Loading...
HomeMy WebLinkAboutReso 1988-13802 RESOLUTION NO. 13802 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BONITA OPTIMIST FOUNDATION, INC. FOR LEASE OF REAL PROPERTY LOCATED AT 4610 SWEETWATER ROAD AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain agreement between THE CITY OF CHULA VISTA, a municipal corporation, and BONITA OPTIMIST FOUNDATION, INC. for lease of real property located at 4610 Sweetwater Road dated the llth day of October , 1988, a copy Of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by Manuel A. Mollinedo, Director !_ as Jf ron, City Attorney of Parks and Recreation 0374a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF C..,_A VISTA, CALIFORNIA, this llth day of October 19 ~ , by the following vote, to-wit: AYES: Councilmembers McCandliss, Nader, Malcolm NAYES: Counci 1 members None ABSTAIN: Councilmembers Cox ABSENT: Councilmembers Moore /~of ~ City~of Chula Vista S, .: OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CfTY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY thor the obove ond foregoing is 0 full, true ond correct copy of RESOLUTION N0. ]_3802 ,and thor the some hos not been amended or repealed DATED City Clerk CC-660 LEASE BETWEEN THE CITY OF CHULA VISTA AND BONITA OPTIMIST FOUNDATION LEASE AGREEMENT This lease Agreement is made and entered into this 4th day of October, 1988, by and between the City of Chula Vista, California, hereinafter called "CITY" and the Bonita Optimist Foundation, a California non-profit corporation hereinafter called "LESSEE." WITNESSETH: WHEREAS, the CITY is the owner of that certain parcel of real property delineated on Exhibit A hereto attached and by this reference incorporated as if set forth in full herein, and WHEREAS, LESSEE desires use of said property to operate a community center as defined below; NOW, THEREFORE, it is understood and agreed to by and between the parties hereto as follow: 1. DEFINITION OF TERMS. The following words in this lease shall have the significance attached to them in this clause unless otherwise apparent from their context. A. PREMISES means the improved real property located at 4610 Sweetwater Road in Bonita, California. known as the Bonita Optimist Center, consisting of approximately 1.35 acres of real property, together with a house and a garage with apartment located above the garage. B. LEASE ADMINISTRATOR means the Director of Parks and Recreation or other designated person of the Department of Parks and Recreation or successor entity, City of Chula Vista, California, or, upon written notice to LESSEE, such other person as designated by the City Council of Chula Vista. C. COMMUNITY CENTER means a public facility used by LESSEE to develop and operate recreational programs and services for the general public. 2. ADMINISTRATION. The LEASE shall be administered in behalf of CITY by the LEASE ADMINISTRATOR, whose mailing address is: DIRECTOR OF PARKS AND RECREATION Department of Parks and Recreation City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010; and on behalf of LESSEE by BILL SEFFERS, Director, or successor Director, Bonita Optimist Foundation, whose address is: BONITA OPTIMIST FOUNDATION P. O. Box 872 Bonita, CA 92002. -1- Parties shall deliver a written notice of a change of address on or before thirty {30) days prior to said change of address. 3. TERM. The term of this lease is fifteen (15) years commencing on November 1, 1988, and terminating on October 31, 2003. LESSEE shall have the option to extend this LEASE upon expiration thereof for one (1) additional five (5) year period upon the same terms and conditions stated herein. The options may be exercised by LESSEE by giving written notice of exercise to the LEASE ADMINISTRATOR at least one hundred twenty {120) days before the normal expiration of this LEASE or of any succeeding extension thereof. CITY and LESSEE shall both have the right to terminate this LEASE during the fifteen {15) year term of the LEASE and during the extension periods, by first giving 180 days prior written notice to the other. If LESSEE desires to construct a new Community Center with City approval, the City will re-open negotiations to extend lease term to guarantee Lessee capital investment. 4. USE. LESSEE shall use the PREMISES as a Community Center as described under Clause "l-C" {Community Center). LESSEE shall not use or permit the use of the PREMISES other than as described above. Noncompliance by LESSEE with this provision is grounds for termination of this LEASE by the LEASE ADMINISTRATOR. Where LESSEE is, or should be reasonably in doubt as to the propriety of any particular use, LESSEE may request a written determination by the LEASE ADMINISTRATOR that such use is or is not permitted under this LEASE. 