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HomeMy WebLinkAbout34-Parks & Recreation CITY F SAN BERNARDINC . RE( JEST FOR COUNCIL .CTION From: Anni e F. Ramos, Di rector Subject: RESDLUTIDN DF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE Dept: Parks, Recrea-:ion & Community Servi ces AGREEMENT BY AND BET\4EEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO PRIDE, Date: August 13, 1990 INC. Synopsis of Previous Council action: None. Recommended motion: Adopt the Resolution. Contact person: John A. Kramer Phone: 5031 Supporting data attached: Staff Report Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. Description) Finance: Council Notes: 75-0262 Aaenda Item No. 3t/ CITY F SAN BERNARDINC . RE( 'JEST FOR COUNCIL .CTION RESOLUTION OF THE CITY OF STAFF REPORT SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREE- MENT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO PRIDE, INC. The Lease Agreement between the City and the San Bernardino Pride, Inc. provides for the use of Fiscalini Field to participate in the Senior Professional Baseball Association. The term of the lease is one year from November 1, 1990 through October 31, 1991. A one year renewable option allows the city to renegotiate conditions of the lease including rental costs. The lease will allow the Pride to conduct 28 the season beginning the week of November 19, the week of February 4, 1991. Additionally, conduct a two week training camp in early Pride will also be allowed to furnish, at office trailer on the premises in order to round business office. home games with 1990 and ending the Pride will November. The its expense, an operate a year- Reimbursement to the City will be a total of $12,500. This fee is on a cost basis only and covers all of the City's costs for the field use and associated services ($11,400) and for utilities on the office trailer ($1,100). The renewable option will allow the city to increase its fees in the second year based on the success of Pride. 8/13/90 JAK:u (STAFFRE:PRIDE) 75-0264 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZ ING THE EXECUTION OF A LEASE AGREEMENT BY AND BETWEEN THE CITY OF SAN 3 BERNARDINO AND THE SAN BERNARDINO PRIDE, INC. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The Mayor is hereby authorized and directed to 6 7 execute on behalf of said City a lease agreement by and between 8 the Ci ty of S an Bernardino, a Charter Ci ty, and the San 9 Bernardino Pride, Inc., a California corporation, attached hereto 10 as Exhibit "A" and incorporated herein. SECTION 2. The authorization to execute the above- 11 12 referenced agreement is rescinded if the parties to the agreement 13 fail to execute it within sixty (60) days of the passage of this resolution. 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, held on the day of , 1990, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER City Clerk DAB/ses/Pride.res August 13, 1990 1 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BY AND BETWEEN THE CITY OF SAN 2 BERNARDINO AND THE SAN BERNARDINO PRIDE, INC. 3 4 The foregoing resolution is hereby approved this day of , 1990. 5 6 W. R. Holcomb, Mayor 7 City of San Bernardino 8 Approved as to form and legal content: 9 JAMES F. PENMAN, 10 City Attorney 11 7-. I) ~ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/ses/Pride.res August 13, 1990 2 1 LEA S E 2 AGREEMENT 3 THIS LEASE AGREEMENT is executed at San Bernardino, 4 California, this day of 5 19 , by and between the CITY OF SAN BERNARDINO, a Charter City 6 (hereinafter" Ci ty" ), and the SAN BERNARDINO PRIDE, INC.. a 7 California corporation (hereinafter "Lessee"). 8 WIT N E SSE T H: 9 WHEREAS. the City Council of the City of San Bernardino has 10 the authority to enter into a Lease Agreement regarding all or 11 any portion of City-owned property devoted to park, amusement or 12 recreation purposes; and, 13 WHEREAS. Lessee has acquired a franchise to operate a 14 professional baseball team as a member of the Senior 15 Professional Baseball Association; and. 16 WHEREAS. it is the intention and desire of the parties 17 hereto to enter into a Lease Agreement regarding the use of 18 Fiscalini Field, being a portion of the public park and 19 recreation area owned by the City of San Bernardino, for the 20 purpose of conducting and carrying on a professional baseball 21 franchise thereon and the operation of related activities; and, 22 WHEREAS. City desires to contract with Lessee for Lessee to 23 operate the facility in accordance with the provisions 24 hereinafter contained and. the Lessee desires to contract with 25 the City for the privileges granted under said Lease as 26 hereinafter contained: 27 / / / 28 / I I DAB/ses/Pride.lse August 9, 1990 1 18 19 20 1 NOW, THEREFORE, IT IS MUTUALLY AGREED as follows: 2 1. Premises. City, for and in consideration of the 3 covenants, conditions, agreements and stipulations herein set 4 forth, does hereby grant Lessee the right to utilize Fiscalini 5 Field, as shown on Exhibit "A" attached hereto and by this 6 reference made a part hereof, hereinafter referred to as 7 " facility" . 8 2. Lease Granted. This Agreement is made for the purpose 9 of granting Lessee the nonexclusive use of the facility. Lessee 10 is also entitled hereunder to sufficient space for the operation 11 of a business office, said office to be provided by Lessee. 12 3. Term of Lease. The aforementioned lease shall 13 commence on November 1, 1990, and terminate on October 31, 1991. 14 At the option of the Lessee, this agreement may be renegotiated 15 and extended to October 31, 1992, upon terms as hereinafter set 16 forth. All terms not specifically amended at the time of any 17 such extension shall remain as originally set forth. 4. Use of Facility by Lessee for Non- Baseball Related Activities. (a) City agrees that the facility shall be made 21 available to Lessee not to exceed 10 days in each baseball season 22 during the term of this agreement for non-baseball related 23 24 activities. The schedule, events and sale of alcohol at such events shall be subject to City Council approval. Request for 25 such an approval shall be made thirty days in advance of any such 26 activity. 