HomeMy WebLinkAbout2008-291
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RESOLUTION NO. 2008-291
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO TERMINATING THE LEASE WITH THE SAN BERNARDINO COUNTY
SOCIETY FOR CRIPPLED CHILDREN AND ADULTS, INC. (NOW EASTER SEALS)
AND AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND EASTER SEALS SOUTHERN CALIFORNIA, INC.
FOR CITY OWNED PROPERTY LOCATED ON THE SOUTH SIDE OF NINTH STREET
AND WEST OF WATERMAN AVENUE, IN SAN BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The current Lease Agreement dated June 18, 1963, between the City of San
Bernardino and San Bernardino County Society for Crippled Children and Adults, Inc. and all
amendments thereto, relating to City owned property located south of Ninth Street and west of
Waterman A venue, is hereby terminated.
SECTION 2. The City Manager of the City of San Bernardino is hereby authorized and
directed to execute on behalf of the City, a Lease Agreement with Easter Seals Southern California,
Inc., relating to City owned property located south of Ninth Street and west of Waterman Avenue,
San Bernardino, CA. A copy of the Lease Agreement is attached as Exhibit "1", and incorporated
herein by reference.
SECTION 3. Authorization to execute the Lease Agreement is rescinded if the parties fail
to execute it within sixty (60) days of the passage of this Resolution.
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2008-291
,
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
TERMINATING THE LEASE WITH THE SAN BERNARDINO COUNTY SOCIETY FOR CRIPPLED
CHILDREN AND ADULTS, INC. (NOW EASTER SEALS) AND AUTHORIZING THE EXECUTION OF
A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EASTER SEALS
SOUTHERN CALIFORNIA, INC. FOR CITY OWNED PROPERTY LOCATED ON THE SOUTH SIDE OF
NINTH STREET AND WEST OF WATERMAN A VENUE, IN SAN BERNARDINO.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a j oint regular
meeting thereof
held on the 21st day of July
, 20~, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
ESTRADA x
BAXTER x
BRINKER x
DERRY x
KELLEY x
JOHNSON x
MCCAMMACK x
~ h Uw.L
The foregoing resolution is hereby approved thiS~ day of
July
,20~
Approved as to Form:
e..--.......
ENMAN, City Attorney
07/09/08
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2008-291
.,
LEASE
THIS LEASE AGREEMENT, made and entered into this o<>4r day of
~L-Y , 2008, by and between the CITY OF SAN BERNARDINO, a
I
municipal corporation, hereinafter referred to as "Lessor", and EASTER SEALS SOUTHERN
CALIFORNIA, INC., a corporation, hereinafter referred to as "Lessee".
RECITALS
This lease is made and entered into with respect to the following facts:
(a) Lessor is the owner ofthe property herein described.
(b) Lessor is willing to lease the property to Lessee upon the terms and
conditions hereinafter set forth.
(c) Lessee desires the use of said land,
NOW THEREFORE, the parties hereto agree as follows:
1. ProDertv Leased.
Lessor hereby leases to Lessee, and the Lessee hereby leases from Lessor, a parcel of
land located on the south side of Ninth Street between Sierra Way and Waterman Avenue in the
City of San Bernardino, County of San Bernardino, State of California, generally referenced to
as Assessor's Parcel Nos. 0140-241-45 and 0140-241-54, and more particularly described as
follows:
All that portion of Lot 4, Block 3, Rancho San Bernardino, as per plat thereof,
recorded in Book 7 of Maps, Page 2, records of the County Recorder of San
Bernardino County, State of California, described as follows:
Beginning at a point on the North line of said Lot 4, which is 455 feet West of the
Northeast comer of Lot 5 in said Block 3, said point being on the Westerly line of
property conveyed by the City of San Bernardino, in a Corporation Quitclaim
Deed recorded November 17, 1983, as Instrument No. 1983-0272008, Official
Records of said County; thence along said line described in said Quit Claim Deed
and following its various courses and distances as follows: South a distance of 200
feet; thence West, a distance of 114.58 feet; thence South 14023' 20' East to a
point that is 485 feet South of and measured at right angles to said North line of
Lot 4; thence Westerly and leaving said line described in said Quit Claim Deed
2008-291
along a line that is parallel with said North line, to the East line of the West 2-acres
of said Lot 4; thence North along the said East line, a distance of 485 feet more or
less to said North line of Lot 4; thence Easterly along said North line, to the Point
of Beginning.
