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HomeMy WebLinkAboutC26120 - 1 Yr. Lease at Portola Cmnty Centero REQUEST: CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT Approve One -Year Lease Agreement with Palm Desert Sister Cities Foundation and Ratify Staffs Approval to Occupy Portola Community Center Office Space as of January 1, 2007. SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: January 11, 2007 CONTENTS: Lease Agreement Recommendation: By Minute Motion: 1) Approve One -Year Lease Agreement with Palm Desert Sister Cities Foundation to occupy Office Space No. 6 at the Portola Community Center at an Annual Cost of $2,340; and 2) Ratify staffs approval to allow the organization to occupy the office space within the Portola Community Center as of January 1, 2007. Discussion: City staff worked with the (former) Sister Cities Committee to undertake the process of obtaining non-profit status as well as locating office space to conduct business once this process was completed. Staff was able to make available an office at the Portola Community Center; however, the organization must have its 501 c(3) status prior to occupation. The Palm Desert Sister Cities Foundation (the organization's new name), received its non-profit, 501c(3) status in December 2006. The Foundation requested that it be able to move into its new office as of January 1, 2007, which staff approved. There were seven offices being occupied and one used as a conference room within the Center. In order to accommodate the Sister Cities Foundation's need for office space, the conference room was converted to office space. There are two large community rooms that tenants can utilize for meetings. STAFF REPORT PALM DESERT SISTER CITIES FOUNDATION LEASE AGREEMENT JANUARY 11, 2007 PAGE 2 There are now four organizations occupying all of the available offices; i.e., Desert Cancer Foundation (2 offices), Friends of the Desert Mountains (3 offices), Jewish Family Services (2 offices), and Sister Cities Foundation (1 office). Staff recommends approval of the Lease Agreement and ratification of staffs approval to allow the Palm Desert Sister Cities Foundation to occupy the office space as of January 1, 2007, at an annual cost of $2,340. Submitted By: Frankie Riddle Director of Special Programs ur: Sheila R. Gilligan ACM of Community Se Approval: /./%°),A Carlos L. 0 (ga City Manager 'CITY COUNCIL ACTION: APPROVED DENIED DENIED.. RECEIVED OTHER„ ONE ABSTAIN: VERIFIEDgBY: K-uKl Y Office Original on File withJCitClerk's memos/FriendsoftheDesertMountainsLease.cc 2 � � �� � Contract No. C26120 LEASE AGREEMENT This �ease is entered into this 1st day of JANUARY. 2007, by and between the CITY OF PALM DESERT, a municipal corporation (the "Lessor"), and the PALM DESERT SISTER CITIES FOUNDATION, a non-prafit orqanization (the "Lessee"). WiTNESSETH 1. PREMISES. Lessor hereby leases to Lessee and �essee hereby hires from Lessor that certain space (the "Leased Space") on the first floor of the building at 45-580 Portola Avenue in the City of Palm Desert, Califomia, commonty known as the Portola Community Center (the °Building"). The Leased Space is more particularly described in Exhibit "A," attached hereto and incorporated herein by this reference. The Leased Space {Office Space No. 6) consists of a total of One Hundred Thirlv (e.q. 130) square feet of office space. 2. TERM. The term of the Lease shall be for a period of one (1) year, commencing on January 1, 2007, and continuing thereafter until December 31. 2007, unless terminated earlier as provided in the Lease. 3. AUTOMATIC RENEWAL OF LEASE TERM. Provided that Lessee is not in default hereunder, the Lease term shall be automatically renewed for one-year periods, subject to the same terms and conditions set forth herein. All renewal terms shall commence on the day immediately succeeding the expiration date of the previous Lease term. In the event Lessee does not wish the Lease term to automatically renew, Lessee shail give Lessor not less than sixty (60) days written notice prior to the expiration date of the initial Lease term or the renewal term as the case may be. Contract No. C26120 4. RENT. Lessee shail annually pay to Lessor as and for rent on the Leased Space the sum of Two Thousand Three Hundred Fortv Dollars (a2,340) ($18.00 per square foot per year or $1.50 per square foot per month). Said rent shall be payable on or before the commencement date of this Lease Agreement or any renewal term thereof. 5. USE OF PREMISES. The Leased Space shall be used for general o�ce purposes by Lessee and for no other uses without the prior written consent of Lessor. 6. CONDITION OF RENTAL. Lessee shall at atl times during the course of this Lease, or any extension thereof, keep and maintain its tax-exempt status under Intemal Revenue Code Section 501(c)(3) or its tax�xempt status as a govemmental entity as approved by Lessee. 7. COMMON AREAS OF BUILDING. A. Use of Common Areas. Lessee shall have the nonexclusive right during the term of this Lease to use the common areas of the Building itself, its employees, agents, Gients, invitees and licensees. The term "common areas" means the portions of the Building that, at the time in question, have been designated and improved for common use by and for the benefit of more than one Lessee in the Building, including, but not limited to, the parking areas, landscaped area, exterior walks, interior comdors, restrooms, reception area and community room. B. Use of Communitv Room After Hours. In the event that Lessee requires the use of the community room after hours, Lessee shall pay to Lessor the sum of Thirteen Dotlars ($13.00) per hour for said use. After hours shall be defined as Monday through Friday, after 8:30 p.m., Saturdays, Sundays and holidays. 