2014/06/24 City Council Resolution 2014-068RESOLUTION NO. 2014 -068
A RESOLUTION APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF
ROHNERT PARK AND THE SENIORS' CRAFT SHOPPE FOR USE OF ROOM
SPACE AT THE ROHNERT PARK SENIOR CENTER
WHEREAS, a portion of the building located at 6800 Hunter Drive, Suite A, which
hereinafter shall be referred to as the Rohnert Park Senior Center, continues to be used by the
City of Rohnert Park as a Senior Center, and
WHEREAS, the Seniors' Craft Shoppe has previously leased space in the Rohnert Park
Senior Center for use to store, display, and sell crafts, and
WHEREAS, the design of the Rohnert Park Senior Center incorporated space for the
operation of a craft shoppe.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Rohnert Park City
Council that that certain Lease Agreement entitled "Rohnert Park Senior Center Space
Lease /Rental, Seniors' Craft Shoppe" for space rental at the Rohnert Park Senior Center, dated
July 1, 2014, by and between the City of Rohnert Park and the Seniors' Craft Shoppe, in
substantially similar form to Exhibit A, which is attached hereto and incorporated by this
reference ( "Lease "), is hereby ratified and approved and the City Manager is hereby authorized
to execute the Lease as well as subsequent extensions of the Lease, subject to minor modification
by the City Attorney.
DULY AND REGULARLY ADOPTED by the Rohnert Park City Council this 24th
day of June, 2014.
C Y OF ROH �P RK
'— Jose*iCal Iin an, Mayor
ATTEST:
Jo nne Buergler, City Clerk
Attachment: Exhibit A — lease
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LEASE AGREEMENT BETWEEN THE CITY OF ROHNERT PARK AND THE
SENIORS' CRAFT SHOPPE FOR USE OF ROOM SPACE
AT THE ROHNERT PARK SENIOR CENTER
Date and Parties
This LEASE AGREEMENT, ( "LEASE "), effective this first day of July 1, 2014 ( "Effective
Date "), between the City of Rohnert Park, a municipal corporation, ( "Landlord" or "City "), and
the Seniors' Craft Shoppe, a California non -profit corporation ( "Tenant ").
2. Leased Premises
City hereby leases to Tenant, and Tenant leases from City, for the Term (defined below) for the
Rent (defined below) and upon the conditions set forth herein, those certain premises situated in
the City of Rohnert Park, County of Sonoma, State of California, more particularly described as
follows ( "Premises "):
A space containing approximately 485 square feet located at 6800 Hunter Drive, Suite A.
3. Covenants
It is mutually agreed this Lease is upon and subject to the following terms, covenants, and
conditions and the Tenant covenants as a material part of the consideration for this lease, to keep
and perform each and all of said terms, covenants, and conditions, and this Lease is made upon
the condition of such performance.
4. Use
The Premises are to be used for the storage, display, and consignment sales of crafts on such
days and at such times as correspond to the regular operating days and hours, or portion thereof,
of the Rohnert Park Senior Center, and for no other business or purpose, without the written
consent of the City.
Tenant shall not use the Premises or permit acts to be done on the Premises which would
increase the existing rate or cause the cancellation of any existing insurance coverage for the
Premises or the building thereon, or any part thereof. Tenant shall not sell or permit to be kept,
used, or sold, in or about the Premises, any item which would be prohibited by the standard form
of fire insurance policies.
Term
The term ( "Term ") of this Lease shall be three (3) successive one (1) year terms, commencing on
the Effective Date and automatically renewing each year. The Lease shall terminate on
December 30, 2017, unless: (i) either party elects to terminate this Lease earlier by providing
ninety (90) days prior written notice of termination to the non -
terminating party, or (ii) in the event City terminates this Lease due to a default by Tenant in
accordance with Section 16. This lease may be modified by mutual written consent of Senior's
Craft Shoppe and City Manager of the City.
Rental
Tenant shall pay City, no later than the 15th day of each calendar month during the Term
beginning July 15, 2014, at the office of the City or such other place designated by the City,
without any prior demand therefore, and without any deduction or set -off whatsoever, as
monthly rental for the Premises, ten percent (10 %) of total gross revenues from all sales made by
Tenant during the previous calendar month ( "Rent ").
7. Report of Gross Consignment Sales Revenues
Tenant agrees to submit to the City by the 15th day of each calendar month beginning July 15,
2014 at the office of the City or such other place designated by the City, a financial report of
gross sales revenues received by Tenant during the previous calendar month. Tenant shall
maintain and preserve at the Premises, for at least one year, its books and records which support
or contain information used in connection with Tenant's preparation of the financial reports
described in this Section 7. From time to time, City shall have the right during business hours to
make any examination or audit of such books and records. If any such audit discloses that the
actual gross sales revenues by Tenant was underreported by more than five percent (5 %), Tenant
shall pay the reasonable costs of such audit and examination.