Reserving to the Grantor a 30.00 foot easement for the operation and maintenance
of a 30 inch pipe line, said easement to be 15.00 feet on each side of the following
described center line:
Commencing at a point which is 117.94 feet west of the Northeast comer of the
above described property; thence South 010 07' East, a distance of 485 feet to the
South line of the above described property, said point being the true point of
beginning; thence Course No.1, North 010 07' West to a point which is 19.78 feet
South of the North line of said Lot 4, said point being Point "A"; thence Course
No.2 from said Point "A", North 450 East to the North line of said Lot 4; thence
Course No.3 from said Point "A", North 450 West to the North line of said Lot 4.
The side lines of said easement shall be extended or shortened as to terminate at
their point of intersection.
Said property is shown on the attached plat marked as Exhibit "A".
2. Use.
The leased premises shall be used for a child day care center/child development center.
Lessee agrees to use the premises for such purposes, and not to use or permit the use of the
property for any other purpose unless the Lessor has previously approved such use in writing.
Lessee further understands and agrees that there shall be no restriction of admission of children
to the center on the basis of race, color, creed, religion, disability, ancestry, sex, or national
origin, and Lessee further understands and agrees that there shall be no religious teaching,
indoctrination, or reference to religion in any way, manner, or form whatsoever inasmuch as
Lessor is a public entity and subject to constitutional prohibitions concerning religious
activities. Lessee agrees to conduct its child day care/child development center in such a
manner as to not violate any such constitutional restrictions. Lessee shall not commit, or allow
to be committed, any waste or nuisance in the leased premises, nor shall it use or allow the
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premises to be used for an unlawful purpose. Lessee shall at all times possess all necessary
licenses and approvals for the operation of a day care center and shall immediately notify
Lessor, through its City Clerk, at any time that such licenses or approvals have been revoked or
modified.
3. Term.
The term of this lease shall be for a period of fifty (50) years commencing July 7, 2008,
and terminating on June 6, 2058, unless terminated at an earlier date as provided in paragraph
8.
4. Lease Payments.
Lessee agrees to pay and Lessor agrees to accept as rental for said premises, for the
term hereof, a yearly rental of ONE DOLLAR ($1.00) per year for each and every year of the
term of the lease, which rental shall be paid annually in advance commencing on the 7th day of
July, 2008, and thereafter on or before the first day of July of each and every year of the term
herein. Payments shall be directed to:
City of San Bernardino
Real Property Section
300 North "D" Street
San Bernardino, CA 92418
5. Utilities.
Lessee shall pay for all electricity, gas, water, telephone service, and all other services
and utilities, including service installation fees and charges for such utilities during the term of
this Lease. If Lessee desires additional utilities and/or utility services to the premises, Lessee
must first obtain written consent from Lessor. All additional utility connections for the facility
shall be placed underground.
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6. TaxeslPossessorv Interest.
Lessee covenants during the term of this Lease to pay, when due, all taxes and
assessments that may be assessed or imposed upon the Lessee's possessory interest in and to
the premises and upon personal property located on the premises. During Lessee's possession
and use of the leased premises, should any taxes thereon be assessed against Lessor, Lessee
agrees to indemnify Lessor thereon. Lessee agrees to, and shall hold harmless, Lessor from any
and all liability for any such taxes due by virtue of Lessee's improvements, equipment,
furniture, fixtures, or other personal property.
7. Insurance.
Lessee agrees to procure and maintain in force during the term of this Lease and any
extension, at its own expense, a policy or policies of insurance against loss or damage to the
leased premises, appurtenances and permanent equipment, resulting from fire, in a minimum
amount of $100,000.00; and from lightning, vandalism, malicious mischief, and such other
perils ordinarily defined as "extended coverage" and other perils in a minimum amount of
$100,000.00. The fire and extended coverage insurance policy shall name Lessor as an
additional insured, and shall contain a provision that loss shall be payable to Lessee and Lessor
as their interests may appear. Lessee agrees to procure and maintain in force during the term of
this lease and any extension thereof, at its expense, public liability insurance in companies and
through brokers approved by Lessor, adequate to protect against liability for damage claims
arising in or around the Leased premises in a minimum amount of at least three million dollars
($3,000,000.00) for each person injured, six million dollars ($6,000,000.00) in the aggregate,
one hundred thousand ($100,000.00) for property damage. Lessee shall provide to Lessor a
certificate of insurance and an additional insured endorsement that provides:
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(a) The City of San Bernardino named as an additional insured.
