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Item 28Agenda Item No. Staff Report TO: Mayor and City Council Members FROM: Chief of Police DATE: September 6, 2016 SUBJECT: Fairway Canyon Lease Agreement for Police Department Satellite Office Background and Analysis: The Beaumont Police Department is requesting to enter into a partnership with the Fairway Canyon Community Association that would allow the police department to lease an approximately 8 square foot office for an annual lease fee of one dollar. The police department approached the Fairway Canyon Community Association management and board with a proposal to lease a small area of their clubhouse board room for the purpose of a report writing office for police officers assigned to the west end of the City. The purpose of the report writing room is to increase the police presence in the west end of the city and to reduce response times to the same by having an officer complete report writing and follow-up tasks from this office and not driving back to the police station in downtown when it can be avoided. The Fairway Canyon Board has approved this proposal and both sides have worked to an agreeable lease agreement which is attached to this staff report. The police department will not staff the satellite office, no services will be offered from this location and the building will not be marked as a police satellite office. The police department remains committed to building strategic partnerships with community stakeholders to enhance public safety services. Fiscal Impact: The fiscal impact of this lease agreement is $1.00 and can be absorbed in the police department's current FY 2016/2017 budget. Finance Director Re c�)���� Recommendation: 1. Approve the lease agreement between the Beaumont Police Department and the Fairway Canyon Community Association. City Manager Review: LEASE AGREEMENT (Fairway Canyon Police Satellite Office) This Lease Agreement ("Lease") is entered into as of July 2016 between the Fairway Canyon Community Association, a California nonprofit corporation ("LANDLORD"), and City of Beaumont, a California general law city ("CITY"). For purposes of this Agreement, LANDLORD and CITY may collectively be referred to as the "Parties" or individually as a "Party." RECITALS WHEREAS, LANDLORD is the owner of a certain building located in the City of Beaumont, Riverside County, California, at 36189 Champions Drive, Beaumont, California ("Premises"). The Premises are located in the western side of the City; and WHEREAS, the Beaumont Police Department ("Department") has its main office in the eastern side of the City; and WHEREAS, the Department is interested in having a satellite office in the western side of the City so that police officers and staff working in the vicinity will have an off-site location at which to perform administrative duties that are part of their employment; and WHEREAS, having a satellite office in the western side of the City will likely improve police response time and presence in the western side of the City which will benefit all residents of the City; and WHEREAS, LANDLORD has an approximately 9'x9' space in the northeastern corner of the boardroom in the Premises, which is enclosed by two (2) partition walls, two (2) structural walls, and a locked entry door, available for rent as further described in the diagram attached hereto as Exhibit "A" and incorporated herein by this reference ("Leased Premises"); and WHEREAS, LANDLORD desires to lease to CITY and CITY desires to lease from LANDLORD the Leased Premises described herein as a "Satellite Office" for use by the Department on the terms and conditions set forth in this Lease. NOW, THEREFORE, in consideration of the mutual covenants contained herein, LANDLORD and CITY hereby agree as follows: 1. Lease. LANDLORD leases to CITY and CITY leases from LANDLORD the Leased Premises on the terms and conditions set forth in this Lease. 2. Term of Lease. The term of the Lease shall be a period of three (3) years ("Term") and shall commence on September , 2016 (the "Commencement Date") and end on 1 September , 2019. The Parties agree that the Lease may be terminated without cause by either Party upon thirty (30) days written notice. 3. Delay in Possession. a. Except as set forth in Section 3.b., if for any reason LANDLORD fails to deliver or offer to deliver physical possession of the Leased Premises to CITY on or before the Commencement Date, this Lease shall not be void or voidable, nor shall LANDLORD be liable to CITY for any loss or damage resulting from the failure to deliver possession, so long as LANDLORD has exercised, and continues to exercise, reasonable diligence to deliver possession; provided, however, that rent shall be abated until LANDLORD delivers physical possession of the Premises to CITY. The Term shall not be extended by LANDLORD's failure to deliver possession of the Premises to CITY on the Commencement Date. b. Notwithstanding Section 3.a., if for any reason LANDLORD fails to deliver or offer to deliver physical possession of the Premises to CITY by the Commencement Date, CITY may terminate this Lease by giving LANDLORD written notice of CITY's election, in which case, this Lease shall be void and neither Party shall have any further obligation or liability to the other, and LANDLORD shall return to CITY any consideration given pursuant to this Lease. 4. Annual Rent. Commencing on the Commencement Date, the annual rental shall be One Dollar ($1.00) ("Annual Rent"). The Annual Rent shall be payable in advance on the first day of each year at the address that LANDLORD may from time to time designate by written notice to CITY as set forth in Section 22.a. below. 