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HomeMy WebLinkAboutUkiah Men's Golf Club 2005-08-01GOLF CART STORAGE FACILITY LEASE AGREEMENT This Lease, made this 1 st day of August, 2005 by and between the City of Ukiah, State of California, acting by and through its City Council, hereinafter referred to as "Lessor" and the Ukiah Men's Golf Club, a non-profit corporation organized and existing under and in compliance with the laws of the State of California and its officers, hereinafter referred to as "Lessee." RECITALS: 1. Lessor has the authority contained in Government Code (37380 and 37395) and does determine that the use of certain property owned by the Lessor is not required for its use at this time and is available for Lease, and 2. The use of said property by the Lessee would be and is beneficial for the citizens of the City of Ukiah. LEASE AGREEMENT 1. LEASE. The parties hereto agree that on the terms and conditions hereinafter expressed Lessor does hereby let to Lessee and Lessee does hereby hire from Lessor a portion of that certain parcel of property commonly referred to as "Ukiah Municipal Golf Course," located on City property, County of Mendocino and adjacent to Todd Grove Park, more specifically described on the attached "Exhibit A" together with a right of access thereto. 2. TERM. The term of this Lease is for a period of twenty (20) years commencing on the date set forth above. 1 3. RENT. As rent for the term hereby demised, Lessee agrees to pay to Lessor the sum of One Dollar ($1.00) per year for the first ten years. The remaining ten years shall be paid as indicated below: Year eleven Year twelve Year thirteen Year fourteen $250 per year $500 per year $750 per year $1000 per year Years fifteen through 20 $1000 per year, subject to the cost of living adjustment as set forth below. At the commencement of year fifteen and each subsequent year thereafter, the rent-shall-increase-by-the-percentage-increase-irrt the month when the CPI adjustment is to be made over the same month in the previous year, not to exceed 5%. CPI means the Consumer Price Index for San Francisco, Oakland-San Jose, CA, all items (base year 1982-1984 =100) published by the United States department of Labor, Bureau of Labor Statistics. In the event the CPI is discontinued or otherwise not available, "CPI" shall mean such comparable statistics on the purchasing power of the consumer dollar as is reasonably agreed upon between Lessor and Lessee. Lessee specifically represents that the purpose of this lease is to renovate, operate, and maintain a golf cart storage facility, more specifically described on the attached "Exhibit B," for the sole purpose of providing storage for privately owned golf carts. 3.1. By no later than -3~~« at no cost to Lessor, Lessee shall complete construction of a 25ft. x 50ft. maintenance shed with an entryway footing and a 25ft. x 20ft. cement slab, more specifically described on the attached "Exhibit C,' for the benefit of the Lessor's equipment. Said construction will comply with plans 2 and specifications approved by Lessor. Upon completion, the building, as described in Ex. C, shall become the sole property and responsibility of Lessor free of all liens and encumbrances of any kind. Lessee shall insure that no liens attach to Lessor's property in connection with or as a result of said construction. Lessee shall give Lessor not less than 30 days advance written notice of the commencement of construction to afford Lessor an opportunity to post and record a Notice of Non-responsibility. 3.2. Lessee further represents that any profits earned from the use of the leased premises will be used in the manner required by California laws governing non-profit corporations, and specifically the provisions of Corporations Code Section 5140(1), or any successor provision tnat requires lessee to use any profit it earns from business activity for its non-profit public purpose as set forth in its Articles of Incorporation and By-Laws. 3.3. Lessee hereby agrees to use any profits earned from the use of the leased premises for the promotion or benefit of the Ukiah Municipal Golf Course, as authorized and approved by the City, including, but not limited to, physical improvements to the Golf Course grounds and facilities . 3.4. Lessee hereby agrees to allow the Lessor to park and store 35 rental carts in the golf cart storage facility during non-operating hours of the Ukiah Municipal Golf Course. Storage of additional carts must be approved by both parties. The storage of the carts shall be at no cost to the Lessor. 3.5. Lessor hereby agrees to allow the continued use of private carts on the golf course for the entire term of this agreement, subject to rules and regulations adopted by Lessor. 3 4. USE AND IMPROVEMENTS. Lessee hereby agrees to install all permanent improvements which shall become part of said property and title to said improvements shall be vested in the Lessor upon completion of the improvements. 4.1. Lessee shall use the leased premises exclusively as a golf cart storage facility to provide storage for patrons of the Ukiah Municipal Golf Course. 