HomeMy WebLinkAbout2009/05/05 Item 2
CITY COUNCIL
AGENDA STATEMENT
'~\f;
~~ CITY OF
,,"'<: ";,,,. CHUlA VISTA
5/5/09, Item~
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE LEASE WITH MMV GRAVEL
OVER A PORTION OF CITY OWNED PROPERTY LOCATED AT
707 F STREET ~t<<9.
DIRECTOR OF PUBLIC WORKS~
CITY MANAG~ "r
ASSIST ANT CITY ~ANAGER ?)
4/5THS VOTE: YES D NO ~
SUBMITTED BY:
REVIEWED BY:
SUMMARY
The City has been approached by a local finn, MMV Gravel Company, about leasing a portion
of City-owned property to store and mix gravel and sand as a part of their concrete aggregate
business. Staff has identified an area at the old Corporation Yard located at 707 F Street that is
suitable and currently not being utilized by the City. MMV has offered to lease the site for one
year with an additional one-year option, provide clean-up and run-off protection measures prior
to occupancy and insure and indemnify the City from liability arising from their operations. The
proposed lease area comprises approximately 5,000 square feet and the rental rate offered is
$500.00 per month.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the California Environmental Quality Act (CEQA) and has detennined that the project qualifies
for a Class 1 categorical exemption pursuant to Section 15301[ Existing Facilities], of the State
CEQA Guidelines because the proposed business operation will be carried out within an existing
public facility with no proposed expansion and in compliance with all applicable local, state and
regional regulations. Thus, no further environmental review is necessary.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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5/05/09, Itent ~
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DISCUSSION
City staff has, for the last six months, been developing options for maximizing the return from
existing City real estate assets. This process has involved looking for ways to generate revenue
for properties that the City intends to hold in both the long and short term. Additionally, we have
been pursuing ways to enhance the value of those properties that we may want to market once
conditions improve. The old Corporation Yard located at 707 F Street is one of the sites which
has been identified as being capable of generating short-term revenue (one to three years).
In March, the City was approached by a local firm, MMV Gravel, that purchases gravel from one
set of suppliers and sand from another, mixes the two and markets the aggregate to companies
such as equipment rental firms that deal in small batches of concrete. MMV needs a small
location to store, mix, and load for transport these materials. The old yard has three cinderblock
material bins that are well suited for this type of operation. They are not used or needed by the
City and are in need of storm water improvements to comply with current laws. MMV has
offered to lease these bins and the access area in front of them (5,000:!: S.F.) for $500.00 a month
and provide the necessary run-off improvements. This proposed use is consistent with on-going
legal non-conforming uses on the site.
While this offer was not solicited, the unique correlation between the needs of MMV and this
small area of an unused City asset offers an opportunity to both generate revenue and eliminate a
storm water issue. No structures will be utilized by MMV and access will be limited to normal
hours of operation as set forth in the lease.
If Council approves this item, staff will be coming forward shortly with two more proposed
leases for areas within the old yard.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property that is the subject of this action.
CURRENT YEAR FISCAL IMPACT
It is anticipated that the lease of this property will generate $1,000.00 for the remainder of this
fiscal year.
ONGOING FISCAL IMPACT
For Fiscal Year 2009/2010, revenue from approval of this resolution is estimated to be
$5,000.00. An additional $6,000.00 may be generated, if the City and MMV choose to extend
the lease for an extra one-year term.
ATTACHMENTS
1. Map of Proposed Lease Area
Prepared by: Rick Ryals. Real Property Manager. Engineering Dept.
J:IEngineerIAGE?fDAICAS200910S-0S-09\MMV Gravel Lease.doc
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ACHMENT -'- -
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~~ CHUIA VISTA
MMV Proposed Lease Parcel
Assessor's Parcel No(s). 567-031-27)
Address:
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Comments:
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Location Map
The proposed area comprises three currently un-used material storage
bins located within the City's old corporation yard.
707 F Street (por)
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE LEASE WITH
MMV GRAVEL OVER A PORTION OF CITY OWNED
PROPERTY LOCATED AT 707 F STREET
WHEREAS, the City has been approached by a local firm, MMV Gravel Company
(MMV), about leasing a portion of City-owned property to store and mix gravel and sand as a
part of their concrete aggregate business; and
WHEREAS, City staff has identified a 5,000 square foot area at the old Corporation Yard
located at 707 F Street that is suitable and currently not being utilized by the City; and
WHEREAS, MMV has offered to lease the site for one year with an additional one-year
option at a rental rate of $500.00 per month together with providing clean-up and run-off
protection measures prior to occupancy and insure and indemnify the City from liability arising
trom their operations.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve the lease with MMV Gravel over a portion of City owned property
under the terms set forth in the attached Property Lease Agreement.
