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HomeMy WebLinkAbout25- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: BARBARA PACHON, Subject: Utility cost DIRECTOR OF FINANCE reimbursement for use of airport Dept: FINANCE � facilities. Date: November 27, 1996 OfflQuAL Synopsis of Previous Council action: 2/5/96 - The Mayor and Common Council adopted Resolution 96-25 authorizing the Parks and Recreation Department to enter into a concession agreement with the County of San Bernardino (agreement # 96-133) . The County Probation Department, in lieu of rent for using City facilities located at the San Bernardino International Airport, will reimburse the City for all utility costs as well as interior and exterior maintenance costs. Recommended motion: That the Mayor and Common Council authorize the Director of Finance to amend the Fiscal Year 1996-1997 Budget to reflect the cost of the utility usage at City facilities located at the San Bernardino International Airport and to reflect the reimbursement the City will receive from the County for these costs as outlined in the attached staff report. Signature Contact person: Barbara Pachon, Director of Finance Phone: x - 5242 Supporting data attached: staff report, agreement with County Ward: Council minutes for meeting of 2/5/96. FUNDING REQUIREMENTS: Amount: $83,500 (increase Recreation budget) Source:_(Acct. No.) 001-000-4945 $83,500 (Acct. Description) (revenue) Reimbursements Finance: Council Notes: Revenues and expenditures will be increased equally, resulting in a net impact of zero. � a P Agenda Item No.��_ STAFF REPORT BACKGROUND On February 5, 1996 the Mayor and Common Council adopted Resolution 96-25 authorizing the Parks and Recreation Department to enter into a concession agreement with the County of San Bernardino (agreement #96-133). The County Probation Department, in lieu of rent for using City facilities located at the San Bernardino International Airport, will reimburse the City for all utility costs as well as interior and exterior maintenance costs. Monthly utility costs, based on previous utility billings for the facility, are estimated to be approximately $6,960 per month, or $83,500 annually. RECOMMENDATION That the Mayor and Common Council authorize the Finance Department to make the following amendments to the FY 1996-1997 budget to reflect the reimbursement to be received from the County for utility costs at City facilities located at San Bernardino International Airport. REVENUES Increase 001-000-4945 (reimbursement) $83,500 EXPENDITURES Increase 001-383-5606 (Park & Rec. electric) $81,000 001-383-5608 (Park & Rec. water) 1,100 001-383-5605 (Park & Rec. phone) 300 001-383-5181 (Park & Rec. refuse) 11100 Total $83,500 (Note: The utility internal service fund, which handles payment of all utility bills, will be adjusted accordingly). FISCAL IMPACT TO CITY Because revenues and expenditures are being increased equally, the net effect of this transaction will have no fiscal impact on the City. RECONVENE MEETING - :�� n••-• i ROLL CALL/PRESENT: ABSENT: INVOCATION: PLEDGE : 2 . Appointments/Presentations : 3. - ,Announcements by Mayor and Council . 4 . Waive full reading;:of\Resolutions and Ordinances . MOTION: That full reading of the Resolutions and Ordinances Approved on the regular, supplemental and addendum to the supplemental agendas of the Mayor and Common Council, be waived. ***************************************************************** Parks, Recreation & Community Services 5 . Resolution Of the City of San Bernardino authorizing a concession agreement between the City of San Bernardino and the County of San Bernardino, and ratifying letter of authorization to make repairs dated January 11, 1996 . (See Attached) MOTION: That said resolution be adopted; and that a Approved comprehensive briefing be presented to the Council by the Director of Parks, Recreation & Community Services . Adopted 96-25 Water Department 6 . A resolution of the Mayor and Common Council of the City of San Bernardino, accepting a grant deed from Jack Rodocker and Dee Ann Rodocker, for property located: at 226 West 11th Street, and dedicating the property for Water Department use Ward 2 (See Attached) MOTION: That said resolution be adopted. Approved Adopted 96-26 3 2/5/96 City of San Bernardino BUDGET TRANSFER REQUEST DATE 9/10/96 TRANSFER FROM TO ACCOUNT NO. AMOUNT ACCOUNT NO. AMOUNT Dept. Budget Dept. Budget Fund Div Code SUFX Fund Div Code SUFX — — — REV — — — REV 001 000 4705 $ 90,000 001 383 5181 $ 90,000 (Utility Collections (Other Operating Expenses) The department has an agreement with the Youth Justice Division of San REASON FOR TRANSFER: Bernardino County Probation Department for use of City owned buildings at the former Norton Air Force Base. (See attached copy of the