5. RENT. LESSEE, in consideration for the possession and use of the Premises,~l pay rent to CITY during the term of this lease in the amount of one {1) dollar per year. In return, Lessee agrees to complete the building improvements listed in Addendum "A" during the initial fifteen {15) year term. Payments under this LEASE shall be payable to the City of Chula Vista at the above-specified address by the 1st of each year. 6. UTILITIES. LESSEE shall furnish such utilities as are necessary for the operation of the center, including but not limited to telephone service, gas, electricity, water, and sewage or septic service. LESSEE shall pay any installation charges or connecting fees associated with furnishing said utilities. 7. PERMITS AND LICENSES. LESSEE shall procure, at LESSEE'S sole cost and expense, all permits and licenses that are or may in the future become necessary or required for its operation of the PREMISES. LESSEE further agrees not to allow or permit any fee or charge for such permit or license to become delinquent, or to become a lien on said PREMISES or any improvement thereon. 8. TAXES, ASSESSMENTS AND FEES. LESSEE understands that the PREMISES may be subject to a possessory interest tax. LESSEE shall be responsible for the payment of, and shall pay before delinquent, all taxes, assessments and fees assessed or levied upon LESSEE, on PREMISES or any interest thereon, on any buildings, structures, machines, appliances or other improvements of any -2- nature whatsoever, or on any interest therein, or by reason of the business or other activities of LESSEE upon, or in connection with, the PREMISES. LESSEE further agrees not to allow such taxes, assessments or fees to become a lien against said PREMISES or any improvement thereon. Nothing herein contained shall be deemed to prevent or prohibit LESSEE from contesting the validity of amount of any such tax, assessment or fee or applying for or receiving an exemption from said tax, assessment or fee in any manner authorized by law. 9. COMPLIANCE WITH THE LAW. LESSEE at its sole cost and expense shall comply with, observe, and secure compliance and observation with all the requirements of the CITY OF CHULA VISTA MUNICIPAL CODE, and all County, State and Federal ordinances and codes. If lessee does not comply with the law, the lease is to be terminated. Statutes and regulations now in force or which may hereafter be in force pertaining to the PREMISES or to the operations conducted thereon, including but not limited to the construction, maintenance and repair of improvements. The judgment of any court of competent jurisdiction, or the admission of LESSEE or any sublessee or permittee has violated any such ordinance, statute or regulation in the use of said PREMISES shall be conclusive of that fact as between CITY and LESSEE or such sublessee or permittee. 10. ASSIGNMENT, LICENSE, OR SUBLEASE. This community center nor any interest therein or proceeds therefrom shall be assigned or subleased by LESSEE without the prior written approval of LEASE ADMINISTRATOR. ll. HOLD AND SAVE HARMLESS. LESSEE indemnifies and shall save harmless the CITY, its officers and agents from any damage, penalty, fine, judgment or expense suffered, imposed on, assessed to or incurred by them or any of them as a result of the use of said PREMISES by LESSEE, its agents and employees; and LESSEE shall reimburse said CITY, its officers and agents for any damage. penalty, fine, judgment or expense so suffered, imposed, assessed or incurred. 12. INSURANCE. LESSEE shall maintain insurance, in a form acceptable to CITY, in full force and effect, through the term of LEASE. The policy or policies of said insurance shall name CITY as an "Additional Insured" by Policy Endorsement and shall, as a minimum, provide the following forms of coverage in the amounts specified: A. Comprehensive public liability in an amount of one million dollars combined single limit bodily injury and property damage; B. Fire and extended coverage, including water damage as an indirect result of fire and debris cleanup provision, in an amount not less than 90% of the full replacement value of all improvements constructed or installed upon said PREMISES. Each policy of insurance shall contain the following clauses: -3- A. "It is agreed that this policy shall not be cancelled nor the coverage reduced until thirty (30) days after the Director, Department of Parks and Recreation, City of Chula Vista shall have received written notice of such cancellation