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Home My WebLink AboutC29140 & C29150 - Lease w/ Friends of the DM & PD Historical Scty Contract No. C29140 Contract No. C29150 CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT REQUEST: Approval of Amended Portola Community Center Lease Agreement SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: July 9, 2009 CONTENTS: Amended Lease Agreement Recommendation: By Minute Motion: 1. Approve Amended Portola Community Center Lease Agreement; and 2. Approve Amended Lease with Friends of the Desert Mountains and the Palm Desert Historical Society. Discussion: Staff has held bringing forward the amendment to the Portola Community Center Lease Agreement until resolution of the Palm Desert Historical Society issues. The issues were resolved and City Council at its meeting of June 25, 2009, approved the leasing of two office spaces at $1.00 per year to the Historical Society. The Lease Agreement was amended to include the City of Palm Desert's recycling policy in accordance with AB939. The City's Recycling Coordinator has already implemented the recycle program at the facility and has provided recycling containers and training/education to the tenants and facility staff. Following is a list of the permanent tenants that will require new leases as a result of the amended lease: Permanent Tenants: • Friends of the Desert Mountains currently occupies three (3) permanent offices and was approved to occupy two (2) offices on a temporary basis until June 30, 2009. • Palm Desert Historical Society Tenant currently occupies two (2) offices. CITY COUNCIL STAFF REPORT JULY 9, 2009 PAG E 2 Note: An article advertising the vacant two offices temporarily occupied by Friends of the Desert Mountains was placed in the July/August issue of the BrightSide Newsletter. Staff recommends approval of the amended lease. Submitted By: Approval: '� f ' � Fra ie Riddle J hn Wohlmuth Director of Special Programs ity Manager Concur: `� �� r . ;; , � ' ' � CITY COUNCILAC�i'ON � APPROVED � � DENiED � Sheila R. illigan RECEIVED OTHER ACM of Community ervices MEF,TI G A � - AYF.S: NOES: A13SrNT: A[3STAIN: VI:KIFIED I3Y: C � Origin�l on File with City rk's Of�ce * Approved the reco�endation and further directed staff to return to the City Council on August 27, 2009, with a policy for the rental of office space at Portola Co�unity Center. 4-0 (Spiegel ABSENT) 2 LEASE AGREEMENT This Lease is entered into this _ day of , 200 , by and between the CITY OF PALM DESERT, a municipal corporation (the "Lessor"), and the , a non-profit orqanization (the "Lessee"). WITNESSETH 1. PREMISES. Lessor hereby leases to Lessee and Lessee 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, California, commonly known as the Portola Community Center (the "Building"). The Leased Space is more particularly described in Exhibit "B," attached hereto and incorporated herein by this reference. The Leased Space (Office Space No. ) consists of a total of (e.q. ) square feet of office space. 2. TERM. The term of the Lease shall be for a period of one (1) year, commencing on , and continuing thereafter until , 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 shall 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. PORTOLA COMMUNITY CENTER LEASE AGREEMENT 4. RENT. Lessee shall annually pay to Lessor as and for rent on the Leased Space the sum of ($ ) ($19.80per square foot per year or $1.65 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 office purposes by Lessee and for no other uses without the prior written consent of Lessor. 6. CONDITION OF RENTAL. Lessee shall at all times during the course of this Lease, or any extension thereof, keep and maintain its tax-exempt status under Internal Revenue Code Section 501(c)(3) or its tax-exempt status as a governmental 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, clients, 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 corridors, 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 Dollars ($35.00.) per hour for said use. After hours shall be defined as Monday through Friday, after 8:30 p.m., Saturdays, Sundays and holidays. 8. UTILITIES. 2 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT A. Lessor's Obligations. 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 Obligations. 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 office 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 Obliqations. Lessor shall provide the following furnishings for the Building: 1. Desks, file cabinets and general office furniture 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). B. Lessee's Obliqations. Lessee shall provide the following furnishings for the Leased Space and Building: 1. All office furnishings for the Leased Space. 3 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT 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 Obligations. 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. C. Recvcling: Per AB939, the City of Palm Desert is required to divert 50% of its waste from the landfill and implement diversion programs. In order to meet this mandate, the City, all City owned facilities, and contractors performing work for the City, are required to participate in recycling programs, (e.g. chemicals, batteries, electronic waste, construction and demolition waste, bottles, cans, paper, plastic, etc). and all environmental and conservation programs. Therefore, the Lessee agrees to participate in the City of Palm Desert's recycling programs, (office recycling, household hazardous waste, etc.). The City shall provide recycling containers and education to all tenants regarding any existing and future recycling, environmental, and conservation programs. 4 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT 12. INSPECTION BY LESSOR. Lessee shall permit Lessor or Lessor's agents, representatives or employees to enter the Leased Space at all reasonabie 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. 13. ENTRY BY LESSOR. Lessor shall 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. In 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 Use Agreement, attached hereto as Exhibit "A" and incorporated herein by this reference. 