HomeMy WebLinkAbout11-05-2013 c2 lease agreement with sesloc
FROM: Shelly Stanwyck, Parks and Recreation Director
Prepared By: Ashley Villarreal, Administrative Analyst
SUBJECT: LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FOR
THE USE OF 3807 AND 3855 BROAD STREET FOR OVERFLOW
PARKING AT THE DAMON-GARCIA SPORTS FIELDS
RECOMMENDATION
As recommended by the Parks and Recreation Commission, approve a 10-year lease agreement
with SESLOC in the amount of $32,000 for the use of property at 3807 and 3855 Broad Street as
overflow parking for the Damon-Garcia Sports Fields during peak uses, and, authorize the Mayor
to execute the lease agreement.
DISCUSSION
Background
As a means of managing parking inefficiencies at the Damon-Garcia Sports Fields during peak
uses (about 20 to 30 days a year), the City of San Luis Obispo and SESLOC Federal Credit
Union entered into a formal Use Agreement in 2006 allowing public use of a City constructed
temporary overflow parking lot on SESLOC’s property. The City reentered an updated version of
the Agreement in 2010.
Over the years the temporary overflow parking lot was used effectively to alleviate parking issues
at the site during peak demand periods. Peak usage is predominately on Saturdays during the fall
AYSO soccer season and during soccer/other turf sports tournament uses. During these times,
participants, their families, and their supporters attend the facility to play, watch and encourage
predominately local youth activities.
The agreement for use of SESLOC’s property required the City to remove the existing parking
lot and return the property to the condition it existed prior to the parking lot installation upon
notification to do so. SESLOC notified the City of its intention to terminate the lease as a result
of its construction plans onsite in 2013 and 2014. Several months ago SESLOC began
developing the site of 3807 and 3855 Broad Street for use as its new corporate campus-like
headquarters. As a result, the temporary City constructed parking located on its property had to
be deconstructed. Council approved the project funding ($75,000) for the deconstruction with the
adoption of the 2012-13 Mid-Year Capital Improvement Plan on February 19, 2013. Public
Works engineering staff facilitated the deconstruction of the temporary lot this summer and
favorable bids enabled project completion under the engineer’s estimate. At this time $32,824 of
the previously approved budget for parking lot deconstruction remains in that project account.
Proposed Lease Agreement
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Lease Agreement with SESLOC for Damon-Garcia Overflow Parking Page 2
SESLOC has continued to be willing to extend its longstanding partnership with the City and
community and has offered to enter into a long term lease agreement with the City to facilitate
the use of its Broad Street facility parking for scheduled permitted uses during peak times. The
details of this use are included in the attached lease agreement (Attachment 2).
Some of the highlights of the agreement are as follows:
• The lease term shall be for 10 years.
• The lease amount is a one-time payment of $32,000.
• The use of SESLOC’s parking is limited to legal parking purposes associated with peak
use of the Damon Garcia Sports Fields.
• The City or its permittees shall make sure the lots are cleaned up following peak uses.
• SESLOC will make every attempt to have the South Lot parking available for use by
August 2014.
• Use of the North and South Lots will be restricted from all sports field overflow parking
for the credit union’s move-in weekend to the new location, estimated to occur one
weekend between late August and mid-September 2014.
• Peak use parking will be allowed on SESLOC premises during the following days and
times:
MON TUES WED THURS FRI SAT SUN
North Lot
59 spaces
6-10 PM 6-10 PM 6-10 PM 6-10 PM 6-10 PM No Parking 7AM-10PM
South Lot
105 spaces
6-10 PM 6-10 PM 6-10 PM 6-10 PM 6-10 PM 7AM-10PM 7AM-10PM
CONCURRENCES
During its October 2, 2013 meeting, the Parks and Recreation Commission recommended that
City Council approve the Proposed Lease Agreement with SESLOC as presented (Attachment 3).
FISCAL IMPACT
The cost of the proposed lease is $32,000 to cover a period of 10 years ($3,200/year). Sufficient
funds exist within Damon-Garcia Parking Lot Deconstruction project funding ($75,000);
allocated in the 2012-13 Mid-Year Capital Improvement Plan requests. As noted above, the
project was completed for less than estimated and the remaining funding available is $32,824.
