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HomeMy WebLinkAbout#9 Lease 14630 Glenshire Drive Agenda Item # 9 DONNER Public Utility District 1 CONSENT To: Board of Directors From: Kathleen Neus Date: November 18, 2009 Subject: Consideration of a Lease With Truckee Fire District for Property Located at 14630 Glenshire Drive 1. WHY THIS MATTER IS BEFORE THE BOARD Only the Board can approve the sale or lease of District land. 2. HISTORY The Glenshire Drive parcel has been in and out of contract for sale numerous times over the past few years. There have been no offers this year even with the reduction in price. The sale or lease of the property benefits the home owners of the Glenshire community by lowering the monthly surcharge for the acquisition of the Glenshire Mutual Water Company. The District was approached by the Truckee Fire Protection District in September as to the possibility of the Fire District leasing the property while the Glenshire Station 95 is being remodeled and expanded. 3. NEW INFORMATION The Truckee Fire Protection District has submitted a lease agreement (Attachment 1) that has been reviewed by District Counsel and found to satisfactory. The conditions of the contract are: • Term for 1 year and 2 months with an option to extend monthly • 60- day termination notice • Tenant improvements • Compliance with any federal, state or municipal authorities • Duty to repair or restore the property 4. FISCAL IMPACT All net proceeds from this transaction are to be applied to the debt associated with taking over the Glenshire water system. Direct costs to the District will be paid from the rental fee. 5. RECOMMENDATION Authorize the Board president to sign the lease agreement with the Truckee Fire Protection District. Michael D. Holley General Manager Attachment 1 LEASE Preamble THIS LEASE is entered into on December 1, 2009 by and between THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT, a California public agency(hereinafter referred to as "Landlord"), and TRUCKEE FIRE PROTECTION DISTRICT, a California public agency(hereinafter referred to as "Tenant"). Landlord hereby leases to Tenant on the terms and conditions set forth in this lease the real property located in the County of Nevada. State of California, commonly described as follows: 14630 Glenshire Drive,Truckee, CA, collectively referred to in this Lease as the"Premises." ARTICLE l: TERMS OF LEASE Original Term Section 1.01. The term of this lease shall be for a period of one (1) year and two (2)months commencing at 12:01 a.m. on December 1, 2009, and ending at 11:59 p.m. on February 28, 2011, unless terminated sooner or extended later as provided in this Lease. Option to Extend Term Section 1.02. Tenant shall have an option to continue this Lease on a month-to-month basis through 11:59 P.M. on May 31, 2011 at Tenant's election, by giving written notice to Landlord at least 7 days prior to the month for which the Lease is to be renewed. After May 31", 2011,both Landlord and Tenant can mutually agree in writing to continue this Lease on a month to month basis until a mutually agreed upon termination date. Any renewed term after of this Lease for the period after May 31, 2011 shall be subject to the same terms and conditions as are mutually agreed upon by the Parties. Section 1.03. Notwithstanding the provisions of Sections 1.01 and 1.02 of this Lease, either party may terminate this Lease by giving 60 days written notice to the other party. ARTICLE 2: RENT Section 2.01. A. Tenant agrees to pay to Landlord during the term of this Lease specified in Sections 1.01 and 1.02, rent in the following amounts: 1. $ 850.00 per month on or before the tenth day of each and every month, commencing on December 1, 2009 through February 28, 2010. This reduced rate is for the purpose of Tenant carrying out Tenant Improvements so to remodel the Premises to be used as a fire LEASE Pagel of 8 district facility housing firefighters on a 24/7/365 basis. The Premises shall not be so operated as a fire district facility during this period of time; 2. $ 1700.00 per month on or before the tenth day of each month, commencing on March 1, 2010 through February 28, 2011. This increased rate applies as Tenant will be utilizing the Premises at that time as a fire district facility housing firefighters on a 24/7/365 basis; 3. $ 1700.00 per month on or before the tenth day of each month, commencing on March 1, 2011 through May 31, 2011, if Tenant chooses to renew on a month to month basis; and 4. $ 1700.00 per month on or before the tenth day of each month, commencing on June 1, 2011, upon mutual agreement of Landlord and Tenant to continue lease on a month to month basis. B. No security deposit will be required by Tenant to commence term of this Lease. C. Tenant shall pay all rent without deduction to Landlord at the address set forth in this Lease for mailing notices to Landlord, or at any other place or places that Landlord may from time to time designate