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HomeMy WebLinkAbout08.G- Police 8.G RESOLUTION(ID# 1991) DOC ID: 1991 A CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Lease From: Robert Handy M/CC Meeting Date: 09/04/2012 Prepared by: Julie Jensen, (909)384-5742 Dept: Police Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the City Manager to Execute a Lease Agreement and Authorizing the Issuance of a Purchase Order to Chase Financial Services for a Four Year Parking Lot Lease and Utility Payments Not to Exceed $40,000 with an Optional Annual Renewal. Financial Impact: Account Budgeted Amount: $40,000 Account No. 001-210-0049-5171 Account Description:Police Support Services-Lease Payments Balance as of: 7/30/2012 $0 Balance after approval of this item: $0 Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred,but not yet processed. This approval is contingent upon the status of the restructuring proceedings filed as of August 1,2012. Motion: Adopt the Resolution. Synopsis of Previous Council Action: 6/17/2008 Resolution 2008-241 authorizing a lease agreement and purchase order to Chase Financial Services for parking lot lease. Background: On June 17, 2008, Council approved Resolution 2008-241 authorizing a lease agreement between the City of San Bernardino Police Department and Chase Financial Services to expand Police parking facilities. The term of the agreement ended June 30, 2012. The Chase Financial Services parking lot, located west of the Police station, provides approximately 80 parking spaces for Police employee vehicles and a variety of specialty Police vehicles. Despite a reduction in the number of Police employees over the past four years, the parking lot usage is near capacity due to the number of law enforcement vehicles and seized vehicles that are parked and stored in this area. With budget reductions and reorganizing, the Department will have offsite personnel returning to the main station combined with the elimination of many take-home vehicles. These steps and others will require the continued use of the leased parking area. The following proposed lease schedule includes a 2%increase in year 2 and 4 of the agreement. I i i i Updated:8/30/2012 by Heidi Aten A Packet Pg. 179 8.G 1991 Lease Period Fiscal Period Monthly Cost Annual Cost Year 1 FY 2012-13 $2771.79 $33,261 Year 2 FY 2013-14 $2827.23 $33,927 Year 3 FY 2014-15 $2827.23 $33,927 Year 4 FY 2015-16 $2883.77 $34,605 In addition to the annual lease payment,the City will be responsible for the payment of electrical costs to light the parking lot. Chase Financial Services will bill the City for actual charges on a quarterly basis. Total cost for electrical usage is projected not to exceed $5,000. City Attorney Review: Supporting Documents: Reso (PDF) Exhibit A-Lease Agreement (PDF) Updated:8/30/2012 by Heidi Aten A Packet Pg. 180 8 f4.A I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A 3 LEASE AGREEMENT AND AUTHORIZING THE ISSUANCE OF A PURCHASE 4 ORDER TO CHASE FINANCIAL SERVICES FOR A FOUR YEAR PARKING LOT LEASE AND UTILITY PAYMENTS NOT TO EXCEED $40,000 WITH AN 5 OPTIONAL ANNUAL RENEWAL. 6 7 THE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF E CITY OF SAN BERNARDINO AS FOLLOWS: 8 d 9 SECTION 1: That the City Manager is authorized to execute on behalf of the City a lease 10 c agreement between the City of San Bernardino and Chase Financial Services,a copy of which � 11 is attached hereto,marked Exhibit"A"and incorporated herein by reference as fully as though R 12 0. set forth at length. —° 13 14 SECTION 2: That the Mayor and Common Council authorize the Purchasing Manager to iL m N 15 issue a purchase order to Chase Financial Services in the amount of$40,000. The Purchase z � U 16 Order shall reference this Resolution No. 2012-_and shall read, Annual Lease of Parking m 17 Lot,total not to exceed$40,000. o N 18 K SECTION 3: The authorization to execute the above referenced purchase order is rescinded c 19 E 20 if not issued within ninety(90)days of the passage of this resolution, v 21 22 23 24 25 26 27 28 Packet Pg. 181 ET 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A 2 LEASE AGREEMENT AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO CHASE FINANCIAL SERVICES FOR A FOUR YEAR PARKING LOT 3 LEASE AND UTILITY PAYMENTS NOT TO EXCEED $40,000 WITH AN 4 OPTIONAL ANNUAL RENEWAL. 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting 8 thereof,held on the_day of 2012,by the following vote,to wit: m W 9 m Council Members: AYES NAYS ABSTAIN ABSENT 10 11 MARQUEZ Y 12 JENKINS a" V 13 VALDIVIA � c 14 SHORETT N 15 KELLEY 16 17 JOHNSON ° 0 18 MCCAMMACK 19 L 20 Georgeann Hanna,City Clerk z a 21 The foregoing Resolution is hereby approved this day of ,2012. 