2004-131-Authorizing The Town Manager To Execute The Lease Agreement By And Between The Town Of Los Gatos And Los Gatos Saratoga Community Education And RecreationRESOLUTION 2004 -131
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE THE
LEASE AGREEMENT BY AND BETWEEN
THE TOWN OF LOS GATOS AND
LOS GATOS-SARATOGA COMMUNITY EDUCATION AND RECREATION
WHEREAS, the .Town of Los Gatos is the owner of property at 123 East
.Main Street, Los Gatos., CA; and,
WHEREAS, Los Gatos-Saratoga Community Education and Recreation is
along-term tenant of that property, and desires to continue its lease arrangement with
the Town; and,
WHEREAS, Los Gatos-.Saratoga Community Education and Recreation is
a valued partner in the Town's effort to provide services to the Los Gatos community;
and,
WHEREAS, the Town Council wishes to execute a new lease agreement
with Los Gatos-.Saratoga Community Education and Recreation for the property at 123
East Main Street.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY RESOLVE THAT 'THE TOWN MANAGER IS AUTHORIZED TO
.EXECUTE:
1) The Lease Agreement by and Between the Town of Los Gatos and Los
Gatos-Saratoga Community Education and Recreation for the period
October 1, 2004, through June 30, 2007, attached as Exhibit A, and allowing
for any minor, administrative changes; and,
1
2) Future amendments to the Lease Agreement so -long as they conform to the
adopted Town budget.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 15` day of November, 2004 by the following
vote:
COUNCIL MEMBERS.:
AYES: Sandy Decker, Diane McNutt, Joe Pirzynski, Mike Wasserman,
Mayor Steve Glickman.
NAYS : None
ABSENT: None
ABSTAIN: None
SIGNED: ~'~`"=tom ~'~"`,e...-~.--~...
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST.:
CLERK OF THE-TOWN OF LO ATOS __
LOS GATOS, CALIFORNIA
2
.EXHIBIT .-~
(~
WHEN RECORDED MAIL TO:
PACE ABOVE THIS LINE
DOCUMENT TITLE
27361,6
Kutrt~s u5t~
SEPARATE .PAGE, PURSUANT TO GOVT.. CODE
LEASE AGREEMENT BY AND BETWEEN THE TOWN DF LOS GATOS AND
.LOS GATOS-SARATOGA COMMUNITY EDUCATION AND RECREATION
This LEASE is entered into 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 Community Education and Recreation, a Joint Powers Authority, :hereinafter referred
to as "TENANT," this day of ,.2004.
RECITALS
WHEREAS, TOWN owns the premises and the structure, hereinafter referred to as
"Building," located at 123 `East .Main Street, Los Gatos, California, 95030, and wishes to lease
the Building. to nonprofit community service organizations that will assist the TOWN in serving
the needs of its residents; and
WHEREAS, TENANT desires to use the 'Bui ding for the purpose of.providing
educational and recreational services to .Los Gatos azea residents; and
WHEREAS., the TOWN recognizes the need and desirability ofsuch a community
organization; and
WHEREAS, the TOWN incurs operating costs and expenses in maintaining the Building
which are due in part to tenant operations; and,
WHEREAS, TENANT agrees to pay TOWN for use of the :Building.
IT IS MUTUALLY AGREED by the parties as follows:
Leasing: TOWN hereby leases to TENANT, and TENANT hereby leases from TOWN,
the property consisting of six thousand .four hundred seventy-nine square. feet .(6.,479 s.f.)
located at 123 East Main Street, Los Gatos, Santa C aza County, California, for
exclusive use of TENANT,
2. Term: The lease term shall commence on October 1, 2004, and extend through June 30,
2007 and continue from month to .month thereafter ,subject to the termination
provisions set forth in this Lease. .
