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HomeMy WebLinkAboutAgenda Report - February 17, 2010 D-11AGENDA ITEM 1) 001, '• CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing the Lease Agreement Between the City of Lodi and the State of California, Acting By and Through its Directorof General Services, with the Consent of the Military Department for the Use of the National Guard Armory Building MEETING DATE: February 17,2010 PREPARED BY: Steve Dutra, Park Superintendent RECOMMENDED ACTION: Adopt resolution authorizing the lease agreement between the City of Lodi and the State of California, acting by and through its Director of General Services, with the consent of the Military Departmentfor the use of the National Guard Armory Building. BACKGROUND INFORMATION: Forwell over a year the City and the State of California have been discussing the potential renewal of the existing lease agreementfor joint use of the Armory facility located at 333 N. Washington Street. The existing lease expired in December 2007. The City and State have negotiated terms of a five-year lease that will give the City use of the Armory through December 31,2014. Because the City does not currently own or operate indoor gymnasium facilities on a year-round basis, it relies upon leases and joint -use agreements to secure the facilities of other agencies in order to provide programs requiring a gymnasium. The local Armory building has hardwood flooring striped for one full- size basketball court, two small cross courts and side-by-side volleyball courts. The building houses restrooms, storage room and a common area that can be used for small meetings and waiting parents. Elements of the lease include a five-year term with City use of approximately 10,199 square feet of the total building area of 18,507 square feet. The Department of General Services has determined the current "Fair Market Rent" for the premises at $1,785. The State acknowledges Lessee is providing maintenance services and agrees to a $600 in -lieu credit, making the monthly rental payment amount of $1,185 which is an increase of $73 per month from the previous contract as amended. The State is requiring an administrativefee of $3,000 for lease preparation and the lease may be terminated by the City at any time with a 90 -day written notice. The lease also contains a requirement that the City will cease activities in the event of a declared national or State emergency and/or military mobilization. City of Lodi will reimbursethe State for utility fees that exceed the State's average monthly expenses of $1,158 based upon previous utility bills. National Guard personnel will provide to the City a listing of home Reserve Duty dates and the City will coordinate uses of the facility accordingly. Should this lease be approved, Parks and Recreation will jointly use the facility underthis lease for programming a variety of recreational activities for youth and adults on a year-round basis. This renewal APPROVED: Blair ' ' , City Manager Adopt a ResolutionAuthorizing the Lease Agreement Between the City of Lodi and the State of California, Acting By and Through its Directorof General Services, with the Consent of the Military Department for the Use of the National GuardArmory Building February 17,2010 Page 2 allows Lessee to "sublet." Subletting activities shall be considered "Lessee -sponsored" events. Programming will be developed to utilize the facility as fully as possible. The Recreation Commission reviewed staffs recommendation to renew the lease agreement at its February2, 2010, meeting (see attached minutes). FISCAL IMPACT: $1,185 per month ($14,220 annually) Lease Payments plus utilities and administrative expenses of $3,000. FUNDING AVAILABLE: Rent is paid out of general operating account #346011.7321 (Rent of Land, Facilities). Parks and Recreation recovers a portion d this cost through userfees. d'�� Jordan Ayers"City er ;� imes M. RodemS Interim Parks and Recreation Director JMR\SD:tl cc: City Attorney MINUTE ORDER Lodi Recreation Commission Meeting of February 2, 2010 REGULAR AGENDA ITEM B - NATIONAL GUARD ARMORY BUILDING LEASE Mr. Dutra introduced this item. The differences between the contracts are: the rental offset for external maintenance is now $600 instead of $250; the rent will increase $700 based on the States interpretation of the fair market value which includes a 50% disruption clause. The other difference is the State previously based their rental rate on property the City previously owned in the adjacent area. The lease will be going to City Council for approval at their February 17 meeting. Mr. Rodems commended