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HomeMy WebLinkAbout12-13-2016 Item 08 Lease Agreement with Community Action Partnership of SLO for Prado Day Center Meeting Date: 12/13/2016 FROM: Michael Codron, Community Development Director Prepared By: Steven Orozco, Planning Technician SUBJECT: LEASE AGREEMENT WITH THE COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO FOR THE OPERATION OF THE PRADO DAY CENTER. RECOMMENDATION 1. Approve a lease agreement between the City of San Luis Obispo and the Community Action Partnership of San Luis Obispo (CAPSLO) through December 31, 2017 for use of the Prado Day Center; and 2. Authorize City Manager to approve any monthly lease extensions after December 31, 2017. DISCUSSION Background In 1994 the City Council gave conceptual approval to use City property on Prado Road near the Corporation Yard for the purpose of providing daytime services and meals to homeless residents in San Luis Obispo County. The City agreed to lease the Prado Road site for a period of five years, with options to extend by mutual agreement. The Prado Day Center was subsequently constructed, with financial help from the City, the County, and donations of money and labor from the community at large. The Center opened for operation on September 15, 1997. The Interfaith Coalition for the Homeless (ICH) provided administrative oversight of the Prado Day Center for more than two years, while CAPSLO managed day-to-day operations. When it became apparent that the administrative oversight had become an unacceptable burden to the organization’s volunteers, after thoughtful discussions, the CAPSLO board agreed to assume the responsibility for the lease of the Prado Road site, as well as be coming the sub-recipient for City and County Community Development Block Grant (CDBG) funds. 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 CAPSLO was subsequently extended twice with an ultimate expiration date of November 30, 2007. Previous Lease Agreement In 2007, the City Council approved a three-year lease agreement with CAPSLO. The new lease had an initial term through December 1, 2010 (Attachment C). The agreement was then followed by two additional three-year periods by mutual agreement of the parties which expired on November 30, 2010 and then on November 30, 2016. New and Final Lease Agreement Nineteen years later CAPSLO is requesting to enter into the final lease agreement for the Prado 8 Packet Pg. 115 Day Center, before the Center is relocated and expanded at 40 Prado (Attachment B). Construction of the new $5.4 million Homeless Services Center at 40 Prado is expected to start January 2017 and open by fall 2017. The shelter will be able to accommodate 100 beds with a maximum capacity of 150 and include both day services currently provided at the Prado Day Center and overnight services from the Maxine Lewis Memorial Shelter. Given that CAPSLO has provided exceptional services to the homeless at the Prado Day Center since 2000, and at Maxine Lewis Memorial Shelter since 1989, staff is confident that this lease renewal is crucial for continuing day services to homeless residents until 40 Prado opens. This new lease agreement shall not exceed thirteen months, expiring on December 31, 2017 with no option for long term renewal due to start of the City’s Water Resource Recovery Facility (WRRF) Project in early 2018 (Attachment A). However, should 40 Prado and the WRRF Project both be delayed, the City and CAPSLO may discuss a month to month lease agreement until WRRF construction begins, to the approval of the City Manager. The Lessee may terminate the lease at any time with thirty (30) days’ notice, should transfer to the new Homeless Services Center occurs prior to that date. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. The project is an action to extend a previously approved lease agreement for operation of a homeless services day center. It can be seen with certainly that the proposed action to extend this lease agreement will have no significant effect on the environment. No changes to land use or existing use will occur. FISCAL IMPACT Currently, the City leases 43 Prado to CAPSLO at no charge for the purposes of maintaining the Prado Day Center. The City will continue to assume the responsibility for water, sewer, and trash services while the property is leased to CAPSLO. The services funded by the General Fund amounts to approximately $20,000 per year. ALTERNATIVE The Council could choose to deny the new lease agreement, however given CAPSLO’s experience operating the Prado Day Center for 20 years and the timeframe remaining before 40 Prado is operating, this option is not recommended. Attachments: a - New Lease Agreement for the Prado Day Center b - CAPSLO Lease Request Letter c - Previous Prado Day Center Lease 8 Packet Pg. 116 1 LEASE OF A PORTION OF REAL PROPERTY LOCATED AT 43 PRADO ROAD FOR THE PRADO DAY CENTER APN 053-051-045 This lease is made and entered into this 1st day of December , 2016 by and between the CITY OF SAN LUIS OBISPO (hereinafter “CITY”), a municipal corporation, and the COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO (hereinafter “CAPSLO”), a community based non-profit organization. WITNESSETH: WHEREAS, the CITY entered into a lease with CAPSLO