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HomeMy WebLinkAbout10-04-2016 Lease Agreement for Johnson Ranch House - Meghan BurgerLEASE AGREEMENT This Lease Agreement ("Lease"), made and entered into thist�[:Y�+)e� 2016, by and between the City of San Luis Obispo, State of California, hereinafter referred to as "City", and Meghan Burger, an individual and employee of the City of San Luis Obispo, hereinafter referred to as "Tenant"; WITNESSETH WHEREAS, City is the owner of certain described real property located in the City of San Luis Obispo, State of California, as more fully described herein; and WHEREAS, the City seeks to rent the certain described real property as a caretaker residence of mutual benefit; and WHEREAS, Tenant is currently an employee of the City of San Luis Obispo; WHEREAS, Tenant is interested in continuing to lease the certain described real property and has been living in it since September 2011. NOW THEREFORE, FOR AND IN CONSIDERATION of the following covenants and conditions, it is hereby agreed as follows: 1. PREMISES 1.1. LEASE OF PREMISES: City hereby leases to Tenant, and Tenant hereby leases from City the residence located at the Johnson Ranch and commonly known as the "Ranch House," and the yard area immediately adjacent thereto, in the County of San Luis Obispo, State of California, as depicted on Exhibit "A," attached and incorporated by this reference, (the "Premises") upon the terms and conditions set forth in this Lease. The Premises is bordered by the access road on the east and north side, and the creek on the south and west side. The Premises include only the residence and storage shed immediately behind the residence and does not include any of the other real property, structures, buildings, or sheds located adjacent to the Premises. 1.2. ACCEPTANCE OF CONDITION OF PREMISES: Tenant acknowledges, represents and warrants that Tenant has examined the Premises, and that they are at the time of this Lease in good order, repair, and in a safe, clean and tenantable condition. Tenant takes Premises in its AS- IS condition with no express or implied warranties or representations beyond those contained herein, or required by applicable California law. 2. TERMS OF LEASE AGREEMENT 2.1. TERM: The term shall be for one year, commencing on July 1, 2016 and unless earlier terminated as provided herein, terminating on June 30, 2017. Thereafter, the tenancy shall be construed as a month to month tenancy, unless terminated by either party on written notice. This damages arising out of any dispute over the tax treatment of the benefits received by Tenant as a result of this Agreement. The taxable fringe benefit amount is $550.00 per month. 4. MAINTENANCE, IMPROVEMENTS, AND REPAIRS: Tenant hereby accepts the Premises in its "as is" condition existing as of the execution date of this Agreement subject to all applicable zoning, municipal, county, state, and other governmental laws, ordinances, and regulations governing and regulating the use of the Premises, and any easements, covenants, restrictions, or other matters of record, and accepts this Agreement subject thereto and to all matters disclosed thereby. City will make improvements and repairs to the Premises when considered necessary by City, including but not limited to the repair of roof and exterior walls of the residence, heaters and water heaters, major repairs to the well pump, replacement of broken plumbing fixtures, and water service pipes to fixtures. City will provide only such additional maintenance as is deemed necessary by City and as required by Civil Code sections 1941 and 1941.1. In the event Tenant encounters a condition which, in his/her view, requires improvement, repair, or maintenance that is not Tenant's responsibility, he/she shall submit a written request to the designated Agent of the City Manager [hereinafter "City's Agent"] to repair such condition. City shall not be obligated to make such repairs unless it deems such repairs necessary to protect the Premises. Should Tenant make any improvements or repairs to the Premises that are the responsibility of City without prior written approval from City's Agent, any such improvement, repair, or replacement costs and expenses shall be borne solely by Tenant, and such improvements shall become the property of City. Tenant is responsible for all minor repairs, including but not limited to clogged drains and toilets, minor well pump repairs, leaky faucets, and broken windows and for all repairs for damage created by Tenant or Tenant's guests. Tenant will properly use and operate all electrical, gas, and plumbing fixtures and keep them as clean and as sanitary as their condition permits. Tenant is responsible to maintain the exterior of the house, including weed abatement and any vegetation clearance necessary for fire protection of the house, and the surrounding grounds in a reasonable manner. Outdoor storage or parking of anything more than two (2) operable vehicles and either one (1) boat, trailer, or recreational vehicle is prohibited. Trash receptacles shall be stored on the Premises outside of public view except on the day of pick-up. 5. UTILITIES: Tenant shall provide for and pay for all charges for electricity and reasonable quantities of well water used for domestic purposes on the Premise. Tenant shall also provide and pay any additional utilities, including but not limited to, propane, trash, septic tank pumping, telephone, cable or satellite television, and internet. 6. OCCUPANTS: Tenant shall not permit anyone other than tenant and his/her immediate family, as designated on the Lease, to reside on the Premises for more than five (5) consecutive days without first obtaining written consent of City's Agent. In any case, there shall not be more than four (4) occupants, including Tenant. 7. ASSIGNMENT: Tenant shall not assign, sublet, or otherwise transfer this Agreement or any portion thereof and any attempt to do so shall be void and of no effect for any purpose and shall furnish grounds for immediate termination of this Agreement. 