Agreement and Council Action). fhe Agreement requires e County to reimburse the City for utilities hone maintenance charges and refuse collection. The above listed accounts need to be established for accounting , purposes. The Cit X receives billings from IVDA at Norton for all utilities and tele hone telIdIlGe. A bill Is also received III L111b Uepdftinent fof Refuse • County. The department will prepare a Billing Advice for the County each time a bill is received from 1VDA or City Refuse Department. The funds returned frum County to City wi I ble placeiin Revenue Account # 001-000-4705. The IVDA and Refuse Department will be paid out of Account # 001-381-5181"- - A Bi ling Advice for the period july through September 1996 is dttdched for further processing. Parks, Recreation and REQUESTED BY ramm(1lLite SP_rVi('P_S DPOdnnent DEP RTMENT HEAD DEPARTMENT FINANCE&ADMINISTRATOR'S OFFICE USE ONLY ayz J.V.Number COUNCIL ACTION (REQUIRED) (NOT REQUIRED) DATE APPROVED: APPROVED: ILI1—� DIRECTOR OF FINANCE CITY ADMINISTRATOR DISTRIBUTION: WHITE-Finance YELLOW-Finance PINK- Requesting Department 150-101 CONCESSION AGREEMENT CITY: City of San Bernardino Parks and Recreation Department 547 North Sierra Way San Bernardino, CA 92410 COUNTY: COUNTY OF SAN BERNARDINO Public Works Group Real Estate Services Department 825 East Third Street San Bernardino, CA 92415-0832 PREMISES: Building Nos. 178 & 182 and surrounding grounds located at the San' Bernardino International Airport, San Bernardino TERM OF AGREEMENT: Seven years with one (1) three-year option COUNTY CONTRACT NUMBER: 96 REV. 11/21/95 T:k.BLE OF CONTENTS PAR4GRAPH CAPTION PAGE 1 PREMISES 2 TERM 3 RENT 4 AGREEMENT TO EXTEND TERM 5 RETURN OF PREMISES 6 HOLDING OVER 7 TAXES 8 USE 9 HEALTH, SAFETY & FIRE CODE REQUIREMENTS 10 SIGNS 11 MAINTENANCE 12 ALTERATIONS 13 FIXTURES 14 UTILITIES/USE OFFSETS 15 HOLD HARMLESS 16 INSURANCE 17 DESTRUCTION OF PREMISES 18 CITY'S DEFAULT 19 COUNTY'S REMEDIES ON CITY'S DEFAULT 20 COUNTY'S DEFAULT 21 CITY'S REMEDIES ON COUNTY'S DEFAULT 22 CITY'S ACCESS TO PREMISES 23 NOTICES 24 INCORPORATION OF PRIOR AGREEMENT 25 WAIVERS 26 AMENDMENTS 27 SUCCESSORS 28 SE VERABILITY 29 TIME OF ESSENCE 30 QUIET ENJOYMENT 31 PROVISIONS ARE COVENANTS & CONDITIONS 32 CONSENT 33 EXHIBITS 34 LAW 35 VENUE 36 ATTORNEYS' FEES AND COSTS 37 JURY TRIAL WAIVER 38 RIGHT TO TERMINATE 39 IMPROVEMENTS/REPAIRS 40 CAPTIONS, TABLE OF CONTENTS & COVER PAGE 41 SURVIVAL 42 IN'T'ERPRETATIONS Exhibit "A" Premises Exhibit "B" Improvements/Repairs Exhibit "C" Inventory of Furnishings & Equipment Exhibit "D" Estimated Utility Charges i l CONCESSION AGREEMENT WHEREAS, the City of San Bernardino ("CITY") received title to certain real property from the United States of America by quitclaim deed recorded March 17, 1995; and, WHEREAS, the CITY and County of San Bernardino ("COUNTY") desire to enter into a concession agreement for COUNTY's use of a portion of the real property. NOW, THEREFORE, the parties agree as follows: 1. PREMISES: CITY hereby grants to COUNTY the concession rights, hereinafter specified, to be exercised within the premises, consisting of those portions of the buildings, Building No. 178, commonly referred to as the Galaxy Building, and Building No. 182, commonly referred to as the gymnasium and racquetball buildings, and the grounds including the tennis courts and running track, more fully described in Exhibit "A", attached hereto and referred to as the "Premises" and of the facilities and equipment therein during the term of this agreement, including any extensions thereof. 2. TERM: The term of this agreement shall be for a period of seven (7) years commencing on March 1, 1996, or upon acceptance of the Premises by COUNTY, and end on February 29, 2003, ("initial term"). In the event the term commences prior to the date specified for the commencement of the term as a result of COUNTY's acceptance of possession of the Premises, the ending date of the term shall not be changed. If CITY is unable to deliver possession of the Premises by the date specified for the commencement of the term as a result of causes beyond its reasonable control, CITY shall not be liable for any damage caused for failing to deliver possession, and this agreement shall not be void or voidable. The use of the Premises, Paragraph 8, "USE", shall not commence until the improvements of Paragraph 37,"IMPROVEMENTS/REPAIRS,"are substantially completed (for the purposes of this agreement, "substantially completed" shall mean that the Premises have been certified for occupancy for their intended purposes, notwithstanding that minor corrections and/or additions remain to be completed, it being understood that COUNTY shall promptly complete said corrections and/or additions), but the ending date of the term shall not be extended by the delay. 