Presented by
Appron as to D
/ i I
.
i
II
Richard A. Hopkins
Director of Public Works
2-4
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
HE CITY COUNCI
Dated:
Property Lease Agreement between
The City Of Chula Vista and
MMV Gravel
F or the Use of City Owned Real Property
Located at 707 F Street
2-5
PROPERTY LEASE AGREEMENT
BY AND BETWEEN
OF THE CITY OF CHULA VISTA
AND
MMV GRAVEL
FOR THE USE OF CITY OWNED REAL PROPERTY
LOCATED AT
707 F STREET
DATED AS OF
2-6
,------_.__._..._.'"~.,._---"_.~ -..,..._..-....-~-~---~,._..._.._,"...
CITY OF CHULA VISTA
LICENSE AGREEMENT
MMV GRAVEL
SECTION PARAGRAPH PAGE
SECTION 1: USES
1.01 Premises 1
1.02 Uses 1
1.03 Reservation of Rights 2
SECTION 2: TERM
2.01 Term 2
2.02 Termination 2
2.03 Surrender of Premises 2
SECTION 3: COMPENSATION
3.01 Rent for Use of Premises 3
3.02 Utilities 3
SECTION 4: INSURANCE RISKSISECURITY
4.01 Indemnity 3
4.02 Insurance 4
4.03 Accident Reports 6
SECTION 5: TERMS AND CONDITIONS OF OCCUPANCY
5.01 Form of Agreement 6
5.02 Right to Occupy 6
5.03 Taxes 6
2-7
CITY OF CHULA VISTA
LICENSE AGREEMENT
MMV GRAVEL
SECTION
PARAGRAPH
SECTION 6: IMPROVEMENTS/ALTERATIONS/REPAIRS
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
Acceptance of Premises
Waste, Damage, or Destruction
Maintenance
Improvements/Alterations
Liens
Signs
Ownership of Improvements
Breach by Lessee
SECTION 7: GENERAL PROVISIONS
7.01
7.02
7.03
7.04
7.05
706
7.07
7.08
7.09
7.10
7.11
712
7.13
7.14
7.15
7.16
Notices
City Approval
Nondiscrimination
Equal Opportunity
Entire Agreement
Interpretation of the Agreement
Agreement Modification
Attorney's Fees
Assignment and Subletting-No Encumbrance
Defaults and Temnination
Other Regulations
Time is of Essence; Provisions Binding on Successors
Section Heading
Gender/Sing ular/Plural
Non-Liability of Officers
Relationship between City and Lessee
SECTION 8: SIGNATURES
801
Signatories
EXHIBITS
Exhibit "A" - Legal Description of Premises
Exhibit "B" - Sketch of Premises
Ii
2-8
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THIS lEASE AGREEMENT, hereinafter called "Agreement", dated as of
, solely for identification purposes, is executed between the City of Chula
Vista, a public body corporate and politic, hereinafter called "City", and MMV GRAVEL, a
, hereinafter called "Lessee", to establish terms and conditions of Lessee's use
of certain real property owned by City and to provide terms and conditions of Lessee's
occupancy and use of City's property. The effective date of this Agreement shall be the date
this Agreement is apprbved by the City ("Effective Date").
RECITALS
WHEREAS, City is the legal and equitable owner of that certain real property located at
707 F Street, Chula Vista, currently identified as San Diego County Assessor's Parcel No. 567-
031-27, more fully described herein below;
WHEREAS, Lessee is the owner and operator of MMV Gravel whose principle place of
business is located at 5044 Starfish Way San Diego, CA 92154;
WHEREAS, Lessee desires to and has requested permission to use a portion of said
City real property, more particularly described herein for the storage, mixing and shipping of
sand, gravel and aggregate mix:
WHEREAS, City hereby Leases to Lessee and Lessee hereby Leases from City that
certain portion of City's real property herein identified, under the terms, covenants, conditions
and provisions contained herein.
AGREEMENT
NOW THEREFORE, THE PARTIES HERETO MUTUAllY AGREE AS FOllOWS:
SECTION 1: USES
1.01 Premises. City hereby Leases to, in accordance with the terms, covenants,
conditions and provisions hereof, that certain City owned real property located at 707 F Street,
Chula Vista, and currently identified as San Diego County Assessor's Parcel No. 567-031-27,
and more particularly shown a sketch thereof designated as Exhibit "A" attached hereto and by
this reference made part of this Agreement (the "Premises"). In retum for this permission,
Lessee hereby agrees to act in accordance with and abide by the terms, covenants, conditions
and provisions of this Agreement.