(b) The insurance company name, policy number, period of coverage, and the
amount of insurance.
(c) That the Real Property Section of the Development Services Department of the
City of San Bemardino must be given notice in writing at least thirty (3) days
prior to cancellation, material change, or refusal to renew the policy.
(d) That Lessee's insurance will be primary to any coverage the City of San
Bernardino may have in effect.
Lessee agrees that, if such insurance policies are not kept in force during the term of the
lease and any extension thereof, Lessor may have the option to immediately declare this Lease
in default, and to terminate said Lease.
8. Termination.
This Lease may be terminated by mutual consent of the Lessor and Lessee within a
thirty (30) day written notification by either party. Upon termination of this Lease, Lessee shall
surrender the property occupied by this Lease in as good condition as it was at the time of
Lessee's entry thereof subject to the conditions herein set forth.
9. Maintenance and Ooeration.
The Lessee is familiar with the leased premises and has knowledge of the present
conditions that exist thereon. Lessee shall, at its own expense, maintain the leased premises
and all improvements thereon in good order, condition, and repair. Lessee shall provide or
cause to be provided all security services, maintenance services, and janitorial services, which
are required for the proper care and use of the premises.
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(a) Licenses. Lessee shall post in a prominent place and manner in the
demised premises all business licenses, certificates, a copy of this Lease, and all permits that
are required to do Lessee's business in the City of San Bernardino.
(b) Vendors. Lessee shall not permit vendors to display wares,
materials, or advertisements inside or outside the demised premises unless prior written
permission is secured from Lessor and such written permission is posted in a prominent place
and manner in the premises.
10. Imorovements.
Lessee shall not make or suffer to be made any alterations to the demised premises or
any part thereof, without the prior written consent of Lessor. Any and all alterations and/or
improvements made to the demised premises pursuant to this section shall, upon termination of
this Lease, remain as a part of the premises and at no cost or obligation to the Lessor.
11. Construction Costs and Timeline of Work.
(a) All construction work shall be done in conformity with applicable building laws,
ordinances, and regulations. Lessee agrees not to request additional funding, or
waiver of any fees associated with development and shall bear and pay the cost
of all improvements, building fees, permit fees, including but not limited to
Development Permit or Conditional Use Permit, inspections and development
impact fees.
Lessee agrees to construct, improve and/or renovate the leased property in two
(2) phases, which shall include, but not be limited to, the renovation of the
existing structure by December 31, 2009, and the construction and/or
improvement of additional structures and playgrounds on the unimproved area
(b)
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of the leased property by December 31, 2015, and as more fully described in
attached Exhibit "B".
(c) Lessee agrees that if the construction and/or improvements of Phase 2 are not
completed by the date set forth above, Lessee consents to amend the Lease to
exclude all that portion of land lying south of the north 200 feet of the leased
area from the lease, which is the area proposed for Phase 2 improvements.
(d) Lessee agrees that it will apply for and pay all applicable fees for a General Plan
Amendment for the parcel of land included in Phase 2 of the development
(APN: 0140-24-54), currently zoned as PF (Public Facility) to CG-I
(Commercial General), before any construction and/or improvements take place.
(e) Lessee agrees that it will keep the leased premises free from any liens and that it
will fully pay and discharge all labor and material bills arising from
construction, repair or alteration work. The Lessor shall at all times have the
right to enter upon the leased premises and to post and maintain notices thereon
of non-responsibility for the cost of any construction, repair or alteration by
Lessee of any structures or improvements at any time upon said premises.
12. Alterations. Additions. or Chanl!:es Required bv Law.
If, during the term of this lease, any law, regulation, or rule requires that an alteration,
addition, or other change be made to the demised premises, the parties agree as follows:
(a) If the alterations, additions, or changes are required as a result of Lessee's use of
the premises, Lessee will make them and bear all expense.
(b) If the alterations, additions, or changes are required as a result of the condition
or nature of the premises at the time of execution of this Lease, and are not
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caused by use of the premises by Lessee, Lessor will make them and bear all
expenses.
13. Default.
In the event Lessee is in default in the payment of rentals or other charges hereunder or
is otherwise in breach of its covenants or obligations hereunder, and such default exists for a
period of thirty days after notice from Lessor to Lessee of such default, Lessor shall have the
right and privilege of terminating this Lease and declaring the same at an end, and of entering
upon and taking possession of said premises, and shall have the remedies now or hereafter
provided by law for recovery of rent, repossession of the premises and damages occasioned by
such default. If such default should occur then Lessor shall have the right to take possession of
and appropriate to itself without payment therefor, any property of Lessee or anyone claiming
under it, then remaining on said premises.