22 23 24 Patrick J. Morris,Mayor City of San Bernardino 25 Approved as to form: 26 JAMES F. PENMAN, 27 City Attorney D 28 By: •f � Packet Pg. 182 Exhibit A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CHASE FINANCIAL SERVICES FOR USE OF THE PARKING LOT LOCATED AT 701 NORTH E STREET, SAN BERNARDINO,CALIFORNIA This lease agreement is entered into on , between CHASE FINANCIAL SERVICES, a corporation organized under the laws of the State of California, having its principal place of business at 701 North E Street, San Bernardino, San Bernardino County, CA., referred to as "lessor," and CITY OF SAN BERNARDINO, a municipal corporation organized under the laws of the State of California, having its principal place N of business at 300 North D Street, San Bernardino, San Bernardino County, CA, referred v to as"lessee." J 0 J SECTION ONE DESCRIPTION OF PREMISES a Lessor leases to lessee a parking lot area of the premises located at 701 North E Street San Bernardino, San Bernardino County, CA, and described more particularly as follows: approximately 80 stalls in an existing parking lot located north of the Chase Financial Services building and directly adjacent to the west property line of the SAN m BERNARDINO POLICE DEPARTMENT HEADQUARTERS located at 710 North D u Street, San Bernardino, San Bernardino County,California. SECTION TWO a TERM E v d The term of this lease agreement is four years, beginning on July 1, 2012, and a terminating on June 30, 2016, at 11:59.59 PM. The Agreement may be terminated by either party with 30-days written notice. Lessee will have first right of refusal pertaining to any other agreements with the Lessor. c SECTION THREE s K w RENT d A.The total rent under this lease agreement is scheduled as follows: E c M Year-1 (7/1/12-6/30/13) $2771.79 per month a Year-2(7/1/13-6/30/14) $2827.23 per month Year-3 (7/l/14-6/30/15) $2827.23 per month Year-4(7/1/16-6/30/17) $2883.77 per month Page 1 of 9 Packet Pg. t83 Exhibit A B. In addition to the above rent schedule,Lessee shall reimburse Lessor for electricity required to operate parking lot lights. SECTION FOUR USE OF PREMISES AND IMPROVEMENTS A. The demised premises are to be used for the purposes of parking City employee vehicles and City owned police sedans, motorcycles, utility pick-up trucks, trailers, radar/sign trailers, and other specialized law enforcement support vehicles on an asphalt d surface inside a fenced perimeter with lighting, security cameras, concrete curbs, m drainage, and paint designated parking stalls. Lessee shall restrict its use to such purposes, and shall not use or permit the use of the demised premises for any other 0 purpose without the prior, express, and written consent of lessor, or lessor's authorized m agent. Y R a B. At the termination of this agreement, lessee agrees to be responsible for fence a removal (if desired by lessor) and wall repairs to the existing boundary wall of the San c Bernardino Police Department's headquarters located at 710 North D Street, San Bernardino, San Bernardino County,California. N A SECTION FIVE RESTRICTIONS ON USE A.Lessee shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of E insurance or a cancellation of any insurance policy, even if such use may be in furtherance of lessee's business purposes. a v B. Lessee shall not keep, use, or sell anything prohibited by any policy of fine insurance covering the demised premises, and shall comply with all requirements of the a insurers applicable to the demised premises necessary to keep in force the fire and n liability insurance. s X w SECTION SIX E E WASTE,NUISANCE,OR UNLAWFUL ACTIVITY R Lessee shall not allow any waste or nuisance on the demised premises, or use or allow a the demised premises to be used for any unlawful purpose. SECTION SEVEN DELAY IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of lessor to deliver possession to lessee on the date set forth in Section Two. Lessor shall not be Page 2 of 9 Exhibit A liable to lessee for any loss or damage suffered by reason of such a delay; provided, however, that lessor does deliver possession no later than July 1, 2008. No extension of this lease agreement shall result from a delay in delivering possession. SECTION EIGHT UTILITIES Lessee shall pay lessor for electricity required for parking lot lighting. Lessor will provide lessee with a copy of the monthly Edison statement from which the reimbursement will be based. Payment will be paid in arrears for the term of this lease m agreement. 0 SECTION NINE m REPAIRS AND MAINTENANCE o a Lessee shall maintain the demised premises and keep them in good repair at its expense. w c LL SECTION TEN L DELIVERY,ACCEPTANCE, AND SURRENDER OF PREMISES a A. Lessor represents that the demised premises are in fit condition for use by lessee. Acceptance of the demised premises by lessee shall be construed as recognition that the c demised premises are in a good state of repair and in sanitary condition. E E B. Lessee shall surrender the demised premises at the end of the lease term, or any renewal of such term, in the same condition as when lessee took possession, allowing for w reasonable use and wear, and damage by acts of God,including fires and storms. J Q a SECTION ELEVEN w PARTIAL DESTRUCTION OF PREMISES a` E A. Partial destruction of the demised premises shall not render this lease agreement m void or