3. RENT: COUNTY shall make the improvements/repairs of Paragraph 37, -IMPROVEMENTS/REPAIRS," in lieu of rent and as consideration for COUNTY's use under this agreement. 4. AGREEMENT TO EXTEND TEIZIM: CITY and COUNTY may extend the term of the agreement on the same provisions and conditions for one (1) three-year period ("extended term") following expiration of the initial term by mutual consent of the parties. 5. RETURN OF PREMISES: The COUNTY agrees that it will, upon any termination of this agreement, return the Premises in as good condition and repair as the Premises now are or shall hereafter be put; reasonable wear and tear excepted. 1 i 6. HOLDING OVER: In the event the COUNT' shall hold over and continue to occupy the Premises with the consent of the CITY, expressed or implied, the agreement shall be deemed to be an agreement from month-to-month upon the same terms and conditions, including no monetary rent, as existed and prevailed at the time of the expiration of the term of,this agreement. 7. TAXES: CITY shall pay all real property taxes, and general and special assessments levied and assessed against the Premises. 8. USE: The buildings and grounds shall be used by COUNTY and CITY on an exclusive, common or scheduled basis as described in Exhibit "X. The parties may agree from time-to-time to revise the uses which are initially set forth below: a. Galga Building - 20.082 total square feet to be utilized as follows: (1) COUNTY shall have the exclusive use of the second floor and designated areas on the first floor for a total of 9,496 square feet. COUNTY's uses will include day and evening office use, classes, counseling, training, and recreation uses for individuals in juvenile probation programs. (2) The CITY shall have exclusive use of designated areas on the first floor consisting of 261 square feet. (3) COUNTY and CITY will jointly use common areas consisting of 5,625 square feet. (4) The "Ballroom", consisting of 4,700 square feet, (and portion of common areas which can be reserved with the Ballroom consisting of 4,060 square feet) may be reserved by COUNTY or CITY on a first-come, first-serve scheduled basis. CITY or COUNTY's scheduled use may include weddings, receptions and other uses by third parties for which CITY or COUNTY may receive fees. The party using the Ballroom will be responsible to leave it in the condition received and remove all trash from the property. The CITY will be the lead agency and will maintain a schedule for the Ballroom's use. b. Gvmnasium - 20.983 total square feet to be utilized as follows: (1) COUNTY and CITY will use the gymnasium and designated joint use common areas such as rest rooms and lobby consisting of 10,346 square feet on a reserved scheduled basis as follows: COUNTY: Monday, Wednesday, Friday, all day Tuesday, Thursday and Saturday prior to 6:00 p.m. CITY: Tuesday, Thursday and Saturday after 6:00 p.m.; and all day Sunday. 2 (2) CITY shall have the _-xclusiv e use of designated areas consisting of 486 square feet. (3) Fitness/Weight Rooms: COUNTY shall have exclusive use for the first two (2) years of use under this agreement of the Fitness/Weight Rooms, locker rooms and designated common areas consisting of 10,151 square feet, except that CITY employees may use the facilities at any time as long as COUNTY's employees are present. After the first two (2) years, CITY and COUNTY will schedule reserved use as the parties both agree. The CITY will be responsible for maintaining the master schedule. C. Racquetball Courts: COUNTY will have exclusive use for the first two (2) years of use under this agreement of the racquetball courts consisting of 4,128 square feet except that CITY employees may use the facilities at any time as long as COUNTY's employees are present, thereafter, CITY and COUNTY will schedule reserved use as the parties both agree. The CITY will be responsible for maintaining the master schedule. d. Running Track & Tennis Courts: Available for COUNTY and/or CITY use on a first-come, first-serve basis. Night use is excluded. I 9. HEALTH, SAFETY AND FIRE CODE REQUIREMENTS: CITY will insure the Premises meet the applicable requirements of the Health, Safety, Fire, and Building Codes for Public Buildings, including any requirements for a notice of completion, certificate of occupancy and the Americans with Disabilities Act ("ADA"). Should the continued occupancy of the Premises be in anyway prejudiced or prevented due to changes in the ADA, the Health, Safety or Fire Codes for Public Buildings, the CITY herein shall correct, update and comply with said changes at CITY's cost. ( � 10. SIGNS: COUNTY will display from the windows and/or marquee of the Premises only such sign or signs as are not prohibited by law. 11. MAINTENANCE: a. Except as specifically provided in