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HomeMy WebLinkAboutHA26630 - DSUSD Contract No. HA26630 PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVAL OF LEASE AGREEMENT BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT AND THE PALM DESERT HOUSING AUTHORITY FOR HEAD START PROGRAM AT ONE QUAIL PLACE SUBMITTED BY: JANET M. MOORE, HOUSING AUHTORITY ADMINISTRATOR DATE: JUNE 14, 2007 CONTENTS: LEASE AGREEMENT Recommendation: By Minute Motion: 1. Approve a lease agreement substantially as to form, by and between Desert Sands Unified School District and the Palm Desert Housing Authority for the continuance and implementation of a Head Start Program at One Quail Place; 2. Authorize the Executive Director to finalize the lease agreement after review by Desert Sands Unified School District; and 3. Authorize Chairman to execute such lease agreement and necessary documents. Executive Summary: The Desert Sands Unified School District has been operating the Head Start Program since 2001, in the recreational building (a.k.a. Club House) at One Quail Place. The Program has been a direct benefit to the residents of One Quail Place who receive priority enrollment to the program. The School District has received funding from the State to adequately provide for staffing, instructional material, furniture, nutritional meals, and snacks for the children enrolled. Background: The Program accommodates 17 pre-school children at the very low and low-income levels for a full day/full year program. The children who attend the early childhood educational program will participate in a program that helps them grow mentally, socially, emotionally, and physically. They receive free medical services, healthy meals, and snacks; and enjoy playing indoors and outdoors in a safe environment. Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place June 14, 2007 The program has been on a month-to-month lease since August 2002. As a result of the success of the program, the proposed term of the new lease would be for a five-year period. The School District's Community Assessment indicates that Lincoln School has 76°/D poverty families, Carter School has 33%, Reagan has 45%, and Washington Charter has 24%. These poverty levels are evident that a Head Start Program would be a benefit to the families residing at One Quail Place and surrounding area. Based on the continued success of the program and the benefit provided to very low to low-income households, it is staffs recommendation to move forward with the approval of a lease agreement and continue the Head Start Program at One Quail Place. Submitted by: )' J. . Moore H. 'sing Authority Administrator Approval: sG/1 .-:/ Dave Yrigo st M. McCary— Director o edevelopment and Housing AC Redevelo ment/H using BY HOUSG AUTH 5-O Carlos . Orteg ON (0 . i ci . Oq Executive Director VERIFIED BY: //11 1-0 Original on file with City erk's Office C:\DOCUMENTS AND SETTINGS\PLEON\LOCAL SETTINGS\TEMPORARY INTERNET FILES\OLK2A\HEADSTART PROGRAM LEASE ONE QUAIL.DOC Contract No. HA26630 LEASE AGREEMENT This Lease Agreement ("Lease") is made and entered into as of this day of , 20Q7, by and between the Palm Desert Housing Authority, a California public agency ("Landlord") and Desert Sands Unified School District ("Tenant"), with reference to the following facts: RECITALS A. WHEREAS, Tenant operates a federal Head Start Program ("Program") and requires a licensable classroom facility and playground ("licensable" within the meaning of the Program) in order to accommodate expansion of the Head Start Program; and B. WHEREAS, Landlord is the owner of a licensable ctassroom facility ("Premises") and adjacent playground, described with particularity in Exhibit "A" attached hereto and incorporated herein by this reference; and C. WHEREAS, Tenant desires to lease from Landlord and Landlord desires to lease to Tenant the Premises on the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Leased Premises. Landlord leases to Tenant, and Tenant hires from Landlord, for the term, at the rental and upon the conditions in this Lease the Premises. Tenant accepts condition of premises and agrees to maintain premises in licensable condition as provided for in Section 4.2. 2. Term of Lease. 2.1 Term. The term of this Lease shall be five (5) years, commencing on the date (the "Term Commencement Date") that this Lease has been executed. In the event that all conditions of the lease are satisfactorily met, the Authority shall have three (3) options to renew this lease for additional one (1) year extension terms. 