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HomeMy WebLinkAbout15. Approve Lease Agmt w-Downey City Employees Federal Credit Union0 • MAYOR AND MEMBERS • THE CITY COUN FROM: OFFICE • THE CITY MANAGER BY: VANIAH DE ROJAS, ASSISTANT TO THE CITY MANAGER DATE- JUNE 25, 2019 SUBJECT: LEASE AGREEMENT BETWEEN THE CITY •l • AND THE DOWNEY CITY EMPLOYEES FEDERAL CREDIT UNION That the City Council approve the attached Lease Agreement between t e ity o owney an the Downey City Employees Federal Credit Union. The City • i• entered into its first lease agreement with the Downey City Employees Federal Credit Union in 1993. (Prior to 1993, there was no lease agreement, and the credit union operated in City Hall based on providing positive employee relations.) The lease agreement was renewed in 2007, /1• and 2013. The 2013 agreement had two, • lease agreement extensions that were granted in 2015 and 2017. • notified the City • its desire to continue its lease with the City through June 30, 2021 Staff prepared a new lease agreement between the City of Downey and Downey City Employees • Credit Union. As in the past, the credit union will be required to pay for its phone and Internet service. CalCom has agreed to the lease rate increase, according to the April 2019 Federal Consumer Price Index. The credit union will pay $4,353.73 per year for the space they use in City Hall. Additionally, the new agreement increases the insurance liability limits to the City's current requirements. Fiscal Responsibility LEASE AGREEMENT BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES FEDERAL CREDIT UNION JUNE 25, 2019 PAGE 2 FISCAL IMPACT The adjusted lease rate will •- $4,353.73 forthe July 1, 2019 through June 30, 2021 termand the revenue will •- applied toward the annual costof City Hall maintenance and operations. ATTACHMENT Attachment A — Lease Agreement between The City Of Downey n T e Downey • • -- -• •n (Division Of CALCOM LEASE AGREEMENT BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES CREDIT UNION (DIVISION OF CALCOM This Lease Agreement ("Lease") is made and entered into on this 1st day of July 20191 by and between the City of Downey, a municipal corporation and charter city, hereinafter referred to as "Lessorand the Downey City Employees Credit Union (division of CalCom FCU)� a tax exempt non-profit pursuant to section 122 of the Federal Credit Union Act (12 US.C. §1768), hereinafter referred to as "LesseeLessor and Lessee are collectively referred to herein as the "parties", Lessor hereby leases to Lessee ' and Lessee takes and leases in an "as is" condition from Lessor, for the term and upon the covenants and conditions set forth herein, that certain 400 square foot office space located at 11111 Brookshire Avenue, Downey, California on the east end of the second floor of Downey ty Hall northerly of the Human Resources Department and southerly of the Training Room (the "Leased Premises") as more specifically described in Exhibit A for the purpose of operating a credit union banking center. 2. Use Lessee shall use the Leased Premises only to operate a cre it union an ing center. No other use shall be permitted on the Leased Premises. Lessee shall not sublease the Leased Premises without first receiving written permiss on rom Lessor. Any attempt to sublease the Leased Premises without the Lessor's consent shall be null and void, 3. Lease Term The term of this Lease shall be for two (2) years commencing on July 11 2019, and terminating on June 30, 2021. Lessee shall have the option to extend this Lease upon the same covenants and conditions for two (2) additional two-year periods upon serving notice to Lessor not less than sixty (60) days prior to the date of termination of this Lease or extended term of this Lease, whichever is applicable, provided that Lessee is not in default of any provision of this Lease. Lessor reserves the right to increase the rental rate and/or impose any additional terms to this Lease as a condition of any extension periods exercised by the Lessee under this Section. . MEEMUMM In the event that the extension or renewal of the Lease cannot be completed prior to the termination date of this Lease, but such extension is in process, Lessee may remain upon the Leased Premises at the then current year's rental rate until such extension or renewal of the Lease is concluded. 309M The annual rent shall $4,353.73 (Four Thousand, Three Hundred, Fifty hree Dollars and Seventy Three Cents) payable monthly at the rate of $362.81 (Three Hundred, Sixty Two Dollars and Eighty One Cents) each month on the first day of each month. In the event that the Lessee has not paid the rent by the tenth day of the month, a five percent (5%) late penalty will be charged. Lessee shall pay all possessory interest taxes if any such taxes are assessed, • Lessor shall pay for all utilities and janitorial service ' except for telephone an Internet service charges incurred on the Leased Premises, which costs shall b borne by Lessee, Lessee, at Lessee's sole expense, shall provide all supplies an equipment necessary for its intended use of the Leased Premises. I MMMM��� essee shall request Lessor's consent to install or make any improvements to the -eased Premises. All improvements and installation of improvements shall be at essee's