subparagraph llb, below, CITY at its cost shall maintain in good condition all portions of the Premises, including but not limited to the following: (1) The structural parts of the building and other improvements that are a part of the Premises, which structural parts include the foundations, bearing and exterior walls (including glass and doors), subflooring, and roof. (2) The electrical,plumbing, and sewage systems, including,without limitation, those portions of the systems owned or controlled by CITY lying outside the Premises; (3) Window frames, gutters, and downspouts on the building and other improvements that are a part of the Premises; 3 4 (4) Air conditioner, heaEing and ventilating systems servicing the Premises, and; (5) Outside lighting, major irrigation repairs, tree trimming, tennis court's nets and wind screens. (6) CITY at its cost shall repair the Premises if they are damaged by (1) causes over which COUNTY has no control; (2) acts or omissions of CITY, or its authorized representatives. b. COUNTY, at its cost, shall maintain the buildings and grounds as follows: (1) Exterior: (A) Paint over graffiti as required. (B) Mow and edge laws. (C) Weed flower & planter beds. (D) Sweep and/or blow sidewalks, parking lots and tennis courts. (E) Trim bushes and low hanging tree branches. (F) Clean windows. (G) Remove trash and leaves. (H) Make minor irrigation repairs and adjustments. (2) Interior: Janitorial services/minor repairs which shall include: (A) Vacuum rugs. (B) Clean and dust, mop floors. (C) Clean rest rooms and provide janitorial supplies. (D) Remove trash. (E) Clean windows and walls. (F) Make minor repairs, e.g., unplugging a stopped toilet, replacing light bulbs which do not require ladders and replacing grommets in a.leaking faucet. 4 r C (G) The servicing of fire extinguishers. (3) Personal property: Per the attached Exhibit "C", shall be maintained by COUNTY in the same condition as it was upon commencement of this agreement, reasonable wear and tear excluded. COUNTY and CITY agree to inspect and indicate the condition of personal property upon commencement of this agreement. (4) COUNTY may use supervised juveniles, such as those assigned hours of community service, for maintenance and janitorial work. (5) COUNTY will make repairs if damages are by (a) causes over which COUNTY has control; (b) acts or omissions of COUNTY, or its authorized representatives; (c) direct result of COUNTY's use. 12. ALTERATIONS: COUNTY shall not make any structural or exterior improvements or alterations to the Premises without CITY's consent. Any such alterations made shall remain on and be surrendered with the Premises on expiration or termination of the agreement. 13. FIXTURES: COUNTY shall have the right during the term(s) of this agreement to install shelving and fixtures, and make interior, non-structural improvements or alterations in the Premises. Such shelving, fixtures, improvements, and alterations shall remain the property of the COUNTY and may be removed by the COUNTY during the term(s) of this agreement or within a reasonable time thereafter, provided that the' COUNTY restores the Premises to the condition as it existed at the commencement of this agreement, reasonable wear and tear excluded, or the COUNTY in its sole discretion may elect to surrender all or any part of such shelving, fixture, improvements and alterations to the CITY, in which case COUNTY shall have no duty to restore the Premises. Any such election to surrender must be in writing, but need not be accepted by CITY to be effective. 14. U'T'ILITIES f USE OFFSETS: CITY shall furnish to the Premises and pay all service charges and related taxes for electricity, water, sewer, gas and trash services. CITY to provide separate meters and determine the cost per square foot for each building for utility services on an annual basis. COUNTY shall reimburse CITY for its share of utility costs on the basis of the following: a. COUNTY shall pay one hundred percent (100%) of the utility costs as offset by reductions provided in subparagraph b below. b. The amount of utility costs paid by COUNTY to CITY shall be reduced by use offsets based on the total number of hours facilities are used on a scheduled reserved basis by third party, CITY-sponsored, and/or CITY's users at the rate of Ten and 00/100 Dollars ($10.00) per hour. C. CITY anticipates little use of the Premises during the first two (2)years of the Agreement. As CITY's use and City-sponsored use increases, CITY and COUNTY anticipate an increase in costs associated with that use. Therefore, the COUNTY and CITY 5 agree to review and adjust the allocation of utility costs and use offset reductions thereto provided in subparagraphs "a" and "b" above every six (6) months or more frequently if necessary, based on the change in the use of exclusive, common and reserved scheduled use areas, and on the basis of change in costs attributed to those uses as reflected by historical cost data. The historical cost data shall include actual costs of utilities, plus maintenance, janitorial services, supervision and overhead incurred by COUNTY as a result of such uses. d. CITY shall provide to COUNTY copies of invoices for the utilities on a monthly basis showing the reductions, if any, for uses provided in subparagraph b. above. COUNTY shall reimburse CITY for utility costs within thirty (30) days of receipt of the invoices. 