or reduction. This notice shall be deemed effective the date said notice is delivered to said Director, as evidenced by a properly validated receipt." B "The insurer waives any right of subrogation against CITY which might arise by reason of any payment under this policy;" C. "This coverage is considered primary for the additional insured." LESSEE agrees to deposit with CITY a copy of each of the policy or policies necessary to satisfy the insurance provisions of this LEASE and to keep such insurance in effect during the entire term of this LEASE. Said policy of insurance shall be submitted to the LEASE ADMINISTRATOR on the above-mentioned insurance form, and in no event will any other document by acceptable as evidence of insurance. Failure to so insure shall be grounds for immediate termination of the LEASE by notification of such termination by the LEASE ADMINISTRATOR. The LEASE ADMINISTRATOR shall retain the right at any time to revise the coverage, form, and amount of the insurance required hereby. If, in the opinion of the LEASE ADMINISTRATOR, the insurance provisions in this LEASE do not provide adequate protection for CITY and for members of the public using the PREMISES, the LEASE ADMINISTRATOR may require LESSEE to obtain insurance sufficient in coverage, form and amount to provide adequate protection. CITY'S requirements shall be reasonable but shall be designated to assure protection from and against the kind and extent of risks which exist at the time a change in insurance is required. The LEASE ADMINISTRATOR shall notify LESSEE in writing of changes in the insurance requirements, and, if LESSEE does not deposit with CITY within 30 days of receipt of such notice a new Chula Vista Insurance Certificate and Policy Endorsement for each policy or policies of insurance incorporating such changes, this LEASE shall be deemed in default without further notice to LESSEE and may forthwith be terminated by the LEASE ADMINISTRATOR. The procuring of such required policy or policies of insurance shall not be construed to limit LESSEE'S liability hereunder nor to fulfill the indemnification provisions and requirements of this LEASE. Notwithstanding said policy or policies of insurance, LESSEE shall be obligated for the full and total amount of any damage, injury, or loss caused by it or its agents, customers, or guests or their negligence or neglect connected with this LEASE or with the use or occupancy of the PREMISES. 13. ACTIONS THAT INCREASE INSURANCE RISKS PROHIBITED. LESSEE shall not use or permit the use of said PREMISES for any purposes other than as described in Clause 1-C (Community Center). Any use not permitted in writing by the LEASE ADMINISTRATOR which may cause a cancellation of, or an increase in the rates of any insurance policy or policies covering said PREMISES is hereby prohibited. -4- No article which may be prohibited under the aforementioned insurance policy or policies shall be permitted to be kept, used, or sold in or about the PREMISES. 14. ACCEPTANCE AND MAINTENANCE OF PREMISES. LEASE ADMINISTRATOR or a representative of LEASE ADMINISTRATOR and LESSEE or a representative of LESSEE shall inspect the PREMISES prior to the commencement of this LEASE and shall agree in writing as to the general condition of the PREMISES. That agreement shall be reduced to writing and attached to this LEASE as ATTACHMENT '~ No representation as to the condition of the PREMISES has been made by'C~ LESSEE. LESSEE and LEASE ADMINISTRATOR or LEASE ADMINISTRATOR'S representative have made a thorough inspection of the PREMISES. LESSEE relies wholly on said inspection and accepts said PREMISES in the condition existing on the commencement date of this LEASE. Upon reasonable notice to the LESSEE, CITY may, at its sole option, do any filling, grading, slope protection, retaining wall construction, or replacement or repair of any CITY-constructed facilities within or without the PREMISES in order to protect the PREMISES. LESSEE shall, to the reasonable satisfaction of the LEASE ADMINISTRATOR, keep and maintain the PREMISES in good condition and in substantial repair. LESSEE shall take all steps necessary or appropriate so as to maintain such a standard of good condition and repair. LESSEE further expressly agrees to maintain the PREMISES in a safe, clean and sanitary condition to the complete satisfaction of the LEASE ADMINISTRATOR and in compliance with all applicable rules, regulations, or ordinances and laws of any and all city, county, state and federal entities. In this connection, LESSEE shall keep the PREMISES free and clear of rubbish and litter to the satisfaction