Mr. Dutra for staying with this process. Mr. Rodems stated that the previous agreement prevented us from subleasing this facility and we are now able to do this with the new agreement which will allow for additional revenue. Mr. Dutra commended Sgt. Thomas Lane for his support through this process. Commissioner Wall asked if the 5 year agreement is based on available funding. Commissioner Wall asked if Council did not approve the funding in the following year how does that impact the agreement. Mr. Rodems stated the funding for the rental does not come under the purview of the Council it is a program component based upon our revenues. Commissioner Wardrobe -Fox asked if there's a rent escalator or is it a flat rate for each of the 5 years of the contract. Mr. Rodems stated it is a flat rate. ATTEST: Terri Lovell Administrative Secretary STATE OF CALIFORNIA BUILDING SPACE LEASE DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION Real Property # 604 This Lease California, ; Military Del the State of WHER 333 N. known In(: f= :ference purposes only September 9, 2009, by and. between the StatE d through its Director of General Services (DG with the consent of inafter referred to as STATE a �reinafter referred to as LESSE AS, the STATE has under its jurisdiction, certain real property,located property for interest of tl NOW, THEI City of Lodi, nd . EFORE, it is hereby mutually agreed as follow e Dir, r_:of the be rtt, is'authorized to I for deems such lett s: litical subdivision of hire from STATE, upon .the tertns, agreements, and condition's hereinafter set 77 forth, those certain Premises. as outlines on the attached p lat and floor plans designated as Exhibit "A 'cons'isting of two (2),pages, attached hereto and made a part therein by this reference and more particularly described as follows: Building located at 333 N. Washington Street, City of Lodi, County of San Joaquin, State of California 95240, consisting of approximately 10,199 square feet of the total building area of 18,507 square feet together with its adjacent parking lots and grounds. These areas include offices in Rooms 1 and 16 and area 20, the assembly area. LESSEE shall have exclusive use of the offices located in Rooms 1 and 16 and either Room 14 or 15 for storage. Area 20, the assembly area, lounge, kitchen, restrooms and showers may be used by both the STATE and LESSEE. The LESSEE is not allowed to use the stove in the kitchen. The Premises do not include the areasignated as the armament safe which by law Lodi Armory January 14, 2010 DESCRIPTION must exclusively be used by the State of California or the United States (CONT) Government. TERM 2. The term of this Lease shall be for five (5) years, commencing January 1,2010 and ending December 31, 2014, with such rights of termination as are hereinafter expressly set forth. USE 3. The Premises shall be used by LESSEE, during the term hereof, for the purpose of operating community oriented recreational programs and other community oriented programs, services and related office functions and for no other purpose whatsoever. RENT/OFFSETS 4. a) DGS has determined the current "Fair Market Rent" for the Premises is ONE THOUSAND SEVEN HUNDRED EIGHTY-FIVE AND NO/100 DOLLARS ($1,785.00) per month. b) STATE acknowledges LESSEE is providing maintenance services to the Premises as outlined in Exhibit "B", consisting of one (1) page, attached hereto and made a part herein by reference. STATE shall provide in lieu credit of SIX HUNDRED AND NO/100 DOLLARS ($600.00) per month to LESSEE, described in Exhibit "C", consisting cf one (1) page, attached hereto and made a part hereof by reference. c) LESSEE shall make monthly rental payments, fair market rent less maintenance services credit, monthly in advance, on the first (1S) of each month, in the amount of ONE THOUSAND ONE HUNDRED EIGHTY-FIVEAND NO/100 DOLLARS ($1,185.00). Rental payments are to made payable to: Department of the Military P.O. Box 269101 (L-2015) Facilities (Box 2 1 ) Sacramento, CA 95826 a) If at any time during the term of this Lease, should LESSEE fail to provide ongoing landscape maintenance services, such failure shall constitute forfeiture by LESSEE of all in lieu rents credits/offsets and rent will return to the original Fair Market Value of $1,785.00. UTILITIES 5. LESSEE shall, at its sole cost and expense, reimburse the STATE for utility fees that exceed the STATE'S average monthly expenses of ONE THOUSAND ONE HUNDRED FIFTY-EIGHTAND NO/100 DOLLARS ($1,158) based upon previous utility bills. LESSEE will be billed and will pay the STATE monthlyfor their portion cf the prior month's utility bills. Utilities