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HomeMy WebLinkAboutAgenda Report - February 21, 2018 C-09TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Five -Year Lease Agreement with California National Guard for Use of Lodi Armory for Recreation Programs MEETING DATE: February 21, 2018 PREPARED BY: Parks, Recreation and Cultural Services Director RECOMMENDED ACTION: BACKGROUND INFORMATION: Adopt resolution authorizing the City Manager to execute a five-year lease agreement with State of California for use of the Lodi Armory for recreation programs. The Parks, Recreation and Cultural Services Department relies on the California National Guard Armory at 333 N. Washington St. for many of its recreation programs, such as basketball, volleyball and school break camps. Because the City does not own any indoor sports facilities, it relies on leases and agreements to obtain facilities for activities that require Targe spaces. The local Armory building has hardwood flooring striped for one full-size basketball court, two small half -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. The City's previous lease with the National Guard expired at the end of 2014, and PRCS has continued to use the Armory on a month-to-month basis under the previous lease terms. PRCS has not found any location more suitable or less costly than the Armory building. The State and PRCS have negotiated a new five-year lease, with the requirement that PRCS refinish the hardwood floor. The stated rent is increasing from $1,785 (set in 2010) to $2,500, with the increase partially offset by an increase in PRCS' maintenance credit from $600 to $900. PRCS shall also receive a $100 monthly rent credit for five years for the estimated cost of refinishing the floor. The lease allows PRCS to pay rent in the form of major maintenance or capital improvements with permission, consistent with prior lease agreements. PRCS will request the City Council approve the refinishing specifications and authorize advertisement for bids at a meeting in March. The Parks and Recreation Commission considered the lease at its February 6, 2018 meeting and voted unanimously to recommend the Council adopt the attached resolution. APPROVED: + ephen S auer, City Manager Adopt Resolution Authorizing City Manager to Execute Five -Year Lease Agreement with California National Guard for Use of Lodi Armory for Recreation Programs February 21, 2018 Page 2 FISCAL IMPACT: The cost of floor refinishing will be offset by rent credits. The net rent will increase by $4,980 per year, with the cost passed through to users in the form of higher registration fees. FUNDING AVAILABLE: PRCS Recreation Administration, Rent of Land/Facilities (20073001.72321) ��ll4 ,i_ Andrew Keys, Deputy�tC y Manager/Internal Services Director Jeff Hoo: Direct' 'arks, JH:tI Attachments cc: City Attorney ecreation and Cultural Services STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION BUILDING SPACE LEASE Location of Leased PREMISES: Lodi Armory 333 N. Washington Street Lodi, San Joaquin County, CA 95240 Agency: Military Department 9800 Goethe Road Sacramento, CA 95826 Real Property #: 604 Lease No.: L-2015 Lessee: City of Lodi, a political subdivision of the State of California This Lease, dated for reference purposes only dated December 13, 2017, by and between the State of California acting by and through the Director of the Department of General Services, with the approval of the California Military Department, hereinafter, collectively, referred to as the STATE, and the City of Lodi, a municipal corporation of the State of California, hereinafter referred to as LESSEE. RECITALS WHEREAS, the STATE has under its jurisdiction, certain real property commonly known as the Lodi Armory site located at 333 N. Washington Street, City of Lodi, County of San Joaquin, State of California, 995240, hereinafter referred to as the "PREMISES;" and WHEREAS, pursuant to Government Code Section 14670 (a)(1), the Director of General Services, with the consent of the Department of the Military, is authorized to let the State's real property for a period not to exceed five (5) years; and WHEREAS, pursuant to Sections 431 and 432 of the Military and Veterans Code LESSEE desires to enter into a lease of the Armory property for the benefit of the local community: and WHEREAS, LESSEE desires to lease a significant portion of the building of the property described herein from the STATE; and WHEREAS, the Director of the Department of General Services deems this Lease to be in the best interests of the STATE; and NOW THEREFORE, the parties agree to the terms and conditions as follows: Section 1: Section 2: Section 3: Site Specific Provisions Building Specific Provisions Standard Provisions Page 1 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 1 -SITE SPECIFIC PROVISIONS WITNESSETH: PROPERTY 1. (a) The STATE does hereby lease to LESSEE, and LESSEE does hereby DESCRIPTION hire from STATE, upon the terms, agreements, and conditions hereinafter set forth, those certain PREMISES as outlines on the attached plat and floor plans designated as Exhibit "A", consisting of two (2) pages, attached hereto and made a part therein by this reference and more particularly described as follows: USE RENT PAYMENTS AND IN -LIEU CREDIT (b) A 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 area designated as the armament safe which by law must exclusively be used by the State of California or the United States Government 2. 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. 