14. Inspections.
Lessor, it agents, officers, or employees may enter upon the demised premises at such
reasonable times during Lessor's normal business hours as it deems necessary for the purpose
of inspection of the premises to determine whether the terms and conditions of this Lease are
being performed and kept by Lessee.
15. Effect of Lessor's Waiver.
Lessor's waiver of a breach of any term, covenant, or condition of this Lease is not a
waiver of a breach of any other term, covenant, or condition, nor of any subsequent breach of
the term, covenant, or condition previously waived.
16. Non-Discrimination.
Lessee hereby covenants by and for itself, its successors, executors, administrators, and
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assigns, all persons under or through it, and this Lease is made and accepted upon and subject
to the following conditions:
That there shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, disability, sex, national origin, ancestry, or
any other category protected by State or Federal law, in the leasing, sub-leasing, transferring,
use, occupancy, tenure, or enjoyment of the premises here leased nor shall the Lessee itself, or
any person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or
occupancy, of tenants, lessees, subleases, subtenants, or vendees on the premises herein leased.
17. Assil!nments.
Lessee shall not assign this lease or sublet the said premises or any part thereof without
obtaining the prior written consent of the Lessor.
18. Validity.
If anyone or more of the terms, provisions, promises, covenants, or conditions, of this
Lease shall, to any extent, be adjudged invalid, unenforceable, void, or voidable for any reason
whatsoever by a court of competent jurisdiction, each and all the remaining terms, provisions,
promises, covenants, and conditions of this Lease shall not be affected thereby and shall be
enforceable to the fullest extent permitted by law.
19. Lease Applicable to Successors. Etc.
This Lease and the terms, covenants, and conditions hereof apply to and are binding on
the successors, executors, administrators, and assigns of the parties hereto.
20. Lease Breached bv Lessee's Receivership. Assimment for the Benefit of Creditors.
Insolvencv. or Bankruptcv.
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The appointment of a receiver to take possession of Lessee's assets, Lessee's general
assignment for the benefit of creditors, or Lessee's insolvency or taking or suffering action
under the Bankruptcy Act is a breach of this Lease and shall terminate same.
21. Eminent Domain.
If the whole of the leased premises, or so much thereof as to render the remainder
unusable for the purpose for which the same was leased, shall be taken under the power of
eminent domain, then this Lease shall terminate as of the date possession shall be so taken. If
less than the whole of the leased premises shall be taken under the power of eminent domain,
and the remainder is usable for the leased purpose, then this Lease shall continue in full force
and effect and shall not be terminated by virtue of such taking and the parties may waive the
benefit of any law to the contrary, in which event there shall be partial abatement of the rent
hereunder in an amount equivalent to the prorated use of the remaining premises. Any award
made in eminent domain proceedings for the taking or damaging of the leased premises in
whole or in part shall be paid to the Lessor (together with any other money which shall be or
may be made available for such purpose).
22. Indemnification and Hold Harmless.
Lessee shall indemnify and hold harmless Lessor, its elective and appointive boards,
commissions, officers, agents, and employees from any liability for damage or claims for
damage for personal injury, including death, as well as from claims for property arising from or
related to Lessee's operations under this Lease, whether such operations be by Lessee or by
anyone or more persons directly or indirectly employed by or acting as agent for Lessee.
Lessee agrees to and shall defend Lessor and its elective and appointive boards, commissions,
officers, agents and employees from any suits or actions at law or in equity for damages caused,
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or alleged to have been caused, by reason of any of Lessee's operations under this lease.
23. Amendment.
This Lease may be amended or modified only by written agreement signed by both
parties hereto. Failure on the part of either party to enforce any provision of this Lease shall
not be construed as a waiver of the right to compel enforcement of such provision or
provisions, nor act to release any party from its obligations under this Lease.
24. Notices.
All notices given in connection with this Lease shall be in writing and delivered in
person or sent by certified mail, postage prepaid, addressed as follows:
LESSOR
City of San Bernardino
Development Services Department
Real Property Section
300 North "D" Street
San Bernardino, CA 92418
LESSEE
Easter Seals Southern California, Inc.
ATTN: Coordinator of Administration
1801 E. Edinger Avenue, Suite 190
Santa Ana, CA 92708
25. Time of Essence.
Time is ofthe essence herein.
