4 New York Avenue�oWN 0 MEETING DATE: March 5, 2012
ITEM NO:
cos G Aos COUNCIL AGENDA REPORT
DATE: February 23, 2012
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: AUTHORIZE TOWN MANAGER TO EXECUTE EXTENSION TO LEASE
AGREEMENT WITH A PLACE FOR TEENS FOR 4 NEW YORK AVENUE
RECOMMENDATION
Authorize the Town Manager to execute an extension to the Lease Agreement with A Place for Teens
for 4 New York Avenue.
BACKGROUND
Last fall, Council authorized staff to explore continued leasing or sale of several Town -owned properties
including 4 New York Avenue. In that report, staff identified four potential tenants /buyers for the New
York Avenue property: A Place for Teens (APFT), Los Gatos High School, the Youth Park, and /or LGS
Recreation. The property is currently leased by the non - profit agency, APFT, which provides teen
center related services. The twenty -year lease expires early March. When evaluating property options,
staff will consider the following objectives:
Meet students' desire for a place to congregate, primarily after school.
Improve traffic and parking in the Olive Zone.
Reduce costs and increase revenues while meeting the above community objectives.
DISCUSSION
Staff has met with each of the interested parties regarding potential lease or purchase of the 4 New York
property. Discussions will resume after the Town has obtained a property appraisal.
PR BT
Regina
ga
Deputy
Reviewed by: Assistant Town Manager Town Attorney _Sef inance
N: \CSD \TCRPTS\2012 TCRPTS\AHT lease extension.doc
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT:
February 23, 2012
Based on recent discussions with APFT's Board President, Nicole Williams, staff recommends that
Council authorize the Town Manager to execute the attached Lease Agreement Amendment which
would extend the lease to August 31, 2012 and allow for lease agreement extensions through June 30,
2013. This would provide the Town with the flexibility needed in its property lease /sales discussions
and would provide APFT the ability to plan its services several months out.
ENVIRONMENTAL ASSESSMENT
The lease extension is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT
The lease agreement with APFT requires that the agency pay for all building maintenance costs; it pays
$1.00 /year rent.
Attachments:
1. Letter from APFT
2. Lease Agreement Amendment
Distribution:
Nicole Williams, APFT
Steve Rauwolf, LGS Recreation
Markus Autrey, LG High School
Marshall Smith, Youth Park
A PLACE FOR TEENS
4 New York Avenue
Los Gatos, CA 95030
February 16, 2012
Regina Falkner
Deputy Town Manager
Town of Los Gatos
t 11 E. Main Street
Los Gatos, CA 95030
February 17, 2012
Dear Regina:
Thank you for meeting with us yesterday. Outlined below are the steps that A Place for
Teens is implementing to stabilize and strengthen administrative and fiscal capabilities of
APFT. We hope that these steps will ensure the ongoing success of the agency and
further secure it's relationship with the Town of Los Gatos. To ensure continuity for our
programs through this school year, we'd like to request a lease extension to the end of the
summer, with the opportunity to extend the lease in five year intervals thereafter. We are
happy to discuss lease terms, which would release either party from the lease but would
like some kind of commitment that; provided the agency remained viable and financially
secure, the agency would remain in the existing facility.
Our near term goals for the agency are to:
1. Create a fiscal atmosphere that encourages the receipt of matching funds and grants.
2. Ensure the ongoing integrity of fund reserves with regard to operating costs. In
particular to work more closely with the High School- to include more school related
activities and to share upkeep and maintenance costs.
3. Our current goal is to fundraise 20k in 2011/12 while maintaining a discipline of fiscal
responsibility through this year. We will spend less and raise more with a goal of 95k
for 2012/2013.
4. To provide transparency of financial reports with online accessibility and quarterly
reporting for the town.
5. To increase the accountability and credibility of APFT and the Board. We will
establish improved means to track daily usage of the facility and its programs, to
review results at monthly board meetings and report quarterly to the town. We will
implement more programs and activities that match the goals of the community, and
the town, and we will work with the town in an ongoing basis to secure the physical
location of APFT's programs.
6. We will strengthen the governing structure of the agency with five adult executive
board members, five new governing board members, and a teen advisory board of 10-
15 members. It is a longer term goal to create a junior advisory board of 8 th graders.
