Loading...
HomeMy WebLinkAboutSL Ambulance - Lease for Use of PropertyLEASE FOR USE OF PROPERTY at 2160 Santa Barbara Avenue, San Luis Obispo THIS LEASE is made this ..: #'-day of ~ , 2002, by and between San Luis Ambulance, Inc. ("Ambulance") and the City of San Luis Obispo ("City"). Intentions The parties to this lease recognize and acknowledge the following circumstances: 1. The City of San Luis Obispo is the owner of Fire Station #1 located at 2160 Santa Barbara Ave., San Luis Obispo, CA. 2. Ambulance to lease two bedrooms, an office space, space in the apparatus bay for one ambulance and an outside parking space for one additional ambulance "day car", ("premises") located within Fire Station #1. 3. Ambulance personnel also will share use of other facilities within Fire Station #1: bathrooms, kitchen, weight room, dining room, day room, and laundry room. I .ease Stiplllations 4. Ierrn. This lease shall be for a period of three (3) years, and shall commence on May 1, 2002 and expire on Iune 30, 2005. Both parties hereto shall have the right to renew this lease for two (2) one-year terms on the same terms and conditions set forth herein, upon the giving of sixty (60) days advance written notice. 5. TeQ))ination. Once this lease is executed by both parties, either party may give written notice to terminate this lease without cause effective six months from receipt of the notice. 6. lIse of property. Lessee shall be entitled to use said property for the purpose of housing one ambulance and associated staffing. An additional standby ambulance may be parked on site with the approval of the Fire Chief. The ambulance vehicle will have use of one parking space inside the apparatus room. Storage supplies for the ambulance shall be kept in a 5' x 4' x 2' cabinet located in the "tum-out" locker room. Ambulance staff that is assigned to the ambulance housed at the fire station will have use of the entire upstairs portion of the building (with the exception of private bedrooms). Ambulance staff will also have use of the weight room and laundry room in the downstairs portion of the building. The ambulance staff shall have two bedrooms assigned to them for their private use. They shall also have an office area assigned to them for business purposes. Lessee agrees that the use of said property as described shall be for the sole purpose of conducting ambulance service business only. 7. Compensation. Ambulance will pay City rent in the amount of $21,600 per year, payable in advance on the first of each month in equal monthly installments of $1,800 per month or $5,400 quarterly. Both parties hereto shall have the right to renew this lease for two (2) one­ year terms on the same terms and conditions set forth within, upon the giving of sixth (60) days advance written notice. Payment due to the City of San Luis Obispo for successive years shall be subject to adjustment utilizing the following formula: The base for computing the adjustment is the Consumer Price Index, All Urban Consumers (CPI-U) U. S. city average as published by the u.s. Department of Labor, Bureau of Labor Statistics (index) which is published for December prior to May of each contract year with a maximum cap of 5% per year over the term of the agreement. New rates start July 1sl of each year. 8. Utilities and Supplies. The City shall bear, at its sale cost and expense any and all charges for the following services: water, heat, gas, trash service, alarm service, electric light and power used in or on the spaces. Additionally, the City will furnish the ambulance company with drinking water, paper supplies and janitorial supplies. 9. Property or Possessory Interest Tax. If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, Ambulance agrees that any tax liability will result in an increase in the amount of rent due to the City, equal to the amount of any such tax liability. 10. Maintenance and Repairs. City shall not be responsible for repairs or replacements which must be affected by reason of the acts or admissions of Ambulance, its agents or employees, under this lease. 11. Inspections. Ambulance shall, at its sole cost and expense keep the premises in a first­ class, clean, safe and sanitary condition in accordance with the laws of the State of California and in accordance with Fire Department rules and requirements. The Fire Department may enter upon the premises at any time for the purpose of inspecting the same and any part thereof, including work spaces and lockers of employees to determine if premises are being adequately maintained and used in accordance with the laws of the State of California, and Fire Department rules and requirements to make repairs, alterations or additions to the premises. 12. Damage Caused by Negligence. Ambulance shall be responsible for the cost of repairing any defect or damage caused by the negligence of or abuse of the building by Ambulance employees. Ambulance shall give City at least five (5) days prior written notice of repairs and the name of the person or entity making repairs. All repair work shall be of at least equal standard to the workmanship presently existing on said premises. 13. Reasonable Wear and Tear. City shall be responsible for the cost of reasonable wear and tear to the premises 14. Compliance with Laws. Ambulance agrees and promises to comply with and obey all applicable federal, state, county and municipal laws, ordinances, regulations or guidelines including, but not limited to, those imposed on City by federal or state regulations. 