HomeMy WebLinkAbout11/20/2007, C4 - LEASE AGREEMENT WITH THE ECONOMIC OPPORTUNITY COMMISSION FOR THE OPERATION OF THE PRADO DAY CENTER 1 council M`�°o.�November 20,2007
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CITY OF SAN LUIS OBISPO
FROM: Shelly Stanwyck, Assistant CAO
Prepared by: Brigitte Elke, Principal Administrative Analyst
SUBJECT: LEASE AGREEMENT WITH THE ECONOMIC OPPORTUNITY
COMMISSION FOR THE OPERATION OF THE PRADO DAY CENTER
CAO RECOMMENDATION
Approve a lease agreement between the City of San Luis Obispo and the Economic Opportunity
Commission (EOC) for the operation of the Prado Day Center(Day Center) for an initial term of
three (3) years.
DISCUSSION
Background
In late 1993, the City took the lead to coordinate an effort to identify possible alternative
locations for the Peoples' Kitchen noontime meal program. The commitment was made to work
with representatives from many community organizations to find a longer term and more
acceptable location than the portico at the Old Mission. As a result of these initial efforts, in
1994, the City Council gave conceptual approval to the use of City property on Prado Road near
the Corporation Yard. The Prado Day Center was constructed, with financial help from the City
and the County and donations of money and labor from the community at large. The Center
opened for operation on September 15, 1997.
Prior to actual construction of the Center, the Interfaith Coalition for the Homeless (ICH) stepped
forward and agreed to become the overall administrating organization, with day-to-day
operations contracted to the EOC. As soon as ICH agreed to take the administrative lead, the city
agreed to lease it the Prado Road site for a period of five years, with options to extend by mutual
agreement.
ICH provided administrative oversight of the Prado Day Center for more than two years when it
became apparent that the responsibility had become an unacceptable burden to the organization's
volunteers. After much deliberation, the EOC board agreed to assume the responsibility for the
lease of the Prado Road site, as well as becoming the subrecipient for City and County
Community Development Block Grant (CDBG) funds. However, the EOC was very clear in
stating that is would only assume these responsibilities on that condition that it not be required to
carry on fundraising activities for the Center. Accordingly, the Friends of the Prado Day Center
were established as a fundraising arm of the steering committee.
^ I
Council Agenda Report-Lease for Prado Day Center Page 2
Under these conditions, the lease documents were officially transferred with all terms and
conditions remaining the same including the termination date of November 30, 2001. In mutual
agreement, the lease between the City of San Luis Obispo and the EOC was subsequently
extended twice with an ultimate expiration date of November 30, 2007.
Economic Opportunity Commission
Designated in 1965 as the county's Community Action Agency,EOC provides a variety of
comprehensive community-based programs. Annually, EOC serves 35,000 persons across San
Luis Obispo County and nine other central and southern California counties. EOC is a private,
nonprofit, Public Benefit Corporation, providing an "umbrella" of direct safety net and family
development services and aims to empower individuals and families to achieve economic self-
sufficiency and self-determination through a comprehensive array of community-based programs
and actions.
The EOC has administered the Prado Day Center since 2000 and is providing excellent services
for its clients. In addition, the EOC has maintained the services of the City's emergency shelter
on Orcutt Road known as the Maxine Lewis Memorial Shelter since 1989 and is therefore
maintaining all encompassing homeless services for the City of San Luis Obispo.
New Lease Agreement
On October 25, 2007 staff received a letter of intent from the EOC confirming their commitment
to the Prado Day Center and willingness to continue the administration of the Day Center. EOC
also confirmed its commitment to the continued collaboration with the Interfaith Coalition for the
Homeless, the County of San Luis Obispo, the Department.of Social Services, Chamber of
Commerce, the Downtown Association, Peoples' Kitchen, County Health Center, Cal Poly
volunteers and other community partners to maintain all crucial and essential services for the
homeless population frequenting the Day Center.
In its letter, EOC's Chief Executive Officer Biz Steinberg stated the contract length for the fiscal
year 2007-08. In subsequent clarification, the EOC agreed to a new lease contract for three years
until November 30, 2010 with the possibility of two three-year extensions. Consistent with the
prior agreement, all terms and conditions remain in effect including the City of San Luis
Obispo's responsibility for water, sewer and trash services.
FISCAL IMPACT
The City provides the property on 43 Prado Road to the EOC for the purposes of maintaining the
Prado Day Center at no charge. The City will continue to assume the responsibility for water,
sewer and trash services, which amounts to approximately $10,000 per year and part of the
Building Maintenance Division budget.
d—
Council Agenda Report—Lease for Prado Day Center Page 3
ALTERNATIVE
The Council could choose to deny the new agreement and seek a new operator for the Prado Day
Center. Given the EOC's experience and expertise and the lack of a similar organization in San
Luis Obispo, this option is not recommended.
