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Home My WebLink About05.N- Police 5.N RESOLUTION (ID # 4681) DOC ID: 4681 A CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Lease From: Jarrod Burguan M/CC Meeting Date: 11/07/2016 Prepared by: Sharlene Williams, (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 Parking Lot Lease. (#4681) Current Business Registration Certificate: No Financial Impact: Account Budgeted Amount: $37,000 Account No. 001-210-0001*5171 Account Description: General Fund - Police - Administration - Lease Balance as of: 10/4/16 $37,000 Balance after approval of this item: $2000 Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred, but not yet processed. Motion: Adopt the Resolution. Synopsis of Previous Council Action: 9/17/2012 Resolution 2012-237 adopted approving execution of lease agreement between Chase Financial Services and City of San Bernardino for parking lot lease. 06/17/2008 Resolution 2008-241 adopted approving execution of the first lease agreement between Chase Financial Services and City of San Bernardino for parking lot lease. Background: On June 17, 2008, the Common 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 at times due to the number of law enforcement vehicles and seized vehicles that are parked and stored in this area. These steps and others will require the continued use of the lease parking area. Updated: 11/2/2016 by Georgeann "Gigi" Hanna A I Packet Pg. 184 5.N 4681 Proposed lease rates are attached hereto as Exhibit "B." The following proposed lease schedule includes a 2% increase in year 2 and 4 of the agreement. Lease Period Fiscal Period Monthly Cost Annual Cost Year 1 FY 2016- $2,883.77 $34,605 17 Year 2 FY 2017- $2,941.45 $35,297 18 Year 3 FY 2018- $2,941.45 $35,297 19 Year 4 FY 2019- $3,000.28 $36,004 20 City Attorney Review: Supporting Documents: Chase Parking Lease for PD Reso (DOC) agrmt. 4681 (PDF) Chase Financial Service Ex. #B (PDF) Nftw" 14 Updated: 11/2/2016 by Georgeann "Gigi" Hanna A Packet Pg. 185 5.N.a 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE 3 AGREEMENT AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER T 4 CHASE FINANCIAL SERVICES FOR A PARKING LOT LEASE 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CIT OF SAN BERNARDINO AS FOLLOWS: N 6 SECTION 1. That the City Manager is authorized to execute on behalf of the City a leas -'uj 7 J agreement between the City of San Bernardino and Chase Financial Services, a copy of which is c 8 attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though sel a 9 forth at length. 10 11 SECTION 2. That the Director of Finance is hereby authorized to issue a purchase order to N 1 t 12 Chase Financial Services in an amount of$35,000. co 13 0 14 /// aNi oC 0 15 0 16 a� J 17 n. CD 19 N 20 (D 21 22 Q 23 24 25 1 Packet Pg. 186 5.N.a 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE 2 AGREEMETN AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER T CHASE FINANCIAL SERVICES FOR A PARKING LOT LEASE 3 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayo 5 and Common Council of the City of San Bernardino at a meeting w 6 thereof, held on the day of , 2016, by the following vote, to wit: 7 COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT a� 8 MARQUEZ a 9 BARRIOS to VALDIVIA c SHORETT LL 11 y NICKEL U 12 RICHARD r co 13 MULVIHILL 0 14 15 Georgeann Hanna, City Clerk °a L O w- 16 The foregoing Resolution is hereby approved this of , 2016. N d 17 J i R. Carey Davis, Mayor Y 18 City of San Bernardino a. .1 Approved as to form: y 19 Gary D. Saenz, City Attorney t U 20 :s By: 21 U is 22 Q 23 24 25 2 Packet Pg. 187 5.N.b 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 LEASE AGREEMENT This lease agreement was entered into on between CHASE FINANCIAL SERVICES, a government 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 government corporation organized under the laws of the State of California, having its principal place of business at 300 North D Street, San Bernardino, San Bernardino County, CA referred to as "lessee." SECTION ONE 0 DESCRIPTION OF PREMISES L 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 =_ i� Financial Services building and directly adjacent to the west property line of the SAN N BERNARDINO POLICE DAPARTMENT HEADQUARTERS located at 710 North D Street, San Bernardino, San Bernardino County, California. oo SECTION TWO T co TERM The term of this lease agreement is four years, beginning on July 1, 2016, and rn terminating on June 30, 2020, at 11:59.59 PM. The Agreement may be terminated by cc either party with 90-days written notice. Lessee will have first right of refusal pertaining to any other agreements with the Lessor. SECTION THREE Q RENT A. The total rent under this lease agreement is scheduled as follows: Year— 1 (7/1/16-6130/17) $2883.77 per month Year —2 (7/l/17-6/30/18) $2941.45 per month Year— 3 (7/1/18-6130/19) $2941.45 per month Year— 4 (711/19-6/30/20) $3000.28 per month __ Page 1of 9 Packet Pg. 