4.2. Improvements, excavations, removal of any trees, brush, grass or improvements and other modifications to the property shall be the sole responsibility of Lessee and shall be approved by Lessor prior to conducting work. Lessee shall prepare plans and specifications for said improvements and obtain approval prior to work on the 4.3. Lessee agrees to keep the premises and all improvements in good repair and order, and to bear the full cost for maintenance of all improvements. 4.4. Lessee shall acquire the necessary and required permits from the appropriate regulating body for the development proposed under this lease. 4.5. Lessee shall not use or permit the leased premises to be used except in full compliance with all applicable laws, including, but not limited to, rules, regulations, laws or ordinances of the City of Ukiah, Ukiah Municipal Golf Course, and the State of California. 4.6. Lessee shall not maintain any nuisance on the leased premises or engage in any activity that unreasonably interferes with the use of the Ukiah Municipal Golf Course by Lessor and the general public. 4.7. Lessee shall not be responsible in any way for landscaping or landscape maintenance of the area surrounding the leased premises. 4 4.8. Lessee shall furnish at its sole expense all utilities necessary for its use of the leased premises, including, but not limited to, water, sewer service, electricity, and natural gas. 5. ASSIGNMENT. Lessee will not assign this Lease or any interest herein and will not let or underlet the said premises or any part thereof without the prior written consent of the Lessor. 6. INDEMNIFICATION AND INSURANCE. 6.1 Lessor shall not be liable for and is free from the cost of any damages for personal injury or property damage resulting from the condition or faulty construction of the demised premises existing at the time of letting or arising thereafter and Lessee covenants and agrees to indemnity and save harmless said Lessor and its officers, agents and employees from and against any and all liability, loss, cost, or other obligation, including reasonable attorney's fee, on account of or arising out of any such injuries or losses however occurring. 6.2. Lessee covenants and agrees during the life of this Lease at the Lessee's sole expense to comply with the requirements of Exhibit D, Insurance Requirements for Lessees (No Auto Risks), attached hereto and incorporated herein by reference. 6.3. Lessee shall procure workmen's compensation insurance during any period of construction of improvements: Lessee need not procure such insurance provided all of the following conditions are met: a. It maintains its status as a non-profit tax exempt organization, b. It's Board of Directors takes no action to designate any person providing services or work to the organization as its employee: and 5 c. All persons performing services for the organization do so strictly as volunteers without receiving any compensation whatsoever. 6.4. In the event of damage to any improvements on the leased premises, Lessee shall expediently rebuild, repair or otherwise reinstate the damaged Improvements in a good and substantial manner according to applicable Uniform code standards. The reconstruction required herein shall commence after the receipt of insurance funds paid for the purpose of reconstruction, and shall be pursued diligently to completion. 7. TERMINATION. Failure to comply with any provision of this lease, except paragraphs 3, 4.2, 4.6, ce noncompliance from Lessor, shall constitute a material breach of the lease and furnish grounds for termination of this lease. A violation of paragraphs 3, 4.2, 4.6 and 5 shall constitute grounds for termination of this lease in accordance with California Code of Civil Procedure Sections 1161 and 1162. Lessor may terminate this lease upon ten (10) days prior written notice delivered to Lessee based on Lessee's failure to comply with the indemnification and insurance requirements of section 6. Any action taken or suffered by Lessee as a debtor under any insolvency or bankruptcy laws, including the filing of a voluntary or involuntary petition in the United States bankruptcy court, and any assignment for the benefit of creditors or the appointment of a receiver shall constitute a breach of this Lease. In such event, Lessor shall have the right to terminate this Lease and retake possession of the Leased Premises and the Improvements. 6 8. ATTORNEY'S FEES. In the event of any legal action arising out of this Lease, the prevailing party shall recover its attorney's fees and costs resulting from such action. 9. TIME OF ESSENCE. Time is of the essence in this agreement. 10. WAIVER. City's waiver of any default in Lessee's performance of any condition of this Lease, including the obligation to pay rent, shall not constitute a waiver of remedies available for a subsequent breach of the same or a different condition of this Lease. Acceptance of subsequent rental payments from Lessee or its obtain prior approval to an assignment of this Lease. 