by written notice given to Tenant. ARTICLE 3 —REPAIRS AND MAINTENANCE Present Condition of Premises Section 3.01. Tenant agrees and hereby stipulates with Landlord that the Premises are in good and tenantable condition on the date of this Lease. Repairs by Landlord Section 3.02. During the term of this Lease and any renewal or extension of the term of this Lease, Landlord shall, at Landlord's own cost and expense, keep the exterior roof, sidewalls, structural supports, and foundation of the building on the Premises in good repair and make all necessary repairs to, or replacements of, the plumbing, heating, air conditioning, and electrical systems on the Premises. Repairs by Tenant Section 3.03. Except as provided in Section 3.02 of this Lease, Tenant shall, at Tenant's own cost and expense, during the term of this Lease or any extension of the term of this Lease: Keep and maintain the Premises in good order, repair, and tenantable condition, including maintaining yards, grounds, paving,building doors, windows and glazing in good order and repair. Tenant shall be responsible for the repair and maintenance of any Tenant Improvements it makes on or to the Premises. LEASE Page 2 of 8 Tenant Alterations Section 3.04. Subject to the provisions of Section 3.06 of this Lease, Tenant may make nonstructural alterations or improvements to the interior of the building deemed necessary by Tenant for Tenant's business without Landlord's approval. All improvements or alterations made by Tenant on the Premises shall comply with the requirements of any federal, state, or municipal authority having jurisdiction. Prior to any such alterations or improvements, Tenant shall obtain any and all necessary permits for the alterations or improvements and shall also provide Landlord with true and correct copies of any and all plans and permits. Tenant Improvements and Trade Fixtures Section 3.05. A. Any alterations, improvements, or installations made by Tenant to the Premises shall at once become a part of the realty and belong to Landlord. On expiration or earlier termination of this Lease, Tenant shall surrender the Premises and all improvements thereon to Landlord in good, sanitary, and neat order, condition, and repair, excluding ordinary wear and tear. B. Landlord shall be able to request that Tenant remove any alterations, improvements or installations by providing 30 days notice, upon the termination of this Lease. C. Tenant will remove any alterations, improvements or installations requested in writing by Landlord at the Tenant's expense. If Tenant does not comply within the 30-day period, Landlord may remove the necessary alterations, improvements or installations and bill the Tenants for the reasonable cost of such expenses. Tenant shall pay Landlord for such billed costs and expenses within 30 days of receipt of the bill for the removal. Surrender of Premises Section 3.06. On expiration or earlier termination of this Lease, Tenant shall promptly surrender possession of the Premises to Landlord in as good condition as the Premises are on the date of this Lease, reasonable wear and tear excepted. ARTICLE 4--USE OF PREMISES Permitted and Prohibited Use of Premises Section 4.01. Tenant shall use the Premises for operating and conducting the day-to-day work of a fire station, with living quarters for the firefighters, to possibly house and operate the Town of Truckee's snow removal equipment (in cooperation with and as may agreed by and between Tenant and the Town of Truckee) and for no other purpose without the written consent of Landlord. Landlord shall not unreasonably withhold consent. LEASE Page 3 of 8 Telemetry Pole Section 4.02. The Truckee Donner Public Utility District's telemetry pole at Station 95 shall remain in service and protected from damage during Tenant's expansion Project at Tenant's Station 95. Compliance With Laws Section 4.03. The Premises shall not be used or permitted by Tenant to be used in violation of any law or ordinance. Tenant shall maintain the Premises in a clean and sanitary manner and shall comply with: All laws, ordinances, rules, and regulations related to Tenant's specific use of the Premises, now in effect or subsequently enacted or promulgated by any public or governmental authority or agency having jurisdiction over the Premises. Tenant shall not store any hazardous materials on the Premises other than 10 gallons or less of gasoline and such materials and is such quantity that are normally used in and for a single family residence. Tenant shall specifically indemnify and hold Landlord harmless from any and all financial obligations, fines or penalties resulting from any spill or release of any hazardous material. Signs Section 4.04. Tenant may erect and maintain any signs on the Premises relating to Tenant's business on the Premises, provided the signs so erected: A. Are removed at the sole cost and expenses of Tenant without damage to any building on the Premises or to the