3. (a) The Department of General Services has determined the current "Fair Market Rent" for the PREMISES is TWO THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($2,500.00) per month. • Fair Market Rent: $2,500.00 per month • Maintenance Credit: f$ 900.00 per month) • Rent Due: $1,600.00 per month • Rent Due after Refinishing: $1,500.00 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 an in lieu credit of NINE HUNDRED AND NO/100 DOLLARS ($900.00) per month to LESSEE. (c) LESSEE shall refinish the hardwood flooring costing approximately $6,000. Subsequent to completing said refinishing, verification of cost and work performed to workman like standards, LESSEE shall be provided and in -lieu credit of $100 per month amortized over 60 months. (d) LESSEE shall maintain the hardwood floors, any damage done beyond normal wear and tear shall be cured by LESSEE. (e) STATE acknowledges that LESSEE may pay Rent in the form of either deferred and major maintenance or capital improvements to the armory and parking areas. The maintenance or capital improvements work will serve as a Rent credit for the use of the Premises. The In Lieu Rent Credit may be in the full amount of monthly Rent or may be for partial credit toward the full Rent amount. Page 2 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION RENT PAYMENTS AND IN -LIEU CREDIT (CONT.) Lodi Armory SECTION 1 -SITE SPECIFIC PROVISIONS (f) LESSEE must obtain approval from STATE before any maintenance or capital improvement work begins. LESSEE must submit plans, estimates, schematics, and any other pertinent information to both the Department of General Services and the California Military Department at the addresses below, evidencing and supporting the maintenance or capital improvements that LESSEE plans to make. STATE will review the documentation submitted by LESSEE within thirty (30) days of receipt and inform LESSEE whether the planned maintenance or capital improvements work is approved. (g) In order for LESSEE to obtain In Lieu Rent Credit for maintenance or capital improvements, LESSEE must provide documentation evidencing that the work was completed in substantial compliance with the initially approved plans and paid in full, to both the Department of General Services and the California Military Department at the addresses below. Such documentation must include receipts, proof of payment and completed work, and where appropriate should include photos, schematics, estimates or other documentation that evidences the maintenance or capital improvements made. A rent credit will not be applied for any given month until STATE receives written documentation and evaluates such documentation. STATE will review the documentation submitted by LESSEE within thirty (30) days of receipt and inform LESSEE whether a credit was applied, to which month it was applied, and in what amount. If the maintenance performed is not in compliance with paragraph (i) below or the Capital Improvements are not in compliance with paragraph (j) below or the work or the completed product does not conform with the plans that LESSEE initially received approval for from STATE, STATE may pro -rate the In Lieu Rent Credit in proportion with the work performed, if any, and require LESSEE to pay the difference, or if there is no pro -rated amount, the full amount of monthly rent for that month. LESSEE shall submit documentation to both the Department of General Services (DGS) and the California Military Department (CMD) for prior approval, as well as post completion, of maintenance and capital improvements work, in accordance with paragraphs (g) and (h) of this section, to the following addresses. To DGS: Department of General Services Real Estate Services Division Lease Number L-2015 State Owned Leasing and Development 707 Third Street, Fifth Floor Post Office Box 989052 West Sacramento, California 95798-9052 To CMD: California Military Department 9800 Goethe Road (Box 18) Sacramento, CA 95827 (h) "Deferred and major maintenance" are defined as repairs or improvements to existing assets and facility components to keep such facilities in working order and in a habitable condition. In addition, "deferred maintenance" is defined as maintenance that was not performed when it should have been or maintenance that was delayed. Examples of deferred and major maintenance include, but are not limited to, replacing aging, broken or leaking plumbing components, replacing aging or broken air conditioning or heating units or components, re -painting walls, replacing or fixing built- in cabinetry, and repaving or re -marking parking lots. LESSEE will not receive In Lieu Rent Credit for regular maintenance, as defined in Section 2, subsection 5 of this Lease. (i) "Capital Improvement" is defined as the construction, installation, or assembly of a new asset, or the alteration, expansion, or extension of an existing asset to accommodate a change of function or unmet programmatic needs, or to incorporate new technology. This may include major renovation of an entire existing asset in order to properly restore and/or extend the life of the asset without a change of function. Page 3 of 18 Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 1 -SITE SPECIFIC PROVISIONS This includes constructed asset deficiencies where there is non-compliance to codes (e.g. fire life safety, ADA, OSHA, environmental, etc.) and other regulatory compliance requirements. Examples of capital improvements include, but are not limited to, replacement of a roof, installation of a security system, installation of wall or attic insulation, and installation of wall to wall carpeting. In order for LESSEE to obtain In Lieu Rent Credit for Capital Improvements, LESSEE must submit plans or proposals accompanied by estimates from a reputable, properly licensed company to STATE in advance of performing the proposed improvement(s), and must obtain prior approval from STATE before making any Capital Improvements. After making approved Capital Improvements, LESSEE must comply with paragraph (g) above, in order to obtain In Lieu Rent Credit. (j) If at any time during the term of this Lease, STATE shall discover that LESSEE has failed to provide their contribution as defined, said failure shall constitute a forfeiture by LESSEE of said In Lieu Rent Credit. Upon written notice by STATE of forfeiture, LESSEE shall pay a monthly rent equivalent to the rental value identified above, or the profit made by LESSEE during the term of the Lease, whichever amount is determined to be greater. (k) LESSEE'S method of payment, when applicable, shall be directly to the address below, shall display STATE'S Lease number as shown on page 1 of this document and shall not require receipt of an invoice prior to issuance of payment. Payments to be made to: California Military Department, Accounting 9800 Goethe Road (Box 21) Sacramento, CA 95827 (L- 2015) (I) LESSEE acknowledges that rent and past due rent, if applicable, shall be due and payable to the STATE whether or not an invoice is sent by the STATE or received by the LESSEE. 