HomeMy WebLinkAboutAgenda Report - February 5, 1986 (109)CITY COUNCIL MEETING
FEBRUARY 5, 1986
AGREEMENT FOR RENELv-A-1 ,
OF GOLF DRIVING RANGE
LEASE APPRWD
PLS. NO. 86-22 Council adopted Resolution No. 86=22 approving Agreement
for renewal of the existing golf driving range lease with
certain modifications through .Tune 1987, with an option to
renew for an additional two years and authorizing the Mayor
and City Clerk to execute the subject agreement on behalf
of the City. This approval was conditioned upon the City
receiving a Certificate. of Insurance indicating increased
insurance coverage frac► the Lessee, Bob Gassaway.
U-1 NCIL COAIMUNICATIO�'
TO THE CITY COUNCIL FATE NO.
FROM,: THE CITY. MANAGER'S OFFICE January 30, 1986
SUBJECT. GOLF DRIVING RANGE LEASE
RECOMMENDED ACTION: That the City Council appm•;e the renewal of the
existing golf drivi.-ig range lease with certain
modifications through June, 1937 with an option to
renew for an additional two years.
BACKGROUND INFORMATION: The lease on the golf driving range at the
Festival grounds is past due for rFmewal. In view
of the fact that we are seriously exploring the
feasibility of the construction of a nine -hole "executive -type" golf course
in the "G" storm drain basin, which facility would probably include a
driving range, any kind of long-term lease seems inappropriate. Also,
going to bid in an effort to increase revenues from this facility for what
will probably be a relatively short period of time would most likely not be
productive. In addition, the level of service being provided by the
present operator is satisfactory. The most reasonable course of action
would seen to be the renewal of the existing lease, at a monthly rental of
$150, which represents an increase of $50 per month over the existing
rate. This increase was negotiated by former Recreation and Parks Dizector
Ed DeBenedetti with the golf driving range operator, Mr. Bob Gasaway_ This
increased amount will make the City whole for such City -incurred expenses
as utilities, light maintenance. and mowing costs. The agreement also
provides for a two-year renewal option at adjusted rental rates which would
be negotiated. In addition, insurance coverage will be increased from the
existing $500,000 combined bodily injury and property damage to a coverage
that provides for $500,000/$1,000,000 liability and $50,000 property damage.
The staff will be prepared to answer questions and provide whatever
additional information Councilmmmbers may request.
Respectfully submitted,
Thomas A. Peterson
City Manager
TAP/lh
RESOLUTION NO. 86-22
RESOLUTION APPROVING RENAL OF GOLF DRIVING RANCE LEASE
RESOLVED, that the City Council of the City of Lodi does hereby
approve the renewal of the Golf Driving Range Lease dated February 5,
1986, a copy of which is attached hereto, marked Exhibit "A" and
thereby made a part hereof.
BE IT FUFMIER RESOLVED, that the City Council of the City of
Lodi does hereby authorize the Mayor and City Clerk to execute the
subject agreement on behalf of the City.
Dated: February 5, 1986
1 hereby certify that Resolution No. 86-22 was passed and
adopted by the City Council of the City of Lodi in a Regular
Meeting held February 5, 1986 by the following vote:
Ayes: Council Members - Olson, Pinkerton, Reid, Snider,
and Hincbman (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Abstain: Council Manbers - None
ALICE M. REIMCHE
City Clerk
AGREEMENT
THIS AGREEMENT made and entered into as of the 5th day of
February, 1986, by and between the CITY OF LODI, a municipal
corporation, hereinafter called First Party, and BOB GASAWAY,
hereinafter called Second Party.
WITNESSETH:
First Party does hereby grant to Second Party the exclusive
right to operate the golf driving range located at 531 East Lockeford
Street, Lodi, California, for a term commencing February 5, 1986, and
texminating at midnight on June 30, 1987, on the following terms and
conditions. Second Party will have an option to renew for a period of
two (2) years upon expiration of this Agreement, at a negotiated
monthly rental rate.
1) As consideration for this Agreement, Second Party agrees to
pay First Party a monthly rental of $150.00 per month, payable monthly
in advance. In addition thereto, Second Party covenants and agrees to
do the following:
a) Pay to First Party 10% of the gross revenue received for
the rental of balls.
b) Maintain in full force during the term hereof a policy
of public liability insurance under which Second Party is named as
insured, and containing an Additional Named Insured Endorsement naming
First Party as an additional insured, and under which the insurer
agrees to indemnify and hold Second Party and First Party harmless
I
from, and against all costs, expenses, and liability arisiing out of, or
based upon, any and all property damage, or damages for personal
injuries, including death, sustained in accidents occurring in or about
the demised premises; where such accident, damage, or injury, including
death, results or is claimed to have resulted, from any act or mission
on the part of Second Party, or Second Party's agents or employees.