ATTACHMENT 1
Town of Los Gatos
February 22, 2012
Page 2
We also have an adult Advisory/ Steering Committee of 6 -10 members who meet
biannually and who are chosen from the community for their expertise in particular
areas.
7. We plan on improving our staffing by, in the short term, hiring a more responsible
staffer to run day to day operations, and in the longer term an Executive Director.
8. We intend to establish improved policies and procedures for usage and rental of the
facility to include web -based forms and a calendar.
We do understand that the Town is considering divestiture of the current building we
occupy and we'd like to work with you to ensure that any change in ownership will still
guarantee a location to run these programs, which are so valuable to the youth of our
town.
APFT has a long term position in the community and relationship with the town, and we
want to secure the future with improvements and additions to our programs reflecting the
changing needs of both.
I am looking forward to your response.
Sincerely,
Nicole
Nicole Williams
President, A Place for Teens
A Place For Teens P and L
Ordinary Income /Expense
Income
Grants and Donations
Local Government Grants
Community /Service Funds
In -Kind Income
Individ. /Business Contributions
Total Grants and Donations
Cafe Income
Fundraising Activities
4th of July
Food Fest
Garage Sale
Mailer
Total Fundraising Activities
Program Services Income
Concerts
Summer Programs
Teen Swim
Other Programs
Total Program Services Income
Other Types of Income
Dividend /Interest - Securities
Facility Rentals
Interest Income
Total Income
Total Other Types of Income
Gross Profit
FY12
FY13
Budget
Q1 &Q2 Actual Q3 &Q4 Est
Total
$2,738 $8,212
$10,950
$20,000
$1,500 $0
$1,500
$1,500
$1,093 $500
$1,593
$1,500
$3,554 $5,000
$8,554
$20,000
$8,884 $13,712
$22,596
$43,000
$2,361 $2,000
$4,361
$5,000
$1,600 $0
$1,600
$2,500
$14,479 $0
$14,479
$15,000
$518 $0
$518
$5,000
$1,976 $5,000
$6,976
$10,000
$18,572 $5,000
$23,572
$32,500
$92 $400
$492
$1,500
$5,059 $0
$5,059
$7,000
$400 $0
$400
$500
$288 $500
$788
$2,000
$5,839 $900
$6,739
$11,000
$405 $300
$705
$500
$450 $500
$950
$2,000
$21 $20
$41
$50
$876 $820
$1,696
$2,550
$36,532 $22,432
$58,964
$94,050
$36,532 $22,432
$58,964
$94,050
Page 1 of 2
A Place For Teens P and L
Expense
Cafe Expense
Inventory (For Resale)
Cafe Expense - Other
Total Cafe Expense
Facilities Expense
Alarm & Security Expense
General Repairs and Maintenance
Janitorial Expense
Telephone /Internet
Utilities
Total Facilities Expense
Fees for Services
Accounting and Tax
Labor, Goods or Svcs. Donated
Outside Contract Services
Payroll Service
Total Fees for Services
Fundraising Expenses
4th of July
Food Fest
Total Fundraising Expenses
Payroll Taxes
Administrative Staff
Cafe Staff
Summer Camp
Total Payroll Taxes
Program Expenses
CASA Events
Concerts
Freshman Orientation (Free Pgm)
Summer Programs
Teen Swim
Other Program Expense
Total Program Expenses
Salaries and Wages
Administrative Staff
Cafe Staff
Program Staff
Summer Camp
Total Salaries and Wages
Other Expenses
Bank and Finance Charges
Business Tax and License
Dues and Subscriptions
Franchise Tax
Interest Expense
Licenses, Permits and Fees
Office Supplies
Postage Expense
Supplies Expense
Void Checks
Total Expense
Net Ordinary Income
Total Other Expenses
Net Income
FY12 I
FYI
Budget
Q1 &Q2 Actual Q3 &Q4 Est
Total
$961 $800
$1,761
$2,000
$378 $100
$478
$1,000
$1,339 $900
$2,239
$3,000
$326 $300
$626
$650
$408 $5,000
$5,408
$4,000
$1,600 $1,500
$3,100
$0
$1,296 $1,200
$2,496
$2,500
$3,4 $3,200
$6,623
$7,000
$7,054 $11,200
$18,254
$14,150
$810 $700
$1,510
$1,500
$1,093 $500
$1,593
$1,500
$331 $200
$531
$500
$495 $450
$945
$1,000