on November 17, 2007, for the operation of a homeless services day center (Prado Day Center) located on 43 Prado Road and known as a portion of APN 053-051-045, San Luis Obispo County, California; and WHEREAS, CAPSLO is the County’s Head Start and Community Action program agency and the administrator of the Maxine Lewis Memorial Shelter and has administered the Prado Day Center for the last nineteen (19) years; and WHEREAS, CAPSLO has the expertise, service agreements, and work force required to provide the necessary services to run the Prado Day Center; and WHEREAS, CAPSLO’s previous lease offered two, three year extensions which expired on November 30, 2016; and WHEREAS, CAPSLO is in the process of constructing a new homeless care facility located at 40 Prado Road (“40 Prado”). Likewise, the CITY is in the process of upgrading its Water Resource Recovery Facility (“WRFF”) which will require demolition and use of the Prado Day Center site; and WHEREAS, CAPSLO has requested a new lease, not to exceed thirteen (13) months, expiring on December 31, 2017, with no option for renewal. It is the intention of the parties for 8.a Packet Pg. 117 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 2 this lease term to coincide with the completion of the new facility at 40 Prado and/or the need for the Prado Day Center location for the CITY’s WRRF upgrade project. 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 CAPSLO that portion of APN #053-051-045, 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 Recorder’s Office for the County of San Luis Obispo. 2. TERM The term of this lease shall commence on December 1, 2016 and extend for a period until December 31, 2017. Prior to that date, CAPSLO may terminate lease with thirty (30) days’ notice. 3. RENEWAL This new lease agreement shall not exceed thirteen months, expiring on December 31, 2017 with no option to extend due to the start of construction of the City’s WRRF Project in early 2018. However, should 40 Prado and the WRRF Project both be delayed, the City and CAPSLO may discuss a month to month lease agreement subject to the approval of the City Manager. CAPSLO acknowledges that any month to month arrangement is expressly subject to the timing and status of the City’s WRFF upgrade project. CAPSLO 4. RENTAL Lease of this property for the purposes described herein shall be at no charge to the CAPSLO. CAPSLO agrees to provide homeless services at no charge to the City and community as a public benefit. 8.a Packet Pg. 118 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 3 5. UTILITIES CAPSLO 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 CAPSLO. The City assumes no responsibility and makes no warranties regarding any utilities, and CAPSLO hereby releases from liability and 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, CAPSLO 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 CAPSLO 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. CAPSLO agrees that the use of said property as described shall be for the sole purpose of supporting CAPSLO’s non-profit homeless services and programs and in no way shall be used for “for profit” activities. CAPSLO 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 change in use will be submitted to the City for approval prior to commencement of that use or improvement. CAPSLO acknowledges that it is currently in possession of the premises and accepts them “as-is.” Pursuant to California Civil Code section 1938, City hereby states that the premises has not undergone an inspection by a Certified Access Specialist (CASp). 8. ALTERATIONS AND REPAIRS CAPSLO shall be responsible for any and all alterations, improvements, or repairs to the property necessary for the orderly conduct of CAPSLO’s operations. CAPSLO 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. CAPSLO further agrees to remove and return to original, any alterations to said property made by CAPSLO as requested by the City upon termination of 8.a Packet Pg. 119 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 4 this Lease at CAPSLO’s sole cost. CAPSLO 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. CAPSLO 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 CAPSLO shall maintain property in an orderly and first class condition at all times, satisfactory to the City Administrative Officer or his/her designee. CAPSLO shall maintain adjacent properties free of litter resulting from CAPSLO’s activities. CAPSLO 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, CAPSLO’s employees, volunteers, invitees, and the environment. 10. TRAFFIC CONTROL CAPSLO shall be responsible for control of traffic related to CAPSLO’s operations. CAPSLO 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. CAPSLO 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 WRF access road. CAPSLO shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 11. COORDINATION WITH CITY CAPSLO shall coordinate with the City any activities which have potential to impact in any way City operations. Upon notification by the City, CAPSLO shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. 