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HomeMy WebLinkAbout16-Public Works CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Nadeem Majaj, Director Kevin Hawkins, Director (Parks, Rec. & Comm. Service Dept.) Dept: Public Works Subject: Resolution authorizing the execution of a Second Amendment to the Lease Agreement with the YMCA of the East Valley for property located at 808 E. 21 st Street (Perris Hill Park), to extend the lease for one additional five-year term. Date: February 1,2011 File: 15.06-075 MCC Date: February 7, 2011 Synopsis of Previous Council Action: 06/20/2005 - Resolution No. 2005-222 was adopted, terminating the lease with the Young Men's Christian Association of San Bernardino and authorizing the execution of a new 5-year lease with the YMCA of the East Valley. 12/20/2010- Resolution No. 2010-396 was adopted, authorizing the first amendment to the Lease Agreement with the YMCA of the East Valley. Recommended Motion: Adopt Resolution. Contact Person: Ryan Sandoval Phone: 5226 2 Supporting data attached: Staff Report, Letter, Reso., Agreement Ward(s): FUNDING REQUIREMENTS: Amount: None Source: (Acct. No.) N/A Acct. Description: N/ A Finance: Council Notes: Agenda Item No. J{P o ;l..-07--dDf I CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT: Resolution authorizing the execution of a Second Amendment to the Lease Agreement with the YMCA of the East Valley for property located at 808 E. 2pt Street (Perris Hill Park), to extend the lease for one additional five year term. BACKGROUND: On May 13, 1960, a 50 year Lease Agreement was executed with the Young Men's Christian Association (YMCA) of San Bernardino, for a portion of City property located on the north side of 21 st Street, east of Valencia Avenue, being a portion of Perris Hill Park. Since that time, the YMCA has been operating this facility for recreational, cultural and/or educational purposes. In exchange of offering this service to the community, the YMCA pays a lease rate of $1.00 per year. In 2005, the City received a letter from the YMCA stating that it had merged with the Redlands Family YMCA, and upon the merger, the surviving corporation would be YMCA of the East Valley. In lieu of amending the initial Agreement, the YMCA requested that a new lease be executed with the proper corporate name, since the initial lease was set to expire in December 2010. On June 20, 2005, Resolution No. 2005-222 was adopted, terminating the initial 50-year lease with YMCA of San Bernardino and authorized the execution of a new lease agreement with the YMCA of the East Valley. The lease was for a term of five years and can be extended for one additional term of five years, by mutual consent. The lease payment remained at $1.00 per year for every year of the term of the lease. On December 20, 2010, Resolution No. 2010-396 was adopted, authorizing the First Amendment to the Lease Agreement, extending the lease for an additional 60-day term, effective January 1,2011, and terminating on March 1,2011. The YMCA of the East Valley has recently sent a letter to the City requesting that the term of the lease be extended for an additional five years as indicated in the lease (copy attached). All insurance requirements are met and are current, as required by the lease. The attached resolution authorizes the execution of a Second Amendment to the Lease Agreement to extend the Lease for one additional five year term. All other requirements of the lease will remain the same. FINANCIAL IMPACT: None. RECOMMENDATION: Adopt Resolution ATTACHMENTS: - Vicinity Map - YMCA Letter - Resolution - Agreement 2 ~ (; .I~ l!<e ~i .!o~ r:lit~ ~t!~. ~ .'";2 ~ 0- '! t) c: . <<D 1:: t\I, o ~. C/) a:i o~ .c: .~ ti. a: ~ :rf i ~&'" 01Il1o... s z. ._ c.' . .,. ~. . _'l I I I -d; I. \U .=> Iffi 1:>- < /.~.. .. i. . ,tt).. -. : . C\J, -,' . I I --~ - ----..- C6~" u ~Q U\). N ": '0 2 " ,. '4- ~ ."tI+~ ;4 ~ A \. I I I . J ~ <S .. "'€> ' ... oi , .19 ~ .~. .", " . .' ~-'. _,:''7'~ _ @ i .\ ~ .. @j . _..~ 3^'t 't':JN31V^-:--.. 'l --- - , ~ ~ u .. ~It! \512 , . . ; '~). ~.... .@ :t on \D ..: .. v. ~ &O@ ~ ~ III 1'1- 6i fi~ a .@ ...-.-.... -...... , ';'S.i! , , ~ ~. V::j) . @ ."",. ~~. -.,.,:-.- ~.... y YMCA We build strong kids, strong families, strong communities. December 15, 2010 City of San Bernardino Real Property Section 300 North "0" St. San Bernardino, CA. 92418-0001 Attn: Ryan Sandoval Dear Mr. Sandoval: The YMCA has leased property from the City of San Bernardino at 808 E.21st St, since May 13, 1960. The property is currently under a lease with the City of San Bernardino and the YMCA of the East Valley dated June 23, 2005. The YMCA has continually operated the facility at 808 E. 21st St in San Bernardino since the inception of the lease in 1960 both as the YMCA of San Bernardino and as the YMCA of the East Valley. I am respectively requesting that the City of San Bernardino renew the existing lease with the YMCA of the East Valley as soon as is practical. S'1eIY.