5. Use. CITY shall use the Leased Premises only for the purpose of office and administrative space by the Police Department staff. CITY shall have sole and exclusive use of the Leased Premises. 6. Utilities. During the Term, LANDLORD shall provide electricity and trash disposal to the Leased Premises. In the event LANDLORD determines the electricity use of the Leased Premises has resulted in an increased electric bill to LANDLORD related to the Leased Premises when compared to the prior calendar year, LANDLORD shall have the right, but not the obligation, to seek reimbursement from CITY for increased electricity costs related to CITY's use of the Leased Premises. CITY shall have access to the Premises' common areas including, but not limited to, the bathroom facilities. CITY shall supply telephone and internet service to the Leased Premises. 7. Pte. CITY shall have the right to up to one (1) dedicated parking spot for a patrol and/or a personal vehicle in a location designated by LANDLORD. All parking spaces are included within the Leased Premises at no additional cost to CITY. 8. Maintenance. All exterior, interior and roof maintenance, including, but not limited to leak damage, if any, shall be the responsibility of LANDLORD, unless such 2 damage was caused by the wrongful or negligent acts of CITY or its employees, agents or invitees. LANDLORD is also responsible for the structural condition of the Leased Premises and the condition of the parking surfaces and agrees that the Leased Premises will always be maintained in the good working order and condition. LANDLORD will also maintain all fixtures, doors, and gates in good working condition. CITY shall repair and maintain the Leased Premises in good working condition, except for such portions of the Leased Premises which are LANDLORD's responsibility as described above. 9. Maintenance - Non Performance. In the event LANDLORD neglects, fails or refuses to maintain the portion of the Leased Premises which LANDLORD is obligated to maintain as stated herein within thirty (30) days after written notice by CITY, CITY may, at CITY's sole option, cure any such default by performance of any act, including payment of money. LANDLORD shall reimburse CITY the reasonable costs incurred by CITY in performing the obligation LANDLORD failed to perform, expressly excluding any 10. Administrative Fee, Mark-Up or Profit. Notwithstanding the foregoing, CITY shall not exercise the right to perform LANDLORD's obligations as long as LANDLORD has commenced the maintenance of the Leased Premises and is diligently pursuing such maintenance to completion. If the repair to be performed by CITY relates to the roof of the Leased Premises, then CITY shall only use LANDLORD's designated roof contractor. CITY shall perform any such work using only licensed contractors and otherwise in a manner so as to not void LANDLORD's roof warranty. 11. Liability. LANDLORD, its officers, managers, employees, agents and authorized volunteers and their affiliates, successor and assigns shall be free from any and all liabilities, losses, costs, damages, and claims of any kind for loss or damage to property of CITY or any other person, including, without limitation, any invitee or guest of CITY, or for any injury to or death of any person, arising out of or resulting from: (1) CITY's use and occupancy of the Leased Premises, or any work, activity or other things allowed or suffered by CITY to be done in, on or about the Leased Premises; any breach or default by CITY of any of CITY's obligations under this Lease; or any act or omission of CITY, its officers, officials, employees, agents, invitees or contractors. Except to the extent arising out of or resulting from the negligence or willful misconduct of CITY or any of CITY's contractors, agents, employees or guests, CITY, its officers, officials, employees, agents and authorized volunteers shall be free from any and all liability and claims of any kind for loss or damage to property of LANDLORD or any other person, or for any injury to or death of any person, arising out of: (1) LANDLORD or any other lessee's use and occupancy of the Leased Premises, maintenance or repair of the common areas of the Property, or any work, activity or other things allowed or suffered by LANDLORD or any other CITY to be done in, on or about the Leased Premises or the common areas of the Property; (2) any breach or default by LANDLORD of any of LANDLORD's obligations under this Lease; (3) any negligent act or omission of LANDLORD, its partners, officers, directors, employees, agents, invitees or contractors and any other CITY, its officers, directors, employees, agents, employees, invitees or 3 contractors; or structural failures of walls, roof and floor. The Parties acknowledge that as between LANDLORD and CITY, each is responsible for the negligence of its own officers, officials, partners, directors, employees, agents, invitees and contractors. Notwithstanding any contrary provision contained herein, neither Party shall be liable to the other for incident, exemplary or consequential damages, however occurring, including, without limitation, loss of income, loss of use, loss of opportunity or loss of goodwill, loss of data, or loss due to interruption of service. No officer, director, manager, shareholder, contractor, agent or employee shall be personally liable for LANDLORD's obligations under this Lease. This Section 10 shall survive termination or expiration of this Lease. 