, at Lessee's sole cost, shall remove all Lot Improvements erected on the Premises by Lessee following notice of its intention to do so to Lessor and by removing same within forty-five (45) days after expiration or sooner termination of this Lease. Lessee may elect not to remove the Lot Improvements only upon written authorization by Lessor. Should Lessee fail to obtain such written authorization, Lessor may treat any such improvements as abandoned if Lessee fails to timely remove them and, in such event, (a) Lessor shall be deemed owner of them without accounting to Lessee,or(b)Lessor may cause their removal at Lessee's cost. 13. Notice. Any notice required hereunder shall be in writing and personally delivered or deposited in the U.S. Postal Service,registered or certified, return receipt, postage prepaid, to the address of the respective parties set forth below: LESSOR: LESSEE: SESLOC Federal Credit Union Parks and Recreation Director Post Office Box 5360 City of San Luis Obispo San Luis Obispo, CA 93403-5360 1341 Nipomo Street San Luis Obispo, CA 93401 ATTACHMENT_ Notice shall be deemed effective on the date shown on the return receipt or on the date personal delivery is made, whichever first occurs. If delivery is refused, the date of deposit of the copy in the mail shall be deemed the date of notice. Change of address shall be given as provided herein for notices. 14. Right of Entry. In the event of an emergency which poses an immediate threat of harm or damage to persons or property, Lessor may enter the Premises and take such actions as are required to protect persons or property from such immediate threat of harm or damage, provided that promptly after such emergency entry into the Premises (and in no event later than twenty-four (24) hours) Lessor gives telephonic and written notice to Lessee of Lessor's entry into the Premises. 15. Partial Invalidity. If any term, covenant or condition of this Lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect. 16. Successors in Interest. This Lease shall be binding on and inure to the benefit of the parties and their successors, heirs, personal representatives, approved transferees and assignees, and all of the parties hereto shall be jointly and severally liable hereunder. 17. Attorney's Fees. In any action or proceeding relating to this Lease, the prevailing party shall be entitled to its costs,including reasonable attorney's fees and court costs. 18. Integration and Amendments. This Lease represents and constitutes the entire understanding between the parties and supercedes all other agreements and communication between the parties, oral or-written, concerning the subject matter herein. This Lease shall not be modified except in writing duly signed by the parties and referring to this Lease. ATTACHMENT. 19. Governing Law. This Lease shall be governed-by and construed in accordance with the laws of the State of California. 20. Captions. The various headings and numbers herein and the grouping of the terms hereof into separate sections, paragraphs and clauses are for convenience only and shall not be considered a part hereof, and shall have no effect on the construction or interpretation of this Lease. 21. Lessor's Representation of Authority. Lessor represents that it has title to the Premises and full authority to execute this Lease and to grant the easements and access to the Premises. Lessor further represents that there are no undisclosed liens,judgments, impediments or exceptions of title on the Premises that would affect this Lease. IN WITNESS WHEREOF, the parties have executed this Lease with all of the formalities required by law as of the date first above written. 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