~ t:!;:s;ein General Director YMCA of the East Valley' 500E. Citrus Avenue' Redlands, CA 92373 909-798-9622 . Fax 909-335-2007 YMCA missioD: To put Christian principles into practice through programs that build healthy spirit, mind, and body for all. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A SECOND AMENDMENT TO THE LEASE AGREEMENT WITH THE YMCA OF THE EAST VALLEY TO EXTEND THE TERM OF THE LEASE FOR ONE ADDITIONAL FIVE YEAR TERM ON CITY OWNED PROPERTY GENERALLY LOCATED AT PERRIS HILL PARK. WHEREAS, on June 20, 2005, by Resolution No. 2005-222, the Mayor and Common Council authorized the execution of a Lease with the YMCA of the East Valley ("YMCA") for property located at 808 East 21 st Street in Perris Hill Park ("Lease"); and WHEREAS, on June 23, 2005, the City and the YMCA entered into the Lease; and WHEREAS, the Lease became effective on January 1, 2006, and set to expire on December 31, 2010; and WHEREAS, on December 20, 2010, by Resolution No. 2010-396, the Mayor and Common Council authorized and directed the execution of the First Amendment to the Lease, extending the Lease for an additional 60-day term, commencing on January 1, 2011 and having a termination date of March 1, 2011; and WHEREAS, the parties wish to extend the Lease for one (1) additional term of five (5) years; BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the City Manager of the City of San Bernardino, is hereby authorized and directed to execute on behalf of said City, a Second Amendment to the Lease Agreement with the YMCA of the East Valley, to extend the Lease Agreement for one (1) additional five (5) year term, for the lease of City owned property located at 808 E. 215t Street, within Perris Hill Park, referenced as portions of Assessor's Parcel No's. 0147-031-12 & 16, a copy of which is attached hereto marked Exhibit "1", and incorporated herein. 02/03/2011 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A 1 SECOND AMENDMENT TO THE LEASE AGREEMENT WITH THE YMCA OF THE EAST VALLEY TO EXTEND THE TERM OF THE LEASE FOR ONE ADDITIONAL FIVE YEAR TERM ON CITY 2 OWNED PROPERTY GENERALLY LOCATED AT PERRlS HILL PARK. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 2. The authorization to execute the above referenced Agreement is rescinded if the parties to the Agreement fail to execute it within ninety (90) days of the passage of this resolution. /I /I 02/03/2011 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A 1 SECOND AMENDMENT TO THE LEASE AGREEMENT WITH THE YMCA OF THE EAST V ALLEY TO EXTEND THE TERM OF THE LEASE FOR ONE ADDITIONAL FIVE YEAR TERM ON CITY 2 OWNED PROPERTY GENERALLY LOCATED AT PERRlS HILL PARK. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof , 20_, by the following vote, to wit: day of held on the ABSTAIN ABSENT NAYS AYES Council Members: MARQUEZ DESJARDINS BRINKER SHORETT KELLEY JOHNSON MCCAMMACK City Clerk ,20_ day of The foregoing resolution is hereby approved this PATRICK J. MORRIS, Mayor City of San Bernardino Approved as to form: ~ SF. PENMAN, City Attorney 02/03/2011 3 SECOND AMENDMENT TO LEASE AGREEMENT (YMCA of the East Valley) THIS SECOND AMENDMENT TO LEASE is made and entered into this day of , 2011, by and between the CITY OF SAN BERNARDINO, a municipal corporation, hereinafter referred to as "Lessor", and YMCA OF THE EAST V ALLEY, a California nonprofit public benefit corporation, hereinafter referred to as "Lessee". RECITALS WHEREAS, the parties hereto executed a lease dated June 23, 2005, (hereinafter "the Lease"), relating to the use of certain City owned property located at 808 E. 21 st Street, within Perris Hill Park, referenced as portions of Assessor's Parcel No's. 0147-031-12 & 16 in the City of San Bernardino, more particularly described in the Lease, a copy of which is attached hereto as Exhibit "A" and incorporated herein; and WHEREAS, a First Amendment to the Lease Agreement was approved by the Mayor and Common Council on December 20,2010, extending the lease term for 60 days, commencing on January 1,2011, and terminating on March 1,2011; and WHEREAS, pursuant to the provision in Paragraph 3 of the Lease, Lessor and Lessee hereby mutually consent to extend the term of the Lease for one (1) additional term of five (5) years. NOW, THEREFORE, IT IS MUTUALL Y AGREED between the parties hereto as follows: 1. That Section 3, "Term", of the Lease, is hereby amended to read as follows: EXHIBIT" 