$2,728 $1,850
$4,578
$4,500
$622 $0
$622
$500
$ 5,377 $0
$5,377
$5,000
$5,998 $0
$5,998
$5,500
$1,524 $3,000
$4,524
$7,500
$102 $100
$202
$200
$757 $0
$757
$750
$2,384 $3,100
$5,484
$8,450
$119 $0
$119
$100
$719 $100
$819
$150
$124 $0
$124
$100
$871 $0
$871
$500
$870 $0
$870
$500
$1 $50
$245
$200
$2,896 $150
$3,046
$1,550
$5,658 $11,700
$17,358
$50,000
$512 $500
$1,012
$1,000
$0 $0
$0
$500
$2,970 $0
$2,970
$3,000
$9,140 $12,200
$21,340
$54,500
$170 $160
$330
$300
$75 $0
$75
$75
$100 $100
$200
$300
$25 $25
$50
$50
$11 $10
$21
$20
$106 $100
$206
$200
$346 $300
$646
$500
-$31 $100
$69
$200
$54 $200
$254
$300
$856 $995
$1,851
$1,945
$0
$0
$32,396 $30,395
$62,791
$93,595
$4,136 - $7,963
- $3,827
$455
$4,136 - $7,963
- $3,827
$455
Page 2 of 2
AMENDMENT TO LEASE AGREEMENT
BY AND BETWEEN THE TOWN OF LOS GATOS
AND A PLACE FOR TEENS
This AMENDMENT to AGREEMENT is dated for identification this 5"' day of March
2012 and amends that certain LEASE AGREEMENT dated March 3, 1992, made by and
between the Town of Los Gatos, ( "Town, ") and A PLACE FOR TEENS, ( "Tenant. ")
RECITALS
A. Town and Tenant entered into a Lease Agreement on March 3, 1992 ( "Agreement "), a
copy of which is attached hereto and incorporated by reference as Exhibit A to this
Amendment.
B. Town desires to extend the term of the Agreement.
AMENDMENT
Extend the term of the Agreement to the time period from March 3, 2012 through
August 31, 2012. The Agreement may be further extended by mutual agreement
of Town and Tenant through June 30, 2013.
2. Replace Paragraph 23, Notice, with the following:
Notices. Any notice required to be given shall be deemed to be duly and
properly given if mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Cleric
110 E. Main Street
Los Gatos, CA 95030
A Place For Teens
Attn: Nicole Williams
P.O. Box 1476
Los Gatos, CA 95031
or personally delivered to Tenant to such address or such other address as Tenant
designates in writing to Town.
3. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Tenant have executed this Amendment.
ATTACHMENT 2
Town of Los Gatos
C
A PLACE FOR TEENS:
Greg Larson, Town Manager Signature
Department Approval:
Regina A. Falkner, Deputy Town Manager
Approved as to Form:
Judith Propp, Town Attorney
NACSDAgreements\APFT Leas Amendment March 2012,docx
LEASE AGREEMENT BY AND BETWEEN THE TOWN OF LOS GATOS
AND A PLACE FOR TEENS
J
This Lease, is entered into by and between the TOWN OF LOS GATOS, a
municipal corporation of the State of California, ( "Town ") and A _PLACE FOR TEENS, a
nonprofit organization, ('Tenant ") dais :;. °a °;.:; ` ::day of. dh....... , 1992,
RECITAL�
WHEREAS, Town, members of the 'community, and Tenant have spent thousands
of hours and great personal effort and expense to create a Teen Center for the benefit of
the public; and
WHEREAS, these efforts have been maintained and put forward over a period of
several year.$; and
WHEREAS, a center for teens will serve a demonstrated public need; and
WHEREAS, Town owns undeveloped real property 'on New York Avenue in the
Town of Los Gatos, more particularly described in Exhibit A attached hereto and
incorporated herein by reference ( "the Property "), and wishes to lease the Property to a
nonprofit community service organization that will assist the Town in serving the needs of
its residents; and
WHEREAS, Tenant desires to use the Property to construct and operate "A Place
for Teens" ( "the Center ") where local youths can gather and engage in activities; and
WHEREAS, A Place for Teens and the Town have committed substantial financial
resources; and
WHEREAS, Tenant has agreed to raise funds and additional contributions necessary
to construct and operate the Center.