Staff recommends Council approve the reallocation of those funds to pay for the long term lease
with SESLOC as it is required to be paid upon execution. By doing so, the balance of the
remaining monies will be transferred into the General Fund in order to allow the lease expense to
be charged to an appropriate account within the Parks Department Budget. Operating leases
cannot be charged to the Capital Projects Fund.
Project Funding
Approved
Budget
Damon Garcia Parking Lot (91193)$75,000
Specialty Construction Purchase Order $42,176
Remaining Funding $32,824
ALTERNATIVES
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Lease Agreement with SESLOC for Damon-Garcia Overflow Parking Page 3
1. Do not enter into the Lease Agreement. This is not recommended due to the vital need
of additional parking at the site during its peak uses. SESLOC and its Board of Directors
have graciously agreed to continue to partner with the City in a collaborative fashion and
this partnership benefits community members and visitors.
2. Direct staff to look at other parking options located near the Damon-Garcia site. The
cost benefit of this alternative does not make fiscal sense at this time.
ATTACHMENTS
1. Site Map
2. Lease Agreement with the City of San Luis Obispo and SESLOC for the use of 3807 and
3855 Broad Street
3. Minutes of October 2 Parks and Recreation Commission Meeting
4. Budget Amendment Request – Transfer of Funds
5. Resolution SESLOC Overflow Parking Lease
t:\council agenda reports\2013\2013-11-05\lease with sesloc for overflow parking for damon garcia (stanwyck-grigsby)\car_sesloc over-flow parking lease agreement 110513.doc
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Attachment 2
1
DRAFT 3.0
DAMON GARCIA SPORTS FIELD PARKING LEASE AGREEMENT on
SESLOC FEDERAL CREDIT UNION PROPERTY
This lease is made and entered into this ___ day of ______, 2013, by and between
SESLOC FEDERAL CREDIT UNION, a member-owned financial institution (hereinafter
referred to as “Lessor”) and the CITY OF SAN LUIS OBISPO, a municipal corporation
and charter city, (hereinafter referred to as “Lessee”).
RECITALS
A. WHEREAS, Lessor is the owner of the property located at 3807 and 3855
Broad Street, San Luis Obispo, California (hereinafter, “Premises”).
B. WHEREAS, Lessee has requested permission to use the Premises as a
parking lot for City-owned sports fields.
C. WHEREAS, At this time, Lessor is willing to lease rights of Premises to
Lessee for that purpose upon the terms and conditions hereinafter set forth.
NOW THEREFORE, the parties hereto agree as follows:
1. Premises. Lessor is the owner of parcels of land located in the City of San Luis Obispo,
County of San Luis Obispo, State of California, located at 3807 and 3855 Broad Street.
Lessor hereby agrees to lease to Lessee parking rights from Lessor of credit union
parking spaces in Premises to augment the overflow parking needs of the Damon Garcia
Sports Fields. Exhibit “A,” which is attached hereto and by this reference made a part
hereof, designates the Premises included in this lease, which is further detailed by a
north lot comprised of 59 Spaces and a south lot comprised of 105 spaces. Overflow
parking will be allowed on the Premises during the following days and times:
North Lot (59 spaces)
Monday through Friday 6:00 PM – 10:00 PM
Saturdays – no parking
Sundays – 7:00 AM – 10:00 PM
Four (4) spaces in the north lot are marked exclusively for ATM parking 24 hours a day,
seven (7) days a week and are excluded from available parking.
South Lot (105 spaces)
Monday through Friday 6:00 PM – 10:00 PM
Saturday and Sunday – 7:00 AM to 10:00 PM
Lessor will make every attempt to have the south lot parking available for use by the
start of the season in August 2014. Use of all Premises will be restricted from all sports
field overflow parking for the credit union’s move-in weekend to the new location,
estimated to occur one weekend between late August and mid-September 2014.
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Attachment 2
2
This Lease is subject to the terms, covenants and conditions hereinafter set forth and
Lessee covenants, as a material part of the consideration for this Lease, to keep and
perform each and every term, covenant and condition of said Lease.