1.02 Uses. It is expressly agreed that the Premises shall be used by Lessee solely
and exclusively for the purpose of storage, mixing and shipping of Sand, Gravel and
aggregate mix and for such other related or incidental purposes as may be first approved in
writing by the City's Real Property Manager ("Manager") and for no other purpose whatsoever.
Lessee covenants and agrees to use the Premises only for the above specified purpose and to
diligently pursue said purpose throughout the term hereof. Lessee shall not use or permit any
use of the Premises in any manner which disturbs the use and quiet enjoyment by City or any
surrounding tenants. In the event that Lessee fails to continuously use the Premises for said
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license Agreement
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purpose, or uses the Premises for purposes not expressly authorized herein, the Lessee shall
be deemed in default under this Agreement.
1.03 Reservation of Riahts. City shall not unreasonably or substantially interfere
with Lessee use of the Premises while Lessee is in possession of the Premises. However, the
City specifically retains the following rights:
a. Subsurface Rights. City hereby reserves all rights, title and interest in any and
all subsurface natural gas, oil, minerals and water on or within the Premises.
b. Easements. City reserves the right to grant and use easements or to establish
and use rights-of-way over, under, along and across the Premises for utilities, thoroughfares, or
access as it deems advisable for the public good.
c. Right to Enter. City has the right to enter the Premises for the purpose of
performing maintenance, inspections, repairs or improvements, or developing municipal
resources and services.
SECTION 2: TERM
2.01 Term. The term of this Agreement shall be one year commencing on the
Effective Date of this Agreement. Upon the expiration of the initial term of this Agreement,
Lessee may request to extend the term of the Lease for an additional one-year term. Lessee
shall request said option by written notice to City not less than 90 (ninety) calendar days prior to
the expiration of the Lease term. Any extension shall be subject to the approval of City. Unless
otherwise mutually agreed by the parties in writing, the terms and conditions of this Agreement
shall remain in effect during the extended term.
If City for any reason cannot deliver possession of the Premises to Lessee at the
commencement of the term, or if during the term of this Agreement Lessee is dispossessed for
any reason whatsoever, City shall not be liable to Lessee for any loss or damage resulting
therefrom.
2.02 Termination. Notwithstanding any other remedies provided by this Agreement,
City has the right, at its sole discretion, to terminate this Agreement upon ninety (90) days
written notice to Lessee.
Lessee has the right to terminate this Agreement upon ninety (90) days written notice to City.
2.03 Surrender of Premises. At the expiration or earlier termination of this
Agreement, Lessee shall surrender the Premises to City free and clear of all liens and
encumbrances, except those liens and encumbrances which existed on the date of the
execution of this Agreement by City. The Premises, when surrendered by Lessee, shall be in a
safe and sanitary condition and shall be in as good or better condition as the condition at the
commencement of this Agreement, absent normal wear and tear.
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License Agreement
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SECTION 3:
RENT
3.01 Rent for Use of Premises. Lessee shall pay City the sum of $500.00 in
advance, per month for the use of the premises. Said payment shall be made in lawful money
of the United States unconditionally, without demand, deduction qualification or set-off, at City's
address as set forth herein or at such other address as City may designate in writing. Payments
made after the fifth day of the month shall include a 5% penalty ($25.00) for late payment.
3.02 Utilities. Lessee agrees that no utilities are available under this Lease and non
are to be accessed without prior written approval of City.
SECTION 4: INSURANCE RISKS/SECURITY
4.01 Indemnitv.
a. Lessee hereby agrees to defend, indemnify, and hold the City, its directors,
officers, employees, and agents, harmless from and against any and all liability
or claim of liability, loss or expense, including defense costs and legal fees and
claims for damages of whatever character, nature and kind, whether directly or
indirectly arising from or connected with, or related to this Agreement or an act or
omission of Lessee, or any employee, agent, invitee, contractor of Lessee, or
other person acting by or on behalf of Lessee on or about the Premises,
including, but not limited to, liability, expense, and claims for bodily injury, death,
personal injury, or property damage. This indemnity provision does not include
any claims, damages, liability, costs and expenses (including without limitations,
attorneys fees) arising from the sole negligence or sole willful misconduct of the
City, its officers, employees, or agents. Also covered is liability arising from,
connected with, caused by or claimed to be caused by the' active or passive
negligent acts or omissions of the City, its agents, officers, or employees which
may be in combination with the active or passive negligent acts or omissions of
the Lessee, its employees, agents or officers
b. Costs of Defense and Award. Included in the obligations in Sections 1 and 2,
above, is the Lessee's obligation to defend, at Lessee's own cost, expense and
risk, any and all aforesaid suits, actions or other legal proceedings of every kind
that may be brought or instituted against the City, its directors, officials, officers,
employees, agents and/or volunteers. Lessee shall pay and satisfy any
judgment, award or decree that may be rendered against City or its directors,
officials, officers, employees, agents and/or volunteers, for any and all legal
expense and cost incurred by each of them in connection therewith.
c. Insurance Proceeds. Lessee's obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the City, its directors, officials, officers,
employees, agents, and/or volunteers.
d. Declarations. Lessee's obligations under Article V shall not be limited by any
prior or subsequent declaration by the Lessee.