include, but are not limited togas, electric water, sewer and trash disposal. DEFAULT 6. LESSEE shall pay said rent to the STATE without deduction, default or delay. In the event of the failure of LESSEE to do so, or in the event of a breach of any of the other terms, covenants or conditions herein contained on the part of LESSEE to be kept and performed and if such default continues for a period of thirty (30) days after receipt of written notice from STATE to LESSEE of such default, this Lease shall be terminated. Page 2 of 13 DEFAULT a) In the event of termination of this Lease, it shall be lawful for STATE to (CONT) reenter into and upon the premises and every part thereof and to remove and store at LESSEE'S expense all property there from and to repossess and occupy the Premises. In the event STATE terminates this Lease pursuant to this paragraph, the STATE shall not be required to pay LESSEE any sum whatsoever. TERMINATION 7. The parties hereto agree that either party may terminate this Lease at any time during the term hereof by giving written notice to the other party at least ninety (90) days prior to the date when such termination shall become effective. BREACH 8. Jn the event of a breach of this Lease by,lLESS EE, th'b STAT E, in addition to any other rightsor,remedies it may; have,; shall havethe immediateright of re-entry and,.rpay take possession yof=the Premises.and everypart thereof and to remove and°res,'tore, at; ESSEE'S expense allwproperty tF erefror % and`'to�repossess and occupy the:Premises. Ili the event STATE terminates this Lease' pursuant to this paragraph STATE shall not be required to pay L•ESSEE'any sum orsurns whatsoever. HOLD OVER 9. ,Any holding over after the expiration;*the said ter>mot,.any eension thereof, with the written consent.of the.TATI=; ,expressed* -or Implietl, shall be, deemed:a r: tenancy onty from rnQnth to month and all_ather teCms otl codttions of this ;Lea sershall=corrtinue in fait force and effect Ha1d overrrent iS Ei it aediately due an( payable, in`advance, on the first day cif thb.m6hth following expiration of the term of this Lease,*- the "Fair Market Rend'" amount of.Y$1, 785 00 as referenced,in paragraph 4 "Fent" Hold over. rent shall be due'and' pay�ablwtb STATE whether or. not an actual invoiceis sen by STATE or received b'y' LESSEE:. H Mf DECLARATIdion 10. In the:'event pf e`Declarat of Emergency by theaState ar Federal government, OF EMERGENCY which; emergency causes itt0 beCOmelappraprlate to �tse; th -f sed Premises for the purposes of protection of the pubic,s�afety ahljh. a sa e* of *tie public or preservafion of„STATE assets, :LESSEE shall immediately and,:fully cooperate with STATE`to.make It' remises available forthwith for'those`purposes. LESSEE shall.. be compensated for any such use only by>the= abatement of rent liability during the period=of time when the Leased Premises are unavailable to LESSEE for” LESSEE'S exclusive Luse. ; LESSEE shall specifically..not;be entitled 17 to compensatiortFfor 1) lost incQrne.which would f,e derived fromri the -use of the Leased PrerriSes,,or 2) any liability to;al�irdaparties resulting from, LESSEE'S inat'ility'to meet any contractual: obligations. STATE sha[ be responsible for restoring the'Premises to its conditioiy' as°,existed.-prior to STATE'S use, as described in `this, section:: JANITORIAL 11. LESSEE at LESSEE'S sole cost and expense, during the term of this Lease, shall SERVICES hire janitorial services sufficient to maintain the interior of the Premises in a clean and well maintained condition and properly dispose of all trash. SECURITY 12. LESSEE understands and agrees that STATE will not provide any security support for any activities on the Premises. LESSEE agrees to be responsible for security for any and all activities on the Premises, and agrees to notify the appropriate law enforcement agencies as required. M Page 3 of 13 SMOKING 13. Per Section 7589 Paragraph (a) of the California Government Code, no public RESTRICTION employee or member of the Public shall smoke any tobacco product inside a public building, or in an outdoor area within 20 feet of any main entrance or operable window, of a public building. OPERATIONS 14. LESSEE shall designate, in writing to State, a representative who shall be DESIGNATE responsible for the day-to-day operation, maintenance, cleanliness and general order of the Premises, and include the representative's contact information, including daytime telephone number, fax number and email address. If the said representative is not an on-site representative, LESSEE also agrees to provide the name and contact informationfor LESSEE'S