2. Term. From the date this Agreement is entered into, this lease will be in effect for a
period of ten (10) years. Any extension to which the parties may agree will be subject to
written approval by both parties. Either party may cancel this agreement provided ninety
(90) days written notice is given detailing the significant change in business
circumstances, such as change in ownership, change of business hours, change in
requirements of Lessor’s tenant(s), or a significant unforeseen event or act of vandalism
that causes financial or public relations damage to Lessor and warrants the termination,
unless specified otherwise in this agreement.
3. Payment. For use of Premises as outlined in this agreement, Lessee will pay Lessor the
sum of thirty-two thousand dollars ($32,000.00) upon the execution of the Lease.
4. Use. Lessee shall use the Premises for the sole purpose of maintaining, securing and
operating a parking lot as overflow parking for scheduled permitted uses (those that
have received a permit for the facility) held at Damon Garcia Sports Fields. Every year,
there will be a ten (10) week restoration of the sports fields during which the City will not
use the Premises for any reason. Overflow parking shall be exclusively used in
association with permitted uses that are large scale in nature and cannot be
accommodated by available on-site sports field parking. Consistent with City ordinances,
no overnight parking will be permitted. Specific restrictions on the Premises prohibit
large RVs that take multiple parking spaces, tailgating, use of barbeques, loud noises
and amplified music, and bringing hazardous substances on the Premises. Lessee can
make no alterations to the Premises without Lessor’s prior written consent.
Lessee shall provide at Lessee’s expense, or through field participant groups, parking lot
cleanup after permitted uses and will empty receptacles of trash by the end of any
weekend on which the parking was used by a permitted event. After the first
documented occurrence (photographs provided) of trash being left behind on Lessor’s
property, Lessor and Lessee will meet to discuss further mitigation efforts. After two
documented incidents of trash being left behind and affecting the appearance of Lessors
premises on any Monday morning, the Lessor will assume responsibility for trash
maintenance on permitted use weekends and Lessee will reimburse Lessor on a
monthly basis for direct charges plus fifteen percent (15%) administrative charge for
Lessor staff to oversee this function. At all times throughout the term of this Lease,
Lessee’s use of the Premises shall be in conformance with, and subject to all conditions
of, any and all discretionary permits and approvals in effect. Lessee shall provide
notification to Lessor of permitted uses of the Damon Garcia facility on a routine basis
via electronic media, to include a schedule at the beginning of the season(s) and a
monthly update at least five days prior to the start of each following month of permitted
use.
5. Security. Lessee will provide staffed managed parking services to include two staff with
identified safety vests, training, and a parking entry barricade to protect the northern
parking lot closest to the branch entrance (59 spaces) for Lessor’s exclusive use for
business, and to direct sports field drivers to the southern lot:
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Attachment 2
3
Fridays from 5:00 PM to 7:00 PM
Saturdays from 7:00 AM to 3:00 PM
ATM parking spaces will be designated through signage that NO field use parking is
permitted at any time; vehicles wrongly parked in these spaces will be subject to
towing. Lessee staff will assist in redirecting parkers away from these spaces.
If Lessor encounters issues with parking violations in the ATM spaces on Sunday,
Lessee will be required to provide staff to monitor field use parkers in the north
lot on Sundays from 7:00 AM to 5:00 PM.
After the first documented occurrence where member parking is impacted during
business hours or at the ATM spaces, Lessor and Lessee will meet to review and
discuss further mitigation efforts. If the Lessee has not adequately performed parking lot
security on more than one occasion, then Lessor may take over managed parking
service and bill the Lessee for direct costs on a monthly basis plus a fifteen percent
(15%) administrative charge for Lessor’s staff time to oversee this function.
6. Nondiscrimination. Subject to applicable laws, rules, and regulations, Lessee shall not
discriminate against any person or group on the basis of age, sex, sexual orientation,
medical condition, marital status, race, religion, creed, ancestry, national origin,
disability, or handicap.
7. Maintenance. Lessor shall maintain in good and lighted condition the parking spaces
made available to Lessee. Parking lot lighting on the Premises will only be lit until 10:00
PM. Lessee will repair any damage to the Premises beyond ordinary wear and tear that
was caused by Lessee’s use.
