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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 C2 - 1 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 C2 - 2 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 C2 - 3 C2 - 4 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. C2 - 5 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: C2 - 6 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. C2 - 7 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: C2 - 8 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. C2 - 9 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 C2 - 10 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 C2 - 11 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 C2 - 12 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 C2 - 13 Resolution No. _____ (2013 Series) Page 2 ATTEST: ____________________________________ Anthony Mejia City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney C2 - 14