26. Compliance with Laws.
Lessee shall not violate, nor allow the violation of, any City, State or Federal law, in
conducting its operations under this Lease.
27. Option to Renew.
If Lessee has fully performed all ofthe terms, conditions, and covenants of this Lease
for the term hereof, then upon mutual consent by both the Lessor and Lessee, the Lessee shall
have the right to extend the term of this Lease for an additional term of fifty (50) years
("Renewal Term"). The Renewal Term shall be on the terms and conditions set forth herein, or
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.
as may be amended. Said renewal shall be at a total rent to be negotiated by the Lessor and
Lessee. To exercise the option to renew, Lessee must give Lessor written notice of Lessee's
intention to do so at least one hundred-twenty (120) days prior to the expiration of this Lease.
28. Covenants.
There are no covenants or warranties other than those expressed in this Lease.
29. Entire Al!:reement.
This agreement constitutes the entire Agreement between the parties and may be
modified only by further written agreement between parties.
30. Attornevs' Fees.
The prevailing party in any legal action to enforce or interpret any provision of this
Lease will be entitled to recover from the losing party all attorneys' fees, court costs, and
necessary disbursements in connection with that action. The costs, salary, and expenses of the
City Attorney, and members of his office, in connection with that action shall be considered as
attorneys' fees for the purpose of this Lease.
/II
/II
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.
IN WITNESS WHEREOF, the parties have executed this Lease on the day and year set
forth at the beginning of this Lease.
Approved as to form:
By:
J
07/17/08
By:
F
ATTEST:
By: Q...J.J k. ~
RACHEL CLARK, City Clerk
EASTER SEALS SOUTHERN
CALIFORNIA, INC.
BYJU 5 M~-
MARK S. WHITLEY, President
13
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DEVELOPMENT SERVICES DEPARTMENT
REAL PROPERTY SECTION
Ryan Sandoval
15.06-057
2008-291
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LEASE OF CITY PROPERTY (LAND ONLY) WITH EASTER SEALS
SOUTHERN CALIFORNIA, INC., - 241 E. 9TH STREET
APN'S: 0140-241-45 & 54
Date:
04/21/2008
Legend: ,. - - .,
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= CITY OWNED PROPERTY
= LEASE AREA
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2008-291
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EXHIBIT "B"
PHASE ONE: (Existi~ Building Renovation)
Our Timeline:
The current timeline for the renovation of the existing building for the Easter Seals Child Development
Center in San Bernardino is as follows:
Date
A st2008
Se tember 2008
November 2008
February 2009
March 2009
Investment Required:
Easter Seals needs approximately $1.25 million dollars to carry out the renovation of the existing
building and start-up of the center.
Item Sub-Total Total
Renovation Costs
Interior Renovation $750,000
(plumbing, electrical, kitchen,
lighting, carpentry, HV AC, etc.)
Exterior Renovation $100,000
(roof, parking lot, lighting, etc.)
Playgrounds $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,000,000
Equipment & Furnishings
Furniture & Equipment $100,000
Kitchen Supplies $15,000
Classroom Supplies $60,000
Equipment & Furnishings Subtotal $175,000
Start-Up
Staffing $50,000
Other Operating Costs $25,000
Start-Up Subtotal $ 75,000
GRAND TOTAL $1,250,000
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Proposed PHASE TWO: (Modulars)
Easter Seals hopes to implement a second phase to this project after the renovation of the existing
building is complete. In Phase Two, we plan to revitalize dirt lots to the rear of the property by adding
landscaping, playground areas, two classroom modulars and increased parking capacity. Presendy, this
land sits vacant and is an attractive spot for the homeless, illegal dumping, drug dealing and other
criminal activity. These additional modulars will nearly double the capacity of our center.
Our Timeline:
Phase Two will be implemented after Phase 1. Start-up of Phase Two will depend on financing,
Eundraising and the availability of program slots from Head Start and the Department of Education.
Phase Two could start as early as 2010 but no later than 2015.
Investment Required (Estimated):
Easter Seals needs approximately $1.5 million dollars to carry out the proposed second phase of this
project.
Item Sub-Total Total
Modular Costs
Site Preparation & Parking Lot $200,000
Modulars (x2) $800,000
Playgrounds $100,000
Parking Lot $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,250,000
Equipment & Furnishings
Furniture & Equipment $125,000
Classroom Supplies $75,000
Equipment & Furnishings Subtotal $200,000
Start-Up
Staffing $50,000
Start-Up Subtotal $ 50,000
GRAND TOTAL $1,500,000
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