4. The term of this Lease shall be for five (5) years, commencing on January 1, 2018 and terminating on December 31, 2023 with such rights of termination as are hereinafter expressly set forth. UTILITIES 5. STATE shall provide utility service to the building improvements connection points only. LESSEE at LESSEE's sole cost and expense, during the term of the Lease, shall be responsible for payment of the Electric, Water, Sewer, Garbage, and Phone service. TERMINATION - 6. (a) The parties hereto agree that either party may terminate this Lease at any time MILITARY during the term hereof by giving notice to the other party in writing 30 days prior to the EMERGENCY date when such termination shall become effective. TERMINATION (b) Upon termination by either party, LESSEE will forfeit any unused rent credits and will have no obligation to reimburse LESSEE for work or services performed. (c) LESSEE shall return the Leased PREMISES to STATE in "broom clean" condition, free of all personal property, debris and garbage, with no additional liability or cost therefore to LESSEE. (d) All improvements, fixtures, partitions, or other alterations made or installed within the Leased PREMISES by either LESSEE or STATE, and paid for by LESSEE, are and shall remain the property of LESSEE. LESSEE shall have the right to remove the improvements, fixtures, partitions, and other alterations at LESSEE'S sole cost and expense. LESSEE shall repair any damage to the Leased PREMISES resulting from the removal Page 4 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION NOTICES SECTION 1 -SITE SPECIFIC PROVISIONS of any improvements, fixtures, partitions, or other alterations. (e) LESSEE may, have the right to abandon its improvements, fixtures, partitions, and other alterations, in place with written consent of STATE. (f) LESSEE agrees that in the event of a declared National or State emergency and/or military mobilization, that STATE may terminate this Lease immediately. STATE agrees to consult and cooperate with LESSEE to minimize any adverse effects suffered by LESSEE and arrange for redelivery of PREMISES to LESSEE upon conclusion of the emergency and/or mobilization. LESSEE shall only be entitled to abatement of rent while PREMISES are under emergency use. 7. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered (including by means of professional messenger service) or sent by overnight courier, or sent by registered or certified mail, postage prepaid, return receipt requested to the addresses set forth below. All such notices or other communications shall be deemed received upon the earlier of (i) if personally delivered or sent by overnight courier, the date of delivery to the address of the person to receive such notice, (ii) if mailed as provided above, on the date of receipt or rejection, when received by the other party if received Monday through Friday between 6:00 a.m. and 5:00 p.m. Pacific Standard Time. so long as such day is not a State or Federal holiday and otherwise on the next day provided that if the next day is Saturday, Sunday, or a state or federal holiday, such notice shall be effective on the following business day. To the LESSEE: To the STATE: City of Lodi Parks, Recreation and Cultural Services 230 W. Elm Street Lodi, California 95240 Attn: Director Department of General Services Real Estate Services Division Lease Number 2015 State Owned Leasing and Development 707 Third Street, Fifth Floor Post Office Box 989052 West Sacramento, California 95798-9052 To the STATE: California Military Department 9800 Goethe Road (Box 18) Sacramento, CA 95827 Notice of change of address or telephone number shall be given by written notice in the manner described in this section. LESSEE is obligated to notice all State offices listed above and the failure to provide notice to all State offices shall constitute a lack of notice. Nothing contained herein shall preclude the giving of any such notice by personal service. PROPERTY 8. LESSEE has visited and inspected PREMISES, and it is agreed the area described INSPECTIONS herein is only approximate in size. STATE does not hereby warrant or guarantee the actual area included hereunder, and LESSEE accepts PREMISES on an "as -is" basis. ACCESS TO Lodi Armory 9. Only the LESSEE, its properly qualified and authorized agents, employees, Page 5 of 18 Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 1 -SITE SPECIFIC PROVISIONS PREMISES contractors, and Permitted Users shall have the right of ingress to and egress from said PREMISES. The term "Permitted Users" includes LESSEE's invitees and members of the public authorized by LESSEE to be on the PREMISES for the purpose of carrying out activities permitted in the LEASE. SUBLETTING 10. LESSEE shall not sub -let or in any way demise, assign, transfer or hypothecate this Lease. End of Section 1 THIS AREA INTENTIONALLY LEFT BLANK Page 6 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 2 - BUILDING SPECIFIC PROVISIONS RIGHT TO ENTER 1. During continuance in force of this Lease, there shall be and is hereby expressly reserved to STATE and to any of its agencies, contractors, agents, employees, representatives or licensees, the right at any and all times, and any and all places, to temporarily enter upon said PREMISES for survey, inspection, or any other lawful STATE purposes. REGULATION BY 2. (a) STATE shall have the full power and right to determine and regulate the STATE operations of the LESSEE insofar as they affect the operations, safety, and effective use of STATE activities conducted