IT IS MUTUALLY AGREED by the parties as follows:
1. Leasin¢ Town hereby leases to Tenant, and Tenant hereby leases from Town
the Property.
Arny005 \Teen4.Con
804 -02.05
Page 1 of, 1p
January ?8, 1992
EXHIBIT A
.
? Term The lease term shall commence on execution of this Agreement
provided, however, Tenant shall have no right to possession of the Property until it has
completed performance of the requirements of paragraph it (b) (3) below. This lease shall
continue for twenty (20) years unless earlier terminated under the provisions of this
Agreement. On written notice by the tenant given ninety. (90) days before expiration of the
original teur4 this lease may be renewed for additional terms of five years, subject to all the
provisions of this lease with such additional insurance requirements as may then be
consistent with the Town's standard requirements, so long as Tenant operates the Center
and provides activities for the Town's youth as provided in this lease Agreement, and is not
in breach of this lease Agreement.
3, Consideration Tenant shall pay one dollar ($1.00) per year due and payable
upon occupancy and ranuary lst each year thereafter,
4. Taxes Tenant shall pay all taxes incurred as a result of Tenant's use and
occupancy of the building. Tenant shall not be responsible for any taxes which do not
result from Tenant's use or occupancy of the building. Tenant shall make all such payments
direct to the charging authority at least 30 days before delinquency and before any fine,
interest, or penalty shall become due or be imposed by operation of law for their
nonpayment. Tenant shall furnish to Town, at least 25 days before the date when any tax,
assessment, or charge would become delinquent, receipts establishing their payment. �
5. Services and Fees At Tenant's request, the Town agrees to cooperate with
Tenant in evaluating the feasibility of the Town's providing services such as insurance and
maintenance. Tenant shall pay the full cost for any services which Tenant requests and
receives from the Town.
6. Use of Premises Tenant shall use the Property only to construct and operate
the Center for the benefit of the Town's youth, as a place for them to gather and associate.
Anticipated uses include supervised recreational and informational activities, social events,
Atny005 \Tccn4.00n Page 2 of 10 January 28, 1992
804 -02.05
and informal gatherings, No alcohol may be served on the premises at any time, Tenant
may cause a caretaker to live on the property,
7. Illegalijy Clause Tenant shall not use the Property or the Center ( "the
Premises ") or suffer or permit anything to be done in or about the premises 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 on the Property,
8. AsdZament and Sub - Leasing Tenant shall neither assign this lease, nor
sublet the whole or any part thereof, without the prior written consent of Town, which shall
not be withheld. unreasonably.
9. Utilities Tenant shall pay for all utilities including, but not limited to, water,
gas, electricity, cable television, sewer, garbage, and telephone service.
10. Maintenance Tenant shall, at Tenant's sole cost, maintain the premises in
safe and good condition and repair and in accordance with all applicable laws, rules,
ordinances orders, and regulations of (1) the Town of Los Gatos and other governmental
agencies having jurisdiction; and (2) all insurance companies insuring all or any part of the
Premises.
11. Construction of the Qenter
Tenant agrees to develop and construct the Center on the Property, on the terms and
conditions here set forth:
a. Descripri�n The Center shall conform generally to the design
prepared by Tenant's architect and submitted to the Town Council on August - 19, 1991 for
conceptual approval, as may be modified during the permit process. Town's acceptance of
Tenant's design by this Agreement shall not bind or in any way limit its discretionary
determinations hereafter in its regulatory capacity,
AIny005 \Teen4,Con
804-02.05
Page 3 of 10
Any revisions affecting the height,
January 28, 1992
r
size, and proposed uses necessary to comply with conditions imposed during the regulatory
review process, are subject to final approval by Town in its capacity as owner and lessor.
b. Timeline
1. Tenant has already submitted applications for a Conditional Use
Permit and Architecture and Site approval for the Center. If any modifications to such
applications are necessary to comply with the terms and conditions of this lease, Tenant
shall make timely submittal. Tenant shall diligently respond to any requests for
supplemental information necessary to complete environmental review of the project.