1" 01/10/2011 FIRST AMENDMENT TO LEASE WITH EASTER SEALS OF SOUTHERN CALIFORNIA, INC. TO. EXTEND THE COMPLETION TIME FOR THE IMPROVEMENTS / CONSTRUCTION ON THE LEASED PROPERTY. "3. Term: The term of this Lease shall be extended for one (1) additional term of five (5) years, said term is to commence on March 1, 2011, and shall terminate five (5) years thereafter on March 1,2016." THE PARTIES FURTHER AGREE that all other terms, conditions and provisions of the Lease shall remain the same, and be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the date first hereinabove written. LESSEE: LESSOR: YMCA OF THE EAST VALLEY a California Corporation CITY OF SAN BERNARDINO BY: EXHIBIT COpy EXHIBIT COPY CHARLES E. MCNEELY, City Manager BY: EXHIBIT COPY ATTEST: RACHEL CLARK, City Clerk Approved as to form: JAMES F. PENMAN, City Attorney 01/10/2011 2 LEASE This Lease Agreement entered into this J ~ day of ~ by and between the CITY OF SAN BERNARDINO, a municipal corporation, hereinafter referred to as "Lessor", and the YMCA OF THE EAST V ALLEY, a California nonprofit public benefit corporation, hereinafter referred to as "Lessee". WITNESSETH WHEREAS, Lessor has certain property located at 808 E. 21 st Street, City of San Bernardino, County of San Bernardino, State of California located in Perris Hill Park, and described as follows: All that portion of Lots 5 and 6, Block 40 of the Rancho San Bernardino, as per plat recorded in Book 7 of Maps, Page 2, records of the County Recorder of San Bernardino County, more particularly described as follows: Commencing at the intersection of the center line of 21 5t Street and the centerline of San Gabriel Street; thence Easterly along the center line of 21'1 Street a distance of 9 feet; thence Northerly and parallel to the Noqherly prolongation of the center line of San Gabriel Street a distance of 44 feet to the true point of beginning; thence continuing Northerly along a line 9 feet East of and parallel to the Northerly prolongation of said line a distance of 450 feet; thence Easterly and parallel to the center line of 2151 Street a distance of 126 feet; thence in a Southeasterly direction a distance of 470 feet, more or less, to a point on a line 44 feet North of and parallel to the easterly prolongation, of the center line of the 2151 Street, said point being 272 feet East of San Gabriel Street; thence Westerly and parallel to the Easterly prolongation of the center feet to the true point of beginning. And generally depicted on the plat attached as Exhibit "1". NOW, THEREFORE, the parties hereto agree as follows: 1. Premises: Lessor does hereby lease to Lessee and Lessee does hereby lease from Lessor, a portion of the facility located at 808 East 21 st Street, San Bernardino, CA. EXHIBIT" A" 2. Use: The site may be used by Lessee solely and exclusively for recreational, cultural and educational purposes for the benefit of the members of Lessee and the residents of the City of San Bernardino, without discrimination as to race, color, creed or religion and for no other purposes whatsoever. 3. Term: The term of this Lease shall be five (5) years, commencing on the date both Lessor and Lessee have executed said Lease ("commencement date"). Lessor and Lessee shall have the right to extend the term of this Lease for one (1) additional term of five (5) years, by mutual consent. Each renewal term shall be on the terms and conditions set forth herein. In the event the Lessee decides not to extend this Lease, then Lessee shall notify the Lessor in writing of Lessee's intention not to extend this Lease at least ninety (90) days prior to the expiration of the first five (5) year term or any renewal term. 4. Payment: In consideration for this lease, Lessee shall pay Lessor the sum of one dollar ($1.00) per year for each and every year of the term of this Lease, payable on the 15th day of January, commencing January 15, 2006, and thereafter on or before the 15th day of January of each and every year of the term of this Lease. Payments shall be directed to: City of San Bernardino Real Property Section 300 North "D" Street San Bernardino, CA 92418 -2- 5. Use Restrictions: Lessee shall use the facility as a YMCA and related uses and for no other purpose. Lessee shall be open to the public a minimum of 220 days per year. 6. Maintenance and Inspections: Lessee shall, at Lessee's own cost and expense, keep and maintain all improvements hereinafter constructed on the Premises in good condition and repair, and shall use all reasonable precaution to prevent waste, damage or injury to the Premises. The City shall, at any reasonable time, have the right to go upon the Premises upon seventy-two (72) hour prior notice to Lessee, and inspect and examine the same relative to such maintenance and upkeep. Such inspections shall be conducted in the accompaniment of a YMCA employee or authorized representative. Lessee shall be responsible for maintaining the facility in compliance with all City codes and for keeping the facility in good repair for the duration of the lease. Compliance with said codes shall be determined by the appropriate City officers and employees. Lessee shall make no improvements to the facility without City's approval. All signage shall be subject to City approval. 