8. Hold Harmless and Indemnification. Lessee agrees to defend, indemnify, protect and
hold Lessor, its agents, officers and employees harmless from and against any and all
claims asserted or liability established for damages or injuries to any person or property,
arising out of, involving, or in connection with, the use and/or occupancy of the Premises
by Lessee, its agents, officers, employees, authorized or unauthorized parties. Lessee
shall assume, in addition, all expenses of investigating and defending against same,
including reasonable attorney’s fees, of any kind or nature whatsoever. Lessee’s duty to
indemnify and hold harmless shall not include claims for the gross negligence or willful
misconduct of the Lessor, its agents, officers or employees.
9. Lessee Insurance. Prior to use of the Premises, Lessee shall provide Lessor with proof
of the following insurance coverage and maintain the following coverage at all times
during the term of the lease, and shall upon request of the Lessor provide proof of
insurance:
A. Comprehensive General Liability insurance with a combined single limit of at
least Five Million dollars ($5,000,000) for each occurrence for bodily injury, personal
injury and property damage. Lessor, its officials, employees and agents shall be
covered as additional insureds with respect to liability arising from activities within the
scope of this agreement performed or authorized by or on behalf of Lessee. Said
insurance shall be primary and non-contributory insurance with respect to Lessor, its
officers, employees, agents and representatives.
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Attachment 2
4
B. Automobile Liability: $5,000,000 per accident for bodily injury and property
damage. Lessor, its officials, employees and agents shall be covered as additional
insureds with respect to liability arising from activities within the scope of this agreement
performed or authorized by or on behalf of Lessee. Said insurance shall be primary and
non-contributory insurance with respect to Lessor, its officers, employees, agents and
representatives.
C. Workers’ Compensation insurance as required by the State of California.
D. Upon the execution of this Lease, Lessee shall deliver to Lessor certificates of
insurance with original endorsements evidencing the coverage required by this Lease.
E. The procuring of insurance shall not be construed as a limitation on Lessee’s
liability or as full performance on Lessee’s part of the indemnification provision of this
Lease. Lessee understands and agrees that, notwithstanding any insurance, Lessee’s
obligation to defend and indemnify Lessor, its officials and employees hereunder is for
the full amount of any damage, loss cost or expense.
F. Any modifications or waiver of these insurance requirements shall only be made
with the written approval of the Lessor’s risk manager or designee.
10. Lessor Insurance. Lessor shall provide Lessee with proof of the following insurance
coverage and maintain the following coverage at all times during the term of the lease,
and shall upon request of the Lessee provide proof of insurance :
A. Comprehensive General Liability insurance with a combined single limit of at
least Five Million dollars ($5,000,000) for each occurrence for bodily injury, personal
injury and property damage. Lessee, its officials, employees and agents shall be
covered as additional insureds with respect to liability arising from activities within the
scope of this agreement performed or authorized by or on behalf of Lessor. Said
insurance shall be primary and non-contributory insurance with respect to Lessee, its
officers, employees, agents and representatives.
B. Automobile Liability: $5,000,000 per accident for bodily injury and property
damage. Lessee, its officials, employees and agents shall be covered as additional
insureds with respect to liability arising from activities within the scope of this agreement
performed or authorized by or on behalf of Lessor. Said insurance shall be primary and
non-contributory insurance with respect to Lessee, its officers, employees, agents and
representatives.
C. Workers’ Compensation insurance as required by the State of California.
D. Upon the execution of this Lease or prior to any Lessor or Lessor-authorized use
of the Lot Improvements, Lessor shall deliver to Lessee certificates of insurance with
original endorsements evidencing the coverage required by this Lease.
E. The procuring of insurance shall not be construed as a limitation on Lessor’s
liability or as full performance on Lessor’s part of the indemnification provision of this
Lease. Lessor understands and agrees that, notwithstanding any insurance, Lessor’s
obligation to defend and indemnify Lessee, its officials and employees hereunder is for
the full amount of any damage, loss cost or expense.
F. Any modifications or waiver of these insurance requirements shall only be made
with the written approval of the Lessee’s Risk Manager or designee.