3 . Lease .Fees
a. Rent: Upon commencement of the lease term, the rent shall be One Thousand
One Hundred Thirty-Three Dollazs and Eighty-Three Cents ($1..,133.$3) per
month. Said rent is calculated according to the agreed-upon rate of One Hundred
Seventy-Five Thousandths of a Dollaz ($0.175) per square foot, multiplied by the
square footage occupied by the TENANT, for a total of Thirteen Thousand Six
Hundred Five Dollars .and Ninety Cents ($13,605:90) for the lease yeaz. On each
July 1 following the commencement of the lease term, the rent amount shall be
increased by a percentage equal to the percentage increase, if any, in the
Consumer Price .Index (CPI) -All Urban Consumers, .for the San Francisco-
Oakland-San Jose, CA area, from the June the previous year to the June
immediately previous.
b. Landscaping Services: The Town shall provide weekly landscaping services for
the Building, consisting of maintenance of the lawn, trees, shrubbery, and
irrigation system. Upon commencement of the lease term, TENANT shall pay
the Town Two Hundred Dollars and No Cents ($200.00) to TOWN :for these
services. Additional services requested by TENANT, such as new plantings,
may be performed at TOWN's discretion, at an additional price to be agreed
upon by TOWN and TENANT. On each July 1 following the commencement of
the lease term, the ..landscaping services fee shall be increased by a percentage
equal to the percentage increase, if any, in the Consumer Price Index (CPI) -All
Urban Consumers, for the San Francisco-Oakland-San Jose, CA area, from .the
.June the previous year to the June immediately previous.
c. Payment: Payment of rent and landscaping services fee shall be due and payable
on the first day of each month. Payment shall be made payable to "Town of Los
Gatos," and mailed to: Town of Los Gatos, Accounts Receivable, P.O, ..Box 697,
Los Gatos, CA, 9.503.1. Should the rent payment be thirty-one (31) or .more days
in arrears, a late fee of Fifty Dollars and No Cents ($50.00) per day shall be
assessed for each day payment remains outstanding, in addition to the amount of
rent and landscaping services fee due.
4. Possessory Interest Property'Tax: Pursuant to Revenue and Taxation Code section
107.6, TENANT is hereby notified that the property interest created by its lease .may be
subject to property taxation due to TENANT'S possessory interest in the Building.. In
such an event, TENANT is liable under this Lease for payment of such property tax.
5. Use of .Premises.: TENANT .shall use said premises only for the purpose of providing
educational and recreational services to Los Gatos .area residents, and in connection
therewith, shall comply with all governmental laws and regulations. Anticipated uses
:included recreational and inforrn:ational activities, social events, and informal ,gatherings.
No alcohol may be served on the premises at any time without the prior written consent
of the TOWN.
6. Signs: TENANT shall not place or permit to be .placed in, upon, about or outside of said
premises or any part of the building any sign without the prior written consent of the ,
TOWN. All existing signs at the time of the commencement of this Agreement are
considered approved at the signing of this lease Agreement.
7. Illegality Clause: TENANT shall not use the premises or suffer or permit anything to be
done in or about the :premises or the .property which will be in conflict with .any law,
statute, zoning restriction, ordinance or .governmental. law, rule, regulation or
requirement of public authority now in force or which may hereafter be enforced.
TENANT shall not commit any private or public nuisance or any other act or thing
which might or would disturb the quiet enjoyment of surrounding property. TOWN at
its option may terminate this Lease by giving ten { 10) days written Ynotce of its election
to terminate for any and all violations of the provisions contained herein.
8. Entry: TENANT shall. permit TOWN, its .:agents or assigns to enter the premises at any
time to inspect the premises or make repairs.
9. Assignment and Sub-Leasing: The. terms :and conditions of this Lease are'based upon the
unique and specific services to be offered by the TENANT and the TENANT's record of
service in the community. TENANT shall neither .assign this Lease, nor sublet the
whole or any part thereof, without the prior written consent of TOWN.
10. Utilities:. TENANT shall pay for all utilities including, but not limited to, water, gas, and
electricity; but not including garbage removal .and recycling services. TOWN shall
contract for garbage .removal and recycling services for .Building, at no charge to
TENANT.
11. Maintenance: TENANT shall maintain the interior of said premises. TENANT shall not
make any structural alterations to the premises without the prior written consent of the
TOWN. TOWN shall maintain the exterior ofsald premises and the,grounds thereof, as
agreed to in section 3 above.. However, if repair is necessary due to the action or
negligence of TENANT, its agents, assigns or clients, TENANT shall obtain those
repairs at its own expense or pay the TOWN to repair at a charge to the TENANT of
time and one-.half for services rendered, and-for the actual cost of materials.