ATTACHMENTS
1. Vicinity Map
2. EOC Request Letter
3. Lease Agreement
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ATTACHMENT 1
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A�ACHMEM 2
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O,C1030 SOUTHWOOD DRIVE
SAN LUIS OBISPO
ECONOMIC OPPORTUNITY CALIFORNIA 93401
COMMISSION• SINCE 1965 (805) 544355
FAX(805)549-8388
www.eocslo.org
October 23, 2007
Brigitte Elke
Principal Administrative Analyst
City of San Luis Obispo
990 Palm Street
San Luis Obispo, California 93401
Dear Brigitte:
This letter will serve as EOC's Letter of Intent to serve as a contractor to manage the
Prado Day Center for 2007-2008.
We look forward to working in collaboration with the City, Interfaith Coalition for the
Homeless, County, DSS, Chamber of Commerce, Downtown Association, faith
community, Cal Poly volunteers, Peoples' Kitchen, CHC, EOC Health Services, and
other community partners. as we have for many years.
Thank you for the phone call to touch base on this and the CDBG contract for said
period. If there are any questions, please give me a call at 544-4355.
Sinc y,
Elizabh` iz" S einberg
Chief Exec fficer
•Adult Dap Services• Child Care Resource Connection •Emergency Services•Energy Conservation • IYeatherization Services• Thrifl Store
•family,Planning Services •Head Start •Homeless Shelter•Aligrant Child Care •Senior Health Screening• Teen Parenting Program
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ATTACHMENT 3
LEASE OF A PORTION OF REAL PROPERTY LOCATED AT 45 PRADO ROAD FOR
THE PRADO DAY CENTER
APN 53-051-45
This lease is made and entered into this day of , 2007 by and
between the CITY OF SAN LUIS OBISPO (hereinafter"CITY"), a municipal corporation, and
the ECONOMIC OPPORTUNITY COMMISSION OF SAN LUIS OBISPO (hereinafter
"EOC"), a community based non-profit organization.
WITNESSETH:
WHEREAS, the CITY entered into a lease with the EOC, dated January 12, 2000, for the
operation of a homeless services day center(Prado Day Center) located on 43 Prado Road and
known as a portion of APN 53-051-45, San Luis Obispo County, California; and
WHEREAS, this lease agreement including two three (3) year extensions will expire on
December 1, 2007 and the EOC has requested a new lease for an additional three (3) year period;
and
WHEREAS, the EOC is the County's Head Start and Community Action program
agency and the administrator of the Maxine Lewis Memorial Emergency shelter and has
administered the Prado Day shelter for the last seven (7) years; and
WHEREAS, the EOC has the expertise, service agreements and work force required to
provide the necessary services to run the Homeless Services Day Center;
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.
1 C4,�P
ATTACHMENT 3
Prado Day Center Lease
2. TERM
The term of this lease shall commence on December 1, 2007 and extend for a period of
three (3) years.
3. RENEWAL
This lease may be renewed for two (2) additional three (3) year periods, each renewal
period to be by mutual agreement of the Parties.
4. RENTAL
Lease of this property for the purposes described herein shall be at no charge to the
Lessee. Lessee agrees to provide homeless services at no charge to the City and community as a
public benefit.
5. UTILITIES
Lessee shall make all arrangements for any payment due for all utilities and services
furnished to or used by it on the leased premises. However, the City shall provide water, sewer,
and trash services at no cost to Lessee. 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 POSSESSORY INTEREST TAX
If this lease should result in the assessment of taxes for this real property, including, but
not limited to, possessory interest taxes, Lessee agrees that any tax liability will result in an
increase in the amount of rent due to the City, equal to the amount of any such tax liability.
7. USE OF PROPERTY
Lessee shall be entitled to use said property for the purpose of operation of a homeless
day services center, and for no other purpose. Operation of the center shall consist of the
provision of social services to the homeless, including food services. Lessee agrees that the use
of said property as described shall be for the sole purpose of supporting Lessee's non-profit
homeless services and programs and in no way shall be used for"for profit" activities. Lessee
further agrees that a full description of the use of said property, and activities and improvements
occurring on the property will be provided to the City Administrative Officer annually, and, any
2 f
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Prado Day Center Lease •
�RCHM�I�3
change in use will be submitted to the City for approval prior to commencement of that use or
improvement.
8. ALTERATIONS AND REPAIRS
Lessee shall be responsible for any and all alterations, improvements, 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. 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 and 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. MAINTENANCE OF PROPERTY
Lessee shall maintain property in an orderly and first class condition at all times,
satisfactory to the City Administrative Officer or his/her designee. Lessee shall maintain adjacent
properties free of litter resulting from Lessee's activities. Lessee shall at all items maintain
property in a manner consistent with any applicable Federal, State, or City laws, regulations, or
grant requirements and in such a manner as to ensure the protection of the public, lessee's
employees, volunteers, invitees, and the environment.