expense. Lessee shall be responsible to maintain the Leased Premises .n good condition and repair any damage to the Leased Premises. Lessee shall defend (with counsel acceptable to Lessor)� indemnify an o Lessor, and Lessor's officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged negligent acts, errors, omissions or willful misconduct of Lessee, its officials, officers, employees, agents, consultants, contractors and subcontractors arising out of or in connection with Lessee's use of the Leased Premises. Lessee shall defend, at Lessee's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against Lessor, and Lessor's officials, officers, employees, agents or volunteers. Lessee shall pay and satisfy any judgment, award or decree that may be rendered against Lessee or Lessor's officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Lessee shall reimburse Lessor and Lessor's officials, officers, employees� agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. 11 Insurance a: Time for Compliance_ This Lease shall not commence until Lessee has provided evidence satisfactory to the Lessor that it has secured all insurance required under this section. Lessor reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience with insurer, coverage or other special circumstances. b. Minimum l e uirements. Lessee shall, at its expense, procure and maintain for the duration of this Lease insurance against claims for injuries to persons or damages to property which may arise from or in connection with this Lease. Such insurance shall meet at least the following minimum levels of coverage: C. Minimumw Scope of Insurance. (1) Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis including products and completed operations, property damage, bodily injury and personal and advertising injury; (2) Workers' Compensation Workers' Compensation insurance as required by the State of California with Statutory Limits; and (3) Employer's Liability Insurance. (i) Minimum Limits of Insurance. Lessee shall maintain limits no less than: (1) Commercial General Liability (CGL). No less than $2,000,000 per occurrence for products and completed operations, bodily injury, property damage and personal and advertising injury. If Commercial General Liability Insurance or other form with general aggregate limit applies, either the general aggregate limit shall apply separately to thisLease(ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit, (2) Workers' Compensation: Workers' Compensation limits as required by the Labor Code of the State of California with Statutory Limits; (3) Employer's Liability: Employer's Liability limits of no less than $2,000,000 per accident for bodily injury or disease. Employer's Liability coverage may be waived by Lessor if Lessor receives written verification that Lessee has no employees. If Lessee maintains broader coverage and/or higher limits than the minimum shown in this subdivision, Lessor requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Lessor. d. Insurance 'Ehd�q�nts. The insurance policies shall contain the following provisions-, or Lessee shall provide endorsements on forms approved by the Lessor to .•• the iollowing provisions ti the insurance policies: (i). Additional Insured Status. The Commercial General Liability policy shall be endorsed to state that: (1) the Lessor, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to liability arising from the Lease; and (2) the insurance coverage shall be primary insurance as respects the Lessor, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Lessee's scheduled underlying coverage. Commercial General Liability insurance coverage may be provided in the form of an endorsement to the Lessee's insurance (at lease as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33 or CG 20 38; and CG 20 37 forms if later revisions are used). e. Waiver`of Subrogation. Lessee hereby grants to Lessor a waiver of any right to subrogation which any insurer of said Lessee may acquire against the Lessor by virtue of the payment of any loss under said insurance policies set forth herein. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not Lessor has received a waiver of subrogation endorsement from the insurer. f. All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except with written notice by certified mail, return receipt requested to the Lessor; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to Lessor, its directors, officials, officers, employees, agents and volunteers. g. Primary Coverage. For any claims related to this Agreement, the Lessee's insurance coverage shall be primary insurance and primary coverage at least as broad as ISO CG 20 01 04 13 with respect to Lessor, its directors, officials, officers, employees, agents and volunteers. Any insurance or self-insurance maintained by Lessor, its directors, officials, officers, employees, agents and volunteers- shall be excess of the Lessee's insurance and shall not be called upon to contribute with it in any way. h. Separation of Insureds No Special, Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the Lessor, its directors officials, officers, employees, agents and volunteers. i. Deductibles and Self -Insurance Retentions. Any deductibles or self- insured retentions must be declared to and approved by Lessor. Lessor