12. Abandonment: If TENANT abandons or vacates the premises for any period in excess of
thirty (30) days, TOWN may, at its option, terminate this Lease and take possession of
the property.
13. Insurance: TENANT shall procure and maintain with a reputable .insurance company,
insurance as set forth in Exhibit A, attached, and incorporated .herein by reference.
14. Property Insurance: TOWN may or may not choose to obtain property insurance for the
Building. However, TENANT is solely responsible for obtaining insurance to protect
any personal property that it may choose to place in the Building under this Lease, and
the TOWN shall not. provide such insurance on this .Lease.
15. Destruction of Premises:
a. If the structures on the leased premises are destroyed to an extent. of more than
fifty percent (50%) of the total floor area existing prior to the destruction, either
party is entitled to terminate this Lease Agreement and TOWN is under no
obligation to repair, replace, or restore .any portion of the leased premises.
Termination ofthis .Lease shall be by giving written notice of the termination to
either party no later than ninety~(90) days after the event causing the damage or
C ~
destruction. The termination shall be effective on the .date specified in the notice.
Upon termination of the Lease Agreement pursuant to this section, all insurance
proceeds payable because of the damage or destruction of the structures on the
leased premises shall be paid to and be the property of TOWN.
b. If because of the destruction or damage to the leased premises, the leased
premises are entirely .unsuitable or inadequate for the use specified in Paragraph 5
above, all monthly rent shall temporarily abate effective the date of the
destruction or damage. If the damage or destruction to the leased premises only
makes a portion of the leased premises unsuitable or inadequate :for such use, then
the monthly rent shall only be abated so that the rent then due and payable shall
be an amount :equivalent to the floor area of the structures on the leased premises
usable for the use specified divided by the total floor area of all structures prior to
the damage or destruction,. and then multiplied by the monthly rent in effect just
prior to the damage or destruction.
c. Under no circumstances does the TOWN have any obligation to provide the
TENANT with an alternative property to conduct its operations..
d. TENANT agrees to fully cooperate with the TOWN in investigating the cause of
.any damage or destruction of the leased premises, and in permitting and :allowing
any repair or reconstruction to occur.
16. Indemnification: TENANT shall indemnify, save harmless, .and defend TOWN from all
liability fromloss, damage, or injury to persons or property in any manner arising out of
or incident the performance of this Lease, including without limitation all consequential
damages, whether or not .resulting from the negligence of the TOWN or its agents,
officers or employees..
17. :Surrender of Premises: TENANT 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, reasonable wear and tear and
damage by the elements .excepted.
18. Termination: Either party may terminate this Lease without cause one hundred and
eighty { 180) days advance written notice. Such termination notice shall be sent to:
TOWN TENANT
Debra J. Figone, Town Manager Steve Rauwolf, Executive Director
Town of Los Gatos Los Gatos-Saratoga. Community Education
& Recreation
P.O. Box 949 123 East Main Street
Los Gatos, CA 95031 Los Gatos, CA 95030
19. 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. The covenants and conditions in the .Lease shall bind the successors in interest
of the party.
20. Disputes: In any dispute between the parties over this :Lease, the prevailing party shall
be entitled to costs and attorney's fees.
21. Equal Access and Opportunity: TENANT warrants that it shall comply with all
applicable regulations .and laws ;,governing .equal access to its programs and equal
employment opportunity. Neither TENANT nor any of its officers, :employees,
volunteers, or agents shall discriminate in the employment in or access to any of
'I'EIVANT's programs because of race, color, .national origin, ancestry, physical or
mental disability, marital status,. sex, sexual orientation, or age unless based on a bona
fide occupational qualification defined under the California Fair Employment and
.Housing Act.
IN WITNESS WHEREOF, the parties have executed this Lease this day of
2004.
TOWN OF LOS GATOS LOS GATOS-SARATOGA
COMMUNITY EDUCATION AND
RECREATION
Debra J. Figone, Town Manager Steve Rauwolf, Executive Director
APPROVED AS TO CONTENT:
Regina A. Falkner, Community Services Director
APPROVED AS TO FORM:
Orry P, Korb, Town Attorney
ATTESTED TO:
Marian V. Cosgrove., Town Clerk