1990-122-Execute A Revised Lease Agreement With Los Gatos-Saratoga Recreation DepartmentRESOLUTION 1990 - 122
RESOLUTION AUTHORIZING THE INTERIM TOWN MANAGER TO
EXECUTE A REVISED LEASE AGREEMENT WITH
LOS GATOS- SARATOGA RECREATION DEPARTMENT
WHEREAS:
The Town of Los Gatos desires to enter into a lease agreement
with the Los Gatos - Saratoga Recreation Department located at 123
East Main Street, Los Gatos, California;
BE IT RESOLVED:
The Town Council of the Town of Los Gatos does hereby approve
that the Town enter into a lease agreement with the Los Gatos -
Saratoga Recreation Department for the lease of the Recreation
Building located at 123 East Main Street, Los Gatos, California,
and that the Town Manager is authorized, and is hereby directed,
to execute in the name and on behalf of the Town of Los Gatos said
lease agreement, Exhibit A hereto.
PASSED AND ADOPTED at a regular meeting of the Town Council
of the Town of Los Gatos, California, held on the 18th day of JUNE,
1990 by the following vote.
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Eric D. Carlson
Brent N. Ventura
Mayor Thomas J. Ferrito
NAYS: NONE
ABSENT: Robert L. Hamilton
ATTEST:
C IE r
G %uxax
CLERK OF THE TOWN OF1, OS GATOS
LOS GATOS, CALIFORNIA
CLERK
LEASE BETWEEN THE TOWN OF LOS GATOS AND Tom' N
LOS GATOS - SARATOGA RECREATION DEPARTMEN' FOR TH
COMMUNITY RECREATION SITE :—
(123 EAST MAIN STREET, LOS GATOS, CALIFORNIA)��
This LEASE made and entered into this 18TH day of JUNE , 1990, by and
between the TOWN OF LOS GATOS, a municipal corporation of the State of California
(hereinafter referred to as "Town"), and LOS GATOS - SARATOGA RECREATION
DEPARTMENT, a public recreation district (hereinafter referred to as "District ").
IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES as follows:
1. Leasine: Town hereby leases to District, and District hereby leases from
Town, the Community Recreation Center building six thousand four hundred and seventy-
nine (6,479) square feet, and lot upon which is stands, located at 123 East Main Street, Los
Gatos, Santa Clara County, California.
2. Term: The lease term shall commence on the 18TH day of JUNE ,
1990, and shall continue for five (5) years and year to year thereafter, and is subject to
termination provisions set out in this agreement.
3. Rent: The rent shall be five thousand six hundred eighty-six dollars
and seventy-five cents ($5,686.75) per month. Said rent is calculated according to the
following:
1. Eighty-five cents (.85¢) per square foot or five thousand five hundred
seven dollars and fifteen cents ($5,507.15); and
2. One hundred seventy-nine dollars and sixty cents ($179.60) for the
cost of external maintenance.
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The monthly rent shall commence on July 1, 1990 and shall be annually increased
in accordance with the Consumer Price Index (CPI) for all Urban Consumers for the San
Francisco - Oakland Area. In no event will the monthly rate be decreased.
4. Obligation to Pay Rent: The determined value for use of the Recreation
Center is five thousand six hundred eighty-six dollars and seventy five cents ($5,686.75) per
month for a total of sixty -eight thousand two hundred forty-one dollars ($68,241) per
calendar year. In exchange for the valuable recreation service provided to the citizens of
the Town, the District will not be obligated to pay the rent set forth in Section 4 for use
of the structure and property.
5. Use of Premises: District shall use said premises only as a recreation
office and center, and, in connection therewith, shall comply with all governmental laws and
regulations.
6. Assignment and Sub - Leasing: District shall neither assign this Lease, nor sub-
let the whole or any part thereof, without the prior written consent of Town.
7. Utilities: District shall pay for all utilities including, but not limited to, water,
gas, electricity, garbage removal and telephone service.
8. Maintenance: District shall maintain the interior of said premises. Town
shall maintain the exterior of said premises and the grounds thereof.