Premises on expiration or sooner termination of this Lease; and B. Comply with any law or ordinance of any governmental agency having jurisdiction over the Premises. Duty to Repair or Restore Section 4.05. If any improvements, including buildings and other structures, located on the Premises are damaged or destroyed during the term of this Lease or any renewal or extension thereof, the damage shall be repaired as follows: A. If the damage or destruction is caused by the Tenant or an agent of the Tenant, Tenant shall repair that damage as soon as reasonably possible and restore the Premises and improvements to substantially the same condition as existed before the damage or destruction. B. If the damage or destruction is caused by the Landlord or Landlord's agent or any unforeseen elements, environmental damage, natural disaster or other circumstances not caused by the Tenant, the Landlord shall repair that damage as soon as reasonably possible and restore the Premises to substantially the same condition as existed before the damage or destruction. LEASE Page 4 of 8 Termination of Lease for Certain Losses Section 4.06. Tenant or Landlord shall have the right to terminate this Lease under either of the following circumstances: If the Premises are damaged or destroyed from any cause whatsoever, insured or uninsured, and the laws then in existence do not permit the repair or restoration of the Premises provided for in this Lease. Time for Construction of Repairs Section 4.07. Any and all repairs and restoration of improvements required by this Article shall be commenced by Landlord or Tenant, as the case may be, within a reasonable time after occurrence of the damage or destruction requiring the repairs or restoration; shall be diligently pursued after being commenced; and shall be completed within a reasonable time after the loss. If Landlord is required under this Lease to perform the repairs and restoration, Landlord shall cause the repairs and restoration to be completed not later than 60 after occurrence of the event causing destruction or Tenant shall have the right to terminate this Lease. ARTICLE 5—MISCELANEOUS PROVISIONS Tenant's Hold-Harmless Clause Section 5.01. A. Tenant shall be under no duty to indemnify or hold Landlord harmless from any liability, claims, or damages arising because of Landlord's failure to make any repairs required by this Lease to be made by Landlord or because of any negligence or willful acts of misconduct by Landlord or by any person who is an agent or employee of Landlord acting in the course and scope of its agency or employment. Landlord agrees to indemnify, defend, protect, and hold Tenant free and harmless from and against any liability, claims, or damages arising from or in connection with Landlord's failure to make any repairs required by this Lease to be made by Landlord or because of any negligence or willful acts of misconduct by Landlord or by any person who is an agent or employee of Landlord acting in the course and scope of its agency or employment. B. Tenant shall indemnify and hold Landlord harmless from and against any liability, claims, or damages arising from or in connection with Tenant's failure to abide by any term of this Lease, or Tenant's negligence or willful acts of misconduct by Tenant or by any person who is an agent or employee of Tenant acting within the course and scope of its agency or employment. C. Tenant shall furnish satisfactory proof,by certificate, presented to Landlord, within fifteen days of this Lease, that it has comprehensive general liability, public liability and property damage insurance. The insurance shall name Landlord as an additional insured,be the primary insurance and protect both Landlord and Tenant, their officers and/or agents against loss from all liabilities imposed by law, and shall be maintained in full force and effect LEASE Page 5 of 8 during the term of this Lease and any and all extensions thereof, and in the following amounts: 1. Limit of Liability for comprehensive general liability--$1,000,000 aggregate liability for loss per accident. 2. Limit of Liability for personal injury or accidental death-one person, $1,000,000; aggregate liability per accident, $1,000,000. 3. Limit of Liability for property damage-$1,000,000 aggregate liability for loss per accident. Default by Tenant Section 5.02. All covenants and agreements contained in this Lease are declared to be conditions to this Lease and to the term hereby leased to Tenant. The following constitute a material default and breach of this Lease by Tenant: A. Any failure to pay rent when due when the failure continues for ten days after written notice to pay that rent or surrender possession of the Premises is served on Tenant by Landlord. B. The bankruptcy or insolvency of Tenant, the making by Tenant of any general assignment for the benefit of creditors; the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or of a petition for reorganization or arrangement