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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. Page 1 of 6 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, Page 2 of 6 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 Page 3 of 6 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. Page 4 of 6 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. Page 5 of 6 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 Page 6 of 6