at the same location. (b) All contractors, agents, employees, representatives, or licensees of the LESSEE shall be subject to the rules and regulations of the STATE as they relate to conduct on the grounds, security, and general use of facilities. LESSEE will conduct its operations in such a manner so as to minimize any interference with the activities associated with the building. (c) LESSEE will comply with all building rules and regulations adopted by said authorities in charge. No article or material deemed by said authorities in charge to be considered as contraband shall be brought on said real property. Contraband includes, but is not limited to, alcoholic beverages, possession or use of firearms, explosives or edged weapons, and restricted controlled substances. Any willful violation of said rules and regulations are grounds for immediate termination of the Lease. DISPOSITION OF 3. (a) During the term of this Lease, all personal property placed in, upon, or under LESSEE'S the PREMISES by LESSEE shall remain the property of LESSEE and shall be PERSONAL removed by LESSEE, at its sole cost and expense within thirty (30) days after PROPERTY expiration or termination of LESSEE's tenancy. (b) Should LESSEE fail to remove said equipment and personal property within thirty (30) days after expiration or termination of the Lease, STATE may do so at the risk of LESSEE. Upon written demand by STATE, LESSEE shall immediately pay all costs and expenses of the removal of LESSEE'S personal property and equipment. (c) LESSEE may, however, with written consent of STATE, abandon in place any and all of LESSEE'S equipment and personal property, whereupon, as abandoned, title to said improvements will vest in STATE. (d) Upon termination of this Lease for any cause, LESSEE shall remove any and all of LESSEE'S equipment and personal property and restore the entire PREMISES to its condition prior to the execution of this Lease, except however, the STATE may approve, in writing, any deviation from this requirement. ALTERATIONS 4. LESSEE shall not make changes, alterations, or post signs to the PREMISES AND without the consent of the STATE in writing. No alterations to the PREMISES or IMPROVEMENTS construction of improvements shall be permitted until STATE has approved the complete plans and specifications for the project, and scheduled a State inspector for construction phase. The plans shall be prepared by an architect registered by the State of California. Request for alterations or improvements shall not be unreasonably denied, provided submitted project plans comply with existing certification standards. LESSEE shall, at the time of the request, specify Page 7 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA ALTERATIONS AND IMPROVEMENTS (CONT) REPAIR AND MAINTENANCE CONDITION OF PREMISES DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 2 - BUILDING SPECIFIC PROVISIONS if it desires to retain ownership and/or possession of the alteration, addition, or improvement. Should alterations and repairs be approved by STATE, LESSEE shall not suffer or permit any mechanics' or other liens (or claims thereof) to be filed against the PREMISES or LESSEE's leasehold interest therein or hereunder by reason of work, labor, services, or materials holding the PREMISES or any part thereof through or under LESSEE. State shall have the right at all reasonable times to post and keep posted on the PREMISES any notices that STATE may deem necessary or advisable for the protection of STATE, and PREMISES from mechanics' liens. If any such liens or claims thereof shall at any time be filed against the PREMISES, LESSEE shall cause the same to be discharged of record within forty-five (45) days after the filing date. In making any excavation and/or installation of equipment on the PREMISES and/or easement areas, LESSEE shall make the same in such manner as will cause the least injury to the surface of the ground around such excavation and/or construction, and shall replace the earth so removed by it and restore the surface of the ground and any improvement thereon to as near the same condition as they were prior to such excavation as is practicable. 5. LESSEE acknowledges that the PREMISES are in average condition. a. LESSEE shall maintain said PREMISES in compliance with all health, safety, and sanitation laws, ordinances, and regulations of the State of California and local authorities. b. LESSEE agrees to maintain the PREMISES at their sole cost and expense. c. STATE, at its option, may make repairs to the PREMISES but shall not be required to do so. 6. (a) LESSEE is aware of the current condition of the PREMISES and accepts the PREMISES in "as is" condition. LESSEE accepts the PREMISES as being in average condition and repair, unless otherwise specified herein, and agrees that on the last day of the term, or sooner termination of this Lease, to surrender up to STATE the PREMISES, with any appurtenances or improvements therein, in the same condition as when received, reasonable use and wear thereof and damage by act of Nature, excepted. (b) By acceptance of this Lease, LESSEE is hereby notified and informed that the leased structure may contain Asbestos, Mold, or may have seismic deficiencies. LESSEE acknowledges that LESSEE is renting and accepting said structure in its "as is" condition and shall hold harmless the State of California; its officers, agents and employees from any liability which may occur to any real or personal property or persons by the presence of any of the above mentioned conditions currently in or on the PREMISES. Page 8 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SECTION 2 - BUILDING SPECIFIC PROVISIONS LESSEE'S 7. LESSEE shall be responsible for the security of the PREMISES and all persons SECURITY within the property of the LESSEE. In the event of a serious security emergency, the State shall cooperate with the staff of LESSEE, but such assistance shall not interfere with the State's normal program. MEDICAL 8. No medical support will be provided by STATE. Necessary