11. Notice. Any notice required hereunder shall be in writing and personally delivered or
deposited in the U.S. Postal Service, registered or certified, return receipt, postage
prepaid, to the address of the respective parties set forth below:
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Attachment 2
5
LESSOR: LESSEE:
SESLOC Federal Credit Union Parks and Recreation Director
Post Office Box 5360 City of San Luis Obispo
San Luis Obispo, CA 93403-5360 1341 Nipomo Street
San Luis Obispo, CA 93401
Notice shall be deemed effective on the date shown on the return receipt or on the date
personal delivery is made, whichever first occurs. If delivery is refused, the date of
deposit of the copy in the mail shall be deemed the date of notice. Change of address
shall be given as provided herein for notices.
12. Partial Invalidity. If any term, covenant, or condition of this Lease is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remainder of the
provisions hereof shall remain in full force and effect.
13. Successors in Interest. This Lease shall be binding on and inure to the benefit of the
parties and their successors, heirs, personal representatives, approved transferees and
assignees, and all of the parties hereto shall be jointly and severally liable hereunder.
14. Attorney’s Fees. In any action or proceeding relating to this Lease, the prevailing party
shall be entitled to its costs, including reasonable attorney’s fees and court costs.
15. Integration and Amendments. This Lease represents and constitutes the entire
understanding between the parties and supersedes all other agreements and
communication between the parties, oral or written, concerning the subject matter
herein. This Lease shall not be modified except in writing duly signed by the parties and
referring to this Lease.
16. Governing Law. This Lease shall be governed by and construed in accordance with
the laws of the State of California.
17. Captions. The various headings and numbers herein and the grouping of the terms
hereof into separate sections, paragraphs and clauses are for convenience only and
shall not be considered a part hereof, and shall have no effect on the construction or
interpretation of this Lease.
18. Lessor’s Representation of Authority. Lessor represents that it has title to the
Premises and full authority to execute this Lease and to grant the easements and
access to the Premises. Lessor further represents that there are no undisclosed liens,
judgments, impediments or exceptions of title on the Premises that would affect this
Lease.
19. Default. If Lessee fails to perform its obligations under the Agreement, Lessor will
provide written notice of the default and may proceed to terminate the lease if the default
is not cured.
20. Assignment and Subletting. Lessee is prohibited from assigning or subletting this
lease Agreement.
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Attachment 2
6
21. Estoppel Certificate. If requested, Lessee will provide an estoppel certificate upon
request if required by Lessor.
22. ADA Disclosure. Consistent with California law update July 1, 2013, prior to the time of
use according to the terms of this Agreement, Lessor agrees that the Premises will have
undergone an inspection by a Certified Access Specialist (CASp).
IN WITNESS WHEREOF, the parties have executed this Lease with all of the formalities
required by law as of the date first above written.
LESSOR: LESSEE:
SESLOC FEDERAL CREDIT UNION CITY OF SAN LUIS OBISPO,
A Municipal Corporation
By:_____________________________ By:_____________________________
Geri LaChance, President/CEO Jan Howell Marx, Mayor
ATTEST:
By:_____________________________
City Clerk
APPROVED AS TO FORM:
By:_____________________________
Christine Dietrick, City Attorney
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DRAFT Parks and Recreation Commission Minutes – October 2, 2013
Page 2 of 4
1-2
Tree Committee review and consideration and then Council. Staff will keep Commissioners and
Mr. Ross apprised of dates).
MOTION: (Parolini/Whitener) Recommend City Council expand Slacklining to City Parks and
approve revisions to Ordinance 12.24.150 removing Slack lining definition in 6 and adding section
D) 1 through 3 defining lines as no greater than 30 feet, designated with ribbons, and occurring only
during daylight hours with lines be removed at night.
Approved: 5 yes: 0 no: 2 absent (Updegrove, Regier)
3. Review and Approve Peak Parking Lease Agreement with SESLOC – Stanwyck
Director Stanwyck explained the historical partnership with SESLOC from 2006 and the use of their
land for Damon Garcia overflow parking during peak uses. With SESLOC’s construction on the
property a change in relationship is needed as there is no longer a temporary parking lot. After
extensive conversations with SESLOC representatives, a 10-year agreement is proposed. This would
allow for the use of SESLOC’s Broad Street Parking (under defined conditions) for a lease amount
over the ten years of a total of $32,000. This amount is recommended to be funded from funds
remaining from the previously approved budget for the deconstruction of the temporary parking lot.