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License Agreement
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e. Enforcement Costs. Lessee agrees to pay any and all costs City incurs enforcing
the indemnity and defense provisions set forth in Section 4.
f. Survival. Lessee's obligations under Article V shall survive the termination of this
Agreement.
4.02 Insurance. Lessee shall take out and maintain at all times during the term of this
Agreement the following insurance at its sole expense:
a. Lessee shall maintain the following minimum limits:
General Liabilitv Insurance
Commercial General Liability Insurance covering liability of the Lessee with
respect to all operations to be performed and all obligations assumed by the
Lessee under the terms of this Agreement. Coverage for commercial general
liability shall be at least as broad as Insurance Services Office Commercial
General Liability Coverage (Occurrence Form CG 0001). Limits shall be no less
than one million dollars ($1,000,000) per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit
shall apply to the Premises (with the ISO CG 2503, or ISO CG 2504, or insurer's
equivalent endorsement provided to City) or the general aggregate limit shall be
twice the required occurrence limit.
Automobile Liabilitv Insurance
Automotive Liability Insurance covering the liability of Lessee arising out of the
use of all owned, non-owned, and hired vehicles which bear, or are required to
bear, license plates according to the laws of California and which are not covered
under the Lessee Commercial General Liability insurance. Coverage under this
policy shall have limits of liability of not less than one million dollars
($1,000,000) per occurrence, combined single limit, for bodily injury and property
damage (including loss of use) liability. Coverage shall be at least as broad as
Insurance Services Office Automobile Liability Coverage (Form CA 0001),
covering Symbol 1 (any auto).
Workers' Compensation and Employer's Liability Insurance
Workers' Compensation and Employer's Liability Insurance complying will the
requirements of all applicable laws relating to workers' compensation insurance,
covering or insuring all of the Lessee employees working on or about the
Premises. Limits shall be no less than statutory limits per accident for bodily
injury and disease. By his/her signature hereunder, Lessee certifies that it is
aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for workers' compensation
or to undertake self-insurance in accordance with the provisions of that code, and
it will comply with such provisions in connection with any work performed on or
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about the Premises. Any persons providing services with or on behalf of Lessee
shall be covered by workers' compensation (or qualified self-insurance)
b. All insurance companies affording coverage to the Lessee shall be required to
add the City of Chula Vista, its officials, officers, employees, and agents as
"additional insured(s)" under the insurance policy(s) required in accordance with
this Agreement. Lessee shall furnish (or cause to be furnished) a certificate of
insurance countersigned by an authorized agent of the insurance carrier on a
form of the insurance carrier setting forth the general provisions of the insurance
coverage. This countersigned certificate (and endorsement) shall name the City
and the City, their officers, agents, employees, and authorized volunteers as
additional insured under the policy. Coverage provided hereunder to the City
and City as additional insured by Lessee shall be primary insurance and other
insurance maintained by the City, its officials, officers, agents and/or employees,
shall be excess only and not contributing with insurance provided pursuant this
Section 4.02, and shall contain such provision in the policy(ies), certificate(s)
and/or endorsement(s). The insurance policy or the certificate of insurance shall
contain a waiver of subrogation for the benefit of the City, its officials, officers,
employees, and agents.
c. All insurance companies affording coverage to the Lessee shall be insurance
organizations acceptable to the City, and authorized by the Insurance
Commissioner of the State Department of Insurance to transact business of
insurance in the State of California. Insurance is to be placed with insurers
having a current A. M. Best rating of no less than A-, VII or equivalent or as
otherwise approved by City.
d. All insurance companies affording coverage shall provide thirty (30) days written
notice to the City should the policy be cancelled before the expiration date. For
the purposes of this notice requirement, any material change in the policy prior to
the expiration shall be considered a cancellation.
e. Lessee shall provide evidence of compliance with the insurance requirements
listed above by providing a certificate of insurance, in a form satisfactory to the
General Counsel (City Attorney), concurrently with the submittal of this
Agreement.
f. Lessee shall provide a substitute certificate of insurance no later than thirty (30)
days prior to the policy expiration date. Failure by the Lessee to provide such a
substitution and extend the policy expiration date shall be considered a default by
Lessee and may subject the Lessee to a termination of this Agreement.
g. Maintenance of insurance by the Lessee as specified in this Agreement shall in
no way be interpreted as relieving the Lessee of any responsibility whatever and
the Lessee may carry, at its own expense, such additional insurance as it deems
necessary.
h. If Lessee fails or refuses to take out and maintain the required insurance, or fails
to provide the proof of coverage, City has the right to obtain the insurance.