emergency or surgical care of LESSEE's employees will be the sole responsibility of LESSEE. As used herein, this is intended to mean that LESSEE shall be liable for any and all medical and or surgical care costs for LESSEE's employees served by LESSEE's program. LESSEE 9. LESSEE hereby guarantees, for the term of this Lease any and all work or GUARANTEES services performed by LESSEE or LESSEE'S properly qualified or authorized agents, employees, and contractors, in order to accomplish the installation and/or maintenance of the facilities. KEYS 10. All building keys provided to LESSEE will remain in the sole possession of LESSEE. Keys to the building are not to be issued to anyone not directly employed by LESSEE. Any outside services contracted by LESSEE to be performed within the leased building will be performed during regular business hours to prevent disbursement of keys. Reproduction of building keys by LESSEE is not permitted without prior written approval of the Facilities Manager. LESSEE shall provide a list of all employees which a building key is issued. CUSTODIAL 11. LESSEE shall have or hire custodial services sufficient to maintain the interior in a clean and well maintained condition. Trash shall be properly disposed of in the building's central trash collection facility provided by STATE. TELEPHONE 12. LESSEE shall provide for separate telephone installation and service at LESSEE's sole cost and expense. PARKING 13. Parking accommodations are provided on-site. End of Section 2 THIS AREA INTENTIONALLY LEFT BLANK Page 9 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION PERMITS AND 1. STATE and LESSEE agree that LESSEE'S ability to use the PREMISES is APPROVALS dependent upon LESSEE obtaining all of the certificates, permits, licenses, and other approvals that may be required from any third party. State will cooperate with LESSEE, at no expense to STATE, in LESSEE'S effort to obtain such approvals in connection with said permits, licenses or other approvals. LEASE 2. An administration fee shall be assessed for any action originated by LESSEE MODIFICATION requiring lease administration or technical review staff work by STATE which FEES result in an amendment to, or assignment of this Lease. To initiate such services, LESSEE must submit a written request to STATE. The administration fee will be assessed at the prevailing rate in effect at the time the request is received. DEFAULT 3. LESSEE shall make all payments 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 may, at the STATE'S sole discretion, be terminated. In the event of termination of this Lease, it shall be lawful for STATE to 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 or sums whatsoever. COMPLIANCE 4. LESSEE shall, except as otherwise provided herein, at its sole cost and WITH LAWS expense comply with all the statutes, laws, ordinances and regulations of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the PREMISES and use of the PREMISES as provided by this Lease. FAILURE TO 5. In the event of the failure, neglect, or refusal of LESSEE to do, or perform PERFORM work, or any part thereof, or any act or thing in this Lease provided to be done and performed by LESSEE, STATE will, at its option, have the right to do and perform the same, and LESSEE hereby covenants and agrees to pay STATE the cost thereof on demand. RIGHTS RESERVED 6. (a) STATE reserves the right to use the real property involved (not including BY STATE real property installed, erected or constructed by LESSEE) in any manner, including but not limited to the right to construct, place, maintain, use, operate, repair, replace, alter and move pipelines, conduits, culverts, ducts, fences, poles, electrical energy, power and communication lines, roads, bridges, subways, sidewalks, to grant easements over, across, upon and under said real property, and the continuous right of ingress to and egress from any portion or portions of said real property in such manner as not to create any unreasonable interference with the exercise of the rights granted to LESSEE. Page 10 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION (b) Any grant herein contained is subject to all valid and existing contracts, leases, licenses, easements, encumbrances and claims of title which may affect said facility. (c) No priority or other rights will attach to the use of any space in STATE'S building or on said facility. ACTS OF NATURE 7. If any of LESSEE'S improvements or equipment are destroyed by acts of nature, LESSEE may replace them with improvements or equipment of the same general type that meets or exceeds the technical specifications of the original equipment, which occupies no more physical space and that consumes no more electrical power. LESSEE shall immediately notify STATE of such items and the date the replacement is completed. HAZARDOUS 8. LESSEE agrees that it shall comply with all laws, federal, state, or local, WASTE existing during the term of this Lease 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 its 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 use, storage, transportation, or disposal of any hazardous substance, including any petroleum derivative, the LESSEE shall indemnify, defend, and hold harmless any of these individuals against such liability. VACATING THE PREMISES RECOVERY OF LEGAL FEES AMERICAN WITH DISABILITIES ACT (b) Where the LESSEE is found to be in breach of this Paragraph 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 responsible for 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. 9. LESSEE shall, on the last day of said term or sooner termination of this Lease, peaceably and quietly leave, surrender, and yield up to STATE, the PREMISES in good order, condition, and repair, reasonable use and wear thereof and damage by acts of nature, excepted. 