27 28 ! ! ! DAB!ses!Pride.lse August 9, 1990 2 1 ( b ) Notwithstanding any other terms of this 2 agreement, Lessee shall bear all costs of the non-baseball 3 activities in the manner as set forth in Section 27 paragraphs a 4 and c and Section 29 of agreement. Said costs shall include the 5 cost of utilities for the event. 6 (c) In addition to any other sums set forth herein, 7 Lessee shall pay to the City 5% of the gross receipts received by 8 Lessee for each such non-baseball activity. 9 5. Payment by Lessee to City. 10 (a) Guaranteed Minimum Annual Fee. Lessee agrees to 11 pay to the City as fees for the lease herein granted for the use 12 of Fisca1ini Field a fee of $11,400 for the facility for the 13 1990-91 season and pre season and $1,100 for the utilities for 14 year around use of the office for a total fee of $12,500. 15 (1 ) Payment. All payments required hereunder 16 are due and owing as of November 1, of each year. Said payment 18 December 1, and the following January 1 and February 1. Failure 17 shall be made in four equal installments of $3,125 on November 1, 19 by Lessee to make such payments in the amount of and at the times 20 hereinabove specified shall constitute a. material breach of this 21 agreement. 22 23 24 (b) Charges on Past-Due Payments -Liquidated Damages. 25 forth hereinabove by the due dates set out herein, Lessee shall (1) If Lessee fails to make the payments set 26 pay a charge on such past-due amounts at the prime rate plus 2% 27 and no less than 10% per annum adjusted as of December 1 of each 28 year. DAB/ses/Pride.lse August 9, 1990 3 1 This provision shall not be deemed as a 2 forbearance on the payments of such amounts, and City retains any 3 and all remedies for nonpayment of such amounts. 4 This provision is an estimate of the anticipated 5 damage to be suffered by City for nonpayment of such amounts and 6 it is not to be construed as a penalty. It is hereby agreed that 7 it would be difficult or impossible to determine the precise 8 amount of damages to the City in the occurrence of a breach of 9 the covenant to make timely payments. 10 6. Quality of Operations. The Lessee shall, at all 11 times, operate the facilities in a good businesslike manner and 12 incident thereto render to the public using said facilities, 13 efficient and courteous service. In the event that the Director 14 of Parks, Recreation and Community Services (hereinafter 15 "Director") reasonably finds that service rendered by the Lessee 16 is substandard or that any other provisions of the lease herein 17 given are not being adequately performed or complied with, the 18 Lessee upon being advised of the nonperformance or noncompliance 19 shall correct any such violation, deficiency or omission within 21 20 5 calendar days of such notice. Where such notice is as to a matter respecting health and safety, corrections shall be made 23 22 within 24 hours. 7. Employees. Any and all personnel, including 24 employees, agents and representatives of Lessee and City, and all 25 independent contractors of Lessee, in conducting the operations 26 of facility, shall be qualified to perform the duties assigned to 27 them and shall be of good moral character. Said personnel shall 28 be neatly attired and shall conduct themselves at all times in a DAB/ses/Pride.lse August 9, 1990 4 1 courteous and businesslike manner. All personnel at the facility 2 shall be covered under the Workers' Compensation Act of the State 3 of California. Lessee shall require that any employee, agent or 4 licensee of any independent contractor of Lessee performing work 5 at the facility be covered by the Workers' Compensation Act of 6 the State of California. 7 8. Nondiscrimination by Lessee. Lessee and City shall 8 not in the performance of service under this agreement 9 discriminate against any employee or applicant for employment 10 because of sex, race, color, creed, national origin, or handicap 11 and shall not discriminate in the providing of service hereunder 12 against any person on the basis of sex, race, color, creed, 13 national origin, or handicap. 14 9. Lessee Rights and Status. 15 (a) The rights herein given to the Lessee is a lease 16 subject to the terms and conditions set forth herein. 17 (b) In addition, the Lessee, his agents, contractors, 18 and employees shall be at all times independent contractors and 19 shall not be considered agents or employees of the City. 20 10. Assignment Prohibited. The rights and privileges 21 given to the Lessee are not assignable in whole or in part or by 22 operation of law and any such attempted assignment shall be 23 invalid and of no legal force or effect. This provision may be 24 waived only with the express written consent of the Mayor and 25 Common Council of the City of San Bernardino. 26 11. Subleases, Concessions, Licenses, Contracts. The 27 provisions of Section 10 shall not prohibit Lessee from entering 28 into concessions (if authorized), licenses or contracts for the DAB/ses/Pride.lse August 9, 1990 5 1 operation of any portion of the business conducted on the 2 premises. Each concession, license or contract that is entered 3 into by Lessee shall be subject to the provisions of this 4 agreement. A copy of any concession license or contract shall be 5 placed on file with Director. 6 12. Advertising. Lessee shall have the right to sell, 7 display and maintain advertising on the inside of the outfield 8 fence of the facilities, a scoreboard, and on signs which may be 9 attached by Lessee to the back of the bleachers on the premises. 10 13. Access to Premises. 11 (a) Lessee shall have full and unimpaired access to 12 field facilities at all times between November 1, 1990, and 13 February 28, 1991. Additionally, Lessee shall enjoy year-round 14 access to maintain and access an office on the premises and, if 15 Lessee exercises its option to extend this agreement, Lessee 16 shall also enjoy such access between November 1, 1991 and 17 February 28, 1992. 18 (b) During the above times, City and its authorized 19 representatives shall have the right to enter the facilities at 21 20 all reasonable times for any of the fOllowing purposes: (1 ) To determine whether the premises are in 22 good condition and whether Lessee is complying with its 23 obligations under this lease. City shall exercise reasonable 24 discretion as to the time and manner of making said 25 determination. 