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Lessee shall reimburse City for the premiums paid with interest at the maximum
allowable legal rate then in effect in California. City shall give notice of the
payment of premiums within thirty (30) days of payment stating the amount
paid, names of the insurer(s), and rate of interest. Said reimbursement and
interest shall be paid by Lessee on the first (1 st) day of the month following the
notice of payment by City.
i. City, at its discretion, may require the reVISion of amounts and coverage at
anytime during the term of this Agreement by giving Lessee sixty (60) days prior
written notice. City's requirements shall be designed to assure protection from
and against the kind and extent of risk existing on the Premises. Lessee also
agrees to obtain any additional insurance required by City for new improvements,
in order to meet the requirements of this Agreement.
j. Notwithstanding the preceding provisions of this Section 4.02, any failure or
refusal by Lessee to take out or maintain insurance as required in this
Agreement, or failure to provide the proof of insurance, shall be deemed a default
under this Agreement and in such event, City may terminate this Agreement
upon three (3) days written notice to Lessee. For the purposes of this
Agreement, the condition to provide the insurance coverage required under this
Section 4.02 shall be in addition to rent.
4.03 Accident ReDorts. Lessee shall promptly report to City any accident causing
any property damage or any serious injury to persons on or about the Premises. This report
shall contain the names and addresses of the parties involved, a statement of the
circumstances, the date and hour, the names and addresses of any witnesses and other
pertinent information.
SECTION 5: TERMS AND CONDITIONS OF OCCUPANCY
5.01 Form of Aareement. This Agreement is a limited lease for the use of the
Premises for those particular purposes identified in Section 1.2. Nothing in this Agreement shall
be interpreted to grant any interest in the Premises other than that specified in this Agreement.
At no time shall the Lessee's limited interest in the Premises ripen into a leasehold or fee
interest with a claim or right to exclusive possession thereof.
5.02 Riaht to OCCUDV. Lessee right to occupy the Premises may be terminated by
City at any time if Lessee fails to satisfactorily perform the improvement, maintenance, and
upkeep duties or responsibilities of Lessee set forth hereunder. City reserves the right to
terminate this Agreement as may be provided for elsewhere herein.
5.03 Taxes. Lessee shall pay, before delinquency, all taxes, assessments, and fees
assessed or levied upon Lessee or the Premises, including the land, any buildings, structures,
machines, equipment, appliances, or other improvements or property of any nature whatsoever
erected, installed, or maintained by Lessee or levied by reason of the business or other Lessee
activities related to the Premises, including any licenses or permits.
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License Agreement
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Lessee recognizes and agrees that this Agreement may create a possessory interest subject to
property taxation, and that Lessee may be subject to the payment of taxes levied on such
interest, and that Lessee shall pay all such possessory interest taxes prior to their delinquency.
SECTION 6:
IMPROVEMENTS/ALTERATIONS/REPAIRS
6.01 Acceptance of Premises. The Premises is being offered to Lessee in an As-Is
and Where-Is condition without any warranty, expressed or implied. Lessee represents and
warrants that it has independently inspected the Premises and made all tests, investigations,
and observations necessary to satisfy itself of the condition of the Premises and all
improvement appurtenant thereto. Lessee acknowledges it is relying solely on such
independent inspection, tests, investigations, and observations in making this Agreement.
Lessee further acknowledges that the Premises are in the condition called for by this
Agreement, and that Lessee does not hold City responsible for any defects in the Premises.
6.02 Waste. DamaQe. or Destruction. Lessee shall give notice to City of any fire or
other damage that occurs on the Premises within forty-eight (48) hours of such fire or damage.
Lessee shall not commit or suffer to be committed any waste or injury or any public or private
nuisance, to keep the Premises, adjoining sidewalks, and other public areas, clean and clear of
refuse and obstructions, and to dispose of all garbage, trash, and rubbish in a manner
satisfactory to City. If the Premises shall be damaged by any cause which puts the Premises
into a condition which is not decent, safe, healthy and sanitary, Lessee agrees to make or cause
to be made full repair of said damage and to restore the Premises to the condition which existed
prior to said damage; or, at City's option, and upon receipt of written demand thereof, Lessee
agrees to clear and remove from the Premises all debris resulting from said damage and repair
the Premises in accordance with plans and specifications previously submitted to City and
approved in writing in order to replace in kind and scope the improvements which existed prior
to such damage. Lessee shall be responsible for all costs incurred in the repair and restoration,
or rebuilding of the Premises.