of the LEASE ADMINISTRATOR. CITY reserves the right for its agents or employees to enter upon and inspect the PREMISES at any and all reasonable times to ascertain whether the above-described standards are maintained, such entering subject to reasonable notice to LESSEE. In the event that LESSEE fails to properly maintain the PREMISES as required by CITY, then CITY may notify LESSEE, in writing of said failure. In the event that LESSEE fails to perform said maintenance within thirty (30) days of such notice by CITY, CITY may perform such maintenance and and the cost thereof, including, but not limited to, the cost of labor, material and equipment shall be paid by LESSEE to CITY within 10 days from receipt by LESSEE of a statement of costs from CITY. 15. ALTERATIONS AND REPAIRS. LESSEE agrees to take good care of the PREMISES, fixtures and appurtenances, and of all alterations, additions and improvements to any of them and to make all repairs in and about the same that may be necessary to preserve them in good order and condition, which repairs shall be equal to the original work in respect to quality, and to promptly pay the expense of such repairs. LESSEE shall be responsible for daily maintenance and repair of the PREMISES; major alterations shall be treated the same as general property, subject to approval of the Director of Building and -5- Housing. Replacement of main building or secondary buildings by LESSEE shall be subject to review and approval of CITY. LESSEE hereby waives rights to make repairs at the expense of CITY as provided for in Section 1942 of the Civil Code of the State of California, and all rights provided for by Section 1941 of said Civil Code. In summary, LESSEE is generally resnonsible for keeping PREMISES in the condition as agreed upon in ATTACHMENT ~"" hereto, but is not responsible for making improvements beyond the existing conditions agreed upon by parties. 16. COVENANT FOR MECHANIC'S LIENS. LESSEE will save CITY free and harmless, and indemnify CITY against any and all claims for labor and materials in connection with any improvements, repairs, or alterations to the PREMISES on the part of LESSEE and also the cost of defending against any and all such claims, including reasonable attorneys' fees and court costs. 17. DAMAGE TO OR DESTRUCTION OF LESSEE'S IMPROVEMENTS. The damage or destruction of LESSEE'S improvements on the PREMISES shall not terminate this LEASE. In the event of damage to or destruction of any improvements located within the PREMISES, or if said improvements are declared unsafe or unfit for use or occupancy by a public entity with the authority to make and enforce such declaration, LESSEE shall, at its sole expense, within 90 days, commence and diligently pursue to completion the repair, replacement or reconstruction of improvements necessary to permit full use and occupancy of the PREMISES for the purposes permitted by this LEASE. Failure of the LESSEE to make such repairs and replacements will be cause for termination of the LEASE with the 30 days notice provided for in Section 26 of this LEASE. 18. REMOVAL OF PROPERTY UPON TERMINATION. Within the time specified, after any termination of this LEASE, LESSEE shall remove all personal property from the PREMISES and shall arrange and pay for the disconnection of all utilities and services ordered and shall deliver all keys for the PREMISES to the LEASE ADMINISTRATOR at the above address. If LESSEE fails to perform as set out here, the LEASE ADMINISTRATOR is authorized to treat said property in any manner whatsoever, without incurring any liability therefore or imposing any liability on CITY, or any of its officers or employees. LESSEE agrees to pay for the cost of disposal of said personal property. 19. QUIET POSSESSION. LESSEE, by performing the covenants and agreements as herein required, may at all times during the said term peaceably and quietly have, hold and enjoy the PREMISES for the aforesaid term. If CITY for any reason whatsoever, cannot deliver possession of the PREMISES to LESSEE at the commencement of the term hereinbefore specified, or if LESSEE is dispossessed through action of a title superior to that of CITY, then in neither of such events shall CITY be liable to LESSEE for any loss or damage resulting therefrom. 