26 (2) To do any necessary acts, not inconsistent 27 with the provisions of this agreement, including maintenance, and 28 DAB/ses/Pride.lse August 9, 1990 6 1 any restoration to the facilities that City has the right or 2 obligation to perform. 3 (3) To use the areas designated on Exhibit "B" 4 for park storage. 5 (4) Special events including but not limited to 6 Dodger Day. California State University "Coyotes" Baseball team. 7 et cetera. 8 9 14. Community Uses. (a) Lessee shall have the right of approval of all 10 contracts. licenses or permits entered into by the Director for 11 the use of the facilities. between November 1. 1990 and February 12 28. 1991 and between November 1. 1991 and February 28. 1992. if 13 the option is exercised. at reasonable times. by community 14 groups. Lessee shall use its best good-faith efforts to satisfy 15 the needs of the general public for the use of the facility by 16 agreeing to permits for available dates and times to California 17 State University. San Bernardino "Coyotes" baseball team. and 18 Dodger Day and thereafter to the general public on a first come. 19 first served basis. 20 (b) The parties understand and acknowledge that 21 pursuant to that certain Agreement dated March 21. 1990. the San 22 Bernardino Baseball Club. Inc. has the right of first refusal as 23 to the operation of all concessions during events in facility. 24 Should the San Bernardino Baseball Club. Inc. refuse to operate 25 said concessions for events conducted or sponsored by Lessee. 26 Lessee may do so. City shall be entitled to 5% of the gross 27 receipts from all concessions conducted pursuant to this 28 provision. DAB/ses/Pride.lse August 9. 1990 7 1 15. Nuisances Prohibited. 2 (a) Lessee shall not use the premises, any part 3 thereof, or permit them to be used for any purpose or purposes 4 other than as specified herein. Lessee shall not do or permit 5 any act or thing to be done upon the premises which constitutes a 6 nuisance or which may unreasonably disturb the quiet enjoyment of 7 City or any resident of City on adjacent or neighboring property. 8 (b) Lessee shall at its own expense attach and 9 maintain a governor on the controls of its sound system. Said 10 governor shall be at all times maintained at a level mutually 12 11 agreed upon by Lessee and City. (c) Lessee further agrees, that within 72 hours of 14 13 receipt of a written notice from the City that a nuisance exists, to abate or otherwise cause said nuisance to be cured. In the 15 event Lessee has not (a) taken corrective action within 72 hours, 16 or (b) filed an appeal with the Mayor and Common Council within 17 72 hours, then City may enter and abate said nuisance at the 18 expense of the Lessee without any liability whatsoever to City 19 for monetary loss or anticipated profits of Lessee or others. An 20 appeal to.the Mayor and Common Council must be made in writing 21 and be received by the City Clerk, San Bernardino, California, 22 within 72 hours after Lessee received notice of said nuisance. 23 This section shall not be construed so as to prohibit immediate 24 enforcement by police or other authorized city official, of any 25 municipal code, ordinance or other applicable law. 26 16. Parking Lot Rates. Lessee shall not charge for use of 27 the facility parking lot except by specific resolution of the 28 Mayor and Common Council of the City of San Bernardino. DAB/ses/Pride.lse August 9, 1990 8 19 1 17. Indemnification and Hold Harmless. The Lessee shall 2 and hereby agrees to defend, indemnify, save and hold harmless 3 the City, its agents, officers, employees, contractors and 4 invitees from any and all losses or damage and from any and all 5 liability, suits, actions or claims brought or made by any 6 person or persons, arising or resulting from any and all 7 activities and operations of Lessee, Lessee's agent, employees, 8 contractors or invitees in and about the premises and/or arising 9 out of the use of said facilities by Lessee, Lessee's agents, 10 employees, contractors or invitees and for injury or damage to 11 persons or property about or within said facilities while Lessee, 12 Lessee's agents, employees, contractors or invitees are occupying 13 said facilities for any reason or in any fashion except when such 14 loss or damage is the proximate result of the negligence of 15 lessor's, agents, employees or contractors. 16 18. Liability Insurance Coverage. 17 (a) The Lessee, at Lessee's own cost and expense, 18 shall maintain throughout the term of this agreement: ( 1 ) A policy or policies of Comprehensive 20 Liability Insurance with a minimum limit of liability of ONE 21 MILLION DOLLARS ($1,000,000) Combined Single Limit for bodily 22 injury and property damage with an aggregate minimum limitation 23 liability of FIVE MILLION DOLLARS ($5,000,000) and including the 24 following coverages: 25 26 27 28 i) Premises Operations Including Alterations (for sports events and stadiums). The only exclusion which the City shall accept to this coverage DAB/ses/Pride.lse August 9, 1990 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 is that which excludes bodily injury 2 to athletic participants only and 3 which in no way excludes spectators. 4 This coverage shall also provide 5 coverage for the continual use of 6 office space at the premises. 7 ii) Broad Form Contractual Liability. 8 iii) Broad Form Property Damage. 9 iv) Products Liability (for the sale of souvenirs, athletic equipment and for the sale of food and drink, if authorized) . v) Personal Injury and Coverages i, ii, and iii listed above. vi) In the event Lessee engages or subcontracts any advertising or broadcasting, then a policy of advertising and broadcasters liability insurance shall be provided either by lessee or by said subcontractor with minimum limits of $1,000,000. vii) Open Air Parking (for which a charge is made). viii)Liquor Legal Liability with a minimum limit of $1,000,000, if liquor sale is authorized. ix) Fire Legal Liability with a minimum limit of $1,000,000. DABjsesjPride.1se August 9, 1990 10 1 x) Vendors' Coverage (provided on an "if any" basis as 2 commonly used in the insurance industry; that is, if there 3 is any exposure to the risk during the policy period). 