Lessee shall not cause or permit any hazardous material to be used, stored, transported,
generated, or disposed in or about the Premises by Lessee, Lessee's agents, employees,
contractors, Lessees, or invitees. "Hazardous Material" means any hazardous, toxic, or
infectious substance, material, or waste, which is or becomes regulated by any local
governmental entity, the State of California, or the United States government under any law,
regulation or ordinance.
6.03 Maintenance. Lessee agrees to assume full responsibility and cost for the
operation and maintenance of the Premises throughout the term of this Agreement. Lessee will
make customary and usual maintenance necessary to maintain and preserve the Premises, all
improvements, including fencing, adjoining sidewalks, and other public areas, in a decent, safe,
healthy, and sanitary condition satisfactory to City and in compliance with all applicable laws.
Lessee shall remove and lawfully and properly dispose of all garbage, litter, trash, debris, and
rubbish from or about the Premises, adjoining sidewalks, and other public areas, on a daily
basis. All components of the fencing, including but not limited to posts and rails, shall be
mended/replaced on an as-needed, when-needed basis, using material of similar type and style.
Lessee shall maintain surface on the Premises in a good, neat and orderly manner. Weeds,
tree or shrub branches, leaves, twigs, and other similar debris shall be removed from the
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--,-"-,--"--~-----,-----,-,,,,,~,--,---"-"'''----'-''''-'-','-
Premises as needed to maintain a neat appearance at all times. Lessee shall provide access
control to the Premises to prevent access and parking of unauthorized vehicles. All
maintenance and other Lessee duties set forth herein shall, during the term hereof, be done at
Lessee sole cost and expense and City shall not be called upon for any outlay or expense
related thereto.
If at any time during the term of this Agreement, City reasonably determines that the Premises
are not in a decent, safe, healthy, and sanitary condition, City may, at its sole discretion and
option, terminate this Agreement upon written notice to Lessee and regain possession of the
Premises from Lessee. In the event of such termination, or if City elects not to terminate, City
may, upon written notice to Lessee, have any necessary maintenance work done in order to
place the Premises back to a decent, safe, healthy, and sanitary condition at the expense of
Lessee. In such event, City shall provide Lessee written notice and itemized billing showing the
work performed and Lessee shall make payment to City no later than thirty (30) days after
receipt of said notice and billing. The rights reserved in this Section 6.03 shall not create any
obligations on City or increase obligations elsewhere in this Agreement imposed on City. The
provisions of this Section 6.03 shall survive the expiration or earlier termination of this
Agreement.
6.04 ImDrovements/Alterations. No improvements, structures, or installations shall
be constructed on the Premises, and the Premises may not be altered by Lessee without prior
written approval by the City. This provision shall not relieve Lessee of any obligation under this
Agreement to maintain the Premises in a decent, safe, healthy, and sanitary condition, including
structural repair and restoration of damaged or worn improvements. City shall not called upon to
or be obligated by this Agreement to make or assume any expense for any existing
improvements or alterations.
6.05 Liens. Lessee shall not, directly or indirectly, create, incur, assume or suffer to
exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to all or any
portion of the Premises without the prior written consent of the City's Property Manager. Lessee
shall promptly, at its own expense, take such action as may be necessary to duly discharge or
remove any such mortgage, pledge, lien, charge, encumbrance or claim on or with respect to all
or any portion of the Premises for which Lessee does not have the prior written consent of the
City's Property Manager.
6.06 SiQns. Lessee shall not erect or display any banners, pennants, flags, posters,
signs, decorations, marquees, awnings, or similar devices or advertising on or about the
Premises without the prior written consent of City. If any such unauthorized item is found on the
Premises, Lessee shall remove the item at its expense within twenty-four (24) hours of written
notice thereof by City, or City may thereupon remove the item at Lessee's cost.
6.07 OwnershiD of ImDrovements. Any and all improvements, structures, and
installations or additions to the Premises now existing or constructed on the Premises by
Lessee shall at Agreement expiration or termination be deemed to be part of the Premises and
shall become, at City's option, City's property, free of all liens and claims except as otherwise
provided in this Agreement. If the City chooses not to accept improvements made by Lessee,
during the term of this Lease, and prefers to have such improvements removed, Lessee shall do
so at its sole cost and expense.
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6.08 Breach bv Lessee. Lessee's refusal or failure to meet its obligations under this
Section 6 shall be deemed a breach of this Agreement, and in such event, City may terminate
this Agreement pursuant to the provision of Section 7.10 or elsewhere herein.
SECTION 7: GENERAL PROVISIONS
7.01 Notices. All notices, demands, requests, consents or other communications
which this Agreement contemplates or authorizes, or requires or permits either party to give to
the other, shall be in writing and shall be personally delivered or mailed, postage prepaid, to the
respective party as follows:
To City:
To Lessee:
Rick Ryals
Real Property Manager
City of Chula Vista
Department of Public Works
276 Fourth Avenue
Chula Vista, CA 91910
MMV Gravel
5044 Starfish Way
San Diego, CA 92154
With Copy to:
City of Chura Vista
City Attorney
276 Fourth Avenue
Chula Vista, CA 91910
Either party may change its address by notice to the other party as provided herein.
Communications shall be deemed to have been given and received on the first to occur of: (i)
actual receipt at the offices of the party to whom the communication is to be sent, as designated
above; or (ii) three working days following the deposit in the United States Mail of certified mail,
postage prepaid, return receipt requested, addressed to the offices of the party to whom the
communication is to be sent, as designated above, or (iii) actual receipt if made by recognized
reliable currier service who maintains a receipt of delivery.
7.02 City Approval. The City's Property Manager shall be the City's authorized
representative in the interpretation and enforcement of all work performed in connection with
this Agreement. The City's Property Manager may delegate authority in connection with this
Agreement to the City's Property Manager's designee(s). For the purposes of directing Lessee
in accordance with this Agreement, which does not result in a change to this Agreement, the
City's Property Manager delegates authority to the Real Estate Manager and/or the
Redevelopment Manager of the Economic and Community Development Department. For the
purposes of interpretation of and/or changes to this agreement, the City's Property Manager
delegates authority to the Real Estate Manager.
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7.03 Nondiscrimination. Lessee agrees not to discriminate in any manner against
or segregation of any person or persons, on account of race, color, religion, sex, familiar status,
national origin, ancestry, age, disability or sexual orientation in the use, occupancy, tenure or
enjoyment of the Premises, nor shall Lessee itself, or any person claiming under or through it,
establish or permit such practice or practices of discrimination or segregation with reference to
the selection, iocation, number, use or occupancy of the Premises.
7.04 Eaual ODDortunitv. Lessee shall assure applicants are employed and that
employees are treated during employment without regard to race, familial status, color, religion,
sex or national origin. Lessee hereby certify to City that Lessee is in compliance and throughout
the term of this Agreement will comply with Title VII of the Civil Rights Act of 1964, as amended,
the California Fair Employment Practices Act, and any other applicable Federal, State and Local
law, regulation and policy (including without limitation those adopted by City) related to equal
employment opportunity and affirmative action programs, including any such law, regulation,
and policy hereinafter enacted.
a. Compliance and performance by Lessee of the equal employment opportunity
and affirmative action program provision of this Agreement is an express condition hereof and
any failure by Lessee to so comply and perform shall be a default of this Agreement and City
may exercise any right as provided herein and as otherwise provided by law.
7.05 Entire Aareement. This Agreement comprises the entire integrated
understanding between City and Lessee concerning the use and occupation of the Premises
and supersedes all prior negotiations, representations, or agreements. Each party has relied on
its own examination of the Premises, advice from its own attorneys, and the warranties,
representations, and covenants of the Agreement itself.
7.06 InterDretation of the Aareement. The interpretation, validity and enforcement
of the Agreement shall be governed by and construed under the laws of the State of California.
The Agreement does not limit any other rights or remedies available to City.
a. The Lessee shall be responsible for complying with all Local, State, and Federal
laws whether or not said laws are expressly stated or referred to herein.
b. Should any provision herein be found or deemed to be invalid, the Agreement
shall be construed as not containing such provision, and all other provisions which are
otherwise lawful shall remain in full force and effect, and to this end the provisions of this
Agreement are severable.
c. This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.
7.07 Aareement Modification. This Agreement may not be modified orally or in any
manner other than by an agreement in writing signed by the parties hereto.
7.08 Attornev's Fees. in the event a suit is commenced by City against Lessee to
enforce payment of amounts due, or to enforce any of the terms and conditions hereof, or in
case City shall commence summary action under the laws of the State of California relating to
the unlawful detention of Premises, for forfeit of this Agreement, and the possession of the
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- ^"-"~'--'-'-"--" ...-..' ..~--_..,_._.._."---_.-
Premises, provided City effects a recovery, Lessee shall pay City all reasonable costs expended
in any action, together with a reasonable attorney's fee to be fixed by the court. Venue for any
such suit or action shall be California Superior Court, San Diego County, North County Branch.
7.09 Assianment and Sublettina-No Encumbrance. This Agreement and any
portion thereof shall not be assigned, transferred, or sublet, nor shall any of the Lessee's duties
be delegated, without the express written consent of City. Any attempt to assign or delegate
this Agreement without the express written consent of City shall be void and of no force or
effect. A consent by City to one assignment, transfer, sublease, or delegation shall not be
deemed to be a consent to any subsequent assignment, transfer, sublease, or delegation.