8.a Packet Pg. 120 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 5 12. PERMITS CAPSLO shall maintain any and all permits necessary for the conduct of the CAPSLO’s business at the site as required by Law. 13. INDEPENDENT CONTRACTOR CAPSLO and all of its agents, representatives, and participants in any manner connected with CAPSLO’s operations shall be independent contractors or volunteers for CAPSLO 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 dependent, and any breach of any of the said terms, covenants or conditions shall constitute grounds for t he termination, cancellation or forfeiture of this lease. 16. INDEMNIFICATION CAPSLO 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 CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement; b) any damage caused by any act or omission of CAPSLO, 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 CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement, except for claims and demands 8.a Packet Pg. 121 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 6 resulting from the proven sole gross negligence or willful misconduct of the City and its agents, officers, and employees; d) CAPSLO’s violation of any law, any regulation or any term or condition of any permit. CAPSLO 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 CAPSLO shall provide insurance, including but not limited to workers compensation insurance, including additional coverage for Automobiles. CITY shall be named as an additional insured. 18. ASSIGNMENT CAPSLO 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, CAPSLO 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 CAPSLO 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 CAPSLO in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a) If CAPSLO is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b) If, in any proceeding or action in which CAPSLO is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment shall constitute a default by CAPSLO and City shall have the right to elect to terminate this lease. 8.a Packet Pg. 122 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 7 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 CAPSLO. 20. ENFORCEMENT The City Manager 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, CAPSLO 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 CAPSLO 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 CAPSLO shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by CAPSLO and shall hold City harmless against the same. 22. APPEALS Actions and determinations by the City Manager 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. 8.a Packet Pg. 123 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 8 23. 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 CAPSLO City Manager Community Action Partnership of City of San Luis Obispo San Luis Obispo County, Inc. 990 Palm Street 1030 Southwood Drive San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 24. ENTIRE AGREEMENT This lease and attached Exhibit A contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. 8.a Packet Pg. 124 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 9 IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation By: Heidi Harmon, Mayor ATTEST: Carrie Gallagher, City Clerk APPROVED AS TO FORM: Christine Dietrick, City Attorney CAPSLO COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC. By: Elizabeth Steinberg, CEO 8.a Packet Pg. 125 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 10 8.a Packet Pg. 126 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) 8.b Packet Pg. 127 Attachment: b - CAPSLO Lease Request Letter (1515 : Prado Day Center Lease Agreement) 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 &h , 2008by 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: 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. MIN 8.c Packet Pg. 128 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 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. 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 8.c Packet Pg. 129 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 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. 8.c Packet Pg. 130 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 1 Prado Day Center Lease 11. COORDINATION WITH CITY i 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; 0 8.c Packet Pg. 131 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) i 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 a party, a receiver is appointed with authority to take possession of the premises. 8.c Packet Pg. 132 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 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 8.c Packet Pg. 133 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 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 City Administrative Officer City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 805) 781 -7114 25. ENTIRE AGREMENT Lessee Economic Opportunity Commission 1030 Southwood Drive San Luis Obispo, CA 93401 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. CITY OF SAN LUIS OBISPO 8.c Packet Pg. 134 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease City Clerk APPROVED AS TO FORM: an P. Lowell City Attorney A Municipal Corporation b. I ' I - Mayor ECONOMIC OPPORTUNITY COMMISSION OF SAN LUIS OBISPO 9 8.c Packet Pg. 135 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 8.c Packet Pg. 136 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement)