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HomeMy WebLinkAbout07/25/1995, 2 - LEASE OF REAL PROPERTY - 45 PRADO ROAD �I��h�Wl�lyllllfll�llllJulv 25. 1995 �l11ul c� J or san tins oB�s" p0 MEETING DATE: COUNCIL AGENDA REPORT ITEM N ER: FROM: John E. Moss Utilities D' for SUBJECT: Lease of Real Property - 45 Prado Road CAO RECOMMENDATION: By motion, (1) Receive a status report on issues related to the current ECOSLO recycling operation; (2) Provide staff direction as to how to proceed with the disposition (lease) of the property located at 45 Prado Road (options 1 through 4); and, (3) Grant an extension of the existing lease to ECOSLO for an additional six months. DISCUSSION: Background On November 15, 1971 the City entered into agreement with the Environmental Center of San Luis Obispo (ECOSLO) for the lease at no charge of City owned real property, located at 45 Prado Road, for the purpose of operating a six month trial program for reclaiming and recycling glass, metal and other products as mutually agreed upon by the parties. The total amount of property leased was 10,000 square feet. Even at this early time (1971) the City and ECOSLO recognized the significance of recycling and the potential value it held for the environment, landscape, the City and Citizens. The lease has since been amended four (4) times. The first amendment extended the original lease term an additional six (6) months to November 1972. The second amendment extended the lease term to December 31, 1973 and included newspaper recycling under the statement of purpose. The third amendment revised the term of the lease to be on a month to month basis to be automatically extended on the first day of each calendar month. The lease of this property continued under these terms until the late 1980's when conflicts over the use of the property began to arise between the recycling operation and the City Fire Department. At that time the property was also being used as the training facility for the Fire Department. Additionally, the recycling operation had expanded its use of the property well beyond the original 10,000 square feet. The fourth amendment to the lease was approved by Council in March of 1992. This amendment extended the lease on a year for year basis for a period of three years with expiration of the lease agreement on March 1, 1995. Additionally, the recycling center facilities were relocated to the front of the property and a total of 23,450 square feet was provided for use by the recycling center. On February 21, 1995 Council approved an extension of this lease for six (6) months in order to allow staff time to evaluate a number of issues related to site management by the lessee and potential conflicts with the use of the property immediately adjacent to the recycling center for the future Homeless Services Center. Since February 21 staff has been worldng with ECOSLO on a number of issues related to site cleanliness, hazardous materials storage and clean-up of contamination, traffic safety and parking. Additionally, ECOSLO has been worldng to address internal management issues in order to assure long-term resolution of these problems. ECOSLO has assured staff that the necessary steps will be taken to resolve these issues. ��II�������I�IIIIIIIIIIp ���IU city of San L.-AS OBISPO - COUNCIL AGENDA REPORT 45 Prado Road Lease Meeting of July 25, 1995 Page 2 Recycling Programs At the time the property was first leased to ECOSLO (1971) recycling was in its infancy. ECOSLO pioneered recycling in San Luis Obispo and provided a valuable public service in community awareness and education as well as providing a drop-off/buy-back center for recyclables. Since that time recycling has become mandated by the state and programs and services are closely regulated. With the state mandates came a developing market for recyclable products and materials thus enhancing private sector development of recycling programs. Today there are many programs and services offered related to recycling in our community. Grocery stores take recyclable beverage containers, used oil is recycled at numerous locations and nearly every community has at least one buy-back center. Additionally, curbside recycling has greatly enhanced recycling programs in California. Recycling has become a business in California as the value of recycled commodities has increased. As stated earlier, ECOSLO provided the City with a valuable service at a time when the market did not support private sector involvement. This service however, has not been entirely without conflict. The very nature of recyclable materials processing requiring collection, storage and transport of a variety of materials such as aluminum and glass beverage containers, plastic containers, paper, cardboard, etc., lends itself to problems such as blowing debris and litter, dust, odors, traffic control, etc.. Over the term of the lease the control of blowing debris and site cleanliness has been perhaps the single most significant problem with the recycling center's operation. With the changing direction of recycling in California and in recognition of the problems associated with the current lease of the property, it is perhaps now appropriate to question whether a subsidized recycling operation at this site is still appropriate. Options: Values and Cost Is operation of a recycling center the best current use of the property? There is no question that continuance of a recyclable materials buy-back operation at this site is valuable, merely because of the developed habits of the customers who .bring their materials to this site. Staff believes that the continued operation of a recycling buy-back center at this location is important to this community unless and until a higher use of the property is found. What are the available options for continuing a recyclable materials buy-back center at this site? If Council concurs that operation of a buy-back center is desirable for this site, there are essentially four options to consider. (1) Continue the subsidized operation by ECOSLO. (2) Lease the property to ECOSLO at fair market value. (3) Competitively bid the use of the property as a recyclable materials buy-back center. (4) Negotiate an agreement with the City's curbside recycler, currently SLOCO Recycles, for the operation of a buy-back center with the revenues from the sale of the recycled materials being credited towards the refuse rates. �-ate i��I��I�N►�IIIIIIIIII° �IIUIiI city Of San LAS OBISPO COUNCIL AGENDA REPORT 45 Prado Road Lease Meeting of July 25, 1995 Page 3 Nkat then are the benefits and costs associated with the available options for use of this site as a recycling center? (1) Continue the current subsidized operation by ECOSLO This would require the Council to make a finding that the subsidized operation of the recycling center provides overriding public benefit worthy of such subsidy. ECOSLO has provided the City and the Citizens of San Luis Obispo with meaningful environmental education services. Operation of the recycling center at a time when recycling was not viewed as a commercially viable operation provided a valuable service to the community. Additionally, revenues from the operation of the recycling center by ECOSLO provides funding for other environmental and educational services provided by ECOSLO. Revenues from the recycling center generate approximately $37,000 (net) per year for ECOSLO. (2) Lease the property to ECOSLO at fair market value This option has the advantage of eliminating the question of subsidy while still allowing ECOSLO to operate a recycling center. Staff estimates the value of the property on a lease basis to be roughly $500 to $1,200 per month. If this option were selected, staff would recommend that the property be leased only for use as a recyclable materials buy- back center. The property is not suited for processing recyclable materials collected by Rock Solid, a subsidiary of ECOSLO, which provides curbside collection for Morro Bay. This processing operation requires recyclable materials sorting, and results in daily collection and transfer vehicle traffic creating safety concerns for buy-back customers, and the processing of a significantly greater amount of materials adding to the debris control problems. The existing site is inadequate for this level and volume of processing. (3) Competitively bid the use of the property as a recyclable materials buy-back center. This option has the advantage of allowing the City to receive revenue from the use of the property in relation to its use as a recycling center. It will generate a lease value of the property based on its value as a recyclable materials buy-back center. This may result in a return which could be either greater than, or less than that possible based on the property's commercial value. Some interest has been expressed by other local recyclers in bidding the use of this property as a buy-back center should Council decide to pursue this option. (4) Negotiate an agreement with the City's curbside recycler. This option has several advantages. First, sales of the recyclable materials would be directly credited towards the hauling rates thus maximizing the direct benefit to our ratepayers for recycling. Curbside recycling is currently handled in this fashion. However, typically the higher value recyclables, e.g. aluminum, are not placed for curbside collection, rather they are taken to one of the local buy-back centers. This option would also allow for the return to be responsive to market conditions. As the value of the recyclable materials increased, so would the return. Conversely as the value decreased, the cost to the recycling center would decrease, thus ensuring the viability and reliability of the recycling center operation. This reliability is a key component to ensuring public support and commitment to recycling. a 3� ���h�i�uiIVIIIIIIIIIP� II�III city of san L.Ais OBISp0 COUNCIL AGENDA REPORT 45 Prado Road Lease Meeting of July 25, 1995 Page 4 Staff is requesting Council consider and discuss the above options and provide staff direction as to how to proceed with the lease of the property. Short Term Extension of ECOSLO Lease Regardless of the direction Council may choose in regards to the disposition of the property, some additional time will be required for staff to develop the appropriate documents and complete required procedures. Should Council choose options 1 or 2 additional time will be required to develop the appropriate lease requirements. At a minimum, indemnifications and insurance provisions must be reflective of the type of operation at the site. Additionally, reporting of diversion tonnages and jurisdiction of origin, etc. will have to be included in any new lease. Should Council choose one of the other two options, sufficient time will be required.to allow for solicitation of proposals and/or negotiation of terms, in addition to development of the appropriate insurance and reporting requirements previously mentioned. With the recent transfer of responsibility for the property from Fire to Utilities, Utilities staff has not had sufficient time to develop the appropriate agreements. Staff therefore recommends that a short term extension, under the existing terms and conditions, for the lease of the property to ECOSLO be granted. Staff recommends an additional six month extension be granted to allow staff sufficient time to complete the necessary work, and ensure continuity of recycling center services on the site. CONCURRENCES: Discussions with ECOSLO Staff has met and discussed with ECOSLO our areas of primary concern regarding the current operation of the site. On May 24, 1995 ECOSLO provided staff with a proposal for the continued use of the property and requested the lease, at fair market rate, of additional property for the operation of the Rock Solid processing yard (Attachment 1). ECOSLO has been undergoing significant change in management and has assured the City of their intent to correct the problems associated with site cleanliness and traffic control. Staff feels these problems may be addressed, however recommends specific provisions and standards be included in any lease agreement for use of the property as a recycling center. Staff does not recommend providing any additional property to ECOSLO for use by Rock Solid. Rock Solid provides curbside recycling services for the City of Morro Bay. These services are provided in direct competition with other curbside recyclers in the County, including our own SLOCO Recycles. Additionally, no additional space is available for lease as the remainder of the property is currently being developed as the Homeless Services Center. There is already some concern over the compatibility of the recycling operations and the peoples kitchen program at the new homeless services center. Providing additional space for Rock Solid would only increase the potential for conflict. ����i�m►►I�IIIIIIIII�1°i{IIIIII city of SAn L.iS OBISp0 Hjj% COUNCIL AGENDA REPORT 45 Prado Road Lease Meeting of July 25, 1995 Page 5 Staff has also discussed the proposed options for lease of the property, as presented earlier in this report, with ECOSLO to determine the impacts of the various options to ECOSLO. ECOSLO has advised staff that a significant component of ECOSLO's overall funding for their programs comes from proceeds from the recycling center. FISCAL EWPACT: There is no immediate fiscal impact associated with the recommended action. There is potential for development of additional revenues should Council decide to pursue one of the options which will require payment for.the leased property. If Council decides to continue the lease at no charge to ECOSLO then there will be no fiscal impact based on our current situation. Attachments: 1. ECOSLO Proposal dated 5/24/95. 