20. WAIVERS. CITY does not assume any responsibility for any loss or damage su~ed by LESSEE in the operation of the community center resulting from the activities of LESSEE'S officers and/or employees, or from fire, theft, water or acts of God. LESSEE waives any and all claims for damages and -6- releases and discharges CITY and it's officers and agents from any and all loss or injury it may sustain in the operation of these PREMISES by reason of any war, fire, water, act of God, civil commotion or riot, or by reason of any interference by any public agency or official in the operation of these PREMISES. The foregoing waiver shall include all rights of LESSEE under Section 1542 of the Civil Code of the State of California. The waiver by CITY of any breach of any term, covenant or condition herein contained shall not be deemed a waiver of any simultaneous breach of any other term, covenant or condition or of any preceding or subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance by CITY of any breach hereunder shall not be deemed a waiver of any preceding breach by LESSEE of any term, covenant or condition of this LEASE, regardless of CITY'S knowledge or constructive knowledge of such preceding breach. The failure on the part of CITY to require or exact full and complete compliance with any of the covenants, conditions or agreements of this LEASE shall not be construed as in any manner changing or waiving the terms of this LEASE or as estopping CITY from enforcing in full the provisions hereof. No custom or practice which may arise or grow up between the parties hereto in the course of administering this LEASE shall be construed to waive, estop, or in any way lessen the right of CITY to insist upon the full performance of, or compliance with, any term, covenant or condition hereof by LESSEE, or be construed to inhibit or prevent the rights of CITY to exercise its rights with respect to any default, dereliction, or breach of or by LESSEE. 21. PETS AND/OR LIVESTOCK. Personnel occupying both the mainhouse upstairs apartment and the garage apartment shall be allowed to keep animals on the grounds according to animal regulations as stated in City ordinance. 22. RESERVATIONS TO CITY. The PREMISES are accepted by LESSEE subject to any and all existing easements and encumbrances. CITY reserves the right to install, lay, construct, maintain, repair and operatee such sanitary sewers, drains, storm sewers, pipelines, manholes, and connections; water, oil and gas pipelines; electric, telephone and telegraph power lines; and the appliances and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, and along the PREMISES or any part thereof, and to enter the PREMISES for any and all such purposes. CITY reserves the right to grant franchises, easements, rights of way, and permits in, over, upon, through, across and along any and all portions of the PREMISES. No right reserved by CITY in this Clause shall be so exercised as to interfere, unreasonably with LESSEE'S operations hereunder or to unnecessarily impair the security of any secured creditor of LESSEE. CITY agrees that rights granted to third parties by reason of this Clause shall contain a provision that the surface of the land shall be restored as nearly as practicable to its original condition upon the completion of any construction. -7- 23. MINERAL RIGHTS. CITY hereby reserves all rights, title and interest in any and all gas, oil, minerals and water, upon or beneath the PREMISES for the purpose of drilling, operating and maintaining such installations as are necessary or desirable for the development of said gas, oil, mineral and water rights. 24. STATUS OF LESSEE. Nothing in this LEASE shall be construed as making LESSEE or any of its employees the agent or employee of the CITY for any purpose, nor as creating between said CITY and LESSEE the relationship of partners or joint ventures. 25. LEASE SUBORDINATE TO CONDITIONS AND RESTRICTIONS. This LEASE shall be subordinate to and subject to the terms, conditions, restrictions and other provisions of any existing or future permit, lease and/or agreement between CITY and the United States of America, and/or any other local, state or federal agency, relative to the control, operation or maintenance of the PREMISES, the execution of which has been or will be required as a condition precedent to the operation or control of the PREMISES. LESSEE agrees to be bound by such terms, conditions, restrictions and provisions and, whenever the CITY may so demand, to execute, acknowledge, or consent formally to such terms, conditions, restrictions, or provisions. 