4 (2 ) A policy or policies of Comprehensive 5 Vehicular Liability insurance with a minimum limit of liability 6 of One Million Dollars ($1,000,000) Combined Single Limit for 7 bodily injury and property damage with an aggregate minimum limit 8 of liability of five million dollars ($5,000,000) and which 9 includes coverage for non-owned and hired vehicles and which 10 provides Uninsured Motorist coverage according to minimum state 11 requirements. In the event Lessee acquires owned or leased 12 vehicles, then Lessee shall immediately obtain equivalent 13 coverage for such vehicles. 14 (b) Each policy providing coverage as required by 15 subparagraph (a) above, must have endorsements providing: 16 ( 1 ) That the City of San Bernardino, its 17 officers, agents, employees, contractors and invitees are 18 additional insured as respects the use of the facilities. 19 (2) That the insurance provided by the policy 20 shall be primary insurance as respects any other valid and 22 21 collectible insurance the City of San Bernardino may possess and that any other insurance the City does possess will be 23 considered excess only. 24 ( 3 ) That the policy will act to cover each 25 insured and each additional insured as though a separate policy 26 were written for each. 27 (4) That no less than thirty (30) days' written 28 notice will be given to the City Administrator or his or her DAB/ses/Pride.lse August 9, 1990 11 1 designee, City of San Bernardino, 300 North "D" Street, San 2 Bernardino, California 92418, before cancellation or reduction in 3 coverage for any reason. 4 ( c ) If the Lessee engages another party to provide 5 the operation of refreshment, souvenir and/or other concessions, 6 as permitted hereinabove, the Licensee shall also cause that 7 party or parties so engaged, at said party's or parties' own cost 8 and expense, to obtain and to keep in force throughout the term 9 of this agreement, a policy or policies of public liability 10 insurance (including products liability coverage) separately 11 providing limits and coverage as aforesaid arising out of each 12 such concessionaire's operations. Before any person other than 13 Lessee operates any refreshment, souvenir or other concession, 14 Lessee shall notify City of the name and business addresses of 15 such concessionaire, and obtain and file with City such 16 concessionaire's pOlicy and/or certificates as are herein 17 specified. 18 19. Injunction. 19 It is hereby understood and agreed that, in addition 20 to any other damages as may be hereinafter set forth, that City 21 shall suffer additional damages if Lessee moves to a location 22 outside the City limits during the life of this agreement. It is 23 agreed that such damages are difficult or impossible to calculate 24 precisely at this time but that $1,000,000.00 is a reasonable 25 estimate of such damages. In consideration of the above, Lessee 26 hereby agrees that if Lessor reasonably determines that it is the 27 intention of Lessee to move to a location outside the City limits 28 during the life of this agreement, without the consent of City, DAB/ses/Pride.lse August 9, 1990 12 17 1 City may proceed to Superior Court and there obtain a permanent 2 injunction against such move. Lessee hereby specifically waives 3 any rights it may now or hereafter have to oppose such 4 injunction, and, in addition to any other cost to be paid under 5 this agreement, Lessee shall pay all City's costs of seeking 6 and/or obtaining such injunction and, shall pay such costs 7 without reference to the outcome of such litigation. 8 20. Workers' Compensation Insurance Coverage. 9 ( a ) The Lessee, at Lessee's sole cost and expense, 10 shall provide, pay for and maintain throughout the term of its 11 lease, a pOlicy providing workers' compensation insurance 12 coverage with the statutory limits of liability as set forth by 13 the laws of the State of California, and including not less than 14 S500,000, Employer's Liability, applicable to employees, agents 15 and volunteers of Lessee, sub-lessees or assignees. 16 (b) The pOlicy shall be endorsed to waive the right of subrogation against the City. The pOlicy also shall be 18 endorsed to provide that not less than thirty (30) days' written 19 notice shall be given to the City Administrator or his or her 20 designee City of San Bernardino, 300 North "0" Street, San 21 Bernardino, California 92418, before cancellation or reduction 23 22 in coverage of any nature or for any reason. 24 21. Evidence of Coverage. 25 obtained by the Lessee to comply with the provisions of this (al Except as otherwise provided herein, each policy 26 agreement must have an effective date no later than the 27 commencing date of this agreement and the named insured on each 28 policy must be identical to the Lessee in this agreement. The DAB/ses/Pride.lse August 9, 1990 13 1 Lessee agrees to furnish evidence, acceptable to the City, that 2 the insurance requirements of this agreement have been fulfilled. 3 Such evidence is to be placed on file by the Lessee with the City 4 Administrator or his or her designee, City of San Bernardino, 300 5 North "D" Street, San Bernardino, California 92418. 6 (b) No occupancy or use of City's property or 7 facilities shall be made by the Lessee, Lessee's agents, 8 contractors, employees or invitees, under the provisions of this 9 agreement until evidence acceptable to City Administrator or his 10 or her designee that the aforesaid insurance requirements have 11 been fulfilled has been received by the City Administrator or his 12 or her designee. Each policy, binder or certificate of 13 insurance, is subject to the approval of City Administrator or 14 his or her designee as to content, form and issuing company. 15 Should any of the insurance requirements set forth in this 16 agreement not be fulfilled by the Lessee in a manner acceptable 17 to City Administrator or his or her designee as provided in this 18 agreement, said Risk Manager may purchase any or all of the 19 insurance required to correct such deficiencies and the Lessee 20 and Individuals agree that the premium incurred therefor shall 21 constitute an additional fee to be paid by the Lessee to the City 22 upon demand. 23 (c) On or before October 1, 1990, a certified, true 24 and correct copy of each pOlicy providing all or part of the 25 liability insurance coverage required by Paragraph 18 above, 26 together with all required endorsements, and a certificate of 27 insurance together with the required endorsement for the workers' 28 compensation coverage required by Paragraph 20 above, must be DAB/ses/Pride.lse August 9, 1990 14 1 received directly from the issuing company by the City 2 Administrator or his or her designee. 