15. Release. Ambulance waives any and all claims against City for damages to any property of Ambulance from any cause arising at any time on the premises except for the sole negligence or willful misconduct of City, its agents, officer, employees, or independent contractors directly responsible to City. 16. DestOlction of Premises. Should the facility be damaged or destroyed by an event such as, but not limited to, fire, flood, or vandalism, either party may, at its option, terminate the agreement. 17. Surrender of Possession. At the expiration or termination of this lease, Ambulance promises and agrees to deliver unto City the premises in as good condition as of the date Ambulance first occupies the premises, reasonable wear and tear excepted. 18. Indemnification. Ambulance shall defend, indemnify and save harmless the City and its agents, officers and employees against any and all claims, demands, damages or liabilities (whether or not caused by negligence) including civil or criminal fines, arising out of or relating to any of the following: (a) any damage, injury or death suffered by any person or corporation and caused by any act or omission of Ambulance, its agents, employees, tenants, invitees or assignees under this agreement; (b) any damage caused by any act or omission of Ambulance, its agents, employees, tenants or assignees under this agreement to any property of the City and its agents, officers and employees; (c) any damage, injury or death suffered by any agent, tenant, or assignee of Ambulance under this agreement, except for claims and demands resulting from the sole negligence or willful misconduct of the City and its agents, officers and employees; (d) Ambulance's violation of any law, any regulation or any tenn of condition of any pennit. Ambulance shall also defend, indemnify and save hannless the City and its agents, officers and employees against any and all expense of investigating and defending against such claims and demands, including, but not limited to, attorney's fees and costs. 19. Insmance. Ambulance shall provide insurance, including but not limited to workers compensation as described in Exhibit "A" to this lease, Insurance Requirements for Lessees including additional coverage for Automobile liability and Subcontractors. 20. Assignment. Ambulance shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the written consent of the City. If the City consents to a sublease, Ambulance shall remain responsible for the perfonnance of all tenns, covenants and conditions of this lease. If Ambulance assigns or subleases said lease or any portion thereof without the prior written consent of the City, then sublease or assignment shall be voided, and at the option of the City, this lease shall immediately cease and terminate. No interest of Ambulance in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a. If Ambulance is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b. If a writ of attachment or execution is levied on this lease; c. If, in any proceeding or action in which Ambulance is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment shall constitute a default by Ambulance and City shall have the right to elect to terminate this lease. 21. Coordination with City. Ambulance shall coordinate with the City any activities, which have potential to impact in any way City operations. Upon notification by the City, Ambulance shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. 22. Pennits. Ambulance shall maintain any and all permits necessary for the conduct of the Ambulance business at the site as required by Law. 23. Independent Contractor. Ambulance and all of its agents, representatives, and participants in any manner with Ambulance's operations shall be independent contractors or volunteers for Ambulance and shall not for any purpose be considered as employees or agents of City. 24 Li.en.s.. Ambulance shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by Ambulance and shall hold City harmless against the same. 25. Effective Waiver. City's waiver of breach of anyone term, covenant, or other provision of this lease is not a waiver of breach of any other term, nor subsequent breach of the term or provision waived. 26. Notices. All official notices required under this lease shall be given in writing and submitted by personal delivery or certified mail, postage prepaid and addressed as follows: To the City: Fire Chief City of San Luis Obispo 2160 Santa Barbara Avenue San Luis Obispo, CA 93401 To San Luis Ambulance, Inc. Mr. Frank Kelton San Luis Ambulance, Inc. 569 Higuera St. San Luis Obispo, CA 93401 27. Entirety and Integrity of I.ease. This document represents the entire and integrated lease between Ambulance and City. This document can be amended only by written instrument executed by both Ambulance and City. All provisions of this lease are expressly made conditions. The laws of the State of California shall govern this lease. THIS LEASE is executed by the following authorized representatives. CITY OF SAN LUIS OBISPO B y:----=:........,L,~-----='_/__~:::.........::~Ll..--l:L--I'­ Mayor SAN LUIS AMBULANCE, lNC. ". By: City Clerk Frank Kelton, Owner APPROVED AS TO FORM: - EXHIBIT A INSURANCE REQUIREMENTS FOR LESSEES Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employer's Liability insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. 4. Insurance Services Office form number CAOOOI (Ed. 1/87) covering Automobile Liability, code 1 (any auto). Minimum Limits of Insurance Lessee shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. 4. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:Vll. Verification of Coverage Lessee shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. Subcontractors Lessee shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.