10. If action is brought by the STATE for the recovery of any rent due under the provisions hereof or for any breach hereof, or to restrain the breach of any agreement contained herein, or for the recovery of possession of said PREMISES, or to protect any rights given to the STATE against LESSEE, and if the STATE will prevail in such action, the LESSEE shall pay to the STATE such amount in attorney's fees in said action as the court shall determine to be reasonable, which shall be fixed by the court as part of the costs of said action. 11. LESSEE shall comply with all federal requirements established under 28 Code of Regulations, Part 36, Americans with Disabilities Act, in order to make programs accessible to all participants and to provide equally effective communications. By signing this Lease, LESSEE assures STATE it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et sec.), which prohibits discrimination on the basis of disability, as well as applicable regulations and guidelines issued pursuant to the ADA. Page 11 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION TAXES AND ASSESSMENTS NON- DISCRIMINATION 12. LESSEE agrees to pay all lawful taxes, assessments or charges that at any time may be levied upon any interest in this Lease. 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. 13. In the performance of this Lease, LESSEE shall not unlawfully discriminate, harass, or 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 (over 40), marital status, sex, sexual orientation, use of family care leave, or any other Federal, State or local laws. LESSEE shall insure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. LESSEE shall insure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. LESSEE shall comply with the provisions of the Fair Employment and Housing Act (Government Code (GC) Section 12990 (a -f) et seq.) and the applicable regulations promulgated there under (California Code of Regulations, Title 2, Section 7285 et seq.) The applicable regulations of the Fair Employment and Housing Commission implementing GC Section 12990 (a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Lease by reference and made a part thereof as if set forth in full. LESSEE shall give written notice of its obligations under this clause to any labor organizations with which they have collective bargaining or other agreement. Further, LESSEE shall post in conspicuous places available to employees and applicants for employment, notices to be provided by the STATE setting forth the provisions of this Fair Employment Practices Section. (GC, Section 12920-12994). REMEDIES FOR WILLFUL VIOLATIONS: (1) (a) The STATE may determine a willful violation of the Fair Employment Practices provision to have occurred upon the receipt of a final judgment having that effect from a court in an action to which LESSEE was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the LESSEE has violated the Fair Employment Practices Act and has issued an order pursuant to the appropriate provisions of the GC. (b) The STATE will have the right to terminate this Lease and any loss or damage sustained by the STATE by reason thereof will be borne and paid for by the LESSEE. Page 12 of 18 Lodi Armory Lease No, L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION INSURANCE 14. Prior to or at Lease execution LESSEE shall furnish to the STATE a certificate of insurance, along with all policy endorsements, with the STATE's Lease Number L-2015 indicated on the face of said certificate or endorsements, issued to the STATE with evidence of insurance as follows: COMMERCIAL GENERAL LIABILITY LESSEE shall maintain general liability coverage with limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage liability combined and Fire Legal Liability of at least $500,000. The policy shall include coverage for liabilities arising out of PREMISES, operations, independent contractors, products, completed operations, personal & advertising injury, and liability assumed under an insured contract. The policy must include State of California, and their officers, agents and employees as additional insureds, but only insofar as the operations under the Lease are concerned. The additional insured endorsement must be provided with the certificate of insurance. AUTOMOBILE LIABILITY LESSEE shall maintain motor vehicle liability with limits of not less than $1,000,000 per accident for bodily injury and property damage. The State of California and Department of General Services are to be additional insured with respect to liability arising out of all vehicles owned, hired and non - owned. The additional insured endorsement must be provided with the certificate of insurance. WORKERS' COMPENSATION LESSEE shall maintain statutory workers' compensation and employer's liability coverage for all its employees who will be engaged in the performance of the Lease, including special coverage extensions where applicable. Employer's liability limits of $1,000,000 shall be required, and the policy shall include a waiver of subrogation in favor of the State of California. The waiver of subrogation endorsement must be provided with the certificate of insurance. GENERAL REQUIREMENTS LESSEE shall ensure that the following general requirements are met: a. Insurance Companies must be acceptable to Department of General Services, Office of Risk and Insurance Management. b. Coverage needs to be in -force for complete term of this Lease. If insurance expires during the term of the Lease, a new certificate must be received by the STATE within thirty (30) days of the expiration date of the existing policy. This new insurance must still meet the terms of the original contract. c. LESSEE shall notify the State within five business days of LESSEE's receipt of any notice of cancellation or non -renewal of any insurance required by this lease. d. LESSEE is responsible for any deductible or self-insured retention contained within the insurance program. Page 13 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION INSURANCE (CONT) e. In the event LESSEE fails to keep in effect at all times the specified insurance coverage, the STATE may, in addition to any other remedies it may have, terminate this Lease upon the occurrence of such event, subject to the provisions of