15. HOLD HARMLESS: a. COUNTY agrees to indemnify COUNTY for liability or claim for damage for personal injury, death or property damage resulting from the COUNTY's negligent acts or omissions on the Premises during the term of the agreement. b. CITY agrees to indemnify, defend (with counsel approved by COUNTY) and hold harmless the COUNTY, its authorized officers, agents,volunteers and employees from any and all claims, actions, losses, damages, and/or liability arising out of this lease from any cause whatsoever including the acts, errors or omissions of any person and for any costs of expenses incurred by the COUNTY on account of any claim therefore except where such indemnification is prohibited by law. 16. INSURANCE: Ia. CITY and COUNTY acknowledges that each party is legally self- insured for Workers' Compensation up to statutory limits. The CITY is self-insured for comprehensive general liability and automobile liability, and each party shall provide a certificate of self-insurance to the other. The CITY and the COUNTY accept such self- insurance as satisfying the premises liability insurance and workers' compensation requirements under the contract. b. CITY shall, at its own expense, obtain and maintain standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements to the extent of at least forty percent (40%) of the full replacement value of the Premises during the entire term of this agreement. I 39 x : 6 C. CITY shall immediately furnish certificates of insurance to the COUNTY evidencing the above required insurance coverage upon the commencement of this lease. Within sixty (60) days of the commencement of this agreement the CITY shall furnish the COUNTY certified copies of the policies and endorsements. d. COUNTY shall be an additional named insured under all said policy or policies of insurance. All insurance required shall be maintained in full force at all times during this lease by CITY. CITY shall be required to inform COUNTY in writing of any change, expiration or renewal of any insurance policy or policies at least thirty (3)0) days prior to the effective date of change. Further, each policy shall provide that same shall not be cancelled until a thirty (30) day written notice of cancellation has been mailed to Public Works Group - Real Estate Services Department, 825 East Third Street, San Bernardino, CA 92415-0832. All such policies shall contain language to the effect that, (1) the insurer waives the right of subrogation against COUNTY and against any and all of COUNTY's officials, officers, employees, agents and representatives; and, (2) the policies are primary and non-contributing with any insurance that may be carried by COUNTY. e. The above insurance requirements are subject to periodic review by the COUNTY. The COUNTY's Risk Manager is authorized, but not required, to reduce or waive any of the above insurance requirements whenever the Risk Manager determines that any of the above insurance is not available, is unreasonably priced, or is not needed to protect the interests of the COUNTY. In addition, if the Risk Manager determines that heretofore unreasonably priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available, the Risk Manager is authorized, but not required, to change the above insurance requirements to require additional types of insurance coverage or higher coverage limits, provided that any such change is reasonable in light of past claims against the COUNTY, inflation, or any other item reasonably related to the COUNTY's risk. (1) Any such reduction or waiver for less than the entire term of the agreement (including any option periods) must be in writing and signed by the Risk Manager to be effective. (2) Any such reduction or waiver for the entire term of the agreement (including any option periods) and any change requiring additional types of insurance coverage or higher coverage limits must be made by amendment to this agreement. CITY agrees to execute any such amendment within thirty (30) days of receipt. f. In the event COUNTY receives a thirty (3)0) day notice of cancellation concerning any of the required policies, or should CITY fail to have in effect the required coverage at anytime during this agreement, COUNTY may give notice to CITY to reinstate or acquire the affected coverage. Should CITY fail to reinstate or acquire the affected coverage within ten (10) days of COUNTY's notice to reinstate or acquire such coverage, COUNTY may either terminate the agreement, reinstate or acquire the affected coverage, and CITY shall reimburse COUNTY for the necessary cost at COUNTY's option. 