8. USE OF PREMISES: Tenant agrees to occupy the Premises as Tenant's abode and principal residence and to utilize the portions thereof for living, sleeping, cooking, and dining purposes only and consistent with the purposes for which they were respectively designed or intended to be used for such occupancies: to keep the Premises in a neat, clean, sanitary, and valid and enforceable to the fullest extent possible permitted by law. This Agreement and the rights and obligations of the parties set forth herein shall be governed by, construed, and interpreted in accordance with the laws of the State of California. The prevailing party in any action filed arising out of the terms of this Agreement or any alleged violation thereof shall be entitled to recover that party's reasonable attorneys' fees and costs incurred in such an action. 15. ADDRESSES: All notices, requests, and letters must be sent to: City Administration Department Assistant City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Names of persons residing on Premises: 16. ENTIRE AGREEMENT: This Agreement constitutes the sole and entire agreement between the parties with respect to the subject matter hereof. This Agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this Agreement. All agreements or representations respecting the subject matter of this Agreement not expressly set forth or referred to in this Agreement are null and void. 17. CHANGE OF TERMS: The terms and conditions of this agreement are subject to future change by City after the expiration of the Lease period upon 30 -day written notice setting forth such change and delivered to Tenant. Any changes are subject to laws in existence at the time of the Notice of Change Of Terms. 18. DISCLOSURES: 18.1 MEGAN'S LAW NOTICE: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. 18.2 LEAD HAZARD DISCLOSURE: Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre - 1978 housing, lessors must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention. Tenant acknowledges that City has provided Tenant with Lead Based Paint Disclosure Fork and EPA Pamphlet entitled "Protect Your Family From Lead in Your Home." 19. ATTORNEY'S FEES: If any legal action or proceedings be brought by either party of this Lease, the prevailing party shall be reimbursed for all reasonable attorney's fees and costs in addition to other damages awarded. Exhibit "A" .l . rW Johnson Ranch Open Space - House Lease Map Key: Johnson Ranch Boundary Lease Premises Scale: 0 100 200 700 400 M Feel City Manager Report Urs Ute. Final City Manager Approval Approver Name Date Approved City Administration Shelly for 8/15/16 Reviewer Routing List Reviewer Name Date Reviewed City Attorney's Office Finance Director JMA DJJ 8/12/16 08/12/16 August 11, 2016 FROM: Derek Johnson, Assistant City Manager Prepared by: Robert A. Hill, Natural Resources Manager SUBJECT: LEASE AGREEMENT FOR JOHNSON RANCH HOUSE RECOMMENDATION Approve the lease of the Johnson Ranch House by Recreation Supervisor Meghan Burger for Fiscal Year 2016-17. DISCUSSION In December 2001, the City acquired the Johnson Ranch Open Space. The ranch is located southwest of the City at the lower Higuera freeway off ramp. The ranch contains a viable older house. Immediately adjacent to the house, there are several historic farm structures in various states of repair comprising the premises. The ranch house is approximately 1,000 square feet in area, has two connected bedrooms, a living room, a kitchen, and a bathroom. The hiking trails on the Johnson Ranch have been open to the public since 2008. However, there is currently no public use for the ranch house and adjacent structures. If no one were living at the ranch, there is concern that it could fall into disrepair or become an attractive location for parties or for transient individuals to take up residence. In the past, prior to the leasing of the property, patrolling Rangers noted that individuals had gained entry to the ranch house. Houses in open space. Public agencies often acquire open space properties that were previously farm or ranch properties with one or more homes. The Monterey Peninsula Regional Park District, for example, owns four old ranch houses. Typically, open space agencies place staff in these houses as tenants and oftentimes as on-site reserve managers. The rent agreements vary, depending on the arrangements. They generally fall into three categories: Johnson Ranch House Lease, 2016-17 Page 3 Current Tenant. Ms. Meghan Burger, Recreation Supervisor, is a full-time City employee who has been leasing the property for several years now. She has the ability to maintain the property as required by the lease agreement. Natural Resources Manager Robert Hill conducted a site visit and home inspection with Ms. Burger in June 2015 and found the property to be well -kept and in good repair, and has recently been in touch with Ms. Burger about a few minor maintenance items that both parties agree are appropriate and desirable. Ms. Burger has confirmed that she would like to continue the lease in fiscal year 2016-17. CONCURRENCE Shelly Stanwyck, Parks and Recreation Director, concurs with the staff recommendation. FISCAL IMPACT The proposed rent is based on the Housing Authority's assessment of similar structures and consultation with the City's Housing Programs Manager. Rents are remaining steady at present, and rents are not being raised elsewhere in our housing program. Accordingly, staff recommends keeping the monthly rent amount of $1,100.00 per month. Applying the mutual benefit formula at fifty percent (50%) of the market lease value, the monthly rent is $550.00. The rental agreement will therefore generate $6,600 in income to the City. The 2016-17 lease once again indicates that the tenant shall directly provide and pay for all electricity used on the premises. During prior lease agreements, the rent charged included full cost recovery of electricity based on the previous calendar year billings to the City; however, this process has been unnecessarily burdensome for staff resulting in this change. ATTACHMENT 1. Lease Agreement 2016-17 TACity Manager Reports\Administration\2015-16Vohnson Ranch House Lease