under the Bankruptcy Act. C. The abandonment or vacating of the Premises by Tenant for a period of at least 30 consecutive days. Assignment and Subletting Section 5.03. Tenant shall not encumber, assign, sublet, or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any of the improvements that may now or hereafter be constructed or installed on the Premises without first obtaining the written consent of Landlord. Tenant shall not sublet the Premises or any part of the Premises nor allow any other person, other than Tenant's agents, servants, and employees, to occupy the Premises or any part of the Premises without the prior written consent of Landlord. Any encumbrance, assignment, transfer, or subletting without the prior written consent of Landlord, whether voluntary or involuntary,by operation of law or otherwise, is void and shall, at the option of Landlord, terminate this Lease. The consent of Landlord to any assignment of Tenant's interest in this Lease or the subletting by Tenant of the Premises or parts of the Premises shall not be unreasonably withheld. Utilities Section 5.04. Tenant shall pay all charges incurred for the furnishing of gas, electricity, water, telephone service, Internet service, cable television and garbage or refuse service. Landlord shall be responsible for and shall timely pay any other utility service. LEASE Page 6 of 8 Notices Section 5.05. Except as otherwise expressly provided by law, any and all notices or other 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 duly served and given when personally delivered to the party to whom it is directed or to any managing employee or officer of that party or, in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, addressed to Tenant at 10049 Donner Pass Road, Truckee, California 96161 or to Landlord at PO Box 309, Truckee, California 96160. Either party, Landlord or Tenant, may change its address for purposes of this Section by giving written notice of that change to the other party in the manner provided in this section. Attorneys' Fees Section 5.06. If any litigation, including arbitration proceedings, is commenced between the parties to this Lease concerning the Premises, this Lease, or the rights and duties of either in relation to this Lease, the party prevailing in that litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to a reasonable sum as and for its attorneys' fees in the litigation, which shall be determined by the court in that litigation or in a separate action brought for that purpose. Binding on Heirs and Successors Section 5.07. This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of each Landlord and Tenant,but nothing contained in this section shall be construed as a consent by Landlord to any assignment of this Lease or any interest in this Lease by Tenant. Time of Essence Section 5.08. Time is expressly declared to be of the essence in this Lease. Sole and Only Agreement Section 5.09. This instrument constitutes the sole and only full, final, and complete agreement between Landlord and Tenant respecting the Premises, the leasing of the Premises to Tenant, and the lease terms contained in this Lease, and correctly sets forth the obligations of Landlord and Tenant to each other as of its date. Any agreements or representations respecting the Premises or their leasing by Landlord to Tenant not expressly set forth in this instrument are null and void. All prior negotiations between the parties are subsumed into this Lease to the extent they have been agreed to, and if not agreed to by the parties such negotiations are not set forth in the terms and conditions of this Lease. This Lease may not be extended, amended, modified, altered, or changed, except in a writing signed by Landlord and Tenant. LEASE Page 7 of 8 Assumption by Buyer Section 5.10. Landlord may market the Premises for sale and Tenant shall cooperate with the showing of the Premises to Realtors and prospective purchasers upon reasonable notice to Tenant. In the event the Premises are sold during the term of this Lease or any extensions thereof, Buyer may take the property subject to this Lease and any extensions thereof. A memorandum of this Lease shall be signed and acknowledged and may be recorded at the request of either Landlord or Tenant. Mediation Clause Section 5.11. If a dispute arises out of this contract, and if the dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation before resorting to arbitration, litigation, or some other dispute resolution procedure. Cost of mediation will be borne equally by both parties, if either party commences a legal action without first having to attempt to resolve through mediation then that party shall not be entitled to an award of attorney's fees even if they otherwise would have been available. This Lease is executed on this day of at Truckee, California. TRUCKEE DONNER PUBLIC UTILITY DISTRICT, Landlord By: Its: TRUCKEE FIRE PROTECTION DISTRICT, Tenant By: Its: LEASE Page 8 of 8