on-site representative(s). ADMINSTRATION 15. A one-time charge cf THREE THOUSAND AND N0/100 DOLLARS ($3,000.00) to FEE cover STATE'S cost associated with the preparation of this Lease will be paid by LESSEE to STATE prior to execution of this Lease. ASSIGNMENT 16. LESSEE shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Premises, in whole or in part, or allow any person other than the LESSEE'S employees, agents, servants, and invitees to occupy or use all or any portion of the Premises without the prior written consent cf the STATE, which consent shall not be unreasonably withheld. The following shall be deemed to be an assignment or transfer within the meaning of this Lease: a) If LESSEE is a corporation, any dissolution, merger, consolidation or other reorganization cf LESSEE or sale or other transfer of a percentage of capital stock of LESSEE which results in a change of controlling persons, or the sale or other transfer of substantially all the assets of LESSEE; b) If LESSEE is a partnership, a transfer cf any interest of a general partner, a withdrawal of any general partnerfrom the partnership or the dissolution of the partnership. SUBLETTING 17. a) LESSEE may, from time to time, sublet the Premises or any part thereof. LESSEE agrees that if it enters into subletting arrangements for the use of the Premises, any activities held on the Premises shall be considered "LESSEE - sponsored" events and LESSEE and/or SUBLESSEE shall retain all liabilityfor any accidents and/or damages to persons or understands and agrees that STATE will in no event be held liable for any accidents or damages to persons or property resulting from any "LESSEE -sponsored" activities. b) All subletting fees, minus expenses, are to be divided between STATE and LESSEE with 40% being payable to the STATE and the LESSEE retaining the remaining 60%. LESSEE will make its records of subletting available at any reasonable time for inspection by STATE and will provide to STATE routine documentation of licensed events and accounting of funds received by LESSEE. Payment shall be made quarterly, based upon the Lease term, to the address below: Page 4 of 13 NOTICES Military Department P. O .Box 269101 (L-2397) Facilities (Box 18) Sacramento, CA 95826-9101 18. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered (including by means cf professional messenger service) or sent by overnight courier, or sent by registered or certified mail, postage prepaid, return receiipt;requested to the addresses set forth below. All such notices°or other communications shall be`deemed,,..received upon the earlier of (i) if personalty.del vered or senf by overnight`courier, the date of delivery to the, address, of the person to receive such notice, or"'(ii) if mailed as provided above, ori the date of'receipt or rejection, whensreceived 'by the other party if received Monday through Friday between 8.00 a m. and 5:00 p.m. Pacific St d d T' I li d t' t t f d' I li I'd d Cl" ar ime, so ong as out, ay is no a s a e or a era o i ay an otherwise on the next day provided that if the next day is, Saturday, Sunday, or a state 'or federal holiday, such notice shall be effebtve an the following business day. The address to which notices shall be mailed as aforesaid to either party may be changed by written notice given by subject party to the other, as hereinbefore provided; but nothing herein contained shall preclude the giving of any such notice by personal service. Page 5 cf 13 REPAIR AND 19. LESSEE shall not call on STATE to make any improvements or repairs on said MAINTENANCE Premises, but LESSEE agrees to keep the same in goad order and condition at its own expense. LESSEE does hereby waive all rights to make repairs at the expense of the STATE as provided in Section 1942 of the Civil- Code and all rights provided for by Section 1941 of said Civil Code. LESSEE must obtain written approval from the STATE prior to commencing any improvements or repairs to the leased Premises. a) LESSEE shall continue to maintain said Premises in good repair and tenantable condition and in compliance with all health, safety and sanitation laws, ordinances and regulations of the State of California and local authorities. b) Nothing in this Section shall be construed to permit LESSEE to undertake any alterations, additions or improvements, to the Premises or any part thereof without first obtaining STATE'S prior written consent, including submitting plans and specification for approval prior to commencement of any construction activity on the Premises. PROPERTY 20. LESSEE has visited and inspected the Premises and it is agreed that the area INSPECTION