15. INSURANCE. A. Liabilitv Insurance. Lessee shall, at Lessor'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 5 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT aggregate limit shall apply to this location or the general aggregate limits shall be twice the occurrence limit. Any deductibles or self-insured retentions must be declared to and approved by the Risk Manager. The general liability policy shall be endorsed to contain the following provisions: 1. The City, its officers, employees and volunteers are to be covered as additional insureds with respect to liability arising out of the premises 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 6 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City (Lessor). B. Personal Property Insurance. During the term of the Lease, 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 betterments, with no coinsurance penalty provisions. The cost of such insurance shall be borne by the Lessee. C. Workers' Compensation 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 � Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT 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 occurring in, on or about the common areas when that injury or damage was 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. Notwithstanding 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. g Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT 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, 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. Governina Law. This Lease shall be governed by and interpreted under the laws of the State of California. 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 Agreement. This Lease contains the entire agreement between 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 default 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 9 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT deemed served and given when deposited in the United States mail, first-class postage prepaid, addressed as follows: LESSOR: LESSEE: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 F. Attorneys' Fees. In the event of any controversy, claim or dispute between 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, attorneys' 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. Counterqarts. This Lease may be signed in counterparts, each of which shall constitute an original and which shall collectively refer to one instrument. 1� Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR: LESSEE: CITY OF PALM DESERT By: By: ROBERT A. SPIEGEL, MAYOR (Signature to be notarized) Printed Name ATTEST: Title RACHELLE KLASSEN, CITY CLERK 11 Updated 3/17/08 PORTOLA COMMUNITY CENTER LEASE AGREEMENT EXHIBIT "B" PORTOLA COMMUNITY CENTER LEASED SPACE AND SECRETARIAL SERVICES The Lease Space (office space number) and the associated secretarial service hours for each within the Portola Community Center are listed below: 1. Office Space Number 1: 132 sq. ft. x .04 hrs/month = 5.28 hrs per month 2. Office Space Number 2: 155 sq. ft. x .04 hrs/month = 6.2 hrs per month 3. Office Space Number 3: 130 sq. ft. x .04 hrs/month = 5.2 hrs per month 4. Office Space Number 4: 130 sq. ft. x .04 hrs/month = 5.2 hrs per month 5. Office Space Number 5: 128 sq. ft. x .04 hrs/month = 5.12 hrs per month 6. Office Space Number 6: 227.5 sq. ft. x .04 hrs/month = 9.1 hrs per month 7. Office Space Number 7: 192.5 sq. ft. x .04 hrs/month = 7.7 hrs per month Note: Secretarial services shall be provided by the facility manager/coordinator. Scheduling and tracking of services will be maintained by the facility manager/coordinator. (Hours shall be rounded up if over .50 and down if under .50) 12 Updated 3/17/08 �� CITY OF PALM DESERT = - OFFICE OF THE CITY MANAGER INTEROFFICE MEMORANDUM To: Honorable Mayor and Members of the City Council From: John M. Wohlmuth, City Manager Date: July 9, 2009 Subject: Portola Community Center The City Council Agenda Item E, under New Business, related to the Portola Community Center simply amends the leases to require recycling. The City Council approved two temporary leases with the Friends of the Desert Mountains (FODM) until June 30, 2009. FODM maintains the lease on their existing two offices. Due to this action and limited lease time, staff has been investigating whether other not-for-profit entities have interest in office space. Finally, over the years, the City has had experience with non-profits growing and ultimately desiring more offices in the Center. Staff will review the Portola Community Center policies and place updated policy guidelines for the Center, such as limiting office lease by one entity, on the September Council agenda. Please review the memo from Frankie Riddle and the Community Center Office diagram with current leaseholders. J M. WOHLMUTH ty anager JMW:kp Attachment �'�� CITY OF PALM DESERT � � -� Special Programs Department INTEROFFICE MEMORANDUM To: John M. Wohlmuth, City Manager From: Frankie Riddle, Director of Special Program �"�� l� ��. Date: July 7, 2009 Subject: PORTOLA COMMUNITY CENTER The item on the City Council Agenda for July 9, 2009, deals only with amending lease agreements for the Portola Community Center by including specific requirements for recycling at that facility. When opening the Center, the City Council directed staff to offer as many non-profit organizations as possible an opportunity to lease office space at a subsidized rent in an effort to help them become more established. The only time this changed was when the City Council asked staff to work with the Palm Desert Historical Society in its efforts to create a museum. The Portola Community Center received strong consideration for this use. However,the Society determined that itwas not in a position to move forward with this type of operation During the time in which the Historical Society discussions took place, the City Council authorized the Friends of the Desert Mountains temporary use of two vacant office spaces through June 30, 2009. Because the City Council specifically approved this request only through June 30, 2009, staff began contacting other non-profit organizations through the BrightSide and a CDBG mailing list notifying them of this opportunity. Since the Center opened, Staff has worked with a subcommittee of the City Council (Councilmember Benson and Mayor Spiegel) to ensure that the uses of the facility continue to meet the needs of the community. Part of this effort was to make sure that it was available to as much of the community as it could accommodate. We have had requests over the years by organizations that wanted to rent as many of the offices as they could. However,this defeated the original intent as noted above. It is important to note also that 32 organizations currently use the multi-purpose rooms on a regular basis throughout the year, and the subcommittee also monitors this activity on a semi-annual basis. If the City Council would like to change its original direction for the procedures used in operating the Center, staff wifl prepare a report and recommendations for consideration in September. � 00 � rn � w ry � o � 2 � 2 T Zl �'I �1 � � � � � � C� y (D (D �(D �kN� C� Z � fD � O.. Q �Q �Q � O �� \ �� N � y �� . C� 0 � � � �'� N � � o � o � � j0 � "�i� cQ � � — � � n � � p � �' � m' � � � ��- � � � �, � � � � � � � �� s � o y � � � �� -q�1� � � � � � � ��.�.+ „��.�+ fD O v �1 � N. 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