26. DEFAULT. Should LESSEE default in the performance of any covenant, condition, or agreement herein, and such default is not corrected within thirty (30) days after LESSEE receives written notice from the LEASE ADMINISTRATOR to cure said default, the LEASE ADMINISTRATOR may then declare this LEASE terminated. In addition to any other remedies provided by law, CITY and/or its authorized agents may, upon default by LESSEE, forthwith enter upon the PREMISES, take possession of LESSEE'S property, and as agent of LESSEE close all or any part thereof. The LEASE ADMINISTRATOR may, at his or her option, declare the LEASE terminated by giving LESSEE written notice thereof per this LEASE, and may forthwith take possession of the PREMISES, removing LESSEE and its property therefrom. The party who shall prevail in any legal action against the other in claiming a breach or default of this LEASE, shall be entitled to recover costs of sustaining such action, including reasonable attorney's fees. 27. COSTS AND ATTORNEY'S FEES. In the event CITY brings legal actions against LESSEE to enforce the terms of, or to declare a termination of, this LEASE for reason of breach of a covenant hereof, in which legal action CITY is successful, LESSEE shall pay all costs of such action together with reasonable attorney's fees in an amount to be fixed by the Court. 28. EXPIRATION OF CONTRACT. It is agreed that any buildings, equipment and fixtures so installed by LESSEE shall be, and the same are hereby made, security for the faithful performance of each and all the terms, conditions and covenants of this LEASE. Upon the termination of this LEASE for any -8- cause, all such buildings, structures, equipment and fixtures except trade fixtures shall become the property of CITY, provided, however, CITY may require LESSEE and LESSEE hereby agrees, to remove any such buildings, structures, equipment and fixtures at LESSEE'S own expense provided, however, that all damage to the PREMISES or to CITY'S property or improvements shall be repaired in a good and professional manner and the PREMISES shall be left in the condition agreed upon by the parties as outlined in ATTACHMENT when LESSEE took possession thereof, reasonable wear and tear and damage by the elements excepted. In the event LESSEE does not so remove any of such buildings, structures, equipment or fixtures as aforesaid, CITY may remove, sell, or destroy the same at the expense of LESSEE, and LESSEE shall pay to CITY the reasonable cost of any such removal, sale or destruction, together with the reasonable cost of repair of damages to CITY'S property or improvements or to the PREMISES resulting from such removal, sale or destruction. It is further agreed that any personal property not removed from the PREMISES within sixty (60) days following termination of the LEASE may at CITY'S option, be deemed abandoned, whereupon CITY may take possession of said personal property for appropriate disposition thereof. 29. CITY'S RIGHT TO RE-ENTER. LESSEE agrees to yield and peaceably deliver possession of the PREMISES to CITY on the date of termination of the LEASE, whatsoever the reason for such termination. Upon giving written notice of termination to LESSEE or upon expiration of the term of this LEASE, CITY shall have the right to re-enter and take possession of the PREMISES on the date such termination becomes effective without further notice of any kind, but without any prejudice to LESSEE'S rights under any county, state or federal unlawful detainer procedures. Termination of the LEASE and re-entry of the PREMISES by CITY shall in no way alter or diminish any obligation of LESSEE accrued or accruing under the LEASE terms and shall not constitute an acceptance or surrender by CITY or LESSEE of any of CITY'S rights under said LEASE. 30. NOTICES. Any notices required or permitted to be given by this LEASE may be personally served on the other party by the party giving such notice, or may be served by certified mail, return receipt requested to the addressee or to such other officer or office as LESSEE or the LEASE ADMINISTRATOR may direct in writing. 31. LEASE ORGANIZATION. The various headings and numbers herein, the grouping of provisions of the LEASE into separate clauses and paragraphs, and the organization hereof, are for the purpose of convenience only and shall not be considered otherwise. Invalidity of any clause or section does not affect the remainder of the LEASE, which shall be enforceable. 32. TIME OF THE ESSENCE. Time is of the essence of all the terms, conditions, and provisions of LEASE. 33. ENTIRE AGREEMENT. This LEASE and ATTACHMENT ~ .