The SESLOC Board of Directors has reviewed the document and is in agreement as to its content.
Director Stanwyck answered Commissioners inquiries about difference in prior costs, staffing costs
from Facilities budget and some volunteer time from users (to prevent oversized vehicles, unauthorized
parking in retail area and patrol for tournament weekends). Entrance and signage was also discussed
as well as safe crossing paths and longer period of time for crossing at the intersection. Commissioners
thankfully recognized SESLOC for their cooperation.
MOTION: (Kincaid/Whitener) Recommend City Council approve the Proposed Lease Agreement
with SESLOC as presented.
Approved: 5 yes: 0 no: 2 absent (Updegrove, Regier)
4. Presentation: Reservoir Canyon Conservation Plan - Hill
Natural Resources Manager Robert Hill gave a PowerPoint to Commissioners and reviewed the history
of the plan that serves to guide management and development of the Reservoir Canyon Site over the
next five to seven years. Hill explained small changes to the plan made since the last PRC review
including the addition of 89 acres during the end of Neil Havlik’s tenure, integration of the LaLoma
Adobe Site and access to the waterfall and parking. Reviewed project analysis as outlined in the staff
report. Believes the plan is consistent with the Conservation Guidelines adopted in 2002 and
Conservation and Open Space Element updated in 2006 and will direction for habitat protection,
recreational use and management activities.
Public Comment:
Comments provided by Don Dollar, San Luis Obispo, were distributed to Commissioners and
included a request to build a cattle enclosure fence to protect riparian habitat, dropping the La Loma
Adobe from the Plan due to maintenance concerns or reviewed by the CHC and then submitted as an
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NUMBER
Fund No.
100
Amendment
Amount
(32,000)
TOTAL (32,000)
Amendment
Project Phase Amount
Building & Property 32,000
TOTAL 32,000
Date
Date
Page 1 of 1
Account
7701
City Administrative Officer
PURPOSE
Transfer of remaining funds (less $824) from SESLOC parking lot deconstruction project to pay for the long term
Department Head
Requesting Department Fund Name
Parks and Recreation General
Account Description Revenue Account No.
REVENUES AND OTHER FINANCING SOURCES
lease with SESLOC for use of parking for Damon-Garcia Sports Fields.
General Ledger No,Capital Project No.
Account Description
Director of Finance
Entered ByDate
Date
SESLOC Parking Lot Deconstruction 40050200-91193953-91193400-91193953
City of San Luis Obispo
BUDGET AMENDMENT REQUEST
Program
60100
EXPENDITURES AND OTHER FINANCING USES
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R _____
RESOLUTION NO. _____ (20xx Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO
APPROVING THE TERMS FOR THE LEASE OF SESLOC FEDERAL CREDIT
UNION OWNED PROPERTY AT 3807 AND 3855 BROAD STREET AND AUTHORIZE
THE MAYOR TO EXECUTE THE LEASE FOR OVERFLOW PARKING AT DAMON-
GARCIA SPORTS FIELDS WITH ALL NECESSARY PAPERWORK
WHEREAS, SESLOC Federal Credit Union owns commercial property at 3807 and
3855 Broad Street (adjacent to the Damon-Garcia Sports Fields); and
WHEREAS, SESLOC Federal Credit Union has agreed to lease this space to the City for
a period of 10 years; and
WHEREAS, the City has adopted policies on leasing property as part of its Property
Management Manual; and
WHEREAS, the City’s Capital Improvement Plan Funds (from Damon-Garcia Parking
Lot Construction in 2012-13) is sufficient for this financial commitment.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo to:
SECTION 1. Approve the lease agreement between the City of San Luis Obispo and
SESLOC Federal Credit Union; and
SECTION 2. Authorize the Mayor to execute the lease agreement and all necessary
paperwork.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 20xx.
____________________________________
Mayor Jan Marx
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Resolution No. _____ (2013 Series)
Page 2
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
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