2. Lease Agreement dated 11/15/71. 3. Amendments to Lease, Nos. 1 through 5. 4. Proposed Amendment No. 6. Environmental Center 967 Osos Street,SLO 93401 Tel. 805.544.1777 FAX. 805.544.1871 Environmental Center Recycling Center .,f San Luis Obispo County C: E E V E D 45 Prado Road, SLO May 24, 1995 MAY 2 5 7995 Tel. 805543.4296 Rock Solid Recycling Tel. 805.781.3888 Mr. Bob Neumann,Fire Chief City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93403-8100 Dear Mr. Neumann: On May 8, 1995,The Board of Trustees of ECOSLO met with staff and reviewed the correspon"ce sent to ECOSLO by the Fire and Utilities Departments over the past several months as well asyour letter and request for proposal of April 28, 1995. Attached is a proposal to address the concerns delineated in your letter. The Board of Trustees of ECOSLO and ECOSLO management staff are committed to implementing plans to solve the problems as presented in your correspondence. The significant issues outlined in your letter of April 28th are addressed as follows: SECTION I: Overall site cleanliness. SECTION II: Hazardous materials clean-up. SECTION III: Physical and structural site issues. SECTION IV: Eliminate the subsidy of the Rock Solid operation. ATTACHMENT ONE: Proposed Site Plan At your suggestion Frank Seip1e,John Ewan,and yard manager William Cutting met with Public Works Director and City Utilities Director John Moss. The attached proposal also reflects concerns discussed at that meeting. The Board of Trustees respectfully requests the immediate commencement of lease negotiations for the city property at Prado Road Sincerely, John R.Ewan Chairman,Board of Trustees,ECOSLO cc: Make McCluskey,Public Works Director John Moss,Utilities Director ,2- G "Dedicated To Assisting Our Community In Its Pursuit of Sustainability" Mailing Address: PO Box 1014 -San Luis Obispo, CA 93406 recycled paper SECTION I SITE CLEANLINESS Oil collection improvements currently being purchased will permit removal of the kiosk and relocation of the buy-back function to the front(north) section of the yard. This change will reduce circulation space required within the yard, ease congestion, and permit additional separation of public and operational functions. Fencing will be installed within the yard to separate public and operations areas and this will screen the most unsightly portions of the yard from public view. A portion of the added fencing will be high enough to screen the balers. We will have the fire department approve all layouts and designs we intend to implement, and will acquire building permits before starting work, if needed. If staff is satisfied with our proposal and is willing to recommend extension of the lease, we will complete all of the improvements delineated in this proposal prior to August 1, 1995. Our preliminary site plan is attachment#1 to this letter. We have implemented a plan to have two (2) full time(community service workers assigned solely to site cleanliness, and keeping the interior and site exterior clean and clear of debris. We are also implementing a plan to pave the baling and processing areas. The first concrete slabs have been formed and poured, and we have made an agreement with a local cement contractor to have their tailings poured in our ready forms. This will allow for ease of cleaning and a more sightly yard in general. ECOSW M BOB MMAM RNM5 �J SECTION U HAZARDOUS MATERIALS CLEAN-UP We are currently awaiting the final test results and recommendations from the licensed geologist we have contracted to help us remedy the contamination on site. The results of the severity of the contamination as evidenced by the results of the first tests indicate that there are no heavy metals present in the spill area. As a result, the remediation process will be a relatively uncomplicated procedure, and we hope to have the final recommendations with in two (2) weeks. We will implement all of the suggested remedies as soon as we have the reports in hand. In addition, we have assigned our in-house degreed geologist, Brooks Hill, to prepare the site specific Safety and Handling Plan for Hazardous Materials (as defined under Federal and State law), as you requested. It will be submitted for your review by June 15, 1995. In February, 1995, Mr. Hill prepared a Hazard Communication Program as part of our Injury and Illness Prevention Program (IIPP) approved by Cal-Osha. This program has been implemented, and is an integral part of our employee safety programs at the ECOSLO yard. We are also taking steps to eliminate the problem of spillage around the existing oil holding tank. We have ordered a small double-walled oil tank which will be accessible without climbing stairs, and easier for the public to pour into. The tank will be fitted with a drip tray for empty containers and will be placed on a concrete slab with sufficient surrounding paving to avoid any residual soil contamination. The existing oil holding tank will no longer be accessible to the public. It will be used for holding oil collected in the small tank and all oil transfer into and out of the holding tank will be by pump operated by trained staff. The holding tank and containment will be fitted with a non- combustible weather cover and enclosed on three sides. The proposed enclosure will be less than 120 square feet and will not require a building permit, but the design of the enclosure will be submitted for Fire Department review and approval. ECOSW TO sos MMMAM 5r"&5 �-, SECTION III PHYSICAL AND STRUCTURAL SITE ISSUES Containment of yard operations, equipment and debris within the yard boundaries has been an ongoing problem in the past. ECOSLO has already instituted a staff program to continuously police the yard perimeter for debris, and additional physical improvements are proposed. Containments of chain link fencing will be erected around and over the collection bins at the drop-off area to minimize debris scatter. Signs will be added to instruct the public about drop-off rules and warn against illegal dumping. Signs will clearly state that waste oil may not be dropped-off and will only be accepted during business hours. ECOSLO would appreciate a citation of all applicable City ordinances regarding littering, illegal dumping and toxic