Tenant shall bear all costs of securing necessary environmental and zoning approvals. Town
and Tenant acknowledge that the Town, in its regulatory capacity, must act on any
necessary zoning applications and cannot and does not make any prior commitment to
exercise its discretion to approve Tenant's applications.
2. Within sixty (60) days of securing the Conditional Use Permit
and Architecture and Site approval, Tenant shall:
(a) submit application for a Building Permit together with all .
construction drawings, plans and specifications, and thereafter respond in a timely and
diligent manner to submit additional information and revisions as may be required to secure
a Building Permit; and
(b) submit evidence satisfactory to the Town Manager of a
construction budget and commitments for construction and take -out financing.
3. Within sixty (60) days of securing a Building Permit, Tenant shall
submit for Town approval, the proposed Contractor's bid, identity and credentials (including
at least the Contractor's License Number and a list of projects completed and clients served,
and a Certificate of Insurance naming the Town as an additional insured in the minimum
amounts and complying with the terms and conditions detailed in Exhibit B attached hereto
and included herein by reference). If Tenant intends to undertake construction without a
contractor, Tenant shall submit detailed information for Town approval detailing the
alternative means. Town may disapprove the contractor or the alternative means of
construction by giving written notice of the reasonable basis for such disapproval within
fifteen (15) days of Tenant's submittal of complete information.
Atny005 \Teen4.Con Page 4 of 10 January 28, 1992
804- .92.05
4. Within ninety (90) days of securing a Building Permit, Tenant shall
commence construction of the Center. A valid building permit shall be maintained and
construction shall be pursued diligently until a Certificate of Occupancy is issued which shall
occur no later than one year from the date of commencement of construction.
5, The time for performance of any requirement in this paragraph
11 may be extended in writing by the Town Manager upon demonstration of good cause
therefor.
12. Budget Prior to occupancy, the Tenant will provide a budget satisfactory to
the Town Manager for the first year's operation and identify revenues to support the
budget.
13. Repairs and Improvements Any repairs, alterations, and improvements to the
Center after issuance of the Certificate of Occupancy for which a Building Permit is
required, shall be subject to prior written approval by the Town in its capacity as lessor.
14. Operation of the Center Tenant shall commencd operation of the Center for
the purposes and uses specified in Paragraph 5 above, within sixty (60) days of issuance of
the Certificate of Occupancy. Tenant shall operate the Center for its intended purposes at
least ten hours per month..
Failure to operate the Center in the manner described in this paragraph shall be
deemed a material breach subject to the provisions of Paragraph 19 below.
15, Insurance
(a) Ligbility. Workers' ComRensatign and Automobi1g, . Tenant shall procure
and maintain with an insurance company acceptable to Town, insurance against claims for
injuries to persons or damages to property which may arise from or in connection with
Tenant's operation and use of the leased premises, The costs of such insurance shall be
borne by Tenant. The minimum Umits of insurance Tenant shall maintain shall be no less
than One Million. Dollars ($1,000,000) combined single limit per occurrence for bodily
injury, personal injury and property damage.
Atny005 \Teen4.Con Page 5 of 10 January 28, 1992
80"2.05
Tenant shall also procure and maintain with a reputable insurance company,
the following insurance:
1. Workers' Compensation and Employer's Liability coverage
pursuant to the California Labor Code; and
2. Non -owned Auto Insurance with a minimum coverage of One
i
Million Dollars ($1,000,000) combined single limit for bodily injury and property damage,
and if the Teen Center itself acquires any vehicles, a policy providing primary coverage in
the same amount.
(b) Fire and Extended Coverage PropeM Insurance Tenant at its sole
cost and expense, shall keep or cause to be kept insured for the mutual benefit of Town
and Tenant, all improvements located on the Property against loss or damage by fire and
such other risks as are now or hereafter included in an extended coverage endorsement in
common use for commercial structures, including vandalism and malicious mischief. The
amount of the insurance shall be sufficient to prevent either Town or Tenant from
becoming a coinsurer under the provisions of the policies, but in no event shall the amount
be less than 100 percent of the then actual replacement cost herein called insurable value,
Town shall, at Tenant's cost and expense, cooperate fully with Tenant to obtain the
largest possible recovery, and all policies of fire and extended coverage insurance shall
provide that the proceeds shall be deemed to be held in trust for the uses and purposes
prescribed by this lease.