7. Utilities: Lessee shall have the right to install utilities, at the Lessee's expense, and to improve the present utilities on or near the Premises, subject to the City's approval. 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 used by Lessee during the term of this Agreement. 8. Liability Insurance: Lessee agrees to procure and maintain in force during the term of this Agreement and any extension, at its own expense, the following insurance in companies approved by the City, - 3 - adequate to protect against liability for damage claims arising in or around the leased premises; (1) Commercial General Liability with limits of five million dollars ($5,000,000.00) per occurrence, (2) Automobile Liability with a combined single limit of one million dollars ($1,000,000.00) per accident, and (3) Worker's Compensation Insurance as required by law and Employers' Liability with limits of one million dollars ($1,000,000.00) per occurrence. Lessee shall provide to the City, a certificate of insurance and an additional insured endorsement which provides: (a) On the Commercial General Liability policy that the City of San Bernardino is named as an additional insured for the acts or omissions of Lessee. (b) The certificates will include the insurance company name, policy number, period of coverage, and the amount of insurance. (c) That the Real Property Section of the City of San Bernardino must be given notice in writing at least thirty (30) days prior to cancellation, material change, or refusal to renew the policy. Copies of said policies shall be mailed or delivered to the Development Services Department/Real Property Section upon commencement date. 9. Indemnification: Except to the extent of the negligence or willful misconduct of The City or its agents, boards, officers, employees, representatives or contractors, Lessee shall defend, indemnify, and hold harmless the City, its agents, boards, officers, employees, representatives, or contractors against any and all claims, suits, damages for personal injury, including death, property damage, demands, loss or liability of any kind or nature arising from the City's approval of this Agreement or from Lessee's operations under this Agreement. 10. Taxes/Possessory Interest: (a) Lessee recognizes and understands that this Agreement may create a possessory interest subject to property taxation, and that the Lessee may be subject to the payment of - 4 - property taxes levied on such interest. Lessee agrees to, and shall hold harmless, the City from any and all liability for any such taxes due by virtue of the leased facilities. (b) The City warrants that it has full right, power and authority to execute this Agreement. The City further warrants that Lessee shall have quiet enjoyment of the Premises during the term of this Agreement or any renewal thereof. 11. Compliance With Laws: Lessee shall not violate any applicable law of the City, State or Federal governments in conducting its operations under this Agreement. 12. No Sublease or Assignment: Lessee shall not sublet the premises, or any part thereof, or assign this Agreement, without The City's prior written consent, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Lessee may assign or sublet this Agreement to any subsidiaries, corporate affiliate or successor legal entities of Lessee, or any purchaser of all, or substantially all, of Lessee's stock or assets; provided, however, within thirty (30) days of such assignment or ~;:' sublet, Lessee shall provide written notification to the City stating the name, address, contact person and any other pertinent information regarding said corporate affiliate or purchaser. Said written notification shall be sent to the City at the address specified in Section 19 - Notices. 