7 17. DESTRUCTION OF PREMISES: a. If, during the term of this agreement, any casualty renders ten percent (10%) or less of the floor space of the Premises unusable for the purpose intended, CITY shall commence restoration of the Premises within thirty (30) days of notice of the casualty and shall thereafter diligently pursue complete restoration of the Premises within a reasonable time. If CITY does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to CITY, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for County employees and equipment used)in the performance of CITY's obligations, or COUNTY may terminate this agreement by notice to CITY. b. If during the term of this agreement, any casualty renders more than ten percent (10%) but less than twenty-five percent(25%)of the floor space of the Premises unusable for the purpose intended, CITY shall commence restoration of the Premises within ninety (90) days of notice of the casualty and shall thereafter diligently pursue complete restoration of the Premises within a reasonable time. If CITY does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to CITY, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for County employees and equipment used)in the performance of CITY's obligations, or COUNTY may terminate this agreement by notice to CITY. C. If, during the term of this agreement, any casualty renders at least twenty-five percent (25%) but less than forty percent (40%) of the floor space of the Premises unusable for the purpose intended, COUNTY shall within thirty (30) days of the casualty and at its option and in its sole discretion, terminate this agreement by notice to CITY or request CITY to restore the Premises. If COUNTY requests CITY to restore the Premises, the CITY shall either terminate this agreement by notice to COUNTY within ten (10) days of receiving COUNTY's request for restoration or commence restoration of the Premises within ninety (90) days of receiving COUNI'Y's request for restoration and thereafter diligently pursue complete restoration of the Premises within a reasonable time. If CITY does not terminate the agreement and does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to CITY, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for County employees and equipment used) in the performance of CITY's obligations, or COUNTY may terminate this agreement by notice to CITY. d. If, during the term of the agreement, any casualty renders forty percent (40%) or more of the floor space of the Premises unusable for the purpose intended, this agreement shall be terminated as of the date of the casualty. If the agreement is terminated pursuant to this subparagraph, COUNTY shall have a reasonable time to vacate the Premises. 8 • r j e. In the event there is a destruction of a portion of the Premises as set out in subparagraphs "a", "b", and "c" above, and the agreement is not terminated because of such destruction, CITY agrees to use any and all insurance proceeds received for said destruction in the restoration of the Premises. T. In the event CITY is required to restore the Premises as provided in this paragraph, CITY shall restore, at CITY's expense, any structural or exterior improvements or alterations to the Premises made by COUNTY pursuant to Paragraph 12, "ALTERATIONS," of this agreement, but shall not be responsible for restoring any shelving, fixtures, or interior nonstructural improvements or alteration made by the COUNTY pursuant to Paragraph 13, "FIX'T'URES," of this agreement. g. It is the purpose and intent of this paragraph to determine who shall bear the initial responsibility for restoration of the Premises in the event of any such destruction and not to determine the party responsible for the ultimate costs of such restoration. 18. CITY'S DEFAULT: Except where another time limit is specifically provided, CITY shall be in default of this agreement if it fails or refuses to perform any material provisions of this agreement that it is obligated to perform if the failure to perform is not cured within thirty (30) days after notice of such default has been given by COUNTY' to CITY. If the default cannot be reasonably be cured within thirty (30) days, CITY shall not be in default of this agreement if CITY commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. 