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:
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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.