voidable, nor terminate it except as specifically provided in this lease agreement. If the demised premises are partially destroyed during the term of this lease agreement, lessor shall repair them when such repairs can be made in conformity with governmental laws and regulations, within 180 days of the partial destruction. If the repairs cannot be made in 180 days, and if lessor does not elect to make them within a reasonable time, either party shall have the option to terminate this lease agreement. Page 3 of 9 Packet Pg. 185 I I Exhibit A i SECTION TWELVE ENTRY ON PREMISES BY LESSOR A. Lessor reserves the right to enter on the demised premises at reasonable times to inspect them,perform required maintenance and repairs,or to make additions,alterations, or modifications to any part of the parking lot in which the demised premises are located, and lessee shall permit lessor to do so. Lessor agrees to coordinate any access to the property with the San Bernardino Police Department in advance before entry. Lessor acknowledges that there are inherent risks associated with law enforcement services and ; agrees to instruct all of it's agents,employees, contractors, officers, and representatives to follow instructions related to safety and security provided by uniformed police personnel J and civilian City managers while on the premises of the San Bernardino Police Department and on the leased property once occupied by the lessor. s SECTION THIRTEEN a SIGNS,AWNINGS,AND MARQUEES INSTALLED BY LESSEE m A.Lessee shall not construct or place signs, awnings, marquees, or other structures projecting from the exterior of the demised premises without the prior, express, and p written consent of lessor. U SECTION FOURTEEN BUSINESS RELATED SIGNS d E Lessee shall not conduct"Going out of Business,""Lost Our Lease,"`Bankruptcy,"or a other sales of that nature on the demised premises without the written consent of lessor. d SECTION FIFTEEN d J NONLIABILITY OF LESSOR FOR DAMAGES a a Lessee agrees to indemnify and hold harmless Lessor, its officers and agent from an y w and all claims, actions, or losses, damages and/or liability resulting from Lessee's negligent acts or omissions arising from the Lessee's performance of its obligations under the Agreement. E_ U Lessor agrees to indemnify and hold harmless the City, its officers, agents, and harmless volunteers from any and all claims, actions, or losses, damages and/or liability resulting from Lessor's negligent acts or omissions arising from the Lessor's performance of it's obligations under the Agreement. In the event the Lessee and/or the Lessor is found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under the Agreement, the Lessee shall indemnify the other to the extent of its fault. Page 4 of 9 Packet Pg. 186 F-8-GB Exhibit A SECTION SIXTEEN LIABILITY INSURANCE A. Lessee shall procure and maintain in force at its expense during the term of this lease agreement and any extension of such term, public liability insurance with insurers and through brokers approved by lessor. Such coverage shall be adequate to protect against liability for damage claims through public use arising out of accidents occurring in or around the demised premises, in a minimum amount of$1,000,000 for each person injured, $1,000,000 for any one accident, and $1,000,000 for property damage. The v insurance policies shall provide coverage for contingent liability of lessor on any claims a or losses. The insurance policies shall be delivered to lessor for safekeeping. Lessee shall obtain a written obligation from the insurers to notify lessor in writing at least 30 days prior to cancellation or refusal to renew any policy. o In lieu of the foregoing policy of insurance, the Lessee may provide a Certificate of a Self Insurance to Lessor. B. If the insurance policies required by this section are not kept in force during the entire term of this lease agreement or any extension of such term, lessor may procure the necessary insurance and pay the premium for it, and the premium shall be repaid to lessor "m as an additional rent installment for the month following the date on which the premiums U were paid by lessor. rn m SECTION SEVENTEEN ASSIGNMENT, SUBLEASE, OR LICENSE a a A. Lessee shall not assign or sublease the demised premises, or any right or privilege a connected with the demised premises, or allow any other person except agents and employees of lessee to occupy the demised premises or any part of the demised premises without first obtaining the written consent of lessor. A consent by lessor shall not be a d consent to a subsequent assignment, sublease,or occupation by other persons. a B. An unauthorized assignment, sublease, or license to occupy by lessee shall be void w and shall terminate this lease agreement at the option of lessor. E E C. The interest of lessee in this lease agreement is not assignable by operation of law o without the written consent of lessor. z a SECTION EIGHTEEN BREACH The appointment of a receiver to take possession of the assets of