HomeMy WebLinkAboutReso - CC - 106-2008ATTACI-IMENT "A"
RESOLUTION NO. 106-2008
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING THE LEASE WITH THE LIONS CLUB
FOR 990 BURLINGAME AVENUE
RESOLVED, by the City Council of the City of Burlingame:
WHEREAS, the City and the Lions club have had a 30 year lease for 990 Burlingame
Avenue and the parties wish to enter into a new lease for the site on the terms and conditions set
forth in the Lease;
NOW, THEREFORE, IT IS DETERMINED AND ORDERED that:
1. The lease attached hereto between the City of Burlingame and the Lions Club for 990
Burlingame Avenue is approved.
Mayor
City Attorney Approval: f�'0ato
I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that
the foregoing Resolution was adopted at a regular meeting of the City Council held on the 1" day
of December, 2008, by the following vote:
AYES: COUNCILMEMBERS: sAYLOCK, DEAL, KEIGHRAN, NAGEL, O'NAHONY
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NoNE
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LEASE
THIS LEASE, entered into this day of , 2008 between the
CITY OF BURLINGAME, a municipal corporation, hereinafter referred to as "City", and the BURLINGAME
LIONS CLUB, hereinafter referred to as "Lessee';
Recitals
A. In 1979 City and Lessee entered into a lease for the premises that is now nearing the
expiration date. City and Lessee wish to continue the mutually beneficial relationship and re -lease the
premises on the terms and conditions set forth below which assure that necessary improvements will be
made, that the premises will be maintained, that the premises will be made available to the public and City,
and that the premises will continue to serve Lessee.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the
parties hereto agree as follows:
Leased Premises
(a) Description. The leased premises, referred to as "premises", consist of that certain real
property located in the City of Burlingame at the intersection of Burlingame Avenue and Myrtle Road and
having a street address of 990 Burlingame Avenue, including all structures and fixtures appurtenant
thereto. The premises do not include personal property or any of the adjacent parking lots. The leased
premises are shown on Exhibit A attached hereto.
(b) Condition. Lessee shall accept the premises in an "as is" condition on the date Lessee
takes possession hereunder and agrees that City shall have no obligation to improve, repair, restore,
refurbish or otherwise incur any expense in improving and/or changing the condition of the premises at
such time or thereafter. Lessee acknowledges that it has been in possession of the premises for nearly 30
years and that consequently it is fully aware of the condition of the premises and further that its
representatives have inspected the building and all appurtenant facilities, have reviewed City documents
pertaining to its current condition, and have otherwise become fully acquainted with the physical state of
the premises.
2. Landscaping
Lessee shall protect existing shrubbery from damage during reconstruction. Any shrubs which
are removed shall be replaced with similar planting.
3. Rental
Lessee shall pay to the City the sum of $1.00 per year for the use and occupancy of said
premises on the execution of this agreement and upon each anniversary thereafter during the term of this
agreement or any extension thereof. Said rental may be paid in advance for any number of years.
4. Purposes
(a) The parties agree that the leased premises shall be used for the general purposes
of planning and holding meetings, service clubs and civic activities, recreational activities and other uses of
the building similar to those of City's Recreation Center. The premises shall be available for use by the
public and for private activities and events, subject to scheduling by Lessee. A schedule of rates and
charges which shall approximate those which are charged by City for similar facilities shall be established
by Lessee and a copy provided to City; any changes thereto shall be transmitted to City. On the first of
each month Lessee shall provide a calendar of the scheduled activities within the building to City's Parks &
Recreation Department and Police Department; the departments shall be informed as soon as possible of
changes or additions to the schedule. Crowd control, security, and reasonable supervision shall be
provided by Lessee for events; the Police Department/Parks & Recreation Department may require specific
levels of control, security, and supervision.
(b) City shall have the right to use the premises for up to 3 one -day City events each year.
City shall schedule the events in advance with Lessee. Lessee shall not charge City for such events.
(c) City shall have the right to utilize the premises for emergency purposes in the event of an
emergency or disaster. City shall reimburse Lessee for any lost revenues for scheduled events deducting
therefrom the cost that would have been incurred for maintenance/janitorial.
(d) Prohibited activities. Lessee agrees not to use the premises for or carry on or permit any
offensive, noisy, or dangerous activity, or any nuisance, or anything against public policy. Lessee further
agrees that it will not use or permit the use of the premises for any purpose which would increase existing
rates of insurance, or cause cancellation of any insurance policy carried by City or Lessee. Lessee agrees
to comply with and conform to all laws and ordinances, municipal, state, federal or other governmental
board or authority, including City rules for Washington Park, present or future, relating to the condition, use
or occupancy of the premises, and it shall take precautions to prevent fire on the premises, maintaining
adequate fire detection procedures and suppression equipment at all times.
(e) Adiacent parking. Lessee acknowledges that the premises are located among City
facilities and within parking facilities used by the public. Lessee agrees to cooperate with City in the
coordination of parking uses between City and Lessee's activities. City reserves the right to promulgate
reasonable rules and regulations with respect to parking on adjacent premises as City shall deem
appropriate. Lessee, its agents, employees, and/or all others using said building, shall recognize and abide
by such rules and regulations and shall cooperate with City in the enforcement thereof.