9. Improvements: It is the Town's understanding that the District is
contemplating improvements. District may make improvements to said premises which are
agreed upon in advance in writing by Town, in which event District shall pay for the
materials used and all other expenses incurred in connection therewith. The Town will
reimburse the district for approved improvements such as permanent construction changes,
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carpeting, flooring and fixtures but not including office partitions or workstations according
to the following schedule:
A. Eighty percent (80 %) of the total cost of such improvements, if the lease
agreement is terminated by the Town within one (1) year from the date this
lease was entered into; or
B. Sixty percent (60 %) of the total cost of such improvements, if the lease is
terminated by the Town within two (2) years from the date this lease was
entered into; or
C. Forty percent (40 %) of the total cost of such improvements if the lease is
terminated by the Town within three (3) years from the date this lease was
entered into; or
D. Twenty percent (20 %) of the total cost of such improvements, if the lease
agreement is terminated by the Town within four (4) years from the date this
lease was entered into; or
E. After a five (5) year period has elapsed from the date of improvements, the
Town will not reimburse the District for any improvements and said
improvements shall become property of the Town.
The above schedule is contingent upon the District providing the Town with final
written improvement costs delivered to the Town within thirty (30) days after the District
is notified of final improvement costs. Furthermore, such reimbursement shall not exceed
the amount of sixty thousand dollars ($60,000).
10. Insurance: The District shall procure and maintain with a reputable
insurance company, insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the District's operation and use of the leased
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premises. The costs of such insurance shall be bome by the District. The minimum limits
of insurance the District shall maintain shall be no less than:
$1,000,000 combined single limit per occurrence for bodily
injury, personal injury and property damage.
District's insurance coverage shall be primary insurance as with respect to the Town,
its officers, officials, and employees. Any insurance or self - insurance maintained by the
Town, its officers, officials or employees shall be excess of the District's insurance and shall
not contribute to it.
District shall furnish the Town with certificates of insurance and with original
endorsements effecting coverage required by this clause. The certificates and endorsements
for each insurance policy are to be signed by a person authorized by the insurer to bind
coverage on its behalf.
Each insurance policy required by this section shall be endorsed to state that
coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or
in limits except after thirty (30) days prior written notice by certified mail, return receipt
requested has been given by the District.
District shall reimburse Town for the reasonable cost of fire insurance or collapse
insurance maintained by Town on said premises, which cost, if any, shall be deemed
additional rental hereunder.
11. Indemnification: The District will indemnify, save harmless, and defend the
Town from all liability from loss, damage, or injury to persons or property in any manner
arising out of or incident the performance of this agreement, including without limitation
all consequential damages, whether or not resulting from the negligence of the Town or its
agents.
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12. Surrender of Premises: District shall promptly surrender said premises to
Town at the expiration of the term of this Lease, or any sooner termination, thereof, in the
same condition it was received, in good order and repair, in good order and repair,
reasonable wear and tear and damage by the elements excepted.
13. Termination: Either party may terminate this agreement without cause upon
twelve (12) months advance written notice. Such termination notice shall be sent to:
Town of Los Gatos
Town Manager
P.O. Box 949
110 East Main Street
Los Gatos, CA 95031
Los Gatos - Saratoga Community
Recreation Center
Director
123 East Main Street
Los Gatos, CA 95032
14. Scope of Lease: This Lease constitutes the entire agreement between the
parties. This Lease may not be modified except by an agreement in writing signed by the
party against whom the enforcement of any waiver, change, modification or discharge is
sought.
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IN WITNESS WHEREOF, the parties have executed this Lease, in duplicate, this
18th day of JUNE, 1990.
ATTESTED TO:
Marion V. Cosgrove, T, n Clerk
aty \lease.con
LOS GATOS - SARATOGA DISTRICT
RECREATION DEPARTMENT
B Y ' H�
rman of the Board
Director It
TOWN OF LOS GATOS
By
Rober F. Beyet, Int rim own Manager
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