188 .rrrr W _ 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 surface inside a fenced perimeter with lighting, security cameras, concrete curbs, 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 J purpose without the prior, express, and written consent of lessor, or lessor's authorized J agent. L B. Lessor agrees to award all contracts for improvements using lessor's a purchasing guidelines. Further lessor agrees to consult with lessee regarding final U approval of improvements before final acceptance of any improvements. U_ C. Lessor agrees to consult with lessee to develop bid specification for all CD improvements prior to selecting a vendor to provide the improvements. D. At the termination of this agreement, lessee agrees to be responsible for 00 fence removal (if desired by lessor) and wall repairs to the existing boundary wall of the San Bernardino Police Department's headquarters located at 710 North D Street, San 00 Bernardino, San Bernardino County, California. * E L 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 Q rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of lessee's business purposes. B. Lessee shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised promises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance. Page 2of 9 Packet Pg. 189 SECTION SIX WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Lessee shall not allow any waste or nuisance on the demised premises, or use or allow 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 liable to lessee for any loss or damage suffered by reason of such a delay; provided, this lease agreement shall result from a delay in delivering possession. 0 SECTION EIGHT REPAIRS AND MAINTENANCE a. Lessee shall maintain the demised premises and keep them in good repair at its expense. _ U- SECTION NINE DELIVERY, ACCEPTANCE, AND SURRENDER OF PREMISES r W to 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 oo recognition that the demised premises are in a good state of repair and in sanitary condition. 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 E for reasonable use and wear, and damage by acts of God, including fires and storms. w a SECTION TEN PARTIAL DESTRUCTION OF PREMISES A. Partial destruction of the demised premises shall not render this lease agreement 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 Page 3of 9 - Packet Pg.190 5.N.b 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. SECTION ELEVEN 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 its agents, employees, contractors, officers, and representative to follow instructions related to safety and security provided by uniformed police personnel and civilian City managers while on the premises of the San Bernardino Police Department and on the leased property once occupied by the lessor. a SECTION TWELVE LL SIGNS, AWNINGS, AND MARQUEES INSTALLED BY LESSEE Q 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 00 written consent of lessor. co SECTION THIRTEEN BUSINESS RELATED SIGNS E, Lessee shall not conduct "Going out of Business," "Lost Our Lease," "Bankruptcy," or other sales of that nature on the demised premises without the written consent of lessor. SECTION FOURTEEN a NONLIABILITY OF LESSOR FOR DAMAGES Lessee agrees to indemnify and hold harmless Lessor, its officers and agent from any 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 this obligation under the Agreement. Lessor agrees to indemnify and hold harmless the City, its officers, agents, and volunteers from any and all claims, actions, or losses, damages and/or liability resulting Page 4of 9 Packet Pg. 191 5.N.b from Lessor's negligent acts or omissions arising from the Lessor's performance of its 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. SECTION FIFTEEN 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 d 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 o 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. Y The insurance policies shall provide coverage for contingent liability of lessor on any a claims 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. In lieu of the foregoing policy of insurance, the Lessee may provide a Certificate of Self Insurance to Lessor. T 00 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 00 the necessary insurance and pay the premium for it, and the premium shall be repaid to lessor as an additional rent installment for the month following the date on which the E rn premiums were paid by lessor. M SECTION SIXTEEN E ASSIGNMENT, SUBLEASE, OR LICENSE a A. Lessee shall not assign or sublease the demised premises, or any right or privilege connect 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 consent to subsequent assignment, sublease, or occupation by other persons. B. An unauthorized assignment sublease, or license to occupy by lessee shall be void and shall terminate this lease agreement at the option of lessor. Page 5of 9 Packet Pg. 192 C. The interest of lessee in this lease agreement is not assignable tby operation of law without the written consent of lessor. SECTION SEVENTEEN 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 term and condition of this lease agreement shall constitute a breach of this lease 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 with 30 days after receipt of the notice. r 0 SECTION EIGHTEEN ATTORNEY FEES a In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and U. 