11. NOTICES. Any written notice required hereby shall be deemed sufficient when placed in the Unites States mail, postage prepaid and addressed as follows: TO LESSEE: Ukiah Men's Golf Club Attn: UMGC President 599 Park Blvd. Ukiah, CA 95482 TO CITY: City Manager Ukiah Civic Center 300 Seminary Avenue Ukiah, CA 95482 12. RECORDING AND BINDING EFFECT. This Lease may be recorded and shall be binding upon and inure to the benefit of any successor to or purchaser of either party's interest. This paragraph does not alter the provisions of paragraph 5, prohibiting assignment or subletting without the prior written consent of the Lessor. 7 13. PARAGRAPH HEADINGS. Paragraph headings are included for the convenience of the parties and are not intended to define or limit the scope of this Lease. 14. PREVIOUS AGREEMENTS. Any and all existing statement or agreements, whether oral or written, or renewals thereof, between the parties hereto, covering the same subject matter, are hereby canceled and superseded by the terms of this Lease, and such prior agreements, statements or understandings shall have no further force or effect. 15. DUPLICATE ORIGINALS. This Lease may be executed in one or more duplicate originals bearing the Upll original shall be admissible as proof of the existence and terms of this Lease. Entered into on the date first written above. ATTEST• Marie Ulvila, pity Clerk CITY OF UKIAH By _ Ukiah Men's Golf Club By. C i~T ~2-zzA 8 Cart Storage Sheds wr Golf Cart Storage Shed Lease Exhibit A -:.fir{` , k r ao \ ~ S V wy1'~ I SSy dS.~ I , a It Golf Cart Storage Shed Lease 0 Exhibit B Golf Cart Storage Shed Lease Cement Slab 25ft. x 20ft. m i/ q: Maintenance Shed 25ft. x 50ft. FYk I YII ~ 04 - Owr .t Yak rv , Ak, g G, r Golf Cart Storage Shed Lease F.XAIRIT n INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISK) A. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Insurance Services Office from number GL 0002 (Ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001). 2. Worker's Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. 3. Builders= Risk and Fire and extended coverage insurance as further described below for the full replacement cost of permanent improvements to the Ukiah Municipal Golf Course or the leased premises. B. MINIMUM LIMITS OF INSURANCE Lessee shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit 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 separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 3. Builder's risk and fire and extend coverage insurance on an "all risk" basis (including collapse) on a completed value form for full replacement value covering the interests of Lessor in all permanent improvements constructed on the Ukiah Municipal Golf Course or the leased premises by or under contract with Lessee. All materials and equipment in any off-site storage location intended for permanent use :1 ' rm\dr\dccs94\NCIHA.ins August 5, 2005 1 on the Ukiah Municipal Golf Course or the leased premises, or incident to the construction thereof shall be insured on an "all risk" basis as soon as the same have been acquired by Lessee. C. DEDUCTIBLES AND SELF-INSURED RETENTIONS Any deductibles or self-insured retentions must be declared to and approved by the Leessor. At the option of Leessor, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Lessor, and its officers, officials, employees and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. OTHER INSURANCE PROVISIONS The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability Coverage a. The Lessor and its officers, officials, employees and volunteers are to be covered as insureds as respects liability arising out of activities performed by or on behalf of the Lessee, and products and completed operations of Lessee, or premises owned, occupied or used by them. The coverage shall contain no special limitations on the scope of protection afforded to the Lessor, or its officers, officials, employees or volunteers. b. The insurance coverage shall be primary insurance as respects the Lessor, and its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Lessor, and its officers, officials, employees or volunteers shall be excess of the insurance required by these specifications and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Lessor, and its officers, officials, employees or volunteers. d. The insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the Lessor, and its officers, officials, employees and volunteers for losses arising from the use of employees or volunteers entitled to workers compensation coverage. s:\rm\dr\docs94\NCIkA.ins August s, 2005 2 3. All Coverages Each Insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the Lessor. E. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a Best's rating of no less than ANN. F. VERIFICATION OF COVERAGE Lessee shall furnish the Lessor with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided or approved by the Lessor. Where by statute, the Lessor's workers' compensa- tion- related forms cannot used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the Lessor before activities covered by the insurance commences. The Lessor reserves the right to require complete, certified copies of all required insurance policies, at any time. s:\rm\dr\docs941 ' NCIP.A.ins August 5, 2005 3