2.2 Date of Lease and Leqal Effect. The terms, covenants and conditions of this Lease shall become legally binding on the Term Commencement Date. 3. Rent. During the Term of this Lease and any extension thereof Tenant shall pay Landlord No amount ($0.00) as minimum monthly rent. Landlord is leasing the Premises to Tenant free of charge, except as otherwise provided herein. Contract No. HA26630 4. Utilities & Maintenance. 4.1 Provided bv Landlord. Landlord shall provide all utilities reasonably necessary for Tenant's use of the Premises, including, without limitation, utilities for lighting, heating and cooling. Landlord shall provide, in Landlord's sole discretion, all ordinary maintenance and repair of the Premises and of the building and grounds of which the Premises are a part. Landlord shall provide, in Landlord's sole discretion, routine custodial services for the Premises and for the building and grounds of which the Premises are a part. 4.2 Provided by Tenant. Except as otherwise provided in this Lease, Tenant shall keep and maintain the Premises and every part thereof in and about the Premises in good order, condition and repair, normal wear and tear excepted. Tenant shall be responsible for and shall pay the cost of repair for any damage exceeding ordinary wear and tear caused by Tenant's use of the Premises, playground or other common areas of the building and grounds of which the Premises are a part. Tenant shall be responsible for daily housekeeping and general upkeep of the Premises and shall provide services therefor. Tenant shall also inspect and provide reasonable daily upkeep for the playground and other common areas of the building and grounds of which the Premises are a part, to the extent that such areas are used by Tenant. 4.3 Tenant's Payment for Utilities and Maintenance. Tenant shall pay Landlord for utilities and maintenance, as rent, the fixed sum of Three Hundred and Fifteen Dollars ($ 315.00 per month, which sum shall be paid in advance on the first day of each month during the term of this Lease increased annually by 5%, not to exceed a monthly cost of$350.00 per month. 5. Taxes. 5.1 Landlord Taxes. Landlord shall be responsible for payment of all real property taxes and assessments levied and assessed against the building, other improvements and land of which the Premises are a part, and for payment of all personal property taxes levied or assessed on Landlord's personal property, at Landlord's sole cost and expense, if any. 5.2 Tenant Taxes. Tenant agrees to pay, before delinquent, all personal property taxes levied or assessed on Tenant's fixtures, furniture, appliances and other personal property located on the Premises, at Tenant's sole cost and expense, if any. 6. Insurance and Indemnification. Contract No. HA26630 6.1 Landlord's Insurance. Landlord shall obtain and maintain, at Landlord 's sole cost and expense, insurance in such coverage's and in such amounts as Landlord determines, in Landlord's sole discretion. 6.2 Tenant's Insurance. Tenant shall obtain and maintain, at Tenant's sole cost and expense, broad-form comprehensive public liability insurance with limits of not less than One Million Dollars ($1,000,000) per person and $1,000,000 each occurrence, insuring any and all liability of Tenant with respect to the Premises, and property damage liability insurance with a limit of not less than $1,000,000 each accident or $1,000,000 combined single limit, and Tenant shall name Landlord as an additional insured, at Tenant's sole cost and expense. 6.3 Mutual Indemnification. Each of the parties hereto hereby agrees to indemnify, defend, protect and hold harmless the other and any and all agents, employees and representatives of the other from and against all losses, liabilities, claims, damages costs and expenses, including, without limitation, attorneys' fees, arising out of or in connection with its activities or the activities of its employees, agents and contractors, and this Lease. 7. Permitted Use. 7.1 Head Start. Tenant shall use the Premises solely for the purposes of operating a preschool and other activities related to the Head Start Program. 7.2 Playaround. Tenant shall have the non-exclusive right to use the playground adjacent to Premises and, as necessary, to use common areas of the building and grounds of which the Premises are a part (e.g., bathrooms). 