19. COUNTY'S REMEDIES ON CITY'S DEFAULT: COUNTY, at anytime after CITY is in default, can terminate this agreement or can cure the default at CITY's cost. If COUNTY at anytime, by reason of CITY's default, pays any sum or does any act that requires the payment of any sum, the sum paid by COUNTY shall be due from CITY to COUNTY within five (5) days of notice of such sum (including charges for COUNTY's employees and equipment), and if paid at a later date shall bear interest at the maximum rate the COLTNTY is permitted by law to charge from the date the sum is paid by COUNTY until COUNTY is reimbursed by CITY. 20. COUNTY'S DEFAULT: The occurrence of any one or more of the following events shall constitute a default and breach of this agreement by COUNTY: a. The vacating for more than thirty (30) consecutive days or abandonment of the Premises by COUNTY. b. The failure by COUNTY to perform any material provisions of this agreement to be performed by COUNTY where such failure shall continue for a period of thirty (30) days after notice by CITY to COUNTY; provided, however, that if the nature of COUNTY's default is such that more than thirty (30) days are reasonably required for its cure, then COUNTY shall not be deemed to be in default if COUNTY commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to 9 � r completion. The purpose of this notice requirement is to extend the notice requirements of the unlawful detainer statutes of California. 21. CITY'S REMEDIES ON COUNTY'S DEFAULT: In the event of any material default by COUNTY which is not cured by COUNTY, CITY may, at its election, terminate this agreement by giving COUNTY thirty (30) days notice of termination. The purpose of this notice requirement is to extend the notice requirement of the unlawful detainer statutes of California. On termination of the agreement for default pursuant to this paragraph, CITY shall have the right to recover from COUNTY only any amount, and court costs, necessary to compensate CITY for all detriment proximately caused by COUNTY's default which CITY proves could not have been reasonably avoided. 22. CITY'S ACCESS TO PREMISES: CITY and its authorized representatives shall have the right to enter the Premises at all reasonable times for any of the following purposes: a. To determine whether the Premises are in good condition; b. To do any necessary maintenance and to make any restoration to the Premises that CITY has the right or obligation to perform. C. To serve, post, or keep posted any notices required by law; d. To post "for sale" signs at anytime during the term, to post "for rent or "for lease" signs during the last three (3) months of the term; and e. To show the Premises to prospective brokers, agents, buyers, tenants, lenders or persons interested in an exchange, at anytime during the term. L To occupy and use areas designated for CITY's exclusive use and scheduled use of joint use areas. CITY shall conduct its activities on the Premises as allowed in this paragraph in a manner that will cause the least possible inconvenience, annoyance, or disturbance to COUNTY. 23. NOTICES: a. Any notice, demand, request,consent, approval, or communication that either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party shall be addressed to the other party at the address set forth below. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated two (2) COUNTY working days from the time of mailing if mailed as provided in this paragraph. 10 CITY's address: City of San Bernardino Parks and Recreation Department 547 North Sierra Way San Bernardino, CA 92410 COUNTY's address: Public Works Group Real Estate Services Department 825 East Third Street, Room 207 San Bernardino, CA 92415-0832 24. INCORPORATION OF PRIOR AGREEMENT: This agreement contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this agreement, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. Y 25. WAIVERS: No waiver by either party of any provisions of this agreement shall be deemed to be a waiver of any other provision hereof or of any subsequent breach by either party of the same or any other provisions. 26. AMENDMENTS: No provision of this agreement may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successor in interest, expressing by its terms an intention to modify this agreement. 27. SUCCESSORS: This agreement shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors, and assigns of the parties hereto. 28. SEVERABILITY: If any word, phrase, clause, sentence, paragraph, section, article, part or portion of this agreement is or shall be invalid for any reason, the same shall be deemed severable from the remainder hereof and shall in no way affect or impair the validity of this lease or any other portion thereof. 