HomeMy WebLinkAboutUkiah Men's Golf Club 2021-07-21 COU No. 2122-079
CART STORAGE LEASE AGREEMENT
Between the City of Ukiah and the Ukiah Men's Golf Club
This Amended Lease, effective on and after July 1, 2021, 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" or "UMGC") amends the Lease between Lessor and
Lessee for the Cart Barn at the Ukiah Municipal Golf Course entered on July 1, 2012.
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, hereafter called "the Leased Premises."
2. TERM.
The term of this Lease expires on the later of June 30, 2032 or the date the Ukiah
Municipal Golf Course lease between the City of Ukiah and Tayman Park Golf
Group, Inc. ("TPGG"), as amended or extended, expires.
3. LEASE REVENUE.
1
Not later than June 30 each fiscal year, Lessee agrees to deposit into a UMGC
Capital Improvement Program Fund for the Ukiah Municipal Golf Course ("the
Fund") all gross revenue from the fees it charges for the storage of privately
owned golf carts at the Leased Premises and any other income received by
Lessee from its use of the Leased Premises, excluding only fees paid by Lessee
for utilities furnished to the Leased Premises and the cost of necessary
maintenance activities of the Leased Premises. ("Net Cart Barn Revenue") In
addition, the Lessee agrees to deposit into the Fund all gross revenue from the
management of a tee sign sponsorship program, excluding costs to create and
maintain the tee signs ("Net Tee Sign Rents"). Starting in the fiscal year ending
June 30, 2022, Lessee's contribution to the Fund for the fiscal year shall not be
less than Twenty Thousand Dollars($20,000), increasing in each fiscal year
thereafter by two percent (2%) of the minimum contribution amount for the prior
fiscal year. If Lessee fails to timely deposit fifty percent (50%) of the annual Fund
Contribution required by this Section 3, then Lessor may give notice to Lessee
that it has one hundred eighty days (180) from the date of such notice to make
the required deposit to the Fund. If Lessee fails to make the full required deposit
by that deadline, in its sole discretion the Lessor may terminate this Lease and
retake possession of the leased premises. Lessor's failure to give such notice
does not affect in any way Lessee's obligation to make the deposits required by
this Section 3 or the Lessor's remedies for such breach of this lease. Upon
termination of the lease for the reasons provided in this Section 3, private cart
storage and path license rights will remain valid for the remainder of the period of
use authorized by the rental fees that were paid for each golf cart prior to the
date the lease was terminated pursuant to this Section 3. Thereafter, Lessor, at
its sole discretion, may determine future storage and path use by private carts, if
any, under terms and conditions to be determined solely by Lessor from time-to-
time.
This UMGC Fund will be managed by the UMGC, subject to approval of
proposed expenditures from this fund by an Advisory Team comprised of three
representatives, one from the Ukiah Men's Golf Club, one from TPGG, and one
from the City of Ukiah. Each of the organizations represented shall select its
representative and notify the other organizations of the name of and contact
information for its representative. The representatives serve at the will and
pleasure of the organization they represent. The Lessee shall maintain the
UMGC Fund at a bank or savings and loan approved by the City of Ukiah.
The UMGC shall maintain adequate financial records for the Fund to permit an
audit by any of the represented organizations of all income and expenditures.
UMGC is required to provide the City, at least semi-annually as of December 31
and June 30, with a report detailing the UMGC Fund balance and all UMGC CIP
contributions, and approved UMGC CIP plan expenditures recorded in the
UMGC Fund. The records shall be available for inspection and copying by any of
the represented organizations at all reasonable times. The UMGC Fund shall be
used exclusively to pay for Capital Improvement Projects and for youth
scholarship programs. Prior to the expenditure of funds from the account, the
3
Advisory Team's approved expenditures shall be submitted for review and
approval by the Ukiah City Council at a public City Council Meeting.
3.1. Lessee shall maintain financial records in accordance with generally
accepted accounting standards consistently applied which
accurately record and reflect all income and expenses incurred in its
performance under this Lease and which are adequate to allow for
an audit in accordance with the auditing standards of the Financial
Accounting Standards Board. Lessee shall maintain the records at a
location in the City of Ukiah. It shall provide Lessor with notice of that
location and of any change in that location. The Lessor shall have a
right to inspect, copy or audit those records at any time during regular
business hours not sooner than twenty-four (24) hours after Lessee
receives a written request from Lessor for access to the records.
3.2. Lessee hereby agrees to allow the Lessor and/or a designee of the
Lessor to park and store 40 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, but not
unreasonable denied. The storage of the rental carts shall be at no
cost to the Lessor and/or the designee of the Lessor.
3.3. Annually, in order to inform the Ukiah City Council and the public of
the capital improvements contributed by Lessee to the golf course,
Lessee shall present to the City Council in public session a
description of the completed golf course improvements approved by
the City Council in the prior year, which were funded by the Fund, as
well as other projects that were overseen or completed by the Lessee
in the that year which were funded by in-kind time and materials, or
cash donations.
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.
4
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 for the sole purpose of
providing storage for privately owned golf carts and, as provided in
section 3.1, rental carts owned by Lessor and/or the designee of the
Lessor as more specifically described in the attached Exhibit B which
is incorporated herein by this reference.
4.2. Improvements, excavations, removal of any trees, brush, grass or
improvements and other modifications to the Leased Premises 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
performing or permitting the performance of any work on the Leased
Premises.