waste handling so that signs can include appropriate public notice. ECOSLO will also repair and restore the west and north fences and will alter the fencing to mitigate the traffic hazard along the access road. Attachment One shows the proposed configuration of fencing along the west boundary of the site. Angled fence cut-offs at the south side of each of the two points of egress will permit drivers leaving the yard to see northbound traffic on the access road before pulling into the roadway. Operations are currently constrained within the yard boundaries, and equipment is no longer parked in the public right of way. In addition, staff and public parking is now prohibited on the access road shoulder in response to concerns expressed by the City. We were informed by Mr. McCluskey and Mr. Moss that it is not possible to have the City enforce no parking on this roadway, but ECOSLO has installed generic "No Parking" signs and parking has effectively been eliminated by continuous staff policing. ECOSLO TOBWNEMAM�4J9= a_ SECTION IV ELIMINATE THE SUBSIDY OF THE ROCK SOLID OPERATION Beginning in February, 1995, ECOSLO began to sort materials collected by Rock Solid Recycling, using space within the current yard boundary. Although the City has benefited through increased employment and community service hours, we understand the concerns voiced by the City about subsidizing a commercial operation. In response, ECOSLO proposes to compensate the City on a pro rata basis for the space used for Rock Solid operations from February through July, 1995. At this time, an appropriate site for Rock Solid operations has yet to be identified in Morro Bay. ECOSLO also proposes to negotiate a short term lease for a separate parcel immediately adjacent to the south boundary of the ECOSLO yard for use by Rock Solid; while development of a yard in Monro Bay is completed. ECOSLO proposes to pay a fair market rent for use of this space and to pay for necessary fencing and related improvements. Attachment One identifies a parcel 25 feet deep by 174 feet wide as a proposed lease site for Rock Solid operations. With regard to waste oil product recovery to include the entire county, ECOSLO is actively recruiting other sites in the county for this expansion. We have recruited 12 collection sites over the past three months and do not intend to expand waste oil collection at the Prado Road yard. Our goal is to help other cities in the county deal with their own used oil, and to facilitate that development wherever possible. This program development activity is funded by a grant from the County of San Luis Obispo, and is conducted from our downtown office. F.COSIA TO BOB DMI MANN 524/95 ' 1 ! •Z 3119hd'. ANOZ SN011VH3d0 1■���■�l10■►2PiPAR_t:�03 4►1►05►`S►�t►0 RISE ■!i■■NF1■�1,,t1/►�►/►�►_�►_�►_�►.►.�►_�►� ' � : 1■�■��E��i►�i►/►moi.►�►�'a'=�►=�` 1■E■� N■ LIQ►�►_�►!►!►�►�►�►�tT, . 5�:�,� 1■■�■�■■:�'�/�/►�P►�►��IMEMEMEN BERMS 4Wi►vd►tet/t ggrgggg • l0■i1 ■ice 6,Tmal 4►!►d►j►1►�1 ' '�■��©�►v/►�i►vi►�►�►�►�►�►/►tom/ON/1 ist PAN 11. i����l:�i ►!►_�►!►!i�i0►2►/►MFk4►�►�►�►t d id VA FAR VAN PAS xlm- 03 FAR 0 /FAN► 061.5 G 0 GrA � as ;;r_:\:±..•: i.''��� • li■ ®104 FAN/CHit 1011►./►./►_1)111 ►I/.t YY''a :'.; : \ ; MEall loll �_..i,..,9�..�1► f1►.//1►...■- '+ s. • - II C• P1AUMN1 #2 r JRIGIIQAL LEASE AGREEMENT 1 This Agreement, dated November 15, 1971 for the convenience of the parties heretc 2 Is between the City of San Luis Obispo, California, a chartered municipal corporation, 3 ^(hereinafter sometimes referred to as "City') and the Environmental Center of San Luis 4 Obispo,.an association, (hereinafter sometimes referred to as "Center'); 5 WITNESSETH: 6 WHEREAS, City and Center are both interested in and committed to the protection 7 of the environment and the landscape; and 8 WHEREAS, Center desires to operate for six months a trial program for reclalmit 9 and recycling glass, metal and other products as mutually agreed upon by the 11..parties, 10 which program could potentially be of lasting benefit to the environment, the Aandscape 11 and the City and its citizens, thereby serving a valuable public purpose; 12 NOW, THEREFORE, City and Center, for and in consideration of the mutual 13 benefits, promises and agreements set forth herein, do agree as follows: 14 1. This Agreement shall be effective as of the date it is executed by both of the 16 parties hereto, and shall terminate May 15, 1972. 18 2 - City agrees to permit Center to use up to 10,000 square feet of open space as 17 designated by the City Administrative Officer from time to time at the City's fire training 18 facility at the sewer plant on Prado Road in the City of San Luis Obispo. 19 3. Center agrees to uee said open space only for the purposes of conducting a 20 program for cite recycling of glass, metal and other products as mutually agreed upon by 21 the parties. " 22 4. Center agrees to accept suitable materials for recycling from the public at 23 month least 12 hours per mot, pursuant to a schedule posted at the recycling site. 24 S. Center agrees to maintain said recycling site in a.manner at all times 25 satisfactory to the City Administrative Officer or his designated representatives. 26 6. Center shall provide sufficient personnel and equipment to conduct its operad 27 without undue congestion or unsightliness. 1. 28 7. Center shall at all time provide the City Administrative Officer with a currei f 29 list of three or more persons representing the Center, at least one of whom can be 30 contacted by the Administrative Officer whenever he desires information concerning the 31 operation of the Center or seeks correction of conditions at the recycling site. 32 SIS. Center shall hold the City harmless from all claims and liability arising fror. A er"IAT IIT MALLK.UL \LM-T-LIT �O[iia• 11.O.I.IG. ,uu 93401 1 �u.aea6 r 14. f x-12 • ' p _ 1"1'Hll'iCL:1V'1' ryL -- II 0RTNAL LEASE 1 the operation of the recycling site or any other conduct or site condition connected with • 2 the recycling program. Center shall obtain and keep current a liability Insurance policy 3 with proper damage mage coverage of not less than $50,000.00 for each person on account 4 of any one occurrence, and with personal In 5 jury coverage of not less than$100,000.00 for each person and $300,000.00 total for each occu ence. e listed as a The City shall be specificall named insured In said policy, 7 9• Center and all of Its agents,nts, representatives,, and participants in an the recycling program shall be independent contractors or volunteers for Y manner in 9 not for an Center and shall y purpose be considered as employees or agents of City. Center a 10 the City harmless and defend the grecs to hold 11 City in any action, proceeding or hearing wherein the cau of action or claim is based upon a claim 12 that any person participating in the recycling Program is an employee or agent of the City. 13 14 10. Center shall limit or cease all operations within recyclinseventy-two 2) g site khenever so requested by the City' hours at the 16 s Administrative Officer. appeal any such request b Center may 18 Y the Administrative Officer to the next re City Council, gulaz meeting of the 17 11: The Center shall provide the Ci 18 ty with monthly statements of gross revenue 19 and expenses connected with the the of the recycling program. 