2 Contract No. C26120 8. UTILITIES. A. Lessor's Oblipations. Lessor shall, at Lessor's sole cost and expense, provide the following utilities for the Leased Space and Building: water, gas, electric, and cable television. Telephone service shall be provided by Lessor only for the reception area of the Building_ B. Lessee's Obli. afi�ons. Lessee shall, at Lessee's sole cost and expense, pay for all telephone service charges, together with any taxes thereon and connection charges, for the Leased Space. 9. STAFFING OF RECEPTION AREA AND SECRETARIAL SERVICES. Lessor shall provide a receptionist to staff the reception area of the building and provide secretarial assistance (except answering the phone) based on square footage of occupied offioe space. The number of secretarial hours provided for the above listed square footage is 5_2 per month. Said services shall be available Monday through Friday, 8 a.m. to 5 p.m., excluding lunch hours and holidays. 10. FURNISHINGS. A. Lessor's Oblipations. Lessor shall provide the following furnishings for the Building: 1. Desks, file cabinets and general office fumiture shall be provided in the community room(s). 2. Five (5) banquet tables and fifty (50) stackable chairs shall be provided in the community room (s). z Contract No. C26120 B. Lessee's Obliqations. Lessee shall provide the following furnishings for the Leased Space and Building: 1. All office furnishings for the Leased Space. 2. Any additional furniture needed for special events sponsored by Lessee, other than the furniture provided by Lessor in accordance with Section 10A above. 11. MAINTENANCE. A. Lessor's Obliqations. Except as otherwise provided herein, Lessor shall, at Lessor's sole cost and expense, perform all outside common area landscape maintenance, all common area Building maintenance, and all common area janitorial maintenance. Janitorial maintenance services shall be available Monday through Friday, 4:30 p.m. to 8:30 p.m. B. Lessee's Obliqations. Except as otherwise provided herein, Lessee shall, at Lessee's sole cost and expense, provide any and all cleaning and janitorial services required in the Leased Space. 12. INSPECTION BY LESSOR. Lessee shall permit Lessor or Lessor's agents, representatives or employees to enter the Leased Space at all reasonable times for the purpose of inspecting the Leased Space to determine whether Lessee is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect Lessee's interest in the Leased Space under this Lease. a Contract No. C26120 13. ENTRY BY LESSOR. Lessor shali retain a key to the Leased space, so that it may have access to enter the Leased Space (a) in the event of an emergency; (b) to make necessary or agreed repairs and supply necessary or agreed services; and (c) to exhibit the Leased Space to prospective or actual purchasers, mortgagees, tenants, workers or contractors. !n the event that Lessee changes the locks to the Leased Space, Lessee shall immediately provide Lessor with a new key so that Lessor can have access to and enter the Leased Space pursuant to this Paragraph. 14. RULES AND REGULATIONS. Lessee shall fully and faithfully comply with and observe all rules and regulations set forth in the Facility Operational Guidelines, attached hereto as Exhibit �B" and incorporated herein by this reference. 15. INSURANCE. A. Liabilitv Insurance. Lessor shall, at Lessee's sole cost and expense, procure and maintain for the duration of the contract, general liability insurance against claims for injuries to persons or damages to property, which may arise from or in conjunction with the Lessee's operation and use of Leased Space. Said insurance shall be in an amount not less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply to this location or the general agc,�egate limits shall be finrice the occurrence limit. Any deductibles or self-insured retentions must be declared to and approved by the Risk Manager. The general tiability policy shall be endorsed to contain the following provisions: 1. The City, its officers, employees and volur�teers are to be covered as additional insureds with respect to liability arising out of the premises � Contract No. C26120 owned, occupied or used by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, employees and volunteers. 2. The Lessee's insurance coverage shall be the primary insurance with respect to the premises owned, occupied or used by the Lessee. Any insurance or self-insurance maintained by the City, its officers, employees and volunteers shall be in addition to the Lessee's insurance and shall not contribute to it. 3. Any failure to comply with the reporting or other provisions of the insurance policies, including breach of warranties, shall not affect coverage provided to the City, its officers, employees or volunteers. 