this Lease. f. Any insurance required to be carried shall be primary, and not excess, to any other insurance carried by the STATE. g. LESSEE is self-insured as to the above described types and levels of coverage, LESSEE shall provide STATE with written acknowledgment of this fact at the time of the execution of this Lease. The State may require financial information to justify LESSE's self-insured status. If, at any time after the execution of this Lease, 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 clause 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 15. STATE will not keep improvements which are constructed or installed by CASUALTY LESSEE under the provisions of this Lease insured against fire or casualty, DAMAGES and LESSEE shall make no claim of any nature against STATE by reason of any damage to the business or property of LESSEE in the event of damage or destruction by fire or other cause, arising other than from or out of negligence or willful misconduct of agents or employees of the STATE in the course of their employment. HOLD HARMLESS INDEMNIFICATION LOSSES 16. This Lease is made upon the express condition that the State of California is to be free from all liability and claims for damages by reason of any injury to any person 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, holdover periods or any other occupancy of the PREMISES by LESSEE, except those arising out of the sole negligence or willful misconduct of the STATE, its employees, agents, and invitees. LESSEE agrees to defend, indemnify, and save harmless the STATE from all liability, loss, cost or obligation on account of or arising out of any such injury or loss, however occurring. 17. STATE will not be responsible for losses or damage to personal property, equipment or materials of LESSEE and all losses shall be reported to STATE immediately upon discovery. DEBT LIABILITY 18. The STATE, including but not limited to the STATE's General Fund or any DISCLAIMER special self-insurance programs, is not liable for any debts, liabilities, settlements, liens or any other obligations of the LESSEE or its heirs, successors or assigns. The STATE and its agencies, departments and divisions will not be liable for and will be held harmless by LESSEE and for any claims or damages associated with any contract, tort, action or inaction, error in judgment, act of negligence, intentional tort, mistakes, or other acts taken or not taken by the LESSEE, its employees, agents, invitees, guests or anyone acting in concert with or on behalf of the LESSEE. Page 14 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION RELOCATION STATE has no obligation to defend or undertake the defense on behalf of the LESSEE or its heirs, successors or assigns. 19. (a) In the event STATE terminates this Lease pursuant to its terms, LESSEE acknowledges and agrees that it has no claim against the STATE for Relocation Payments, Relocation Advisory Assistance, or costs pursuant to the Government Code sections 7260 et seq., or any regulations implementing or interpreting such sections. LESSEE further agrees that it has no claim in either law or equity against the STATE for damages or other relief should the Lease be terminated pursuant to its terms, and waives any such claims it may have. (b) In the event subleasing, under the terms of this Lease, is permitted, LESSEE shall incorporate this Paragraph into the sublease. Failure to do so may obligate LESSEE for damages and costs resulting from claims for relocation payments by SUBLESSEE. (c) The location of the PREMISES to be used by LESSEE for the purpose of this Lease may be changed as required by the STATE in the event of circumstances arising to warrant such a change. LESSEE agrees to accept another functionally equivalent location within the facility grounds within which to operate under the same general provisions of this Lease. In the event that new quarters are different in size from present quarters, there shall be an adjustment in rental rate on a proportionate square footage basis at the discretion of the STATE, either greater of smaller, as the case may be. In the event the STATE is unable to relocate the LESSEE within the facility grounds, the STATE, upon reasonable notice, may require the LESSEE to leave the STATE PREMISES. Reasonable notice is defined herein as to be at least thirty (30) days. SMOKING 20. Per Government Code 7597, Smoking shall not be allowed inside any RESTRICTIONS building, or within 20 feet of any entrance or operable window of any building. RECORDING 21. LESSEE shall not record this Lease or a short form memorandum thereof. Any such recordation will, at the option of STATE, constitute a non -curable default by LESSEE hereunder. AUTHORITY TO CONTRACT 22. If LESSEE is a public, private or non-profit corporation, each individual executing this Lease on behalf of said LESSEE shall provide evidence, which is acceptable to the STATE, that he/she is duly authorized to execute and deliver this Lease on behalf of said LESSEE in accordance with a duly adopted resolution of the Board of Directors or in accordance with the Bylaws of said Board, and that this Lease is binding upon said Board of Directors in accordance with its terms. PARTNERSHIP 23. LESSEE its agents and employees shall act in an independent capacity and DISCLAIMER not as officers or employees of STATE. Nothing herein contained will be construed as constituting the parties herein as partners. MINERAL RIGHTS 24. LESSEE agrees not to interfere, in any way, with the interests of any person or persons that may presently, or in the future, old hold oil, gas, or other mineral interests upon or under said PREMISES; nor shall LESSEE, in any way, interfere with the rights of ingress and egress of said interest holders. Page 15 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA CEQA BANKRUPTCY AMENDMENTS AND MODIFICATIONS MUTUAL CONSENT FORCE MAJEURE WAIVER ENTIRE AGREEMENT PARAGRAPH HEADINGS DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION 25. Any physical changes made to the improvements by LESSEE or its agents shall comply with the California Environmental Quality Act (CEQA). 