lessee, a general assignment for the benefit of the creditors of lessee, any action taken or allowed to be taken by lessee under any bankruptcy act, or the failure of lessee to comply with each term and condition of this lease agreement shall constitute a breach of this lease Page 5 of 9 \, AaWtetPg,18i. Exhibit A agreement. Lessee shall have 90 days after receipt of written notice from lessor of any breach to correct the conditions specified in the notice. If the corrections cannot be made within the 90-day period, lessee shall have a reasonable time to correct the default if action is commenced by lessee within 30 days after receipt of the notice. SECTION NINETEEN ATTORNEY FEES In the event that litigation is brought by any party in connection with this 'w Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorney's fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the City s shall be considered as "attorney's fees"for the purpose of this paragraph. a i SECTION TWENTY A CONDEMNATION LL d N Eminent domain proceedings resulting in the condemnation of a part of the demised premises, but leaving the remaining premises usable by lessee for the purposes of its business, will not terminate this lease agreement unless lessor, at its option, terminates m this lease agreement by giving written notice of termination to lessee. The effect of any condemnation, where the option to terminate is not exercised, will be to terminate this v lease agreement as to the portion of the demised premises condemned, and the lease of £ the remainder of the demised premises shall remain intact.The rental for the remainder of "G the lease term shall be reduced by the amount that the usefulness of the demised premises Q has been reduced for the business purposes of lessee. Lessee assigns and transfers to lessor any claim it may have to compensation for damages as a result of any condemnation. a a SECTION TWENTY-ONE x w OPTION TO RENEW c a E After the initial term of this agreement expires, the lessor grants to the lessee an option to renew this lease agreement, under the existing terms on an annual basis. To exercise this option to renew, lessee must give lessor written notice of intention to do so at least 90 days before this lease agreement expires. Page 6 of 9 PayketPg. 188. '. S.G.B Exhibit A SECTION TWENTY-TWO WAIVERS Waiver by lessor of any breach of any covenant or duty of lessee under this lease is not a waiver of a breach of any other covenant or duty of lessee, or of any subsequent breach of the same covenant or duty. SECTION TWENTY-THREE GOVERNING LAW d It is agreed that this lease agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California. m SECTION TWENTY-FOUR a ENTIRE AGREEMENT A This lease agreement shall constitute the entire agreement between the parties. Any LL prior understanding or representation of any kind preceding the date of this lease agreement shall not be binding upon either party except to the extent incorporated in this lease agreement. .. SECTION TWENTY-FIVE MODIFICATION OF AGREEMENT E m Any modification of this lease agreement or additional obligation assumed by either o` Party in connection with this agreement shall be binding only if evidenced in a writing N signed by each party or an authorized representative of each party. m J SECTION TWENTY-SIX a a NOTICES x w A.All notices, demands, or other writings that this lease agreement requires to be d given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, registered and postage prepaid, and addressed as follows: To lessor: Ali Moghadam Chase Financial Services 701 North E Street San Bernardino,CA. 92410 To lessee: Chief of Police San Bernardino Police Department Page 7 of 9 Packet Pg. 189 9.G.B Exhibit A 710 North D Street San Bernardino,CA. 92401 B. The address to which any notice,demand,or other writing may be given or made or sent to any party as above provided may he changed by written notice given by such party as above provided. SECTION TWENTY-SEVEN BINDING EFFECT d N This lease agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors,and assigns of the parties. m SECTION TWENTY-EIGHT x R TIME OF THE ESSENCE U It is specifically declared and agreed that time is of the essence of this lease agreement, d N SECTION TWENTY-NINE PARAGRAPH HEADINGS The titles to the paragraphs of this lease agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation m of the provisions of this lease agreement. rn m N R Q L G E U U Page 8 of 9 Packet Pg. 190 Exhibit A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CHASE FINANCIAL SERVICES FOR USE OF THE PARKING LOT LOCATED AT 701 NORTH E STREET,SAN BERNARDINO,CALIFORNIA In witness, each party to this lease agreement has caused it to be executed at San Bernardino on the date indicated below. Dated 2012 VENDOR: d N A a J O J m C Y a a R U C R CHASE FINANCIAL SERVICES S a a a By: Ali Moghadam rn c a E a a Dated.2012 CITY OF SAN BERNARDINO a a a m a J Andrea Travis-Miller, City Manager n r K w APPROVED TO FORM: a James F. Penman City Attorney By: Page 9 of 9 Packet Pg. 194 -