20 12. The Center agrees to leave the premises in a condition satisfactory to City upon 21 termination pf die recycling prom normal wear and tear excepted. 13. If Center should fail to correct any condition at the rec clip s r 22 Y two (72) hours after being requested to do sob g ite wlt hLh sevenq 23 shall have the y the City Administrative Officer, the City right to correct the condition with City forces or contract labor, or both, 25 all costs, bot[ direct and Indirect,. connected hvith svclh 2e 14. The City Council may Y by motion after a terminate this Agreement at its sole discretior. public'hearing held upon ten !0 28 ) days written notice to Center. Shall be effective fifteen 1• Said termination 29 -- Ys after City mails notice of termination to Center. 30 31 32 TTOpMLT Mill \ T<L<} 4 Il,• 7L1�0, •LLLL Page 2 a ATPAfDIP #2 ORIGINAL LEASE 1 1�. For purposes of notice under this Agreement, all notices shall be considered 2 effective upon being sent by registered mall to the following addresses: 3 City City Clerk 4 City Hall 990 Palm Street 5 San Luis Obispo, CA 93401 4 Center. Environmental Center Box.1014 7 San Luis Obispo, CA 93401 8 IN WITNESS WHEREOF, die parties hereto have executed this A 9 Proper officers duly authorized, as of the date first above written, Agreement by [heli 10 . 11 ATTEST: • r t CITY OF SAN LUIS OBISPO 12 13 BY: --C 14 ayor 16 ENVIRONMENTAL CENTER OF SAN LU 16 OBISPO 17 19 G -chai nTn 20 21 Co-c hairman 22 23 24 25 20 2? 28 29 30 31 32 arrecc ar T„a TT ATTORNLT .. 'ALM ,, `A. .0. ", .,.r Page 3 OaN.a. .ro.oh +-uaa �'s Tl'ACEMENf 42 ORIGINAL LEAST 14' .. THIRD A1MNDI•IENT TO LEASE AGREEMENT 2i. The Lease Agreement dated November 15; 1971, between the City 3I of San Luis Obispo and the Environmental Center of San Luis Obispo, 4II as amended by a First Amendment dated Jul 5jAmendment dated Januar y B 11972, and a Second y 15, 1973, is hereby further amended as 61 follo'Ars: 7' 1• The lease termination date in Paragraph ra will hereafter be determined in accordanc Ph 1 of said lease e with the following Provisions: 10, "The term .of this lease agreement shall be on a 11� month-to-month basis. 1211 The agreement shall be auto- matically extended on the first day of each calendar 13 month for an additional 14I one month Period unless either party has perviously given to the other party written 15 notice of termination." 16 All other terms 17C conditions and provisions of said lease remain in full force and effect. 18:' E IN WITNESS WHEREOF, the parties hereto have executed this 1910 20Agreement by their proper officers duly authorized. � 21 i DATED: /6 22 CITY OF SAN LUIS OBISPO 23I ATTEST: 24• B ayor 25 _ • 26 �''�.,��. .�. 271 28� ENVIRONI-NTAL CENTER OF SAN LUIS OBISPO 29 r 30 By:1 1 _ 3 ` '�✓ ry L� fit, 32 I ITT A 0I TM( C �TT02N[, By: cllt n.lL 1 aI,i.lr aa2[[1 I o.yea aa, a•e 403LVII13OINIO. [r 11[2.01 laoaa.a.e6e2 - I BRIG LEASE •v >teanuary .973 San Luis Obispo, California 1 SECOND AMENDMENT TO LEASE AGREEMENT 2 The Lease Agreement dated November 15, 1971, between the City of San Luis 3 Obispo and the Environmental Center of San Luis Obispo, as amended by a First 4 Amendment thereto dated July 8, 1972, Is hereby further amended as follows: 6 1. The termination date of saldlease set forth in Paragraph 1 thereof is 8 hereby amended to read: "December 31, 1973." 7 2. Paragraph 3 of said lease is hereby amended to read in full as follows: 8 "3. Center agrees to use said open space only for the purposes of 9 10 conducting a program for the recycling of glass, metal, newspaper, 11 and other products as mutually agreed upon by the parties." ' 12 All other terms, conditions and provisions of said lease remain in full force and effect. 13 14 IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their proper officers duly authorized. 16 ' 16 17 ATTEST: • CITY OF SAN LUIS OBISPO hf� rk 18 19 20 By: 21 ay or 22 ENVIRONMENTAL CENTER OF 23 SAN LUIS OBISPO 24 26 28 27 28 29 , aaa— %n r f; h'y j . v�"40 3TACHMENT #z ORIGINAL LEASI .—. .1 FIRST AMENDMENT TO LEASE AGREEMENT �~� 1 The Lease Agreement dated November 15, 1971, between the City of San Luis 2 Obispo and the Environmental Center of San Luis Obispo, 3 Center to conduct recycling p 1 which lease permits the 4 Y g operations upon City-owned property, is hereby amended 8 to extend said lease for an additional period of three months. The termination da 8 fiov&ndza , to of said lease set out in paragraph 1 thereof is amended to read•,4ygu6t 11972. 7 All other terms, conditions, and provisions of said lease remain in 8 full force and effect. 9 10 IN WITNESS WHEREOF, the parties hereto have executed this Agreement by 11 their proper officers duly authorized. 12 _ ATTEST: 13 ity rk CITY OF SAN LUIS OBISpO 14 15 Date: 18 By: 17 yor 18 Date: ENVIRONMENTAL CENTER OF 191 SAN LUIS OBISPO 20 �7 21 22 23 firman 24 L 25 o-C a an 1 28 27 28 2911 30 31 32 O��IC[O!TYi clrr•TTonxcr CIA YAII • O'ALY ""T I.O.•OI Ili• • �l LIFO OOITO. ) 403 : 1Y1A 1340I 100]) e��.aeae St 4) / FOURTH AMENDMENT TO LEASE The Lease Agreement dated November 15, 1971, between the city of San Luis Obispo and the Environmental Center of San Luis Obispo, as amended by a First Amendment dated July 8, 1972 , a Second Amendment dated January 15, 1973, and a Third Amendment dated April 16, 1974, is hereby further amended as follows: 1. The term of the lease stated in Paragraph 1 of said lease will hereafter be determined in accordance with the following provisions: "The term of this lease agreement shall be for one year, commencing on March 1, 1992. The one-year tenancy may be extended for an additional year on March 1, 1993, and March 1, 1994, with prior authorization from the City Council unless the . lease is otherwise terminated pursuant to Paragraph 14 . In any event, this lease agreement shall terminate no later than March 1, 1995. " 2. The description of the leased premises in paragraph 2 of said lease will hereafter be determined in accordance with the following provisions: "City agrees to permit Center to use up to 23,450 square feet of open space at the City's fire training facility at the sewer plant on Prado Road in the City of San Luis Obispo. The 1 a�� y I boundaries of said area is set forth in the attached Exhibit A, as the Expanded Area. " 3. The insurance requirements stated in Paragraph 8 of said lease will hereafter be determined in accordance with the following provisions: "Center shall defend and hold the City, its officers, agents, and employees, harmless from all claims and liability arising from the operation of the recycling site or any other .conduct or site condition connected with the recycling program. Center shall obtain and keep current a liability insurance policy with property damage coverage of not less than $100,000.00 for each person on account of any one occurrence, and with personal injury coverage of not less than $1, 000, 000. 