4.3. Lessee agrees to keep the Leased 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, a designee of the Lessor,
and the general public.
4.7. Lessee shall not be responsible in any way for trees and landscaping
or landscape maintenance of the area surrounding the leased
premises.
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 use made
by Lessee of the demised premises, any defective 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 C,
Insurance Requirements for Lessees (No Auto Risks), attached
hereto and incorporated herein by reference.
6.3. Lessee shall procure workmen's compensation insurance as
provided in Exhibit C; provided, however, that Lessee need not
procure such insurance if all of the following conditions are met:
a. It maintains its status as a non-profit tax exempt organization;
6
b. Its Board of Directors takes no action to designate any person
providing services or work to the organization as its employee: and
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.
7.1 Termination by Lessor. Failure to comply with any provision of this
lease, except paragraphs 3, 4.2, 4.6, and 5, within a period of thirty
(30) days following receipt of a written notice of 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,
7
Lessor shall have the right to terminate this Lease and retake
possession of the Leased Premises and the Improvements.
7.2 Termination by Lessee. Upon not less than 30 days advance written
notice, Lessee may terminate this lease, if Lessor deprives Lessee
of the possession and use of the Leased Premises, including the
license to the use of cart paths by privately owned golf carts or other
than in the lawful enforcement of Lessor's rights under this lease and
within said 30 days Lessor fails to restore such possession or use to
Lessee.
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 assignees shall not
constitute a waiver of the failure of Lessee to pay rent or 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: TO CITY:
Ukiah Men's Golf Club City Manager
Attn: UMGC President Ukiah Civic Center
599 Park Blvd. 300 Seminary Avenue
Ukiah, CA 95482 Ukiah, CA 95482
8
.,
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 parry's interest. This paragraph does not
alter the provisions of paragraph 5, prohibiting assignment or subletting without the
prior written consent of the Lessor.
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 original
signature of both parties and when so executed any such duplicate original shall
be admissible as proof of the existence and terms of this Lease.
Entered into on the date first written above.
CITY OF UKIAH
By.
6.c0r+.,.z
ATTEST: Kristine Lawler(Sep 17,2021 08:09 PDT) Ukiah Men's Golf Club
kt 1s�ln L c r I City Cleric
DD ,
By: t♦� N� ��.EStPE�Lr
9
Ukiah Men's Golf Club City of Ukiah
599 Park B;vd.
Ukiah, CA 95482
June 30, 2021
Re:Approval of separate Capital improvement Plan bank account fund and understanding between
the City of Ukiah and the Ukiah Men's Golf Club
Dear Ukiah Men's Golf Club,
The City of Ukiah (City) grants permission forthe Ukiah Men's Golf Club (UMGC)to establish a
separate bank account, dedicated exclusivelyto funds used for Capita; Improvement Projects (CIP),
at the Savings Bank of Mendocino County,with an effective date of May 1, 2020.
Under such approval as provided for in Section 3 of the Amended Agreement, the City Manager
grants approval for UMCG to use this alternative bank account whi;_h is dedicated to the
acceptance of UMGC required CIP contributions and payment of approved UMGC CIP golf course
improvement expenditures only. UMGC will provide reporting forthe fund as described in Section
3 of the Amended Agreement.
Sincerely,
Sage Sangiacomo
City Manager, City of Ukiah
Agreed to and Accepted
Ukiah Men's Golf Club
By:KID �`l L _ Date: 7 �7 2.D Z-
Roger Vi a t, President
CC Tayman Park Golf Group
300 5cminary Avcnue• Ukiah - GA • 95492-5400
Phone: (707)463-6200 •Fax: (7O7)463-6204 •%v�«v.cityofukiah.com
Ukiah Men's Golf Club
Final Audit Report 2021-09-17
Created: 2021-09-17
By: Kristine Lawler(klawler@cityofukiah.com)
Status: Signed
Transaction ID: CBJCHBCAABAAejQOhjvW7NMuzMTrP7KD5TiLC2-ytgU8
"Ukiah Men's Golf Club" History
Document created by Kristine Lawler(klawler@cityofukiah.com)
2021-09-17-2:50:20 PM GMT-IP address: 12.12.163.2
Document emailed to Sage Sangiacomo (ssangiacomo@cityofukiah.com)for signature
2021-09-17-2:50:59 PM GMT
Email viewed by Sage Sangiacomo (ssangiacomo@cityofukiah.com)
2021-09-17-2:54:03 PM GMT-IP address:67.180.40.102
C5o Document e-signed by Sage Sangiacomo (ssangiacomo@cityofukiah.com)
Signature Date:2021-09-17-2:55:01 PM GMT-Time Source:server-IP address:67.180.40.102
Document emailed to Kristine Lawler(lyricalwhims@gmail.com)for signature
2021-09-17-2:55:05 PM GMT
Email viewed by Kristine Lawler(lyricalwhims@gmail.com)
2021-09-17-3:08:47 PM GMT-IP address: 173.164.213.14
Document e-signed by Kristine Lawler(lyricalwhims@gmail.com)
Signature Date:2021-09-17-3:09:25 PM GMT-Time Source:server-IP address: 173.164.213.14
Q Agreement completed.
2021-09-17-3:09:25 PM GMT
0 Adoin Sign