The minimum limits of such insurance shall be $500,000/$1,000,000. In
addition to the MA itional Named Insured Endorsement on Second Party's
policy of insurance, said insurance policy shall be endorsed to include
the following language:
"Such insurance as is afforded by the endorsement for the
Additional Insureds shall apply as primary insurance. Any other
insurance maintained by the City of Lodi or its officers and
employees shall be excess only and not contributing with the
coinsurance afforded by this endorsement."
A duplicate or certificate of said public liability and property
damage insurance containing the above -stated required endorsements
shall be delivered to First. Party within ten (10) days after the
issuance and each renewal of said policy. This paragraph and all other
provisions of this Agreement, shall apply and be construed as applying
to any subtenant of Second Party.
c) Not allow liquor or beer to be sold or consumed on the
premises.
d) Provide and furnish, free of charge, to patrons.,_
necessary golf clubs.
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e) Keep said range open to the public six days each week
and at such hours on said days as shall be determined by the Recreation
Director of the City of Lodi.
f) Keep said premises in a clean and neat condition at all
times and to properly and at seasonable times water the grass area of
said driving range.
2) First Party covenants and agrees to do the following:
a) Cut grass at driving range.
b) Furnish utilities, install,. and replace all necessary
light bulbs.
3) Second Party does hereby acknowledge that all improvements
and structures located on said premises are the property of First Party.
4) Second Party does hereby acknowledge that he has read the
Master Lease entered into July 24, 1984 and terminating June 30, 1987,
attached hereto as Exhibit "A" and incorporated herein by reference,
wherein Lodi Grape Festiva? and National Wine Show, Inc. is referred to
as Lessor and First Party as Lessee, and which lease covers the
property hereinabove referred to. Second Party does hereby agree to be
bound by the terms of said Master Lease insofar as said terms affect
his operation and use of said property by Second Party.
5) In the event that Second Party fails to ccxnply with any of
the foregoing covenants and/or conditions, First Party shall then have
the right to terminate and cancel this Agreement, it being understood
and agreed that First Party shall be the sole judge as to whether the
terms of this Agreement are being met.
6) No assignment or sub -lease to another party by Second Party
shall be permitted without the express prior Written consent of First
Party.
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IN WITNESS WHF.REDF, the parties hereto have hereunto set them
hands the day and year first hereinabove written.
ATTEST:
By t llet"
City Clerk
Approved:
C: ty Attorney
CITY OF LODI, a municipal corporation
By
DAVID M. HINCHMAN, Mayor
First Party
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r--
L E A S F.
JUL 2 4 1984
THIS LEASE, made_ and entered ir.;o this day of
I984, and between LODI GRAPE FESTIVAL 6 NATIONAL WINE SHOW, a non-profit cor-
poration. hereinafter called LESSOR, and the CITY OF LODI. a munici-•al corpo r-
stion of the State of Califo :-.1a, hereinafter called LESSEE:
WITNESSETH THAT:
1. LESSOR hereby leases unto LESSEE that certain real property situate
1n the City of Lodi. County of San Joaquin. State of California, more partic-
ularly described as follows; (Property description subject to revision for
clarification purposes)
The East 525 feet of the following described
parcel; Commencing at the Southeast corner of
the Northeast Ix of Section 1, Township 3 North
Range 6 East, along the East line of Section
1 North 660 feet; thence N.89 degrees 41' 30"
W.. 1320 feet; thence 749.1 feet; thence N. 86
degrees 26' E.. 1322.6 feet to the point of
beginning and contcining 21.35 acres of land..
2. It is understood that said property shall be used by LESSEE only
for the purpose of conducting a golf driving range thereon along with such
other customary auxiliary services as are generally provided at golf driving
ranges. LESSOR reserves the right to approve or disapprove any SUB -LESSEE.
3. This lease shall commence as of July 1. 1984. and terminate on the
30th day of June, 1987.
4. It is understood that LESSEE will sublet said premises to an indi-
vidual or individuals for the purpose of operating said golf driving range. and
that as a part of said rental. LESSEE shall be entitled to a percentage of the
receipts from the use of golf balls. As rent for this lease. it is understood
and agreed that LESSEE shall pay to LESSOR 50 per cent of all of the revenue
receivea by LESSEE from the operator of the range for the rental of the golf
balls. LESSEE shall pay said rent to LESSOR monthly or immediately after re-
ceiving receipts from Sub -LESSEE. It is expressly understood that no other
sub -letting of the property by the LESSEE or its sub -LESSEE shall be permitted.