may require Lessee to provide proof of ability to pay losses and related investigations, claim administration and defense expenses and costs within the retention. The policy language shall provide or be endorsed to provide that the self-insured retention may be satisfied by either the named insured or Lessor. j'. Acceptabilityof Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VII,_ authorized to do business in California, and satisfactory to Lessor. k. Verification of Coverage Lessee shall furnish Lessor with original certificates of insurance, including all required amendatory endorsements (or copies of the applicable policy language effective coverage required by this provision) and a copy of the Declarations and Endorsement Page of the Commercial General Liability policy listing all policy endorsements to Lessor before the commencement o t e ease. However, failure to obtain the required documents prior to the commencement of the Lease shall not waive Lessee's obligation to provide them to Lessor. Lessor reserves the right to require complete, certified copies of all required insurance policies, including endorsements,time. I. Claims -Made Policies. If any of the policies provide coverage on a claims - made basis: (i) The retroactive date must be shown and must be before the date of this Lease; (ii) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the termination of the Lease; (iii) If coverage is canceled, non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Lease, the Lessee must purchase extended reporting coverage for a minimum of five (5) years after termination of the Lease. M. Safet- . Lessee shall use the Leased Premises so as to avoid injury or damage to any person or property. Lessee shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions ft - safety of employees appropriate • the nature of the work r the conditions underthe work is to •- performed on the Leased Premises, Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention f•, all employees• subcontractors,- walkways, scaffolds, protection l_ d bridges, gang planks, confined space procedures, - • and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent acci•- or injuries;• adequate facilities for the proper inspection and maintenance of all SafeLy I I 1Ud,-1U1 VS. 12. Lessee's Access The Lessees can only access the Leased Premises through Lessor's office space. Therefore, Lessee's Manager shall be furnished a key to the City Hall entrance so that the Manager may work in the Leased Premises before or after Lessor's normal business hours. 13. Defaults The occurrence of any of the following shall constitute a material default- and breach of this Lease by Lessee: a) If Lessee fails to pay the rentor make any other payment required to be paid by Lessee hereunder as, and when, due. b) If Lessee abandons or vacates the Leased Premises. c) If Lessee violates any other provision of this Lease.. In the event of any such default by Lessee, Lessor shall have the right to terminate this Lease and recover any unpaid rent and/or other costs incurred by Lessor due to Lessee's default. 15. Notices All notices, demands, consents or requests required under this Lease shall be in writing and shall be personally delivered. 11111 Brookshire Avenue Downey, California, 90241 Attn: President of Downey City Employees Credit Union (division of CalCom FCU) Notices to Lessor shall be delivered to: City of Downey 11111 Brookshire Avenue Downey, California, 90241 Attn- City Manager All notices shall be effective upon delivery. This Agreement shall be governed by the laws of the State of California and the venue of any action brought hereunder shall be exclusively in the County of Los Angeles. 1`7. Entire Agreement. This Lease is the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior- agreements between the parties with respect to the matter contained in this Lease. Any waiver, modification, consent or acquiescence with respect to any provision of this Lease shall beset forth in writing and duly executed by both parties. No waiver by any party or any breach hereunder shall be deemed a waiver of any other subsequent breach. This Lease shall be binding upon the assignees, transferees and successors in interest of each of the Parties hereto. 0 A 0 Neither party may assign, transfer, convey, pledge nor otherwise dispose of its rights or obligations hereunder, without prior written consent of the other party. Any attempt to assign, transfer, convey, pledge or dispose of the rights or obligations under this Lease without the consent of the other party shall be null and void. 20. Time of Essence. Time is of the essence for each and every provision of this Lease. If any portion of this Lease is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Each Party warrants that the individuals who have signed this Lease have the legal power, right, and authority to make this Agreement and bind each respective Party. IN WITNESS WHEREOF, this Lease has been duly authorized and executed by the parties hereto on the day and year first herein above written. CITY OF DOWNEY DOWNEY CITY EMPLOYEES CREDIT UNION (DIVISION OF CALCOM FCU) By: By: Gilbert A. Livas, City Manager Jon HerOndez,fPresi6Tf0 Maria Alicia Duarte, CMC City Clerk NT Abich Garcia, City Attorney Downey City Hall Second Floor Plan