described herein is only approximate and the STATE does not hereby warrant or guarantee the actual area included hereunder. ABANDONMENT 21. Failure by LESSEE to occupy and/or use the Premises for a period of thirty (30) OF PREMISES days or longer shall constitute abandonment by LESSEE. If LESSEE abandons, vacates or surrenders the Premises, or is disposed by process of law, any personal property belonging to LESSEE and left in the Premises shall be deemed to be abandoned, at the option of the STATE. HOLD HARMLESS 22. This Lease is made upon the express condition that the State of California is to be I CROSS free from all liabilityand claims for damages by reasdn of any injuryto any person INDEMNITY or persons, including LESSEE, or property of any kind whatsoever and to whomsoever belonging, including LESSEE, from any cause or causes whatsoever while in, upon or in any way connected with the premises during the term of this Lease or any occupancy hereunder, except those arising out of the sole negligence of the STATE. a) Each party agrees to indemnify and defend the other in the event of any claim, demand, cause of action, judgments, obligations or liabilities, and all reasonable litigation and attorneys' expenses which said party may suffer as a direct and proximate result of the violation of any law, breach of any terms of this Lease, negligence or other wrongful act by a party to this Lease or such party's employees, representatives, contractors, or any other person or persons acting within the direct control or authority of such party or its employees. INSURANCE 23. STATE acknowledges that LESSEE is self-insured: Prior to the execution of the Lease, LESSEE shall furnish to STATE documentation verifying the required insurance limitation pursuant to item (h) of this clause and binding said insurance coverageto STATE'S Lease numberIr2015. COMMERCIAL GENERAL LIABILITY Provider shall maintain Commercial General Liability and Fire Legal Liability with limits of not less than ONE MILLION AND NO/100 DOLLARS ($1,000,000.00) aggregate for bodily injury and propertydamage liability combined per Page 6 cf 13 W INSURANCE occurrence. The policy shall include coverage for liabilities arising out of (CONT) Premises, operations, independent contractors, products, completed operations, personal and advertising injury and liability assumed under an insured contract. It shall also include an endorsement for physical abuse and sexual molestation coverage. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Provider's limit of liability. This policy must include State of California, Departmentaf General Service and their officers, agents; employees and servants as additional insured, but insofar as the operations under this Lease are concerned. AUTOMOBILE LIABILITY The proyider.shall maintain motor veh HUNDRED THOUSAND AND N010( bodily injury and property damage. TI of Genera l;Services are to: INSURANCE h) When LESSEE is self-insured in whole or in part as to any of the above (CONT) described types and levels of coverage, LESSEE shall provide the STATE with written acknowledgement of this fact at the time of execution of the Lease. If, at any time after the execution of the Leases, LESSEE abandons its self-insured status, LESSEE shall immediately notify STATE of this fact and shall comply with all of the terms and conditions of this Insurance paragraph 27 pertaining to policies of insurance in regard to those types and levels of insurance. It is agreed that STATE shall not be liable for the payment of any premiums or assessments on the required insurance coverage. FIRE AND 24. STATE will not keep said Premises insured against fire or casualty and LESSEE CASUALTY will make no claim of any nature against STATE by reason of any damage to the INSURANCE businessor property of LESSEE in the event of damage or destruction by fire or other cause, arising otherthan from, or out of the sole negligence or willful misconduct of agents or employees of the State of California in the course of their employment. WAIVER OF 25. STATE and LESSEE hereby waive and right of recovery against the other as a SUBROGATION result of loss and damage to the property of either STATE or LESSEE when such loss or damage arises out of an act of Nature or any of the property perils insurable under extended coverage, whether or not such peril has been insured, self-insured or non-insured. PERSONAL 26. STATE will not be responsible for losses or damage to personal property, PROPERTY equipment or materials of LESSEE and all losses shall be reported to STATE immediately upon discovery. Upon termination of this Lease for any cause, LESSEE