5. It is understood and agreed that all surface improvements on the
demised premises, including buildings, poles and lights. are the property of
LESSEE and may be removed by LESSEE at the termination of this lease or sooner.
provided that the LESSEE is not in default in any of the terms and provisions
hereof.
EXHIBIT "A"
6. It is understood and agreed that neither the LESSEE nor Sub -LESSEE
will attach any permanent buildings or fixtures to the grounds without first
obtaining written permission of the LESSOR.
7. It is understood and agreed that neither LESSEE nor sub -LESSEE of
said Golf Driving Range shall be entitled to use or occupy said land during
the annual Grape Festival, i.e. the thr-e days immediately preceding the
opening day of Festival and the two days following Festival, and that neither
LESSEE nor Sub -LESSEE is to water the lawn area for at least three days prior
to the lst day of Festival. Watering of the lawn area will not be reinsti-
tuted until after the Festival and said Golf Range property is returned to
Sub -LESSEE as it was received. The area commonly known as the putting green
may be watered during the time of the Festival.
8. It is understood and agreed that, in the event LESSOR rents the
Festival grounds for major events requiring use of the Golf Range property.
LESSEE and Sub -LESSEE will suspend operation of the Golf Driving Range and
will permit LESSOR full use of the lawn area for use as may benefit LESSOR.
LESSOR is to return lawn area to LESSEE in useable condition. Neither LESSEE
or sub -LESSEE shall water the lawn for at least three days prior to the 1st
day of each event. For the privilege of preemption, LESSOR agrees to reim-
burse sub -LESSEE at the rate of One Hundred ($100.00) Dollars per day of
actual use by LESSOR, it being understood this provision shall not apply to
the annual Grape Festival period, week preceding and two days following. In
no event shall LESSOR preempt LESSEE or Sub -LESSEE more than ten (10) times
per year, exclusive of the annual Grape Festival period as identifiea in
paragraph 7.
9. It is understood and agreed that the LESSOR may cancel this lease
upon giving the LESSEE twelve (l2) months' written notice prior thereof. It
Is understood that the same conditions would prevail should LESSEE want to
terminate.
10. If for any reason the LESSEE shall terminate its sub -lease with
the Golf Range operator on record at time of this agreement, it is understood
that no new sib -lease will extend beyond the expiration time of this document.
f
11. LESSEE covenants and agrees to properly care for. water and mow the
present lawn and turf located on the demised property.
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12. LESSEE does hereby agree to indemnify, defend and save LESSOR
free and harmless from any and all claims for loss, damage, injury or
liability to persons or property that may arise during the time that
LESSEE or its Sub -LESSEE is using said leased premises. LESSEE agrees.
at all times during the continuance of this lease. to maintain public
liability and property damage insurance In amcunts satisfactory to LESSOR,
covering its use. occupancy, and operation of said premises. Such policy
or policies shall carry a-pecific endorsement providing that the LESSORS,
its officers and employees. the County of San Joaquin. State of California
are named as additional insureds and that such liability policy or policies
are primary insurance as to any similar insurance carried by the LESSOR.
LESSEE shall furnish LESSOR with satisfactory proof of the carriage of
insurance required by the LESSOR, and there shall be a specific contractual
liability assumed by LESSEE pursuant to the. lease. Any policy ..of insurance
required of LESSEE under this lease shall also contain an endorsement pro-
viding that at least ten (10) days' notice must be given in writing to
LESSOR of any pending change in the limits of liability or of any cancella-
tion or modification of the policy or policies.
13. LESSEE shall require any Sub -LESSEE to also maintain insurance
policies as provided for herein and to provide proof of insurance and all
endorsements. as provided herein. to LESSOR.
14. In the event LESSEE is self-insured. LESSEE shall provide a certi-
ficate of self-insurance in a form satisfactory to LESSOR.
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C
e
IN UITNESS WHEREOF. the parties have set their hands
as of the day and year first hereinabove written.
LESSOR
LODI CRAPE FESTIVAL AND NATIONAL
NINE SHOW, a non-profit corporation
B
Pre en
(SEAL) B. I
G era Nan r
1
LESSEE _
CITY OF LODI. a municipal corporation r
of the State of Caliiiornia
!Mayor