3 (d) During the first thirty (30) days coverage of any 4 policy obtained by the Lessee to fulfill requirements of this 5 agreement, evidence may be in the form of an insurance binder; 6 provided that any such binder must include language to fulfill 7 the requirements, including endorsement requirements, in addition 8 to the normally accepted items in a binder, such as, but not 9 limited to: coverage, limits of liability, date coverage was 10 effective, expiration date of binder, name of insuring company 11 and signature of authorized company representative. 12 22. City Not a Bailee. It is further hereby understood 13 and agreed that the City in no way purports to be a bailee and is 14 in no way responsible for lost, stolen or damaged property of 15 Lessee, its agents, employees, concessionaires or invitees. 16 23. Possessory Interest Tax. Lessee hereby acknowledges 17 and understands that this agreement may create a possessory 18 interest subject to property taxation pursuant to California 19 Revenue and Taxation Code Section 107, and that Lessee may be 20 subject to payment of property taxes levied on such interest, and 21 that such tax payment shall not reduce any monies due the City 22 hereunder and any such tax shall be the liability of and be paid 23 by the Lessee. 24 24. Compliance With Orders, Ordinances and Laws. The 25 Lessee shall at all times and continuously operate in full 26 compliance with all Federal, State and local laws, statutes and 27 ordinances; all orders of the Health Officer of the County of San 28 Bernardino; all directives of the Director; and shall grant DAB/ses/Pride.1se August 9, 1990 15 1 access for inspection purposes to any authorized representative 2 of the state Board of Health or the County's Health Officer, or 3 any authorized representative of the Director. 4 25. Liens and Encumbrances. Lessee shall keep the 5 premises and all structures and improvements situated thereon 6 free from any liens or encumbrances arising out of any work 7 performed, material furnished, or obligations incurred by Lessee, 8 or from any other cause. 9 26. Capital Improvements. 10 Lessee agrees: In contemplation of this agreement, 11 Lessee agrees to rent, lease, or furnish additional rest room 12 facilities sufficient to accommodate anticipated average 13 attendance on a ratio of one commode for every 200 spectators. 14 Such requirement may be met by agreement or accommodation with 15 the San Bernardino Baseball Club, Inc. for the use of its 16 restroom facilities. 17 27. Staffing and Cleanup. 18 ( a ) Lessee shall provide all event personnel, 19 including, without limitation, ticket sellers, ticket takers, 20 ushers, clubhouse matrons, clubhouse janitors, medical persons, 21 switchboard, sound and scoreboard persons, and other supervisory 23 22 personnel, and all other personnel reasonably necessary for the operation of the premises for the events held therein. The 24 number and type of such personnel shall be based upon the number 25 of spectators and the type of event. Lessee shall also provide 26 attendant care during the game including but not limited to 27 restroom clean-up, garbage, trash and litter clean-up of 28 facili ty. DAB/ses/Pride.lse August 9, 1990 16 1 (b) City shall provide, at its expense, ballfield 2 preparation, stadium clean up to include pick up and removal of 3 all litter and debris from stadium, stadium parking lot and 4 adjoining areas. Clean up shall be provided, at a minimum, after 5 each home game and prior to the commencement of each home game 6 and prior to and after any event otherwise held at the facility 7 pursuant to this agreement. Clean up shall include washing down 8 the bleachers as necessary. 9 ( c ) If City should provide any of the labor or 10 services described in subparagraph (a) above, Lessee shall 11 reimburse City for its labor, materials, supplies and 12 administrative overhead costs. 13 28. utilities and Additional Services. 14 ( a) City shall make arrangement for and pay for all 15 utilities furnished to or used at facilities for any use covered 16 by the agreement including, without limitation, gas, 18 17 electricity, water and trash cOllection, and for all connection charges. Except, Lessee shall be responsible for all costs of 19 telephone service, including connection fees, service charges 21 20 and user taxes. (b) At Lessee's request, City may provide, at the 22 sole discretion of the Director, or her designee, additional 23 services and supplies in support of the presentation of any of 24 the events herein contemplated. Lessee shall reimburse City for 25 the labor, materials, supplies and administrative overhead costs 26 incurred in providing such services and supplies. 27 29. Security. Lessee shall be responsible for providing 28 all reasonably necessary security at each and every event held by DAB/ses/Pride.1se August 9, 1990 17 10 11 ~~ - 1 Lessee at the facility under the provisions of this agreement. 2 The number and type of such personnel shall be based upon the 3 type of event and the number of spectators in determining 4 reasonably necessary security. 5 Lessee shall provide traffic control and security in 6 the stadium and parking lot at its expense. Traffic control and 7 security are to be provided at the discretion of the Lessee 8 except when the Director, in the exercise of her sole discretion, 9 determines that such is necessary as a matter of public safety. 30. Maintenance and Repair. (a) General. Lessee agrees to maintain all equipment 12 at facility. City agrees to maintain all capital improvements at 13 facility. 14 15 (b) As is. Lessee agrees to accept facility as is. City agrees to maintain the facility as specified herein. In 16 the event, and at the time that additional and/or new equipment 17 other than is specified herein is necessary for the proper 18 operation of facility, Lessee shall, at Lessee's sole cost and 19 expense, purchase such additional and/or new equipment. Unless 20 such equipment is attached as a fixture to facility, equipment 22 21 shall remain the personal property of Lessee. (c) Routine Maintenance and Repairs. Except as 24 23 otherwise provided herein, City shall maintain, in good and safe condition, all portions of the facility. City's routine 25 maintenance shall include, without limitation, and shall not be 26 limited to: replacing light bUlbs in floodlights, field lights 27 and security lighting; manual broom or vacuum cleaning the 28 parking lot, grandstand and bleachers, and cleaning the public DAB/ses/Pride.1se August 9, 1990 18 - --..