12. Surrender of Possession. It is mutually understood that upon any termination of the Lease, CITY will surrender the Leased Premises to LANDLORD in as good order and condition as when received, except for reasonable wear and tear and any maintenance or repair that is the express obligation of LANDLORD pursuant to any of the provisions hereof. Any needed repairs will be completed within fifteen (15) days of termination, subject to extension as may be reasonably necessary to complete such work. If any needed repairs that are the express obligation of CITY hereunder are not completed within fifteen (15) days, or such other reasonable period if cannot be completed within such duration, LANDLORD may take action needed to make said repairs and CITY agrees to pay the cost for those repairs within thirty (30) days of receipt of invoice by LANDLORD. 12. Fixtures. It is further mutually understood and agreed that any equipment fixtures or apparatus installed in or on the Leased Premises by CITY, as permitted herein, shall continue to be the property of CITY, and shall be removed by CITY without recourse at the expiration of this Lease; provided, however, CITY shall, at its cost, repair any damage to the Leased Premises or Property caused by such removal. Said fixtures include communications and computer equipment, security systems, office furniture, shelving and cabinets. CITY shall be solely responsible for all maintenance and repairs of its furniture, fixtures, shelving, security systems, cabinets and computer and communications equipment. CITY is solely responsible for the installation and cost of all IT equipment, cabling, phone/data, security system, and all furniture. 13. Right of Entry. LANDLORD or its representative, upon providing reasonable advance notice of no less than twenty-four (24) hours to CITY, and subject to CITY's right to accompany LANDLORD, may enter the Leased Premises during business hours at any time during the Term of this Lease to protect, inspect, exercise or investigate any rights of LANDLORD herein reserved. Subject to the foregoing, LANDLORD may enter the Leased Premises for the purpose of making any alteration, repair or improvement to said building, or the Leased Premises, when it deems convenient for the maintenance or preservation thereof provided always that the normal business of CITY or its invitees 4 shall not be unnecessarily inconvenienced. 14. Assignment. CITY shall not assign this Lease without LANDLORD's prior written consent. 15. Quiet Conduct and Possession. So long as CITY is not in default under this Lease, LANDLORD shall not intentionally commit, or suffer to be committed, any nuisance, or intentionally do any other act or thing which may or does disturb the quiet enjoyment of CITY of its occupancy of the Leased Premises. 16. Condemnation. In the event that at any time during the Term of this Lease, the Leased Premises or any part thereof shall be taken by eminent domain or condemnation by any public or quasi public authority (or in the event a voluntary conveyance is made by LANDLORD to such public or quasi public authority by reason of or by threat or imminence of the exercise of said power of eminent domain or condemnation by said authority), CITY's right of possession shall terminate as of the date of taking and rent and other charges provided for in this Lease shall be adjusted as of said date. The entire damage award of the condemnation proceedings shall be paid to LANDLORD. 17. Damage or Destruction. If the Leased Premises are damaged by fire, the elements, unavoidable accident, or other casualty, but is not thereby rendered untenantable in whole or in part, LANDLORD shall, at LANDLORD's own expense and within thirty (30) days of CITY's written notification to LANDLORD of the damage (or as soon as reasonably practicable thereafter), cause such damage to be repaired, but only to the extent on insurance proceeds received by LANDLORD, and the Rent shall not be abated. Repairs shall be done in a manner such that CITY has full use of the Tenant Improvements. If the repairs are insufficient for full use of the Tenant Improvements, CITY may at its election terminate this Lease. 18. Taxes and Insurance. LANDLORD shall pay all real estate taxes, bonds and assessments when due on the Leased Premises and will maintain property and hazard insurance on the Leased Premises. CITY, its officials, officers, employees, agents or authorized volunteers shall not be liable to LANDLORD or its insurer for any damage caused by fire or any of the risks insured against under the property and hazard insurance, unless such fire or other damage is caused by CITY, its officials, officers, employees, agents, or authorized volunteers. Nothing herein is intended to require CITY to maintain property and hazard insurance covering the Leased Premises for whatever cause; provided, however, CITY shall maintain a commercial general liability insurance (either through a third party or a self-insurance program) providing coverage of not less than $2,000,000 per occurrence and $3,000,000 in the annual aggregate and CITY's insurance (either through a third party or a self-insurance program) providing coverage of the full value of CITY's property. 