00 for each person and $1, 000, 000. 00 for each occurrence. The City shall be specifically listed as a named additional insured in said policy. " All other terms, conditions and provisions of said lease, as amended, shall remain in full force and effect. 2 IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment by their proper officials duly authorized. Dated: This day of 1992. CITY OF SAN LUIS OBISPO RV!eA04SAU Mayor Ron Dunin ATT ST: I Cit Clerk ENVIRONMENTAL CENTER OF SAN LUIS 0 ISPO By: 3 a-� FIFTH AMENDMENT TO LEASE AGREEMENT The Lease Agreement dated November 15, 1971, between the City of San Luis Obispo and the Environmental Center of San Luis Obispo, as amended by a First Amendment dated July 8, 1972, a Second Amendment dated January 15, 1973, a Third Amendment dated April 16, 1974, and a Fourth Amendment dated March 17, 1992, is hereby further amended as follows: 1. The term of the lease stated in Paragraph 1 is hereby amended as follows: "The term of this lease agreement shall be extended for a period of six months, commencing on March 1, 1995. In any event, this lease agreement shall terminate no later than August 21, 1995." All other terms, conditions and provisions of said lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their proper officers duly authorized. DATED: February 21, 1995 CITY OF SAN LUIS OBISPO �j ATTEST: By: Mayor Allen K. Settle Crit ler4Dan4eGladqw4e -- ll APPROVED AS TO FORM: ENVIRONMENTAL CENTER OF SAN LUIS OBISPO y for y By: ,;2-tel SIXTH AMENDMENT TO LEASE AGREEMENT The Lease Agreement dated November 15, 1971, between the City of San Luis Obispo and the Environmental Center of San Luis Obispo, as amended by a First Amendment dated July 8, 1972, a Second Amendment dated January 15, 1973, a Third Amendment dated April 16, 1974, a Fourth Amendment dated March 17, 1992, and a Fifth Amendment dated 2/21/95, is hereby further amended as follows: 1. The term of the lease stated in Paragraph 1 of said lease will hereafter be determined in accordance with the following provisions: "The term of this lease agreement shall be for an extension of six months, commencing on August 21, 1995. In any event, this lease agreement shall terminate no later than February 21, 1996." All other terms, conditions and provisions of said lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their proper officers duly authorized. DATED: CITY OF SAN LUIS OBISPO By: Mayor ATTEST: City Clerk ENVIRONMENTAL CENTER OF APPROVED AS TO FORM: SAN LUIS OBISPO �n By: n CRy Attornev • MEETING AGENDA DATE2W-?S0 rrEM # Environmental Center 1167 Osos San Luis Obispo,CA 93401 Tel.:805/544- 1777 cycling Center 45 Prado Rd. San Luis Obispo,CA 93401 Tel.:805/543-4296 Environmental Center of. July 20, 1995UNCIL 13 �,DD DIR SAO FIN DIR Mayor Allen Settle Pf ACAO ❑ FIRE CHIEF City Hall ATTORNEY ❑ PW DIR San Luis Obispo, CA CJ CLERK/ORIG ❑ POLICE CHF Re: ECOSLO Recycle Yard at 45 Prado Road- Lease Renewal ❑ C TEAM ❑�REC DIR ❑,C R FILE 1�UTIL DIR Dear Mayor Settle: f ❑ PERS DIR The ECOSLO Board of Trustees would like to address some issues regarding the recycling yard lease space at 45 Prado Road. We have reviewed the staff report for the Prado Road Lease, Item 2. on the July 25, 1995 Council Agenda, and we want to offer additional information for your consideration. The staff report identifies two significant issues to be resolved as the City contemplates its options at the Prado Road site. I. Whether the City derives greater value from its subsidy of ECOSLO's recycling operations and the resulting community-wide benefits from ECOSLO's services and programs than it would by taking revenue directly, in the form of rent payments from a for-profit business. II. Whether the processing of materials obtained through ECOSLO's Rock Solid Recycling contract with the City of Morro Bay is appropriate at the Prado Road yard. As the staff report points out, ECOSLO has operated a recycling center at Prado Road for almost 25 years, long before recycling became the mainstream waste diversion practice of communities nationwide. When income could be generated from the sale of materials, ECOSLO began to use these funds to develop educational programs and environmental services. When 'market conditions reduced income, ECOSLO continued to buy materials and increased volunteer hours in its programs and services. We have survived for almost a quarter century through the efforts of a minimally compensated staff and a host of volunteers. We are in the enviable position of being a largely self-supporting non-profit community service organization, but it has certainly not been easy. ECOSLO has survived a number of financial crises through the bad times, remained committed to its mission and never closed its doors, even when recycling was a losing proposition. Today, recycling consciousness in our community, fostered in part by ECOSLO's efforts, has created a more reliable market for materials, and businesses for profit have followed our lead into the recycling market. As a non-profit community service organization ECOSLO uses revenues generated by its recycling operations to staff an office and provide the following programs and services: 1. Establish recycling pick-up sites throughout San Luis Obispo County. 2. Staff an environmental Hotline, providing recycling and environmental information to the public. 3. Operate a downtown environmental center, providing clearinghouse and support services for a range of community non-profit groups and organizations. RECEIVED nn2 'l fyy5 w Mailing Address: P.O.Box 1014 San Luis Obispo,CA 93406 CITY COUNCIL re Yded paper CeN I I n� nOIQDn nA ti- 4. Develop outreach and educational programs in the community, such as symposiums and workshops on vital environmental issues facing our community. 5. Provide settings and activities for students to fulfill course requirements in environmental education. 