29. TIME OF ESSENCE: Time is of the essence of each provision of this agreement which specifies a time within which performance is to occur. In the absence of any specific time for performance, performance may be made within a reasonable time. 30. QUIET ENJOYMENT: Subject to the provisions of this agreement and conditioned upon performance of all the provisions to be performed by COUNTY hereunder, CITY shall secure to COUNTY during the agreement term the quiet and peaceful possession of the Premises and all right and privilege appertaining thereto. 31. PROVISIONS ARE COVENANTS AND CONDITIONS: All provisions, whether covenants or conditions, on the part of either party shall be deemed to be both covenants and conditions. 32. CONSENT: Whenever consent or approval of either party is required that party shall not unreasonably withhold such consent or approval. 11 33. EXHIBITS: All exhibits referred to are attached to this agreement and incorporated by reference. 34. LAW: This agreement shall be construed and interpreted in accordance with the laws of the State of California. 35. VENUE: The parties acknowledge and agree that this agreement was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue for any action nor claim brought by any party to this agreement will be San Bernardino County. Each party hereby waives any law or rule of court which would allow them to request or demand a change of venue. If any action or claim concerning this agreement is brought by any third party, the parties hereto agree to use their best efforts to obtain a change of venue to the Central District of San Bernardino County. 36. ATTORNEYS',FEES AND COSTS: If any legal action is instituted to enforce or declare any party's rights hereunder, each party, including the prevailing party, shall bear its own costs and attorneys' fees. This paragraph shall not apply to those costs and attorneys' fees directly arising from any third party legal action against a party hereto and payable under Paragraph 15, "HOLD HARMLESS". I37. JURY TRIAL WAIVER: CITY and COUNTY hereby waive their respective right to trial by jury and agree to accept trial by judge alone of any cause of action, claim, counterclaim or cross-complaint in any action,proceeding and/or hearing brought by either CITY against COUN'T'Y or COUNTY against CITY on any matter whatsoever arising out of, or in any way connected with, this agreement, the relationship of CITY and COUNTY, COUNTY's use or occupancy of the Premises, or any'claim of injury or damage, or the enforcement of any remedy under any law, statute, or regulation, emergency or otherwise, now or hereafter in effect. 38. RIGHT TO TERMINATE: The COUNTY or CITY shall have the right to terminate this agreement at any time. COUNTY or CITY shall give the other notice of any termination pursuant to this paragraph at least ninety (90) days prior to the date of termination. In the event CITY terminates this agreement pursuant to this paragraph, the COUNTY shall have the right to receive from CITY the following amounts under this agreement: a. The COUNTY shall be entitled to be reimbursed by CITY for that portion of the improvements as provided in subparagraph 39a, which have not been amortized on the date of termination. b. The total amount which the COUNTY is entitled to receive under this paragraph shall be paid in a lump sum within thirty (30) days of the date of termination. 12 t 39. IMPROVEMENTSIREPAIRS: a. COUNTY, at its cost, agrees to make the improvements to the Premises set forth in Exhibit 'B." The improvements shall be completed on the schedule set forth in Paragraph 2, "TERM." b. The cost of all such improvements shall be amortized over the initial term of use of the Premises under Paragraph 8, "USE". C. COUNTY or CITY may apply for and obtain grants for major repairs and improvements to the Premises. 40. CAPTIONS, TABLE OF CONTENTS AND COVER PAGE: The paragraph captions, table of contents and the cover page of this lease shall have no effect on its interpretations. 41. SURVIVAL: The obligations of the parties which, by their nature, continue beyond the term of this lease, will survive the termination of this lease. 13 42. IN'T'ERPRETATIONS: As this agreement was jointly prepared by both parties, the language in all parts of this agreement shall be construed, in all cases, according to its fair meaning, and not for or against either party hereto. END OF AGREEMENT TERMS. COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO: ..� By: 2 �, Chairman, Board of Supervisors Dated: FEB 13 1996 Title: Mayor Dated: c)- (o SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED Attest: TO THE CHAIRMAN OF THE BOARD By: EARLENE SPROAT, Clerk of the Board of Supervis , S! C+ 'Y�'t , R _ Title: City Clerk � By: cn � eputy�:; •n s� Dated:�,�y�o ��;' ;S APPROVED AS TO FORM AND Date: - -=� LEGAL CONTENT: JAMES F. PENMAN Approved as to Legal Form: City Attorney ALAN K. MARKS, County Counsel �l By: By: Deputy Dated: 14