7.3 Rules and Requlations. TenanYs use of the Premises, the playground and common areas of the building and grounds of which the Premises are a part shall be limited to normal school hours on normal school days and shall be subject to the Rules and Regulations of Landlord, attached hereto as Exhibit "B" and incorporated herein by this reference, which Rules and Regulations may be revised by Landlord at any time and from time to time. 7.4 Alterations. Tenant shall make no installations, additions or improvements in or to the Premises without the prior written consent of Landlord, which consent may be withheld in Landlord's sole and absolute discretion. Contract No. HA7_6630 7.5 Siqns. Tenant may install only such signs as Landlord may approve, in Landlord's sole and absolute discretion, in advance and in writing, at TenanYs sole cost and expense. 7.6 Waste and Nuisance. Tenant shall not commit any waste or suffer any waste to be committed upon the Premises. Nor shall Tenant commit any public or private nuisance. 7.7 Insurance Risks. Tenant shall not keep or use any article or conduct any activity on the Premises which may be prohibited by the standard form of fire insurance or other insurance policy or which may cause an increase in the rate of fire insurance or other insurance premiums or cause the cancellation of Landlord's fire insurance or other insurance policies. 8. Landlord's Riqht to Enter Premises. Landlord reserves, and shall at any and all times have, the right to enter the Premises upon reasonable notice to Tenant to inspect same, to submit the Premises to prospective tenants, to post notices of non-responsibility, to repair the Premises and any portion of the building of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, providing that Tenant 's use of the Premises shall not be intertered with unreasonably. 9. Assignment and Subleasing. Tenant shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Landlord in each instance, which consent may be withheld, reasonably or otherwise, in Landlord's sole and absolute discretion. 10. Termination. Either party hereto may terminate this Lease upon thirty (30) days' prior written notice to the other party. 11. No Waiver of Breach. No failure by either Landlord or Tenant to insist upon the strict performance by the other of any covenant, agreement, term or condition of this Lease or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such covenant, agreement, term, or condition. No waiver of any breach shall affect or alter this Lease, but each and every covenant, condition, agreement, and term of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach. Time is of the essence of this Lease, and of each provision. Contract No. HA26630 All notices and other communications hereunder shall be in writing and shall be delivered in person or sent by registered or certified mail, postage prepaid, commercial overnight courier (such as Express Mail, Federal Express, etc.) with written verification of receipt or by facsimile. A notice shall be deemed given: (a) when delivered by personal delivery (as evidenced by the receipt); (b) three (3) days after deposit in the mail if sent by registered or certified mail; (c) one (1) business day after having been sent by commercial overnight courier as evidenced by the written verification of receipt; or (d) on the date of confirmation if faxed. If to Landlord: Palm Desert Housing Authority Attention: Janet M. Moore 73-510 Fred Waring Drive Palm Desert, CA 92260 If to Tenant: Desert Sands Unified School District Attn: Debra Loukatos 47-950 Dune Palms Road La Quinta, CA 92253 Any party may change its address for receiving notice by written notice given to the others named above. This Lease contains the entire agreement of the parties with respect to the matters covered by this Lease, and no other agreements, statements, or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Lease shall be binding or valid. 11.5 Headinqs. The subject headings of the sections and paragraphs of this Lease are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. Should either party commence any legal action or proceeding against the other based on this Lease, the prevailing party shall be entitled to an award of attorney's fees. 11.7 Counterparts. This Agreement may be executed in any one or more counterparts, and all so executed shall constitute one and the same instrument. 11.8 Governinq Law. This Agreement shall be construed and governed by the laws of the State of California. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] Contract No. HA26630 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives on the date first above written. TENANT: LANDLORD: DESERT SANDS UNiFiED SCHOOL PALM DESERT HOUSING AUTHORITY, DISTRICT, a California public agency a California Doris Wilson, Superintendent Richard S. Kelly, Chairman ATTEST: Rachelle D. Klassen, City Clerk Approved as to Form: Dave J. 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