--- - ... 15 16 1 restroom; repair of asphalt surfaces including parking lot and 2 driveways; landscape maintenance to include fertilization and 3 weed control around the perimeter of the facility and both sides 4 of perimeter fencing, all aspects of playing field maintenance, 5 exclusive of game preparation; bleacher repairs; irrigation 6 system repairs including water fountains; plumbing repair such as 7 sewage stoppages; electrical repairs including junction box 8 blowouts and painting for cosmetic purposes. 9 (d) Emergency Maintenance. Lessee hereby agrees to 10 comply with such written procedures as shall be established by 11 Director for obtaining emergency maintenance or repair of any 12 property or equipment to be maintained by City under this 13 agreement. Lessee shall be liable for all costs incurred in a 14 manner consistent with such procedures. 31. Alterations. 18 17 Lessee shall not make any structural or nonstructural (a) Except as otherwise specifically provided herein, alterations to the facility without the 19 Director may act for the City in giving such consent. City's consent. 20 The (b) City may elect, within thirty (30) days before 21 the expiration of the term or at the time of any other surrender 22 of such facility, to require Lessee to remove any alterations 23 that Lessee has made to the facility. If City so elects, Lessee, 24 at its cost, shall restore the facility to the condition it was 25 in at the commencement of the term less normal wear and tear, 26 within sixty (60) days after notice of election is given. 27 28 alterations are made by Lessee in accordance with the provisions 32. Construction Bond Requirements. In the event that DAB/ses/Pride.lse August 9, 1990 19 1 of this agreement or in the event that individual maintenance and 2 repairs exceeding Five Thousand and No/lOO Dollars ($5,000.00) 3 are made by Lessee as a requirement of this agreement, Lessee 4 shall provide such faithful performance bonds, payment bonds and 5 labor and material bonds as City may demand and the terms and 6 provisions of the construction or maintenance contract to 7 accomplish any such alterations, maintenance or repairs to the 8 facility shall be subject to the approval of the Director and the 9 City Attorney. 10 33. Structural Restoration and Repair. City, at its cost, 11 shall repair, replace, and maintain the structural integrity of 12 the following: 13 ( a ) The structural parts of the building and 14 permanent fixtures and other improvements that are a part of the 15 facility, including, without limitation, the foundations, bearing 16 walls, sub-flooring, ceiling, roof, window frames (not including 17 screens and panes), gutters and downspouts, light poles, 19 18 grandstands, and concession stands. (b) The unexposed electrical, plumbing and sewage 20 systems, including, without limitations, those portions of the 21 systems lying outside the facility. 22 (c) City shall repair the facility if it is damaged 23 by (1) causes outside the facility over which Lessee has no 24 control; (2) acts or omissions of City or its authorized 25 representatives; or (3) City's failure to perform its obligations 26 under this agreement. Lessee shall, and hereby agrees, to 27 reimburse City for City's total cost of repairs made necessary by 28 DAB/ses/Pride.lse August 9, 1990 20 1 the activities and operations of Lessee, Lessee's agents, 2 employees, contractors or invitees. 3 34. Destruction. 4 ( a ) If, during the term of this agreement, the 5 facility is totally or partially destroyed from any cause, 6 rendering the facility totally or partially inaccessible or 7 unusable and if, with reasonable diligence, the restoration can 8 be completed within ninety (90) working days after the date of 9 destruction, City shall restore the facility to substantially the 10 same condition as it was in immediately before destruction, and 11 such destruction shall not terminate this agreement. 12 (b) If such destruction occurs during the playing 13 season of lessee, City shall have 15 calendar days following date 14 of destruction within which to notify lessee of City's 16 15 determination of its ability to repair the facility within the time set forth in subparagraph (a). If such destruction occurs 17 at any other time, City shall have 30 calendar days within which 18 to provide such notice. 19 20 of its discretion determines that restoration cannot be made in (c) Upon notice that City in the reasonable exercise 21 the time stated in subparagraph (a), Lessee may then terminate 22 this agreement immediately by giving written notice to City. If 23 Lessee fails to terminate this agreement, within 15 calendar days 24 of date of such notice, City, at its election, can either 25 terminate this agreement, or restore the facility within a 26 reasonable time. If within 15 calendar days following date of 27 expiration of the period for lessee's notice of its election to 28 DAB/ses/Pride.lse August 9, 1990 21 1 terminate, City notifies lessor of its intent to restore, this 2 agreement shall continue in full force and effect. 3 (d) When such destruction occurs within ninety (90) 4 days of the last day of the then current baseball season, Lessee 5 may conduct the remainder of its home games during that season 6 within some other facility without impairment of any of its 7 rights hereunder. 8 (e) The time periods herein set forth shall not 9 include time for evaluation of loss by any insurer. Notice that 10 a claim for loss of facility is under evaluation by an insurer of 11 the facility shall toll the time for notice of intent to restore. 