8. Indemnification of the City of Rohnert
To the full extent pennitted by law, Tenant shall indemnify, hold harmless, release and defend (with
counsel acceptable to City) City and its officials, employees, volunteers and agents from and
against any and all actions, claims, demands, damages, disability, losses, expenses including
attorney's fees and other defense costs and liabilities of any nature that may be asserted by any
person or entity including Tenant, arising out of or connected with the conduct or management of
the business conducted by Tenant on or about the Premises, or the occupancy or use by Tenant of
the Premises or any party thereof, or from any breach or default on the part of Tenant in the
performance of any covenant or agreement on the part of Tenant to be performed pursuant to this
Lease or from any acts or omissions of Tenant or any person on or about the Premises by license or
invitation of Tenant or occupying the Premises or any part thereof under Tenant, excepting damage
caused by the sole negligence or willful misconduct of City. This indemnification obligation is not
limited in any way by any limitation on the amount or type of damages or compensation payable by
or for Tenant under Worker's Compensation, disability or other employee benefit acts, or the terms,
applicability or limitations of any insurance held or provided by Tenant. Tenant's indemnification
obligations under this Section 8 shall survive the termination of this Agreement.
9. Insurance Requirement
Lessee 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
Lessee's operation and use of the leased premises. The cost of such insurance shall be born by
the Lessee.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
A. Insurance Services Office Commercial General Liability coverage ( "occurrence"
form CG 0001).
B. Workers' Compensation insurance as required by the State of California and
Employer's Liability insurance (for lessees with employees).
C. Property, insurance against all risks of loss to any tenant improvements or
betterments.
Minimum Limits of Insurance
Lessee shall maintain limits no less than:
A. General Liability: $1,000,000 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.
B. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
C. Property Insurance: Full replacement cost with no coinsurance penalty provision.
Deductibles and Self- Insured Retentions
Any deductibles or self - insured retentions must be declared to and approved by the City. At the
option of the City, either: the insurer shall reduce or eliminate such deductibles or self - insured
retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee
shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and
related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
A. The City, its officers, officials, employees and volunteers are to be covered as
insured's with respect to liability arising out of ownership, maintenance or use of that
part of the premises leased to the lessee.
B. The Lessee's insurance coverage shall be primary insurance as respects the City, its
officers, officials, employees and volunteers. Any insurance or self - insurance
maintained by the City, its officers, officials, or volunteers shall be excess of the
Lessee's insurance and shall not contribute with it.
C. Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be canceled by either party, except after thirty (30) days' prior written notice
by certified mail, return receipt requested, has been given the City.
Lessee shall furnish the city with original certificates and amendatory endorsements affecting
coverage required by this clause. The endorsements must be on forms provided by the city. All
certificates and endorsements are to be received and approved by the city before work
commences. The city reserves the right to require complete, certified copies of all required
insurance policies, including endorsements affecting the coverage required by these
specifications at any time.
10. Waiver of Loss
The City and its officials, employees, volunteers and agents will not be liable and /or held
responsible for the loss of or damage to any items displayed or stored by Tenant in the Premises due
to theft, fire, flood, earthquake or otherwise. Any such losses are the sole responsibility of the
Tenant. All property of Tenant kept or stored on or in the Premises shall be kept or stored at the
sole risk of Tenant and Tenant shall hold City harmless from any claims arising out of damages to
the same, including subrogation claims by Tenant's insurance carriers.
11. Statement Regarding Possessory Interest Tax
This Lease creates a possessory property interest in Tenant. Tenant's property interest may be
subject to property taxation, and Tenant and /or any other party in whom possessory interest is
vested may be subject to the payment of property taxes levied on such possessory property
interest.
12. Utility Charges
So long as Tenant is not in default under this Lease, City will pay reasonable charges for heat,
water, sewer, gas, electricity, garbage service, and janitorial service for the Premises.
13. Advertising / Publicity
Tenant, at its sole cost and expense, shall pay for and be solely responsible for all advertising or
publicity incidental to its operations.
14. Assignment and Subletting
Tenant acknowledges that it has entered into this Lease in order to acquire the Premises for its
own personal use and has not entered into this Lease for the purpose of obtaining the right to
convey the leasehold to others.
Tenant will not assign or encumber the Lease in whole or in part, nor sublease all or any part of
the Premises or allow any other person or entity to occupy all or any part of the Premises,
without the prior written consent of the City.