7.10 Defaults and Termination. If City has a good faith belief that Lessee is not
complying with the terms of this Agreement, City shall give written notice of the default (with
reasonable specificity) to Lessee and demand the default to be cured within fifteen (15) days of
the notice. If Lessee is actually in default of this Agreement and fails to cure the default within
fifteen (15) days of the notice, or, if more than fifteen (15) days are reasonably required to
cure the default and Lessee fails to give adequate assurance of due performance within ten
(10) days of the notice, City may terminate this Agreement upon written notice to Lessee.
City may also tenminate this Agreement upon written notice to Lessee in the event that:
a. Lessee has previously been notified by City of Lessee's default under this Agreement
and Lessee, after beginning to cure the default, fails to diligently pursue the cure of the default
to completion; or
b. Lessee shall voluntarily file or have involuntarily filed against it any petition under any
bankruptcy or insolvency act or law; or
c. Lessee shall be adjudicated a bankruptcy; or
d. Lessee shall make a general assignment for the benefit of creditors.
Upon termination, City may immediately enter and take possession of the Premises.
7.11 No Waiver. The failure to require the remedy of a breach or enforce the terms
and conditions of this Agreement in one instance or several instances shall not be interpreted to
be a waiver of the right to enforce the terms and conditions of this Agreement for any
subsequent breach.
7.12 Other Reaulations. All use of the Premises by Lessee under this Agreement
shall be in accordance with the laws of the United States of America, the State of California, the
County of San Diego, and in accordance with all applicative rules and regulations and
ordinances of the City of Chula Vista now in force, or hereinafter prescribed or promulgated by
resolution or ordinance or by Local, State or Federal law.
7.13 Time is of Essence: Provisions Bindina on Successors. Time is of the
essence of all of the terms, covenants and conditions of this Agreement and, except as
otherwise provided herein, all of the tenms, covenants and conditions of this Agreement shall
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._______^.__._...u__._.""_"_"__._.._...--r-_.____.,____~_..,-.
apply to, benefit and bind the successors and assigns of the respective parties, jointly and
individually.
7.14 Section HeadinCls. The Table of Contents and the section headings contained
herein are for convenience in reference and are not intended to define or limit the scope of any
provision thereof.
7.15 GenderlSinClular/Plural. The neuter gender includes the feminine and
masculine, the masculine includes the feminine and neuter, and the feminine includes the
masculine and neuter, and each includes corporation, partnership, or other legal entity when the
context so requires. The singular number includes the plural whenever the context so requires.
7.16 Non-liability of Officials. No member, official or employee of the City shall be
personally liable to Lessee, its assigns or successors in interest, in the event of any default or
breach by the City, for any amount which may become due to Lessee is assigns or successors,
or in any obligations under the terms of this Agreement.
7.17 Relationship between City and Lessee. It is hereby acknowledged that the
relationship between City and Lessee is that of landowner and tenant at will and not that of a
partnership or joint venture and that City and Lessee shall not be deemed or construed for any
purpose to be the agent of the other. Accordingly, except as expressly provided herein, the City
shall have no duties or obligations with respect to the improvement, maintenance or upkeep of
the Premises.
REMAINDER OF PAGE LEFT BLANK INTENTlONALL Y
[Signatures on Following Page]
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SECTION 8: SIGNATURES
8.01 Sianatories. The individuals executing this Agreement represent and warrant
that they have the right, power, legal capacity and authority to enter into and to execute this
Agreement on behalf of the respective legal entities of the Lessee and the City.
IN WITNESS WHEREOF the parties hereto for themselves, their heirs, executors,
administrators, successors, and assigns do hereby agree to the full performance of the
covenants herein contained and have caused this Property Use Permit to be executed as of, but
not necessarily on, the Effective Date by setting hereunto their signatures herein below.
CITY:
City of Chula Vista
By:
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By:
LESSEE:
MMV Gravel
By:
D,led i&if 0 '7
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~ ~ If::.. CITY OF
~~sCHUIAVlCTA
~""'t,. ~IJ
MMV Proposed Lease Parcel
Assessor's Parcel No(s). 567-031-27
Address:
707 F Street
Location:
Northwest Corner, F Street and
Woodlawn Avenue
Current Use:
Old Corporation Yard (portion)
Size:
5,000 SF(+/-)
Zone:
707 F Street (por)
~ ~ If:.. CITY OF
~1't~ CHULA VISTA
MMV Proposed Lease Parcel
Assessor's Parcel No(s). 567-031-27)
Address:
707 F Street
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Location Map
Comments:
The proposed area comprises three currently un-used material storage
bins located within the City's old corporation yard.
707 F Street (por)