10. TRAFFIC CONTROL
Lessee shall be responsible for control of traffic related to Lessee's operations. Lessee
shall establish adequate controls, traffic flow, parking locations and procedures so as not to
interfere with the flow of traffic on Prado Road and the Water Reclamation Facility (WRF)
access road. Lessee shall provide and maintain the controls, clearances and visibility necessary to
ensure the safe and orderly ingress and egress of the public, employees, volunteers and invitees
to and from the property. All vehicles shall be properly parked within the boundaries of the
leased property. No vehicles shall be parked on the WFR access road. Lessee shall at all times
ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the
WRF access road.
3
Prado Day Center Lease
ATTACHMEW 3
11. 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.
12. PERMITS
Lessee shall maintain any and all permits necessary for the conduct of the Lessee's
business at the site as required by Law.
13. INDEPENDENT CONTRACTOR
Lessee and all of its agents, representatives, and participants in any manner connected
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.
14. SUBJECT TO ALL LAWS AND BINDING
This lease shall be subject to and subordinate to all Federal, State and City laws, rules,
regulations and grant requirements, including any and all conditions imposed by the City
Council.
15. TERMINATION FOR CAUSE
Each of the terms,covenants and conditions of this lease are mutual and dependant, and
any breach of any of the said terms, covenants or conditions shall constitute grounds for the
termination, cancellation or forfeiture of this lease.
16. INDEMNIFICATION
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, volunteers, tenants, invitees or assigns
under this agreement;
4 L* I
ATTACHMOff 3
Prado Day Center Lease
b) any damage caused by any act or omission of Lessee, its agents, employees,
volunteers, 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 Lessee, its agents, employees, volunteers,
tenants, invitees or assigns 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.
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.
17. INSURANCE
Lessee shall provide insurance, including but not limited to workers compensation
insurance, if necessary, as described in Exhibit B to this lease, Insurance Requirements for
Operation &Maintenance Contracts, including additional coverage for Automobile .
18. ASSIGNMENT
Lessee shall not assign this lease in whole or in part nor sublet the premises in whole or
in part without the prior written consent of the City. If the City consents to a sublease,Lessee
shall remain responsible for the performance of all the terms, covenants and conditions of this
lease including and in particular the use of the property as described in Paragraph'7 of this
agreement. If Lessee assigns or subleases said lease or any portion thereof without the prior
written consent of the City, then said sublease or assignment shall be void, and the option of the
City, this lease shall immediately cease and terminate.
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;
C) If, in any proceeding or action in which Lessee is aTarty, a receiver is appointed
with authority to take possession of the premises.
5 �-� o
ATTACHMENT 3
Prado Day Center Lease
Any involuntary assignment shall constitute a default by lessee and City shall have the
right to elect to terminate this lease.
19. 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.
20. 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 thirty(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 an calendar ear, 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
Paragraph 15 of this agreement.
21. 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.
22. TERMINATION WITHOUT CAUSE
ATTACHMENT 3
Prado Day Center Lease
The City Council may by motion terminate this agreement at its sole discretion after a
public hearing held upon thirty (30) days written notice to Lessee. Said termination shall be
effective ninety (90) days after City council action to terminate the Lease.
23. APPEALS
Actions and determinations by the city Administrative Officer or his/her designee,
relative to the terms, covenants and conditions of this lease may be appealed to the City Council
pursuant to the provisions of Municipal code chapter 1.20.
24. 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:
City Lessee
City Administrative Officer Economic Opportunity Commission
City of San Luis Obispo 1030 Southwood Drive
990 Palm Street San Luis Obispo, CA 93401
San Luis Obispo, CA 93401
(805) 781-7114
25. ENTIRE AGREMENT
This lease and attached Exhibits A and B contains the entire agreement of the parties on
the matters covered and it may not be modified except by written agreement.
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first
above written.
ATTEST: CITY OF SAN LUIS OBISPO
7 �-12-
• �
Prado Day Center Lease �TIACHMEW3
A Municipal Corporation
By:
Audrey Hooper David F. Romero
City Clerk Mayor
APPROVED AS TO FORM: ECONOMIC OPPORTUNITY COMMISSION
OF SAN LUIS OBISPO
onathan P. well
City Attorney
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Exhibit B
LINSU . , 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. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile
Liability, code 1 (any auto).
3. 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
projectllocation 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.
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
insured 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,
• n EXHIBIT 8
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 (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 ANIL
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 coverage for
subcontractors shall be subject to all of the requirements stated herein.
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