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 shall 0 be considered as "attorney's fees"for the purpose of this paragraph. SECTION NINETEEN oo W CONDEMNATION 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 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 a 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 the lease term shall be reduced by the amount that the usefulness of the demised premises 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. Page 6of 9 Packet Pg. 193 5.N.b SECTION TWENTY OPTION TO RENEW 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. SECTION TWENTY-ONE WAIVERS Waiver by lessor of any breach of any covenant or duty of lessee under this lease is CU 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-TWO a GOVERNING LAW U _ It is agreed that this lease agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California. SECTION TWENTY-THREE U ENTIRE AGREEMENT This lease agreement shall constitute the entire agreement between the parties. Any 00 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 I this E lease agreement. SECTION TWENTY-FOUR MODIFICATION OF AGREEMENT a Any modification of this lease agreement or additional obligation assumed by either party in connection with this agreement shall be binding only if evidenced in a writing signed by each party or an authorized representative of each part. Page 7of 4 Packet Pg. 194 5.N.b SECTION TWENTY-FIVE NOTICES A. All notices, demands, or other writings that this lease agreement requires to be 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 1806 Daley Canyon Road San Bernardino, CA 92404 (n Q1 To lessee: Chief of Police San Bernardino Police Department 710 North D Street San Bernardino, CA 92401 a 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 be changed by written notice given by such party as above provided. LL a) y SECTION TWENTY-SIX BINDING EFFECT co This lease agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties. r SECTION TWENTY-SEVEN t rn TIME OF THE ESSENCE E It is specifically declared and agreed that time is of the essence of this lease agreement. a SECTION TWENTY-EIGHT 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 of the provisions of this lease agreement. In witness, each party to this lease agreement has caused it to be executed at San Bernardino on the date indicated below. Page 8of 9 Packet Pg. 195 5.N.b ' 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 Dated , 2016 CHASE FINANCIAL SERVICES By: Ali Moghadam d cc a� J Dated 2016 CITY OF SAN BERNARDINO o J Mark Scott, City Manager CL �v APPROVED TO FORM: Gary D. Saenz, City Attorney LL m U) n: s � U B — co oo co r E to _ m E s v a I Page 9of 9 Packet Pg. 196 CHASE FINANCIAL SERVICES 701 NORTH "E" STREET SAN BERNARDINO, CALIFORNIA 92410 July 19,2016 To: Sharleen Williams City of San Bernardino Police Department 710 North D Street San Bernardino, CA 92401 Direct(909)384-5370 N R Reg.: SBPD Parking Lot Lease Renewal J 0 J ai Dear Sharleen Williams, E L The following tables are reflective of fiscal years 2012 thru 2016 lease terms and amounts a and the proposed detail of renewal terms effective July 01,2016 thru June 30,2020. c PRIOR LEASE DETAIL: JULY 01,2012 THRU JUNE 30,2016 --------------------------------------------------------- --------- LL Fiscal Year 12/13 $2771.79 (same rate as FY 11/12) N Fiscal Year 13/14 $2827.23 (2% increase) Fiscal Year 14/15 $2827.23 (same rate as FY 13/14) c� Fiscal Year 15/16 $2883.77 (2% increase) PROPOSED LEASE RENEWAL: JULY 01,2016 THRU JUNE 30,2020 -------------------------------------------------------------------------------- m Fiscal Year 16/17 $2883.77 (same rate as FY 15/16) Fiscal Year 17/18 $2941.45 (2% increase) W Fiscal Year 18/19 $2941.45 (same rate as FY 17/18) CD Fiscal Year 19/20 $3000.28 (2%increase) w Please note that,the proposed terms of the new lease are identical to prior lease terms with all other terms and N conditions to remain unchanged. Please keep in mind that, in addition to your existing 80 spaces, there is 68 v additional parking spaces available for lease that may easily be added to your existing gated area. c Please feel free to contact me at 909-913-1515 or email me at Ali(a).MrfV1oghadam.Com should you require any U. m additional information.Kindly consider and advise accordingly. U kSincerely, Q E v A.Moghadam ase Financial Services 1506 Daley-Can{von Road San Bernardino,California 92404 701 NORTH "E" STREET • SAN BERNARDINO, CAIFORNIA 92410 PHONE: 909-885-6900 • FAX: 909-883-8789 WWW.CHASEATM.COM Packet_Pg. 197