(c) PglicyForm Tenant's insurance shall name the Town as an additional
insured or as a loss payee, Tenant's insurance coverage shall be primary insurance as with
respect to the Town, its officers, agents and employees. Any insurance or self- insurance
maintained by the Town, its officers, agents or employees shall be excess of Tenant's
insurance and shall not contribute to it. Tenant shall furnish the Town with certificates of
insurance and with original endorsements effecting coverage. 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, or cancelled by either party, reduced in coverage
Atny005 \Tcca4.Con Page 6 of 10 January 28, 1992
804 -02.05
or in limits except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given by Tenant.
(d) Proof of Compliance; Failure to Maintain Insurance Town shall
deliver to Tenant in the manner required for notices, copies or certificates of all insuzance
policies required by this lease, together with .evidence satisfactory to lessor of payment
.required for procurement and maintenance of the ( policy, within the following time lima s:
For insurance required at the commencement of this lease, within thirty (30)
days after execution of this lease;
For insurance becoming required at a later date, at least ten (10) days before
the requirement takes effect;
For any renewal or replacement of a policy already in existence, at least forty -
five (45) days before expiration or other termination of the existing policy,
If Tenant fails or refuses to procure or to maintain insurance as required by
this lease or fails or refuses to furnish Town with required proof that the insurance has
been procured and is in force and paid for, Town shall have the right, at Town's election
and on ten (10) days notice, to procure and maintain such insurance. The premiums paid
by Tenant shall be treated as added rent due from Town with interest at the maximum
allowable legal rate in effect in this state on the date when the premium is paid to be paid
on the first day of the month following the date on which the premiums were paid. Lessor
shall give prompt notice of the payment of such premiums, stating the amounts paid and
the names of the insurer or insurers, and interest shall run from the date of the notice. -
16. Tenant's Organization and Annual Reports,
(a) Organization.
1. Within 15 days of execution of this Agreement and annually
thereafter, Tenant shall deliver the following to the Town.
a. The Articles of Incorporation under the laws of the State of
California.
b. Current Bylaws.
c. Verification and documentation of Internal Revenue Service
nonprofit status under Title 26, Section 501(c) of the Federal Code.
Acny005 \Teen4.Con Page 7 of 10 January 28, 1992
804 -02.05
d. Names and addresses of current Board of Directors.
e. Personnel policies and procedures including Affirmative
Action Plan if staff exceeds fifteen (15) employees.
17. Indemnification Tenantwill indemnify, hold harmless and defend Town from
all liability from loss, damage, or injury to persons or property in any manner arising out
of or incident to the performance of this Agreement, including without limitation all
consequential damages.
18. Ownershin at Termination All improvements on the Premises, including but
no limited to the Center, at the expiration of the term oe sooner termination of this lease
shall, without compensation to Tenant, then become Town's property free and clear of all
claims to or against them by Tenant or any third person, and Tenant shall defend and
indemnify Town against all liability and loss arising from such claims or from Town's
exercise of the rights conferred by this paragraph.
19. Default and Termination:
(a) If Town alleges that Tenant is in breach of any term or condition of this
Lease Agreement, Town will give Tenant written notice. Within seven (7) days of notice,
the parties shall meet and use best efforts to agree on the extent of the alleged breach and
necessary steps to cure it. If agreement is reached on the steps necessary to cure the
alleged breach, the parties shall sign a written statement of the agreement, and perform as
required.
If agreement cannot be reached, or if Tenant does not perform the agreement
referred to in the preceding paragraph, the Town may give notice to Tenant that the lease
will be terminated unless the default is cured within a specified period of time. If Tenant
objects in writing within ten days, either party may initiate mediation by a mediator
mutually acceptable to both parties. If the parties can not agree bn a mediator, the
mediator shall be selected by lot from among six names, three of whom shall be submitted
by each party.
Amy005 \Teen4.Con Page 8 of 10 January 28. 1992
90442.05
r
if mediation is initiated but fails to resolve the dispute, Town may give final notice
to Tenant that the lease will be terminated unless the default is cured within a specified
period of time. Town's right. to terminate this lease shall not relieve Tenant from the
payment of any sum then due to Town or from any claim for damages. No notice shall be
given pursuant to this provision until after the matter, including the report of the mediator,
shall have been submitted to a Town Council meeting and notice approved by a majority
vote of the Council.
(b) On the giving of final notice of terrrinatior4 all Tenant's rights in the
premises and the improvements shall terminate. Promptly after notice of termination,
Tenant shall surrender and vacate the Premises and all improvements in broom -clean
condition. These provisions shall not limit the rights of either party under the law of the
State of California.
20. 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.
21. Waiver No waiver of any defect shall constitute a waiver of any other breach
or default of the same or other condition. No waiver, benefit, privilege, or service
voluntarily given by either party shall give the other any contractual right by custom,
estoppel, or otherwise.
22. Dispute In any dispute between the parties over this Agreement, the
prevailing party shall be entitled to costs and.attorney's fees.
23, once: All notices must be in writing. Notice shall be . considered given
either (a) when delivered in person to the recipient named as below, or (b) on the date
shown on the return receipt after deposit in the United States mail in a sealed envelope or
Atny005 \Teen4.Con Page 9 of 10 January 28, 1992
804 -02.05
N
container, either registered or certified mail, return receipt requested, postage and postal
Zn
charges prepaid, addressed by name and address to the party or person intended as follows:
Town of Los Gatos T nan
Town Manager A Place for Teens
P.O. Box 949 c/o Gladie Rabitz
110 East Main Street 18315 Daves Avenue
Los Gatos, CA 95031 Los Gatos, CA 95030
24. Tenant representation and Warran t Tenant warrants and represents that
its signatory is duly authorized to enter into this Agreement.
IN WITNESS WHEREOF, the parties have executed this lease, in duplicate, this
, 1 - 7 4 1c day of 1992.
A PLACE FOR TEENS
B
TOWN OF LOS GATOS
B 0 - �'
David W. Knapp, Town Manager
ATTESTED TO:
Marian V. Cosgrove, Town k
Arny005 \Teen4.Con Page 10 of 10 January 29, 1992
804 -02.05
APPROVED AS TO FORM:
�. L 5 9 9 PAI 0526 s
EXHIBIT A
Legal description to accompany QUITCLAIM DEED from
SAN JOSE WATER WORKS
AT THE END OF NEW YORK AVENUE
All that real property situated in the Town of Los Gatos, County of Santa Clara,
State of California, described as follows:
BEGINNING at the most easterly corner of that certain parcel
of land described in the deed to the San Jose Water Company recorded
in Book 46 of Official Records at, Page 169, Santa Clara County
Records, said point also lying on the former southerly right -of-
way line of New York Avenue; thence in a northwesterly direction
along said former right -of =way line N 61. 27' 00" W, 133.60 feet,
more or less, to the most northerly corner of said previously
described lands of the San Jose Water Company; thence leaving said
right-of-way- line in a northeasterly direction N 44^ 06' 53" E,
31.14 feet, more or less, or a point on the former centerline of New
York Avenue; thence in a northwesterly direction along said former
centerline of New York Avenue N 61. 27' 00" W, 96.41 feet, more or
less, to the point of intersection of said former centerline of New
York Avenue and the southerly right -of -way line of State Route 17;
thence in a northeasterly direction along said right -of -way line
N 52. 41' 49" E, 32.88 feet, more or less, to the point of intersec-
tion of said right -of -way line of State Route 17 and the former
northerly right -of -way line of New York Avenue; thence in a
southeasterly direction along said former northerly .right -of -way
I ine for New York Avenue S 610 27' 00" E, 208.21 feet, more or less,
to a point; thence leaving said former right -of -way line in a south-
westerly direction at right angles to said line S 28. 33' 00" W,
60.00 feet, more or less, to the Point of Beginning.
CONTAINS: 0.237 Acres
Portion of New York .Avenue abandoned by the Town of Los Gatos;` abandonment
recorded in Book L268 of Official Records, Page 287, Santa Clara County Records.
OV01;\Gran%s%SJ.W &i *r 2 (1/9/90)
INSURANCE REQUIREMENTS
Contractor shall procure and maintain for the duration of the contract insurance against claims for
Injuries to persons or damages to property which may arise from or In connection with the
performance of the work hereunder by the Contractor, his agents, representatives, employees or
subcontractors, The cost of such insurance shall be included in the Contractor's bid.
A. MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
Insurance Services Office form numberGL0002 (Ed, 1/73) covering Comprehensive
General Liability and Insurance Services Office form number GL 0404 covering
Broad Form Comprehensive General Liability; or Insurance Services Office
Commercial General Liability coverage ( "occurrence" form GC 0001).
2. insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile
Liability, code 1 "any auto" and endorsement CA 0025,
3. Worker's Compensation insurance as required by the Labor Code of the State of
California and Employers Liability Insurance.
B. MINIMUM LIMITS OF INSURANCE
Contractor shall maintain limits no less than:
General Liability: $1,000,000 combined single limit per occurrence for bodily injury,
personal Injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit Is used, either the general aggregate limit
shall apply separately to this project /location or the general aggregate limit shall
be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury
and' property damage.
3. Workers' Compensation and Employers Liability: Worker's compensation limits as
required by the labor Code of the State of California and Employers Liability limits
of $1,000,000 per accident,
C. DEDUCTIBLES AND SELF-INSURED RETENTIONS
Any deductibles or self - Insured retentions must be declared to and approved by the Town
of Los Gatos. At the option of the Town of Los Gatos, either: the insurer shall reduce or
eliminate such deductibles or self- Insured retentions as respects the Town of Los Gatos, Its
officers, officials, employees and volunteers; or the Contractor shall procure a bond
guaranteeing payment of losses and related investigations, claim administration, and defense
expenses.
D. OTHER INSURANCE PROVISION
The policies are to contain, or be endorsed to contain the following provision:
General Liability and Automobile Liability Coverages
a, The Town of Los Gatos, its officers, officials, employees and volunteers are
to be covered as Insureds as respects: liability arising out of activities
_1_
EXHIBIT B
performed by or on behalf of the Contractor, products and completed
operations of the Contracts, premises owned, occupied or used by the
Contractor, or automobiles owned, leased, hired or borrowed by the
Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the Town of Los Gatos, its officers, officials,
employees, or volunteers.
b. The Contractor's Insurance coverage shall be primary insurance as respects
the Town of Los Gatos, its officers, officials, employees, and volunteers.
Any insurance or self- insurance maintained by the Town of Los Gatos, its
officers, officials, employees, or volunteers shall be excess of the
Contractors Insurance and shall not contribute with It.
c. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the Town of Los Gatos, its officers, officials,
employees, or volunteers.
d. The Contractor's insurance shall apply separately to each insured against
whom claim Is made or suit is brought, except with respect to the limits of
the Insurer's liability.
2. Workers' Compensation and Employers Liability Coverage
The Insurer shall agree to waive all rights of subrogation against the Town of Los
Gatos, Its officers, officials, employees, or volunteers for losses arising from work
performed by the Contractor for the Town of Los Gatos.
3. All Coverages
Each Insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced In
coverage or in limits except after thirty (30) days priorwritten notice by certified mail,
return receipt required, has been given to the Town of Los Gatos,
E. ACCEPTABILITY OF INSURERS
Insurance Is to be placed with insurers with a Best's rating of no less
than ANIL
F. VERIFICATION OF COVERAGE
Contractor shall furnish the Town of Los Gatos with certificates of insurance and with original
endorsements effecting coverage required bythis clause, The certificates and endorsements
for each Insurance policy are to be signed by a person authorized by that Insurer to bind
coverage on Its behalf. The certificates and endorsements are to be on forms provided by
the Town of Los Gatos. Where by statute, the Town of Los Gatos's workers' compensation -
related forms cannot be used, equivalent forms approved by the Insurance Cgmmissioner
are to. be substituted. All certificates and endorsements are to be received and approved
by the Town of Los Gatos before work commences. The Town of Los Gatos reserves the
right to require complete, certified copies of all required insurance policies, at any time.
G. SUBCONTRACTORS
Contractor shall include all subcontractors as Insureds under Its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverages for
subcontractors shall be subject to all of the requirements stated herein.
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