shall remove any and all personal property and LESSEE shall restore any damage caused by said removal. Except, however, STATE may approve, in writing, any deviation from this requirement. COMPLIANCE 27. LESSEE shall, at its sole cost and expense, comply with all the laws and WITH LAWS requirements of all Municipal, State and Federal Authorities now in force, as applicable to the United States, or which may hereafter be in force pertaining to the Premises and use of the Premises as provided by this Lease. RECOVERYOF 28. If action is brought by the STATE for the recovery of any rent due under the LEGAL FEES provisions hereof or for any breach hereof, or to restrain the breach cf any agreement contained herein, or for the recovery of possession of the Premises, or to protect any rights given to the STATE against the LESSEE, and if the STATE shall prevail in such action, the LESSEE shall pay to STATE such amount of all costs and expenses including attorney's fees in said action, as the court determines to be reasonable, which shall be fixed by the court as part of the costs of said action. Page 8 of 13 TAXES AND 29. LESSEE agrees to pay all lawful taxes, assessments or charges which at any ASSESSMENTS time may be levied upon interest in this agreement. It is understood that this Lease may create a possessory interest subject to property taxation and LESSEE may be subject to the payment of property taxes levied on such interest. NOW 30. In the performance of this Lease, the LESSEE shall not discriminate, harass, or DISCRIMINATION allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability (including HIV and AIDS), mental disability, medical condition, age (over40), marital status, sex, sexual orientation, or use of family care leave. , LESSEE shall insure that the evaluation and treatment of its employees and_.appiicants for employment are free from,such discrimination and harassment. Or recruitment advertising; layoff or open"sationz, and selection for shall comply with -the° provisions of ;rnrnent Code Section 12990 (a -f) et e Fair Ery{ 1. it Code, See California:( ference and notice of it iey have a st in conspi lent, notice; =mploymen written` notice from the Fair Employment Practices 4 receipt of,a' that it ,has PARTNERSHIP 32. LESSEE and any and all agents of LESSEE shall act in an independent capacity DISCLAIMER and not as officers or employees of the STATE. Nothing herein contained shall be construed as constituting the parties herein as,partners. Page 9 d 13 ENCUMBRANCES 33. LESSEE and STATE hereby acknowledge and agree that LESSEE does not intend to encumber by deed of trust LESSEE's interest in the Premises, for the purpose of constructing improvements thereon. Any such encumbrance is void without prior written approval from the STATE. HAZARDOUS 34. LESSEE agrees that it will comply with all laws, either Federal, State, or local, SUBSTANCES existing during the term of this Agreement pertaining to the use, storage, transportation, and disposal of any hazardous substance as that term is defined in such applicable law. a) In the event STATE, or any of their respective affiliates, successors, principals, employees, or agents should incur any liability, cost, or expense, including attorney's fees and costs, as a result of the LESSEE'S illegal or alleged illegal use, storage, transportation, or disposal cf any hazardous substance, including any petroleum derivative, the LESSEE shall indemnify, defend, and hold harmless any of these individuals, and entities, against such liability. b) Where the LESSEE is found to be in breach of this provision due to the issuance of a government order directing the LESSEE to cease and desist any illegal action in connection with a hazardous substance, or to remediate a contaminated condition caused by the LESSEE or any person acting under LESSEE'S direct control and authority, LESSEE shall be responsiblefor all costs and expenses of complying with such order, including any and all expenses imposed on or incurred by STATE in connection with or in response To such government order. C) In the event a government order is issued naming the LESSEE, or the LESSEE incurs any liability, during or after the term cf the Agreement, in connection with contamination that pre-existed, the LESSEE's obligations and occupancy under this Agreement or which were not caused by the LESSEE, STATE shall hold harmless, indemnify, and defend the LESSEE in connection therewith and shall be solely responsible as between LESSEE and STATE for all efforts and expenses therefore. ASBESTOS/LEAD 35. LESSEE, by acceptance of this Lease, is hereby notified and informed that the