(f) Staffing. Lessee shall at its expense furnish staff for the maintenance and operation of the
building during the term of this lease and shall provide at its expense all utilities, including garbage
collection, gas, electricity and water.
(g) Maintenance. Lessee shall maintain the premises, at its expense, in good condition and
repair satisfactory to City and in conformance to all codes and laws. Remodeling or other major
improvements may be performed from time to time, but must receive City approval prior to commencement
of any work; City shall not unreasonably withhold such approval. City may give written notice to Lessee of
any unsatisfactory maintenance or repairs, and, if those maintenance or repairs are not performed within
thirty (30) days of said notice, City shall have the right to enter upon the leased premises and perform such
maintenance and repairs without further notice and at the sole expense of Lessee. All such expenses shall
be paid by Lessee within thirty (30) days after submission to Lessee of an invoice for such expenses.
5. Term — Possession
The initial term of this lease shall be for a period of twenty (20) years commencing December
1, 2008, and expiring December 1, 2028. Lessee is granted the option to extend the initial term of this
lease for a ten (10) year period provided Lessee is not in default hereunder at the time of the exercise of
the option and at the time the commencement of the extended term created by the exercise of the option.
Lessee shall give written notice of the exercise of the option to City not less than six (6) months prior to the
expiration of the initial term.
6. Recovery of Possession by City
City may terminate this lease without any obligation in eminent domain or otherwise, if the City
Council approves removal and/or destruction of the leased building as part of a change to Washington Park
or City's recreation facilities. City shall be required to provide in writing at least 6 months notice to Lessee.
City agrees that prior to any such acquisition of Lessee's interest, Lessee shall have the option to remove
all or any part of the fixtures to another location at Lessee's sole expense. Within sixty (60) days after
notice, Lessee shall notify City in writing if it wishes to exercise said option. If such notice is sent to City,
Lessee shall complete all removals within one hundred twenty (120) days thereafter. Further, City and
Lessee shall appraise the depreciated value of improvements that have been made to the leased premises
with City's approval during the term of this lease (not earlier leases) and shall reimburse Lessee for that
value.
7. Records
Lessee shall keep true and accurate records, accounts and books of all rentals of the premises, including
names of renters and the rental charges. City shall be entitled upon reasonable notice throughout the term
of this lease to review said records.
8. Abandonment
Lessee shall not vacate or abandon the premises at any time during the term hereof, and, if
Lessee shall abandon, vacate or surrender the premises or be dispossessed by operation of law or
otherwise, any personal property belonging to Lessee and left upon the premises shall, at the option of the
City, be deemed to be abandoned.
9. Liens
Lessee shall keep the premises and the improvements thereon free from any and all liens
arising out of any work performed, materials furnished, or obligations incurred by Lessee, its employees,
agents or contractors, and Lessee agrees to reimburse City for any attorneys' fees incurred in defense of
proceedings to remove, enforce, or foreclose such liens.
10. Taxes
During the term of this lease, Lessee agrees to pay prior to delinquency all taxes and
assessments, both general and special, levied or assessed against the premises and in connection with the
premises and Lessee's operation thereof. Lessee is hereby put on notice that the interest created in Lessee
by this agreement may be subject to possessory interest taxes under the laws of the State of California,
and that by the terms of this agreement Lessee shall be liable for such taxes. It is understood, however,
that Lessee may pay any such taxes or assessments under protest, and without liability, cost or any
expense to City in good faith contest the validity or amount thereof. In the event that Lessee shall be
unsuccessful in any such contest, such taxes and any interest and/or penalties resulting therefrom shall be
discharged by Lessee prior to execution. Lessee agrees to hold City harmless from all costs, expenses and
penalties that may result from Lessee's contest.
11. Signs, Sound Systems, Lighting
Lessee shall not permit, allow or cause to be erected, installed, maintained or used on or at the
premises or any part thereof, any exterior advertising devices such as public address systems, sound
reproduction devices or moving lights without the prior consent of City. All signs shall conform to City
codes.
12. Liability Insurance
At its own cost and expense Lessee shall procure and maintain in full force and effect
throughout the term of this lease commercial general liability insurance, insuring Lessee, the City and their
respective directors, officers, agents and employees with minimum limits of liability of $1,000,000 per
occurrence and with an aggregate of not less than $2 million.
13. Casualty Insurance
Lessee agrees at Lessee's cost and expense to keep the premises insured against loss
covered by fire and extended risk insurance, vandalism, and malicious mischief insurance in an amount
equal to at least eighty per cent (80%) of the full replacement value thereof. The said replacement value
shall be determined at the time said insurance is initially taken out, and Lessee shall promptly notify City in
writing of such determination, provided City or Lessee may at any time, but not more frequently than once
every two lease years, by written notice to the other, request the replacement value of the structures and
improvements to be redetermined at Lessee's expense. Said insurance policy or policies shall be issued in
the names of City and Lessee as their interests appear.