26. In no event shall this Lease or the leasehold estate become an asset of LESSEE in bankruptcy, receivership or other judicial proceedings. LESSEE shall be in default under this Lease and the provisions of the "Default" Paragraph hereof shall apply in the event of any of the following: (a) LESSEE becomes insolvent or makes an assignment for the benefit of creditors; (b) a petition in bankruptcy is filed by or against LESSEE; (c) a writ of execution is levied against this Lease or the leasehold estate; (d) LESSEE abandons or vacates or does not continuously occupy or safeguard the PREMISES. 27. No amendment, modification, or supplement to this Lease shall be binding on either party unless it is in writing and signed by the party to be bound by the modification. 28. Notwithstanding anything herein contained to the contrary, this Lease may be terminated and the provisions of the Lease may be altered, changed, or amended by mutual consent of the parties hereto in writing. 29. If either LESSEE or STATE will be delayed or prevented from the performance of any act required hereunder by reason of acts of Nature, governmental restrictions, regulations or controls (except those reasonably foreseeable in connection with the uses contemplated by this Lease) or other cause without fault and beyond the control of the party obligated (except financial inability), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. Nothing in this Paragraph shall excuse LESSEE from prompt payment of any rent, taxes, insurance or any other charge required of LESSEE, except as may be expressly provided in this Lease. 30. 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 STATE representative. 31. This Lease and its exhibits constitute the entire agreement between STATE and LESSEE. No prior written or prior, contemporaneous or subsequent oral promises or representations shall be binding. 32. All Paragraph headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Lease. Page 16 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION SEVERABILITY 33. If any term, covenant, condition, or provision of this Lease or any application thereof, to any extent, is found invalid, void, or unenforceable by a court of competent jurisdiction, the remainder of this Lease will not be affected thereby, and will be valid and enforceable to the fullest extent permitted by law. SEPARATE 34. This Lease may be executed counterparts, each of which when so executed COUNTERPARTS shall be deemed to be an original. Such counterparts shall, together, constitute and be one and the same instrument. SUPERSEDURE 35. This Lease supersedes and voids any prior license, lease or agreement of any kind between the STATE and the LESSEE identified in this Lease with regards to the PREMISES. BINDING ESSENCE OF TIME 36. 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. 37. Time is of the essence for each and all of the provisions, covenants and conditions of this Lease. END OF SECTION 3 THIS AREA INTENTIONALLY LEFT BLANK Page 17 of 18 Lodi Armory Lease No. L-2015 STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES REAL ESTATE SERVICES DIVISION IN WITNESS WHEREOF, this Lease has been executed by the parties hereto as of the date written below. STATE OF CALIFORNIA LESSEE: APPROVED: DIRECTOR OF DEPARTMENT OF CITY OF LODI, a municipal corporation of the State of GENERAL SERVICES California By: By: TONY PSIHOPAIDAS, Manager AUTHORIZED SIGNATORY State Owned Leasing and Development ATTEST: By: CITY CLERK Date Executed: APPROVED AS TO FORM: By: CITY ATTORNEY APPROVAL RECOMMENDED: CONSENT OF: STATE OWNED LEASING AND CALIFORNIA MILITARY DEPARTMENT DEVELOPMENT By: By: MARK MCGUIRE THOMAS E. CLARKE Real Estate Officer Chief Procurement Officer CW 4 Page 18 of 18 Lodi Armory Lease No. L-2015 - � is.: 90 0 !co'•n4" +' 2,(04.O0 „ L LODI PLOT PLAN SCALE% Y'e BO' EXHIBIT A 2 3AB 4 38 19 20 L'O.DI FLOOR• PLAN SCALE: 1 s 20' 5 5A 7A 7 1• 8 EXHIBIT A EXHIBIT B / Maintenance Responsibilities 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 trees/shrubs 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. Cover hardwood surfaces with protective sport matting, 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 of debris, trash, empty cans etc: after each use. RESOLUTION NO. 2018-21 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR LEASE AGREEMENT WITH STATE OF CALIFORNIA FOR USE OF LODI NATIONAL GUARD ARMORY FOR RECREATION PROGRAMS 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 North Washington Street; and WHEREAS, elements of the lease include a five-year term; City use of 10,200 square feet of common area (gymnasium area, two offices, meeting room, kitchen, restrooms, and a storage room); and a monthly net lease payment of $1,600 with a dollar -for -dollar rent credit for any capital improvements or special maintenance projects with prior approval from the State of California Military Department; 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 recreation needs and events; and WHEREAS, the Lodi Parks and Recreation Commission voted unanimously to recommend the City Council approve the proposed lease agreement; and WHEREAS, staff recommends that the Lodi City Council authorize the City Manager to execute the lease agreement with the State of California for use of the National Guard Armory building located at 333 North Washington Street, for a period of five years. 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 North Washington Street, Lodi, California, for a period of five years, for a monthly net lease payment of $1,600, with a dollar -for -dollar rent credit for any capital improvements or special maintenance projects with prior approval from the State of California Military Department. Dated: February 21, 2018 hereby certify that Resolution No. 2018-21 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 21, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN. COUNCIL MEMBERS — None 2018-21 NIFER FERRAIOLO i y Clerk