13. Relocation: The City shall, in good faith, use its best efforts to fully accommodate and allow the continuing use of the facility or suitable facility. In the event the City determines that the facility is needed for (a) the construction, completion, repair, relocation or maintenance of a City project; or (b) protection and preservation of public health and safety, the City shall provide Lessee with written notice to relocate that Site. Within six (6) months of receipt of a notice from City, or within such shorter period of time determined by the City if reasonably necessary, the City may -5- require Lessee, at its sole cost and expense, to relocate and/or remove the Facilities and repair and restore the public right-of-way and utilities. If the facility is damaged or destroyed, the City shall use its best efforts to locate a suitable substitute site for Lessee to relocate its Facilities or to place temporary facilities. The suitability of any substitute site shall be subject to Lessee's prior written consent, which consent shall not be unreasonably withheld. 14. Default: Either party shall have the right to terminate this Agreement, and upon the effective date of such termination, the City shall have the right of immediate occupancy of the Premises in the event the other party violates any of this Agreement's terms or conditions, and such violation is not corrected within thirty (30) days after written notice is sent by the non-breaching party. Such termination shall not relieve either party from liability for damages for breach of this Agreement or for injury to the Premises. 15. Environmental: The City represents that the Premises have not been used for the generation, storage, treatment or disposal of -hazardous substances, hazardous materials or hazardous wastes_ In addition, The City represents that no hazardous materials, hazardous substances, hazardous wastes, pollutants, asbestos, polychlorinated biphenyls (PCBs), petroleum or other fuels (including crude oil or any fraction or derivative thereof) or underground storage tanks are located on or near the Premises. Notwithstanding any other provision of this Agreement, Lessee relies upon the representations stated herein as material inducement for entering into this Agreement. Lessee shall not bring any hazardous materials onto the Premises except for those contained in its back-up power batteries (lead-acid batteries) and common materials used in telecommunications operations, e.g., cleaning solvents. Lessee shall treat all hazardous materials brought onto Premises by it in accordance with all federal, state and local laws and regulations. - 6 - 16. Amendment: This Agreement may be amended or modified only by written agreement signed by both parties. Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or provisions. If any provision of this Agreement is invalid or unenforceable with respect to any party, the remainder of this Agreement or the application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be affected and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 17. Termination: This Agreement may be terminated by mutual consent of the Lessor and Lessee within a thirty (30) day written notification by either party. 18. Miscellaneous: (a) This Agreement shall be binding on and inure to the benefit of the successors and permitted assignees ofthe respective parties. (b) This Agreement shall be governed under the laws of the State of California. (c) The prevailing party in any legal action to enforce any provision of this Agreement shall be entitled to recover from the losing party all attorneys' fees and court costs, including appeals if any, 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 attorney's fees for the purpose of this Agreement. (d) This Agreement constitutes the entire Agreement and understanding between the parties and supersedes all offers, negotiations and other agreements concerning the subject matter contained herein. There are no representations or understandings of any kind not set forth herein. Any amendments to this Agreement must be in writing and executed by both parties. - 7 - 19. Notices: All notices given in connection with this Agreement shall be in writing and delivered in person or sent by overnight carrier or certified mail, postage prepaid, addressed as follows: THE CITY City of San Bernardino Development Services/Real Property 300 North "D" Street San Bernardino, CA 92418 20. Covenants: YMCA OF THE EAST VALLEY YMCA of the East Valley 16 E. Olive Avenue Redlands, CA 92373 There are no covenants or warranties other than those expressed in this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year set forth at the beginning of this Agreement. ATTEST: AAcJ/lQL QQcvJ<.- Rachel Clark, City Clerk b~ s6LlN\~~ili~ ttpat~ Approved as to form And legal content JAMES Fo PENMAN, City Attorney J - 8 - CITY O~SAN BERNARDINO, JudO / YMCA OF THE EAST V ALLEY, aCal~tiO~ By: By:&I/it1t!, -. ~ ~. ;.~~ ~"-I. EXHIBIT 1 ;e-~'-~ ... 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