HomeMy WebLinkAbout07/01/2008, C9 - LEASE OF REAL PROPERTY -45 PRADO ROAD •
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CITY OF SAN LUIS OBISPO
FROM: John Moss, Utilities Director
Prepared By: Jennifer Metz
SUBJECT: LEASE OF REAL PROPERTY—45 PRADO ROAD
CAO RECOMMENDATION
Adopt a Resolution authorizing the Mayor to execute an agreement for the lease of unimproved
City-owned property at 45 Prado Road to Mountain Cascade, Inc. at a rate of$500 per month for
ten months.
DISCUSSION
The City has awarded the contract for the construction of the Tank Farm Gravity Sewer, Lift
Station, and Force Main Project. 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 was utilized for similar staging, equipment and materials
storage purposes during construction of the City's Water Reuse Project from 2003 to 2004.
The rate of $500 per month is proposed for a 10-month term. The length of the lease may be
extended as required to complete the Tank Farm Gravity Sewer, Lift Station, and Force Main
Project. A $500 monthly rate was charged for the lease of the property in 2003. The contractor
cited similar rates for other properties being considered for this purpose.
Some previous long-term requests to use this property have been denied due to the City's plans to
construct the Prado Road overpass which will result in the need for this property to provide new
access to the City's Corporation Yard and Water Reclamation Facilities. The proposed use of the
property as a staging area for the Tank Farm Gravity Sewer, Lift Station, and Force Main
project's contractor is temporary, and plans for the overpass are far off. 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 Mountain Cascade, Inc. will benefit not only the contractor,
but the City as well. The location is proximate to the Tank Farm Gravity Sewer, Lift Station, and
Force Main project and will thereby reduce vehicle traffic/trips associated with construction and
reduce the overall disruption to the public associated with the project.
CONCURRENCES
The Public Works Department concurs with the recommended action.
FISCAL IMPACT
The proposed lease will result in revenue to the City of$5,000 over the estimated 10-month term
of the lease.
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Lease of Real Property—45 Prado Road Page 2
ALTERNATIVES
Deny the request and require the contract 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
1. Resolution
2. Lease Agreement with Mountain Cascade, Inc.
® ATTACHMENT 1
RESOLUTION NO. (2008 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE LEASE OF REAL PROPERTY—45 PRADO ROAD
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 Mountain Cascade, Inc. for
construction of the Tank Farm Gravity Sewer, Lift Station; and Force Main Project; 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 Tank Farm Gravity Sewer, Lift Station, and Force Main Project 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, the City Council authorizes the Mayor to execute an agreement
between the City of San Luis Obispo and Mountain Cascade, Inc. for the lease of unimproved
City owned property at 45 Prado Road.
Upon motion of , seconded by
and on the following vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of 2008.
Mayor David F. Romero
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
onath . Lowell, City Attorney
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�. Attachment 2
AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
MOUNTAIN CASCADE, INC. FOR USE OF CITY PROPERTY AT
45 PRADO ROAD
This Agreement is entered into this day of 2008, between the City of San
Luis Obispo (herein referred to as "the City") and Mountain Cascade, 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 legalowner 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 Mountain Cascade, Inc.
(Contractor) for construction of the Tank Farm Gravity Sewer, Lift Station, and Force Main
Project; 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 Tank Farm Gravity Sewer, Lift Station, and Force Main Project 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 Tank Farm Gravity Sewer, Lift
Station, and Force Main Project 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 Tank Farm Gravity Sewer, Lift Station, and Force Main 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 10
months or as otherwise required to complete the Tank Farm Gravity Sewer, Lift Station, and
Force Main Project.
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Attachment 2
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 Public Works
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 Tank Farm Gravity Sewer, Lift Station, and
Force Main Project 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.
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® i Attachment 2
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. Indemnificatiom 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 an
'y
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.
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J Attachment 2
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: Mountain Cascade, Inc.
Roger Williamson, Vice President
555 Exchange Court
Livermore, CA 94551
City: City of San Luis Obispo
Jennifer Metz, Utilities Project Manager
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 , 2008, in the City of
San Luis Obispo, State of California.
Contractor:
Roger Williamson, Vice President
Mountain Cascade, Inc.
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Attachment 2
City:
Attest: Approved as to form: .
Audrey Hooper, City Clerk Jona an Lowel ity Attorney
Mayor Dave Romero
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Attachment 2
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 which may arise from on 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 Service Office Commercial General Liability coverage(occurrence form CG0001).
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 Employers
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. Automobile.Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employers 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 deductible 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:
I. 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,
officials, 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, it officers, officials; employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, it officers, officials, employees agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of
warranties shall not affect coverage provided to the City, its officers, officials, employees agents
or volunteers.
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Xttachment 2
4. 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.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled be either party, reduced in coverage or in limits except after thirty
(30) days prior written notice by certified main, return receipt requested, has been given to the
City.
Accessibility of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of
no less than AMI.
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 coverall 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 certificated and endorsements for each subcontractor. All coverages for
subcontractors shall be subject to all of the requirements stated herein.
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council memonAnoum
June 30, 2008
To: Mayor Dave Romero and City Council FIRIEED
From: John Moss, Utilities DirectorPrepared By:. Jennifer Metz, Utilities Proj t Manager LERK
Via: Ken Hampian, City Administrative Officer
Subject: Red File—Agenda Item C-9
Map of Proposed Lease Site at 45 Prado Road
Attached please find an aerial photograph which notes the location of the 45 Prado Road
proposed lease site. The site is surrounded by chain link fencing and is adjacent to the City's
Water Reclamation Facility and Corporation Yard. If you have any questions, please contact
Jennifer Metz at 781-7239.
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