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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 T City C erk 7FA Y . 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 P25 Its /?FS/O"�;riU -r- 12 A Its