~!!..' constitute the complete expression of the agreement between CITY and LESSEE, and there are no other promises, representations, agreements, or warranties except as set forth herein. There shall be no alteration, change or amendment to this LEASE, ~xcept in writing, executed by the parties hereto. -9- 34. SPECIAL CONDITIONS. This LEASE is granted subject to, and LESSEE shall comply with, the following conditions: A. Use of the facilities by the activities sponsored by the Bonita Optimist Foundation shall be under the control of the Bonita Optimist Foundation within the constraints of their insurance liability; B. Policy for the use of alcohol on the PREMISES shall be controlled by the Bonita Optimist Foundation upon approval from the City of Chula Vista; C. The Bonita Optimist Foundation shall be authorized to require security and cleaning monies from each activity or individual prior to the actual use of the facility; and D. Upon request by LEASE ADMINISTRATOR, LESSEE shall provide LEASE ADMINISTRATOR, in writing, of the names of the on-site persons responsible for the operation and management of the facility. 35. REPRESENTATION. This Lease Agreement was prepared by and a copy is filed in, the law Offices of Anthony C. Starks, Attorney at Law, 815 Third Avenue, Suite 313, Chula Vista, California 92011, who represents LESSEE herein. All ambiguities shall be resolved against LESSEE. IN WITNESS HERETO, the City of Chula Vista and the Bonita Optimist Foundation do hereby cause this Lease Agreement to be executed by their duly authorized agents, effective on Dated: 7~ /i~)~d /~a(~<6x' Dated: .~~ / ~ and AUTHORIZED AGENT, CITY OF CHULA VISTA, CALIFORNIA WPC lO07R APPROVED AS TO FO~M BY Addendum "A" Building Improvement Schedule Item Approximate Date 1. Rewire building and apartment 1st - 2nd year 2. Renovate kitchen 3rd - 9th year 3. Renovate bathrooms 3rd - 9th year 4. Renovate offices 3rd - 9th year 5. Pave driveway and parking lot lOth year During the initial fifteen {15) years, lessee will undertake the above buiding improvements. Foundation WPC lO07R -11- COUNCIL AGENDA STATEMENT Item 6 Meeting Date lO/ll/88 ITEM TITLE: Resolution/<~d~/c~ Approving Lease Agreement for City property with the Bonita Optimist Foundation Inc. SUBMITTED BY: Director of Pa"~sa~nd ReCreation REVIEWED BY: City Manager~~ (4/5ths Vote: Yes No X ) The current lease agreement between the City of Chula Vista and the Bonita Optimist Club will expire in November 1988. A new lease agreement has been negotiated by staff and the Executive Board of the Bonita Optimist Foundation. RECOMMENDATION: That Council approve the new lease agreement and authorize the Mayor to execute agreement. BOARDS/COMMISSIONS RECOMMENDATION: At the Parks and Recreation Commission meeting on September 15, 1988, the Commission took action to endorse lease agreement as presented by staff (Attachment A). DISCUSSION: On November 1984, the County of San Diego deeded to the City of Chula Vista the properties known as Sweetwater County Park, Goode Property, and two other small parcels along Sweetwater Road and Bonita Road. The exchange of property resul ted from a negotiated settlement between the City and the County over the forTnation of the Otay Valley Redevelopment project area. The City agreed to assume ownership and maintenance cost for Sweetwater Park and other county property to offset the County's lost tax increments in the Otay Valley Redevelopment project area. The sixteen (16) acre Goode property, east of Rohr Park, was leased by the County to the Bonita Optimist Club for social and civic purposes. The length of the lease was four terms of five years each. The Optimist Club was in their second five year term when the City was deeded ownership to the Goode Property. In 1986, the City initiated a Master Plan Study for the three major parcels of land (Sweetwater Park, Rohr Park and Goode Property) to develop a large cohesive park. The Optimists were notified of the City's intention to include the Goode Property in the Master Plan Study. During this process, the Optimists agreed to renegotiate a new agreement before the current lease expired in November, 1988. The new lease requires the Optimists to be responsible for only the 1.3 acre parcel containing the old Goode residence, along with the unattached garage structure containing a small upstairs apartment. Revenues from the apartment will be used by the Optimist Club to defray utility costs of the main house. Page 2, Item 6 Meeting Date 10/11/88 The major changes contained in the new lease agreement are: A. Term of Lease: The Optimists have agreed to a 15-year lease with one 5-year option. B. Rent: $1 per year and a commitment (Addendum "A") to undertake a major capital improvement program during the initial 15 years. C. Insurance: To name City as "additional insured" on all policies required. D. Area leased reduced from 16 acres to 1.3 acres. FISCAL IMPACT: None. WPC 1082R ~:2th'-e CZty C~-,!:::,:il of Chula Vista, California