6. Publish a Recycled Product Guide for community-wide distribution. (With the help of additional City funding) 7. Establish and help certify used oil collection sites throughout the County. (ECOSLO wants to minimize oil collection at the Prado Road yard, and has purchased, with grant funds administered by the County of San Luis Obispo, new oil handling equipment to more cleanly and safely manage the used oil we do receive from the public.) 8. Provide work for court-assigned community service workers. (ECOSLO staff manage these workers and ECOSLO pays the insurance premiums and other costs associated with program administration.) 9. Promote recycling and assist the community in the attainment of state-mandated AB 939 waste diversion goals. 10. Organize volunteers in service of environmental activities and education programs. 11. Maintain a resource library on a wide range of environmental topics and issues at our downtown center. 12. Provide spokespeople to inform the community at large on environmental issues and to advocate community sustainability. ECOSLO's programs and services represent a highly leveraged benefit to the City of San Luis Obispo. Our operational revenues pay for staff and facilities which directly support the efforts of a multitude of community volunteers, a contribution impossible to match through the efforts of government or for-profit business. Viewed in this light,we believe it is easy to evaluate the benefit the City of San Luis Obispo derives from its support of ECOSLO. With regard to the issue of Rock Solid materials processed through the Prado Road yard, it should be noted that historically, ECOSLO has always obtained materials from communities throughout San Luis Obispo County and sold them to generate revenue. ECOSLO has traditionally received such materials through buyback traffic at the yard and through collection drop sites as far away as Cambria. Now that ECOSLO has an agreement to collect curbside material in the City of Morro Bay, the question of has been raised whether ECOSLO should be permitted to process another community's material in San Luis Obispo's yard. The fact is that Morro Bay pays ECOSLO for a service, and San Luis Obispo benefits from the resulting revenue to ECOSLO in the form of donated community services. It seems like a win-win situation to us. Nonetheless, ECOSLO has stated its willingness to pay a fair market rate for a prorata portion of the yard space which Rock Solid material processing uses, if the Council finds that there is an issue of fairness to be addressed. In deliberating this question the following facts are noteworthy: I. ECOSLO dba Rock Solid Recycling is a 501(c)3 non-profit California corporation. No profits derived from operations inure to any individual or ECOSLO member. Increased revenues translate directly to increased and improved community services. II. The increase in material volume has indeed impacted the Prado Road yard, but not necessarily in the negative way implied in the staffs report: Since February, when Rock Solid materials first began to be sorted at the yard,the appearance of the yard has dramatically improved. Staffing levels are up and the new management team at the yard has been aggressively policing the yard perimeter to prevent debris scatter from polluting surrounding properties. Increased material volume results in shorter stockpile time, which in tum reduces the breakdown of paper materials, spoilage and scatter. ECOSLO/CrrY COUNCIL/07!101951 PAGE 2 III. The greatest impact on the viability of the yard in its present configuration is the public buy- back operation. It is not unusual for vehicles to be lined up from the Prado Road gate all the way through the yard to the southern gate on the side road, requiring dedication of about 1/3 of our yard area to public circulation. By comparison, Rock Solid materials use relatively little additional space within the processing zone of the yard. Our proposal for additional yard space is a suggestion for identifying a parcel on which to base Rock Solid rent payments, not to solve the space problems at the yard. Even without Rock Solid the yard cannot operate as tidily and efficiently as, for example, the huge yard occupied by SLOCO Recycles, which accommodates no public traffic. Despite the fact that grocery stores provide machines to collect recyclables,there is a continuing demand for the personalized service we offer the to the public, including the opportunity to donate the materials they bring as a contribution to ECOSLO's worts in the community. IV. ECOSLO has implemented a comprehensive CAL-OSHA audited and approved safety program at the yard, and filed a hazardous materials safety and handling plan with the City Fire Department. The Fire Department has also recently approved the recommendations of our consultant geologist for a remediation program to neutralize the effects of oil contamination around our old collection equipment. IV ECOSLO has committed to making significant and costly improvements at the yard which will improve the appearance and prevent debris scatter. Plans are also underway to establish a computerized source tracking system for the materials we receive so that waste diversion information is available to communities for AB 939 compliance. Rent payments and/or revenue losses from shipping Rock Solid materials out for processing will not alter our commitment to making improvements, but naturally such reductions in net revenues will be felt in the environmental services aspects of our operations. In conclusion, ECOSLO, through the efforts of a dedicated staff and committed volunteers, continues to serve the community of San Luis Obispo and the region, as a self-supporting non- profit organization. We are in business by necessity only, so that we may continue the work begun by visionary founders nearly a quarter century ago. We have faced adversity and have matured as an organization. The ECOSLO staff and the entire Board of Trustees have, during the past several months, renewed and expanded our commitment to our community and to the services we provide. Our newly hired executive director Geoffrey Land brings strong, proven leadership to the organization and we expect ECOSLO to thrive under his guidance. This vision and commitment requires that we remain as financially viable as possible. We trust that the City of San Luis Obispo recognizes the benefits that accrue to the entire community through the trust it grants ECOSLO in providing the Prado Road yard for our recycling operations. Sincerely, �J he Trustees of The Environmental Center of San Luis Obispo County John Ewan, Chair Bob Wolf, Treasurer Frank Seiple, Secretary Bob Lavelle Mark Wilson Bob McAfee David Braun ECOSLO/CT'COUNCIL/07/20/95/PAGE 3 C 0 M M E R C I GENERAL - L I A R C_ 1 . Y C OVERAGE P A R T - D E C L A R A T IONS POLICY NUMBER: 51 UUC HT7560 THIS COMMERCIAL GENERAL LIABILITY COVERAGE PART CONSISTS OF : A. THIS DECLARATIONS. B. COMMERCIAL GENERAL LIABILITY SCHEDULE C. COMMERCIAL GENERAL LIABILITY COVERAGE FORM. AND D. ANY ENDORSEMENTS ISSUED TO BE A PART OF THIS COVERAGE PART AND LISTED BELOW. L I M I T S O F I N S U R A N C E f THE LIMITS OF INSURANCE. SUBJECT TO ALL THE TERMS OF THIS POLICY THAT APPLY . ARE: EACH OCCURRENCE LIMIT S 1 .0001000 PERSONAL AND ADVERTISING INJURY LIMIT 3 1 . 