12 City shall not be responsible for any losses incurred by lessor 13 proximately arising from a delay in the restoration of the 14 facility which occurs for reasons beyond the control of the City. 15 35. Time of Essence/Breach. Where performance of a 16 covenant is specified herein to be on or before a certain date, 17 time shall be of the essence of said covenant. Performance by 18 the Lessee of each and every condition, covenant or provision of 19 this agreement is material, the breach of which shall constitute 20 a material breach of this contract for which City's Director may 21 terminate this agreement; provided, however, that any such 22 termination by said Director shall not be effective until not 23 less than thirty (30) days after notice of termination by said 24 Director to the Lessee and said Director may withdraw and cancel 25 such termination if, in the sole discretion of City: (1) the 26 breach is cured within the thirty-day period; or (2) the nature 27 of the breach is such that it cannot be cured within such thirty- 28 day period but the Lessee promptly commences to correct such DAB/ses/Pride.lse August 9, 1990 22 1 breach and proceeds to correct the same as promptly as reasonably 2 practicable. 3 36. Attorney's Fees/Legal Costs. 4 City, if any action at law or in equity shall be brought to As between Lessee and 5 enforce or interpret the terms of this agreement, including costs 6 of reduction to cash the proceeds of any security provided 7 hereunder, the prevailing party shall be entitled to recover from 8 the other party as part of the prevailing party's costs 9 reasonable attorney's fees, the amount of which shall be fixed by 10 the court and shall be made a part of any judgment or decree 11 rendered. 12 37. Waiver of Breach. The waiver of any breach of any 13 term, covenant or condition herein contained shall not be deemed 14 to be a waiver of any subsequent breach of the same or any other 15 term, condition or covenant contained herein. 16 38. Surrender of Premises. Upon the termination of the 17 term, Lessee shall surrender to City, the facility and all 18 Lessee's improvements and alterations, on good condition (except 19 for ordinary wear and tear occurring after the last necessary 20 maintenance made by lessee and destruction of the facility 21 covered by paragraph 34), except for alterations that Lessee has 22 the right to remove, or is obligated to remove, under the 23 provisions of paragraph 31. Lessee shall remove all of its 24 personal property and perform all restoration made necessary by 25 the removal of said personal property and by the removal of any 26 alterations prior to the termination of the term of this 27 agreement. 28 / / / DAB/ses/Pride.lse August 9, 1990 23 1 39. Termination. 2 ( a) The City may terminate this agreement for cause 3 including but not limited to, the following occurrences: 4 (1 ) Any action taken or suffered by the Lessee 5 or shareholders of 40% or more under an insolvency or bankruptcy 6 act, including the appointment of a receiver to take possession 7 of all or substantially all of the assets of the Lessee or 8 shareholders of 40% or more. 9 ( 2 ) Any general assignment by Lessee or 10 shareholders of 40% or more for the benefit of creditors. 11 (3) Loss of the franchise. 12 (4) Sale, transfer or hypothecation of more than 13 10% of the baseball franchise of 10% interest in Lessee whether 14 in a single or multiple transaction during the term of this 15 agreement. 16 (5) Lessee fails to provide the regular playing 17 of baseball games at Senior Professional Baseball Association 19 other than loss or destruction of the field or other 18 level Class A or above league level at the facility for reasons 21 20 impossibility, including but not limited.to a players strike. (b) The Mayor and Common Council is empowered to 22 decide, on the part of the City, that this agreement is to be 24 23 terminated for cause and to furnish 30 days' written notice 25 thereof to the Lessee. Lessee shall have the right to cure any default within those 30 days. Notice of termination shall be 26 sufficient if delivered personally or if deposited in the United 27 States postal service in a postage prepaid envelope addressed as 28 DAB/ses/Pride.lse August 9, 1990 24 1 follows unless a different address shall have been furnished in 2 writing by one party to the other party: 3 AS TO CITY: AS TO LESSEE: 4 Director Parks, Recreation and Community Services 547 North Sierra Way San Bernardino, CA 92401 San Bernardino Pride, Inc. Fiscalini Field 1007 E. Highland San Bernardino, CA 92404 5 6 7 40. Effect of Termination. 8 ( a ) Any other provisions of this agreement 9 notwithstanding, upon termination of this agreement City shall be 10 entitled to utilize any security in the manner as set forth at 11 Section 19 of this agreement. 12 (b) Upon termination of this agreement, in addition 13 to any other amounts due to City hereunder, City shall be 14 entitled to receipt of any unpaid rents for the remainder of the 15 year during which such termination occurs. 16 (c) It is hereby agreed by lessee that if this 17 agreement is terminated because of the sale or transfer of Lessee 18 or an interest therein, City shall have a lien upon the proceeds 19 of such sale to the extent of its interest as described 20 hereinabove and under any provision of this agreement. Provided 21 that, with the prior written approval of the Mayor and Common 22 Council, the lease is transferable with no penalties and on the 23 same terms and conditions or on such terms and conditions as 24 shall be established at the time of such proposed transfer. 25 41. Reader Board/Message Center. Lessee shall provide at 26 least one public service announcement on the scoreboard reader 27 board during each game. The message shall be published without 28 charge. Said language shall be approved by the Director. City DAB/ses/Pride.lse August 9, 1990 25 1 shall provide messages on the message center outside the facility 2 to help promote the Pride at a rate of 50% of the time available 3 to City from September 15, 1990 until February 28, 1991. 4 (c) Provide at no cost to the City, one 30-second 5 radio spot for each game played, whether at home or away. This 6 requirement is contingent upon the team obtaining a contract for 7 the radio broadcast of its games. 8 42. Incorporation of Prior Agreements and Amendments. 