In the event of damage or destruction to the premises during the term hereof, notwithstanding
the cause or causes thereof, Lessee shall forthwith repair, restore or rebuild the structure and/or
improvements to the same condition immediately before such injury, damage or destruction regardless of
whether such damage or destruction was insured against or whether the amount of insurance proceeds, if
any, payable by reason of such damage or destruction is sufficient to cover the cost of repairing, restoring
or rebuilding.
14. Insurance Certificates and Maintenance
All insurance shall not be subject to cancellation or exchange except after at least thirty (30)
days' prior written notice to City, and the policies or duly executed certificates for them shall be deposited
with the City upon the commencement of the term hereof or upon renewal of said policies. Should Lessee
fail to effect, maintain or renew any kind of insurance herein required of Lessee in the required among or to
pay the premiums thereon, or deposit with City the certificates thereof as hereinabove provided, then, in
any of said events, City, at City's option but without obligation to do so, may procure such insurance, and
any sums expended by City for such insurance, plus ten per cent (10%) overhead, shall be repaid by
Lessee to City, and, if not paid on demand, said total amount shall accrue interest at the rate of six per cent
(6%) per annum until paid. Lessee hereby agrees that any policies herein required shall be primary policies
insurance.
The insurance policies shall be endorsed to name the City, its elected and appointed officers,
agents, and employees as additional insureds.
It is agreed that the limits of insurance specified above are minimum amounts and as
circumstances change during the term hereof, City may from time to time require revisions and changes in
the foregoing insurance requirements, and Lessee agrees to comply with such requirements.
15 Workers Compensation, Social Security, etc.
Lessee shall acquire and maintain in full force throughout the term hereof workers'
compensation insurance and unemployment compensation insurance to the extent necessary for Lessee's
operations upon the premises. All policies under this paragraph shall be written by companies satisfactory
to City and contain provisions that written notice of cancellation or change in the policy shall be delivered to
City at least thirty (30) days prior to the effective date of the same.
16. Hold Harmless and Indemnity
Lessee agrees to hold harmless, defend and indemnify City, its elective and appointed boards,
officers, agents and employees, from and against all liabilities, costs and expenses for loss of or damage to
property and for injury to or deaths of persons (including, but not limited to, the property and employees of
each party hereto) which may arise from Lessee's use and operation of the leased premises, including
Lessee's rental of the property to other persons, or the breach of the provisions of this lease, including but
not limited to Lessee's active or passive negligence; this provision shall not apply to such liabilities arising
from actions of City, its employees or agents during uses of the premises for City purposes.
a. Default
In the event Lessee shall not properly clear up any default by the Lessee hereunder, to wit, a
material breach of the performance or observance of any term, condition or covenant of this lease, within
thirty (30) days after receipt of written notice of such default from City, City shall have the right to terminate
this lease forthwith and to retake possession of the premises. Waiver of any default shall not be construed
as a waiver of any subsequent or continuing default. Termination of this lease shall not affect any liability by
reason of any act, default or occurrence prior to such termination.
b. Restoration of Premises
Upon the expiration or termination of this lease, or any extension or renewal thereof, Lessee,
without further notice, shall deliver up to City the possession of the leased premises. In the event of failure
or refusal of Lessee to surrender possession of said leased premises, City shall have the right to re-enter
upon said leased premises and remove Lessee or any person, firm or corporation claiming by, through or
under Lessee. Lessee shall not remove any improvements affixed to the building without the written
permission of City.
C. Attorneys' Fees
In case either party shall successfully bring suit to compel performance of, or to recover for
breach of any covenant, condition or agreement herein, the losing party will pay to reasonable attorneys'
fees in addition to the amount of judgment and costs.
d. Holding Over
In case Lessee holds over the term of this lease with the consent of City, such holding over
shall be deemed a tenancy only from month to month upon the same terms and conditions as herein
stated.
e. Time of the Essence
Time and specific performance are each of the essence of this lease.
Heirs. Successors and Assigns
Each and every covenant, term and condition contained herein shall be binding upon and inure
to the benefit of the parties, its heirs, successors and assigns.
g. Notices
All notices required to be given hereunder shall be in writing. Such notices shall be sent by
United States certified mail, postage prepaid, addressed to Lessee at:
and to City at:
Burlingame Lions Club
Burlingame, CA 94011-0206
City of Burlingame
City Manager
501 Primrose Road
Burlingame, CA 94010
or at such other place as either City or Lessee may from time to time, respectively, designate in writing
notice given to the other.
h. Assignment and Subletting
Lessee shall not assign this lease or any part thereof, nor sublet the leased premises or any
portion thereof, for the consecutive, continuous and exclusive use of any person for longer than seven (7)
7
days, without the prior written consent of City. Any assignment or subletting prohibited hereunder without
the consent of City shall be void.
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed by their
duly authorized officers the day and year first above written.
CITY OF BURLINGAME
By r . J
Mayor
ATTEST: ATTEST:
J)CpxT City Clerk I
BURLINGAME LIONS CLUB
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