BASED PAINT leased building may contain asbestos, lead based paint or may have seismic AND SEISMIC deficiencies and/or may not comply with the ADA requirements. Upon any DISCLOSURE changes or alterationsto the existing structure it shall be the sole responsibility of LESSEE for any and all asbestos and/or lead based paint containment and removal requirements LESSEE acknowledges that LESSEE is leasing and accepting the building in its "as -is" condition and shall hold harmless the State of California, its officers, agents and employees of all liability which may occur to any real or personal property or persons by the presence of any asbestos currently in or on the Premises. EASEMENTSAND 36. This Lease is subject to all existing easements and rights of way. STATE further RIGHTSOF WAY reserves the right to grant additional public utility easements as may be necessary, whether recorded or unrecorded, and LESSEE hereby consents to the granting of any such easement. Any public utility requesting an easement will be required to reimburse LESSEE for any damages caused by the construction work on the public utility easements. Page 10 of 13 INSPECTIONS/ 37. All books, account records, files and other reports relating to this agreement shall AUDITS be subject at all times to inspection and audit by either party during the term of the Lease and for a period of five (5)years after completion cf this agreement. WAIVER 38. If the STATE waives the performance of any term, covenant or condition contained in this Lease, such waiver shall not be deemed to be a waiver of that or any subsequent term, covenant or condition. Failure by STATE to enforce any of the terms, covenants or conditions of this Lease for any length of time shall not be deemed to waive or decrease STATE's right to insist thereafter upon strict performance by LESSEE. Waiver by STATE of any term, covenant, or condition contained in this Lease -may only be. made by a written document properly signed by an authorized-STATErepresentative...= AUTHORITY 39.. If LESSEE is a public, private or non-profit corporation, each individual executing -this Lease on behalf of said corporation represents and warrants that`he/she is duly authorized to execute and deliver this Lease on behalf of said corporation in accordance with a duly adopted resolution of the Board. of Directors of said corporation or in accordance with the Bylaws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. a) If LESSEE is.a corporation,LESSEE shall submit directly, to the STATE a certified copy of the resolution of the Board of Directors of said corporation ' authorizing or ratifying the execution of this Lease.` Said resolution shall be delivered previous to the`'executlon of;this:.Lease. `. FORCE MAJURE _ 40. If either the LESSEE or STATE shall be delayed or prevented from the performance of any act required hereunder by reason` of acts of Nature, governmental -restrictions, regulations or controls (except financial inability), performance of such act shall be excused for the period of thle delay and the period for the performance of any such act shall be extended for a period equivalent to>the period of delay. Nothing in. this clause shall excuse LESSEE from prompt payment of any rents, taxes, insurance or other charge required of LESSEE, except as may be expressly provided in this Lease. BINDING CLAUSE 41. The terms of this Lease and covenants and agreements herein contained shall apply to and shall bind and inure to the benefit of the heirs, representatives, assigns, and successors in interest of the parties hereto. SEVERABILITY 42. If any provision of this Lease is determined to be illegal or unenforceable, this determination shall not affect any other, provision of this Agreement, and all other provisions shall remain in full force and effect. NO SMOKING 43. Smoking is not allowed in or upon the Premises. LESSEE will enforce the smoking prohibition inside the occupied space and within 25 feet of any entrance in regards to LESSEE's employees, customers and invitees. Page 11 of 13 ENTIRE 44. This Lease, together with its exhibits, constitutes the entire agreement between AGREEMENT STATE and LESSEE. No prior written or contemporaneous or subsequent oral promises or representations shall be binding. This Lease shall not be amended or changed except by written instrument signed by authorized representatives cf the parties hereto. The provisions cf this Lease shall be binding upon and inure to the benefit cf the heirs, executors, administrators, successors and assigns cf the parties. ESSENCE OF 45. Time is cf the essence cf each and all cf the provisions, covenants and conditions TIME of this agreement. SECTION 46. All section headings contained herein are for convenience of reference only, and HEADINGS are not intended to define or limit the scope of any provisions of this Agreement. COUNTERPARTS 47. This Lease may be executed in separate counterparts, each cf which when so executed, shall be deemed to be an original. Such counterparts shall, together, constitute and be one and the same instrument. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Page 12 of 13 This Agreement, together with its exhibits, contains all the agreements of the parties hereto and supersedes any prior Agreement or negotiations. There have been no representations by the STATE or understandings made between the STATE or LESSEE other than those set forth in this Agreement and its exhibits. This Agreement may not be modified except by a written instrument duly executed by the parties hereto. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date listed below. STATE OF CALIFORNIA LESSEE: APPROVED: DIRECTOR OF DEPARTMENT OF CITY OF LODI, a political subdivision GENERAL SERVICES of the State of California By: By: TONY PSIHOPAIDAS, Manager State Owned Leasing and Development Date Executed: CONSENT: APPROVED AS TO FORM: CALIFORNIA MILITARY DEPARTMENT By: By: THOMAS E. CLARKE, CW3 City. Attorney Contracting Officer APPROVAL RECOMMENDED: ATTEST: DEPARTMENT OF GENERAL SERVICES By: REAL ESTATE SERVICES City Clerk By: JESLYN MCCOMAS Associate Real Estate Officer Page 13 of 13 losm,l 13'IVOS NVId 101d to o"I 12N', 71 cc I SCALE I' 20' a 98 13 14 18 17 LESSEE is responsible for maintaining the following and/or keeping them clean and in good working order and condition in accordance with the following schedule: 1 _ Landscaping services of the grounds surrounding premises (not including motor pool area)—to include mowing, edging, blowing, weed abatement and pruning treeslshrubs only during the growing season (approximately 43 weeks per year). 2. Gymnasium Floor: Basic cleaning such as sweeping and mopping not less than three times weekly during periods of use. (Frequency of use will be determined by mutual agreement between the LESSEE and Armory Board members. 3. Basketball backboards, rims and netting: as required 4. ADA bathrooms: Weekly sanitation and daily cleaning when in use. 6. If used, "Day" room located between the bathrooms: Basic cleaning after each use. 7. Office space used by LESSEE: weekly cleaning. 8. Trash receptacles: emptied daily during use. 9. Janitorial room: AS REQUIRED 10. Grounds maintenance: pickip and disposal cf debris, trash, empty cans etc: after each use. Lodi Armory Rent Calculation Rent per month based on Fair Market Value $1,785 (rd) (.35 x 10,199 — 50% (disruption clause) Less: Maintenance Allowance -600 Balance: $1,185 Therefore, net monthly rent is $1,185. RESOLUTION NO. 2010-18 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE AGREEMENT BETWEEN THE CITY OF LODI AND THE STATE OF CALIFORNIA, ACTING BYAND THROUGH ITS DIRECTOR OF GENERAL SERVICES, WITH THE CONSENT OF THE MILITARY DEPARTMENT FOR USE OF THE NATIONAL GUARD ARMORY BUILDING WHEREAS, negotiations have been ongoing between the City of Lodi and the State of California regarding a lease agreement for joint use of the Armory facility located at 333 N. Washington Street, Lodi, CA; and WHEREAS, elements of the lease include a five-year term; City use cf 10,200 square feet of common area (gymnasium area, two offices, meeting room, kitchen, restrooms, and a storage room); and a monthly lease payment of $1,185 per month; and WHEREAS, the building will be used for a wide variety of athletic and recreational activities for youth and adults on a year-round basis. Programs include 'basketball, volleyball, open gym hours, and various recreational classes. Other intentions for use of the facility would include community needs and events such as dances as well. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the lease agreement between the City of Lodi and the State of California, acting by and through its Director of General Services, with the consent of the Military Department for use of the National Guard Armory building located at 333 N. Washington Street, Lodi, California, for a period of five years. Dated: February 17, 2010 ------------------------------------------------------------------ ------------------------------------------------------------------ hereby certify that Resolution No. 2010-18 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 17, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS —None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — N&JOHL City Clerk 2010-18