9 This Agreement contains all agreements of the parties 10 with respect to any matter mentioned herein. No prior agreement 11 or understanding pertaining to any such matter shall be effective 12 except as otherwise incorporated herein. This agreement may be 13 modified in writing only, signed by the parties in interest at 14 the time of the modification. This agreement shall not be 15 construed as requiring the City to make any expenditures, other 16 than as specifically set forth herein. 17 43. Venue. If either Lessee or City initiate an action to 18 enforce the terms hereof or declare rights hereunder, including 19 actions on any bonds and/or surety agreements, the parties agree 20 that the venue thereof shall be the County of San Bernardino, 22 21 State of California. 44. Severability. The invalidity of any provision of 23 this agreement, as determined by a Court of competent 24 jurisdiction, shall in no way affect the validity of any other 25 provision hereof. 26 45. Captions. Paragraph headings in this agreement are 27 used solely for convenience, and shall be whOlly disregarded in 28 the construction of this agreement. DAB/ses/Pride.lse August 9, 1990 26 19 20 21 -~ 1 46. Covenant and Conditions. Each provision of this 2 agreement performable by Licensee shall be deemed both a covenant 3 and a condition. 4 47. Notice. Except as otherwise provided herein, any 5 notice, statement, demand, request, consent, approval, 6 authorization, offer, agreement or communication, that either 7 party hereto desires, or is required to give to the other party, 8 shall be in writing and shall be sufficiently given and served 9 upon the other party if delivered personally, or if sent by 10 United states postal service, first class postage prepaid, and 11 addressed as specified in paragraph 39 above. Ei ther party 12 hereto may change its address for purposes of this agreement by 13 giving the other party appropriate written notice of the change 14 of address. Notice shall be deemed to be communicated within 15 forty-eight (48) hours of the time of mailing, if mailed to the 16 following: 17 AS TO CITY: AS TO LESSEE: 18 Director Parks, Recreation and Community Services 546 North Sierra Way San Bernardino, CA 92401 San Bernardino Pride, Inc. Fiscalini Field 1007 E. Highland San Bernardino, CA 92404 48. No Third Party Beneficiaries of Agreement. Any 23 22 insurance coverage required herein is for the protection of City, its officers, agents, employees, contractors, and invitees. No 24 third party beneficiaries other than as specifically named herein 25 are contemplated under any provision of this agreement, nor is it 26 the intent of this agreement to create any right in same. 27 49. Vendor Consideration. Lessee hereby agrees to give 28 serious consideration to vendors with principal offices in the DAB/ses/Pride.lse August 9, 1990 27 1 City of S an Bernardino in the award of contracts for the 2 provision of goods and services. 3 50. Accounting. 4 (a) Within sixty (60) days after the end of each 5 Senior Professional Baseball Association season during the term 6 of this lease, Lessee shall file with the Parks, Recreation and 7 Community Services Director of City, an accounting showing the 8 gross receipts from use of the facility as herein defined for 9 each such season. Said accounting statement shall contain an 10 appropriate certification that all gross receipts of the previous 11 year have been duly and properly reported to City and that the 12 statements filed with the City are in accord with Lessee's 13 reports of profits and losses to its owners and its Federal 14 Income Tax Return. 15 (b) Lessee shall make such accounting and give such 16 notices as are necessary to implement Section 5(c) of Agreement 18 17 entitled "Payment of Percentage of Gross Receipts". 19 51. Records. (a) The term "records" as used herein shall include, 20 but is not confined to, sales slips, cash register tapes, bank 21 deposit receipts, sales tax returns, sales books, rent receipts, 23 22 sales contracts, service contracts, books and ledgers. (b) Lessee shall keep true and accurate books and 24 records showing all of its business transactions conducted on or 25 from the premises in accounts separate from any other business 26 which Lessee may have or conduct. All such records shall be 27 retained on the premises or at such other place in San Bernardino 28 County as is approved by City, provided that Lessee may DAB/ses/Pride.lse August 9, 1990 28 1 temporarily remove the same as may be necessary for legal or 2 accounting purposes. 3 ( c) City shall have the right, after reasonable 4 notice and at any reasonable time, from time to time, to examine 5 and audit the books and records of Lessee and his sublessees, 6 concessionaires and licensees, including California Sales Tax 7 Records, and to make copies of same and of any written agreements 8 between Lessee and such sublessees, concessionaires, and 9 licensees of Lessee. Providing further, that City reserves the 10 right to examine all such books and records at any time during 11 the period following the regular baseball season. 12 ( d ) Lessee shall provide the City with all 13 information needed to exercise its rights under this section of 14 agreement, and shall not unreasonably withhold any requested 16 15 information. 52. Successors Bound. This agreement shall be binding 17 upon and inure to the benefit of each of the parties and their 18 respective legal representatives, successors, heirs and assigns. 19 53. Spirit Agreement. The parties understand and 20 acknowledge that this Lease Agreement is subject to the 21 conflicting provisions, if any, of that certain Agreement entered 22 into between the City and the San Bernardino Baseball Club, Inc., 23 dated March 21, 1990 ("Spirit Agreement") and that certain 24 agreements may have to be made between Lessee and the San 25 Bernardino Baseball Club, Inc. relating to various provisions of 26 said Spirit Agreement including but not limited to concession 27 operation, scoreboard use, advertising signs, and restroom use. 28 Copies of such Agreements shall be filed with City. DAB/ses/Pride.lse August 9, 1990 29 1 LEASE AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO PRIDE, INC. 2 3 CITY OF SAN BERNARDINO 4 5 BY: W. R. HOLCOMB, Mayor 6 ATTEST: 7 8 City Clerk 9 10 SAN BERNARDINO PRIDE, INC. 11 BY: 12 Approved as to form 13 and legal content: 14 JAMES F. PENMAN, City Attorney 15 16 .fG'~ 17 18 19 20 21 22 23 24 25 26 27 28 DAB/ses/Pride.1se August 9, 1990 30