4. The insurance policy shall state that Lessee's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy required shall be endorsed to state that coverage shall not be suspended, voided, canceled, 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 City (Lessor). Insurance shall be placed with a current A.M. Best's rating of not less than A: Vtl. B. Personal Propertv Insurance. During the term of the l.ease, and any extension thereof, Lessee shall procure and maintain full replacement cost insurance against theft, and for all risks of loss to any tenant improvements or 6 Contract No. C26120 betterments, with no coinsurance penalty provisions. The cost of such insurance shall be bome by the Lessee. C. Workers' Comc�ensation Insurance. The Lessee shall procure and maintain Workers' Compensation Insurance as required by the State of California, and shall procure and maintain Employer's liability insurance (for Lessees with employees), in an amount not less than One Million Dollars ($1,000,000) per accident for bodily injury or disease. D. Verification of Coveraqe. Lessee shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf and are to be provided on standard ISO forms. All endorsements are to be received by the Risk Manager prior to commencing any tenant improvements or utilization of the Leased Space. 16. INDEMNIFICATION. Lessee shall save, indemnify and hold harmless the City (Lessor), its officers, employees and volunteers from any and all claims, demands or liability arising from any injury or damage to any person or property: (a) occurring in, on or about the Leased Space; and (b) occurring in, on or about the common areas when the injury or damage was caused, in part or whole, by alleged acts or omissions by Lessee, its officers, agents, or employees. Lessor shall save, defend and hold harmless Lessee, its officers, agents and employees from any and all claims, demands or liability arising from any injury or damage occumng in, on or about the common areas when that injury or damage was 7 Contract NO. C26120 caused, in whole or in part, by alleged acts or omissions by Lessor, its officers, agents and employees. 17. SUBLETTING AND ASSIGNMENTS. Lessee shall not assign or sublease this Lease, or any interest therein, without first obtaining the prior written consent of Lessor. 18. DESTRUCTION OF PREMISES. In the event the Building is damaged or destroyed by fire, flood, explosion, earthquake, public enemy, riot, civil commotion or act of God, Lessor shall repair the Building with due diligence. The rent payable under the Lease shall be abated from the date of damage until the completion of the repairs. Nofinrithstanding the foregoing, if the Leased Space of Building cannot be repaired within six months from the date of the event causing the damage, Lessor or Lessee may elect to terminate the Lease by giving the other party written notice within thirty (30) days after the event causing the damage or destruction. 19. TERMINATION OF LEASE. Except as otherwise provided herein, Lessee or Lessor may terminate this Lease at any time after giving sixty (60) days prior written notice to the other party. In the event Lessee or Lessor terminates this Lease prior to the completion of any Lease term, Lessor shall refund to Lessee the prorated share of rent paid by Lessee for that Lease term. 20. DEFAULT IN PERFORMANCE BY TENANT. The failure by Lessee to observe and perform any provision of this Lease to be performed or observed by it shall constitute a default and breach of this Lease when that failure continues for thirty (30) days after written notice of Lessee's failure is given by Lessor; provided, however, that if the nature of the default is such that it cannot be cured within said thirty (30) day period, 8 Contract No. C26120 Lessee shall not be deemed to be in default if Lessee commences that cure within the thirty (30) day period and thereafter diligently proceeds to completely cure the default. 21. MISCELLANEOUS. A. Governinq Law. This Lease shall be govemed by and interpreted under the laws of the State of Califomia. B. Bindinq on Successors. The covenants, conditions and agreements of this Lease shall be binding upon and shall inure to the benefit of the representatives, successors and assigns of the parties hereto. C. Entire AQreement. This Lease contains the entire agreement befinreen the parties, and supersedes any prior or written statements or agreements between the parties hereto. D. Waiver of Breach. The waiver of Lessor of any breach by Lessee of any provision of this Lease shall not constitute a continuing waiver or a waiver of any subsequent defauft or breach of Lessee either of the same or a different provision of this Lease. E. Notices. Except as otherwise provided by law, any and all notices or communications required or permitted by this Lease or by law to be served on or given to either party to this Lease by the other party shall be in writing, and shall be deemed served and given when deposited in the United States mail, first-class postage prepaid, addressed as follows: LESSOR: LESSEE: City of Palm Desert Palm Desert Sister Cities Foundation 73-510 Fred Warinq Drive 45-480 Portola Ave. Palm Desert, CA 92260 Palm Desert, CA 92260 9 _ _ Contract No. C26120 F. Attomevs' Fees. In the event of any controversy, claim or dispute befinreen the parties, hereto, arising out of or relating to this Lease, or breach thereof, the prevailing party shall be entitled to recover from the other party all reasonable expenses, attomeys' fees and costs, including the cost of enforcing any judgment contained in such action. G. Severabilitv. If any portion of this Lease is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Lease shall remain in full force and effect. H. Counterparts. This Lease may be signed in counterparts, each of which shall constitute an original and which shall collectively refer to one instrument. lo Contract No. C26120 IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR: LESSEE: CITY OF PALM DESERT By: Bv� " % JIM FERGUSON, MAYOR "^� 1 �yS ATTEST: P�i�t� RACHELLE KLASSEN, CITY CLERK