000.000 FIRE DAMAGE LIMIT - ANY ONE FIRE $ 300.000 MEDICAL EXPENSE LIMIT - ANY ONE PERSON $ 10.000 GENERAL AGGREGATE LIMIT; 3 2.=000.000. (OTHER THAN PRODUCTS-COMPLETED- OPERATIONS) PRODUCTS-COMPLETED OPERATIONS AGGREGATE LIMIT $ 21000.000 ------------------------------------------------------------------------- ADVANCE PREMIUM $ 2.600. 0 ------------------------------------------------------------------------- EXCEPT IN THIS DECLARATIONS, WHEN WE USE THE WORD "DECLARATIONS" IN THIS COVERAGE PART, WE MEAN THIS "DECLARATIONS" OR THE "COMMON POLICY DECLARATIONS" . F O_ R M NUMBERS OF COVERAGE FORM S A N D ENDORSEMENTS THAT ARE PART OF T H I S C 0 V E R A G E P A R T = HC70010350 CGO0011188 HC26000390 HC26020390' HC26061191 HC12101185T I FORM HC 00 10 it 35T PRINTED IN U .S.A . (N3) 'AGE 1 PREMISE/BUILDING RECAP PAGE 01 POLICY INFORMATION NAME INSURED: ROCK SOLID PRODUCER CODE AND NAME: 131276 CLIFFORD-BRADFORD INSURANCE AGENT'" EFFECTIVE DATE : 10/ 14/94 PRMS BLDG ------------ STREET ------------- ------ CITY ------ STATE 001 001 967 OSO STREET SAN LUIS OBISPO CA (LOB) PROP GL 002 001 HNY 101 & PRADO ROAD SAN LUIS OBISPO CA (LOB) PROP D` POLICY # 51UUCHT7560 CONTROL # 001 TERM ID R053R30E -I PROCESS DATE 11 / 17/94 OPER INITIALS RSM AAR PREV POL 51UUCHSP-071 Current ECOSLO Board Members Tohn R Ewan serves as ECOSLO's chairperson. He was born in Paso Robles. A 1973 graduate of Cal Poly,John has resided in San Luis Obispo since 1970. He was active in organizing the first Earth Day celebration to show the damage to forests caused by air pollution. John continued his environmental interests by opening Pacific Energy Company in 1980, to promote Solar Energy as an option to Diablo Canyon. He believes it is important to show the positive economics of environmentalism, taking into consideration the long term costs of our generations' habits and how they affect our children tomorrow. John has served as an ECOSLO Trustee since 1992. Frank Seiple serves as ECOSLO's secretary. He is a Cal Poly graduate and local architect. He has been a member of the San Luis Obispo Sun Group,promoting the development of solar energy technology in local homes and businesses and was also a volunteer with People Generating Energy, supporting the blockage of Diablo Canyon. Frank says, " I would like to make a contribution to the betterment of our community and ECOSLO's activities do that." He has been an ECOSLO Trustee since 1993. Bob Wolf is currently serving as ECOSLO's treasurer. He has worked as a math professor at Cal Poly since moving here 21 years ago and has been involved with many environmental causes,including anti-nuclear work and the Earth Day Coalition. Bob has a wide array of hobbies and interests,including tennis, chess,bridge,several types of music and dance, foreign language and more. He served as an ECOSLO Trustee from 1981 to 1984 and again since 1992. Steve Rebuck is a marine resources consultant to the commercial fishing industry with a background in offshore oil and marine resources issues, and often advises ECOSLO on marine resource issues. He serves as a member of the National Oceanic and Atmospheric Administration's (NOAA) U.S. Man in the Biosphere/Marine and Coastal Ecosystems Directorate, and in 1993 was a member of the Marine Mammal Protection Act/Negotiating Group which advised the U.S. Congress on amendments to the MMPA. Steve is also a technical consultant to the U.S. Fish and Wildlife Service/Southern Sea Otter Recovery Team. He has lived in San Luis Obispo County since 1953, and has served as an ECOSLO Trustee since 1992. Bob McAfee has been a mental health therapist for over 22 years,and is currently working for the SLO County Mental Health Senior Services program. He also conducts special groups and workshops pertaining to men's issues and community building. As an undergraduate, he participated in the 1970 Earth Day, and was the coordinator for the SLO Earth Day Coalition in 1993, 1994 and 1995. Bob organized a marketing system for small-scale farmers in Arcata and Humboldt County and for 25 years has been an organic gardener and has worked to reduce commercial pesticide use. He was a member/volunteer of the ECOSLO Board from 1978 to 1980 and has served as an ECOSLO Trustee since 1993. Mark Wilson is a five year resident of SLO County and has lived in the BayArea, Vancouver, British Columbia and Japan. He is currently working for Peoples' Self-Help Housing Corporation in San Luis Obispo where he is in charge of the affordable rental development and property management departments, performing duties ranging from writing grants and finance applications to steering projects through local jurisdiction requirements. Although by choice he has not practiced accounting for several years,he is a licensed CPA. He has been a member of the Sierra Club's Alternative Transportation Task Force since 1992. He has served as an ECOSLO Trustee since 1994. Bob Lavelle has lived in SLO County for 21 years and is a single parent of a 15 year old son. He is a self-employed contractor specializing in residential construction, and was previously a practicing criminal defense lawyer. Environmental and response management issues locally and worldwide have been topics of abiding interest, and Bob is a long-time supporter of Mothers For Peace and the Abalone Alliance. He believes in local control of, and solutions to,local problems and hopes that his experience has given him a sense of priority and balance in dealing with these issues. Bob has served as an ECOSLO Trustee since 1994. David Braun is a member of the Grell Co-Housing Group,whose mission to establish an Eco-Village in Halcyon,working to reduce the human impact on the environment by building community. He is also involved with the Alternative Transportation Task Force. David helps to operate a national bicyclist network. David is a designer by profession,having worked with graphic arts and publishing, and is now designing systems at a local breast pump manufacturer. David has served as an ECOSLO Trustee since 1994.