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HomeMy WebLinkAboutAgenda Statement 1986/06/24 Item 9 try the the City Council of COUNCIL AGENDA STATEMENT Chula Vista, California )ated .'� ,.� c Item 9 Meeting Date 6/24/86 ITEM TITLE: Resolution Approving an agreement with the South Bay branch of the Young Men's Christian Association (YMCA) for the lease of certain property in Eucalyptus Park SUBMITTED BY: Director of Parks and Recreation /it L.04) REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) The City and the South Bay branch of the Young Men's Christian Association (YMCA) had a 20-year lease agreement for the property at 50 Fourth Avenue, which expired on June 30, 1984. The City and YMCA have been operating under a lease on a year-to-year basis. Staff has renegotiated a five-year lease with the YMCA, a copy of which is attached to the resolution for your information. At its May 13, 1986 meeting, the City Council considered approval of an agreement with YMCA which called for one million dollars of liability insurance. Council referred the item back to staff to ascertain whether YMCA could support carrying two million dollars of liability insurance. YMCA was contacted and is willing to carry the higher amount of insurance. RECOMMENDATION: That the City Council approve the lease agreement with the South Bay YMCA for certain property in Eucalyptus Park. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The term of the proposed lease has been changed from 20 to 5 years because the YMCA plans to construct new facilities in the eastern area of the City and relocate its operations there. The proposed agreement has several changes and additions from the previous agreement. The amount of public liability insurance required has increased from $200,000 for each accident involving personal injury and $5,000 for each accident involving property damage to $2,000,000 for each occurrence. Sections have been added to the agreement stating that the YMCA agrees to pay for all utilities and services for the use of the facility; that YMCA is liable for any taxes, including possessory interest tax, that may be levied; that YMCA will make no improvements or additions to the premises without prior written approval of the Director of Parks and Recreation; that if the YMCA abandons the premises, the City may terminate the lease; and that the agreement may be modified if the City and YMCA agree in writing. An indemnity clause has also been added to protect the City against any liabilities caused by YMCA. These sections have been added to formalize post practices not included in the previous agreement. FISCAL IMPACT: The City shall receive $1 .00 in rental revenue per year for five years. WPC 0629R