19. Default. If either Party defaults in the performance of any condition or covenant in this Lease, the other Party, at its option, may terminate this Lease, but only if the defaulting Party fails to rectify said default within thirty (30) days (except for E nonpayment of rent, which shall be ten (10) days) after written notice thereof is served upon the defaulting Party by the other Party. In the event, however, that any default (except nonpayment of rent) complained of hereunder is of such nature that the same cannot be rectified in such thirty (30) day period as aforesaid, then such default shall be deemed to be rectified if the defaulting Party shall have commenced the compliance of the provisions hereof breached by it and in the performance of which it is claimed to be in default within such thirty (30) day period and shall with all diligence prosecute work or perform the particular provisions until the same shall have been fully rectified or performed. 20. Miscellaneous. a. Notices. Any notice, payment, statement, or demand required or permitted to be given hereunder by either Party to the other shall be effected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the Parties at the addresses appearing below but each Party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three (3) days after mailing. LANDLORD'S Notice Address: Fairway Canyon Community Association 36189 Champions Drive Beaumont, CA 92223 Attn: Board President CITY'S Notice Address: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: City Manager b. Attorney Fees. In the event of a claim by either Party for breach of, or failure to perform, or any inaccuracy in, any of the representations, warranties, covenants, or agreements contained in this Lease, then in any action or proceeding the prevailing Party shall be entitled to be reimbursed for all costs, fees, and expenses incurred in connection with prosecuting or defending such claim, including reasonable attorneys' fees. C. Other Agreements S11erseded Waiver and Modification. This Lease constitutes the entire agreement between the Parties pertaining to the subject matter contained in and supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties. No supplement, modification, or amendment of this Lease shall be binding unless executed in writing by all of the Parties. No waiver of any condition or provision shall be enforceable unless made in writing. Nothing in this Lease 2 shall be construed to give any person or entity other than the Parties hereto any rights or remedies. d. Governing Law and Venue. This Lease shall be construed and interpreted in accordance with and governed and enforced in all respects by the laws of the State of California, except that this Lease shall be given a fair and reasonable construction in accordance with the intention of the Parties and without regard to, or aid of, Section 1654 of the California Civil Code. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Lease and rights and duties hereunder shall be Riverside County, California. C. Headings. The article and section headings throughout this Lease are provided for convenience only and the words contained therein shall in no way be held to expand, amplify, modify, or aid in the interpretation or construction thereof. f. Inco oration of Recitals. The Parties repeat and incorporate the recitals set forth above as if fully set forth herein. g. Successors and Assigns. This Lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, and successors of the Parties hereto, but no right or liability or obligation arising hereunder may be assigned by CITY absent LANDLORD's prior written consent. h. Compliance with Laws. As to the Leased Premises, CITY shall, at CITY's sole cost, comply with, and shall require compliance by all contractors and subcontractors, with all applicable local, state and federal laws and regulations applicable to CITY's use of the Leased Premises and any alterations performed by or on behalf of CITY. LANDLORD shall comply with all applicable local, state and federal laws and regulations applicable to LANDLORD's use of the common areas of the Property and repair work performed by LANDLORD at the Property. i. Subordination, Nondisturbance and Attornment. This Lease is subject and subordinate to all ground or underlying leases, mortgages and deeds of trust which affect the Property. If any future mortgagee or beneficiary requires this Lease be subordinate to its lien, this Lease shall be subordinate to that lien provided LANDLORD and any mortgagee or beneficiary enters into a Subordination, Nondisturbance and Attornment Agreement with CITY. j. Severability. In the event any of the provisions of this Lease shall be declared by a court to be void or unenforceable, then such provision shall be severed from this Lease without affecting the validity and enforceability of any of the other provisions hereof, and the Parties shall negotiate in good faith to replace such unenforceable or void provisions with a similar clause to achieve to the extent permitted under law, the purpose and intent of the provisions declared void and unenforceable. k. Authori . Each of the Parties represents and warrants to the other that this 7 Lease has been duly authorized by all necessary corporate or governmental action on the part of the representing Party and that this Agreement is fully binding on such Party. The City acknowledges and agrees that a public safety office is a permitted use in the applicable zone(s). [Signatures on the following page.] U Signature Page to LEASE AGREEMENT (Fairway Canyon Police Satellite Office) IN WITNESS WHEREOF, the Parties hereto have executed this Lease as of the day and year first above written. "LANDLORD" "CITY" FAIRWAY CANYON COMMUNITY CITY OF BEAUMONT ASSOCIATION By: Mark Swanson, Board President Mike Lara, Mayor ATTEST: Julio Martinez, City Clerk APPROVED AS TO FORM: By: John O. Pinkney, City Attorney 9 Exhibit "A" to LEASE AGREEMENT (Fairway Canyon Police Satellite Office) Exhibit "A" I