15. Waste, Nuisance, Additions and Alterations
Tenant will not commit, or cause to be committed, any waste upon the Premises, or any public or
private nuisance, or other act or thing which may disturb the quiet enjoyment of the City, the
public, or any other tenant in the building in which the Premises is located. Tenant will not
make, or cause to be made, any alterations, decorations, additions, improvements, or fixtures to
the Premises for any reason whatsoever, including the purposes of advertising or publicity,
without the prior written consent of the City. Upon the termination of this Lease, all such
alterations, decorations, additions, improvements and fixtures, and any personal property left on
the Premises shall become the property of the City without compensation to the Tenant;
provided, however, that City shall have the option to require Tenant, at Tenant's sole cost and
expense, to remove said items and repair any damage thereby caused to the Premises.
16. Governmental Regulations
Tenant shall, in Tenant's use of the Premises and at its sole cost and expense, comply with all the
requirements of county, municipal, state and federal laws applicable to this Lease and Tenant's
use of the Premises and any and all other applicable laws from governmental authorities now in
force, or which may hereafter be in force.
17. Default of Tenant
In the event of any failure of the Tenant to: (i) pay when due any rental or other payment
obligation hereunder, or, (ii) perform any other of the terms, conditions or covenants of this
Lease to be observed or performed by the Tenant, Tenant shall be deemed to be in default of this
Lease. If such default continues for thirty (30) days after written notice from City to Tenant
specifying the default, City, in addition to all other rights or remedies City may have hereunder
or by law or in equity, shall have the sole option to terminate this Lease to be effective
immediately upon notice to Tenant.
18. Entry and Inspection
Tenant will permit the City and its agents to enter into and upon the Premises at all reasonable
times for the purpose of inspecting same, making alterations or additions to the Premises or to
any other portion of the building in which the Premises are situated, or to clean and maintain the
Premises or any other portion of the building in which the Premises are situated, without any
rebate or rent to the Tenant for any loss of occupancy or quiet enjoyment of the Premises, or
damage, injury or inconvenience thereby occasioned. The City will permit the Tenant and its
agents access through common areas and other portions of the building in which the Premises are
situated at all reasonable times.
18. Notice.
Notice is considered given either (1) when delivered in person to the recipient named as below,
or (2) two days after deposit in the United States mail in a sealed envelope or container, either
registered or certified mail, return receipt requested, postage and postal charges prepaid, or (3)
the next business day if sent by nationally recognized courier service addressed by name and
address to the party or person intended as follows:
To Landlord: City of Rohnert Park
City Manager
130 Avram Ave.
Rohnert Park, CA 94928
To Tenant: Eileen Paul
6800 Hunter Dr.
Suite A
Rohnert Park, CA 94928
19. Miscellaneous.
19.1 Time of Essence. Time is of the essence of this Lease.
19.2 Attorneys' Fees. In any action or proceeding which either party brings against the other
to enforce its rights hereunder, the unsuccessful party shall pay all costs incurred by the
prevailing party, including reasonable attorneys' fees, which amounts shall be a part of the
judgment in said action or proceeding.
19.3 Severability. If any provision of this Lease or the application of any such provision shall
be held by a court of competent jurisdiction to be invalid, void or unenforceable to any extent,
the remaining provisions of this Lease and the application thereof shall remain in full force and
effect and shall not be affected, impaired or invalidated.
19.4 Law. This Lease shall be construed and enforced in accordance with the laws of the state
of California, without reference to its choice of law provisions.
19.5 No Option. Submission of this Lease to Tenant for examination or negotiation does not
constitute an option to lease, offer to lease or a reservation of, or option for, the Premises; and
this document shall become effective and binding only upon the execution and delivery hereof
by City and Tenant.
19.6 Third Party Beneficiaries. Nothing herein is intended to create any third party benefit.
19.7 Headings. Section headings have been inserted solely as a matter of convenience and are
not intended to define or limit the scope of any of the provisions contained therein.
19.8 Prior Agreements. This Lease contains all agreements of the parties with respect to the
use of the Premises by Tenant as of the Effective Date. No provision of any prior agreement or
understanding, oral or written, specifically pertaining thereto shall be effective.
19.9 Severability. The invalidity of any provision of this Lease as determined by a court of
competent jurisdiction, shall in no way affect the validity of any other provision hereof.
19.10 Authorship; Amendments. This Lease is a jointly negotiated work product and
authorship shall not be ascribed to any particular party. This Lease may be modified in writing
only, signed by the parties in interest at the time of the modification.
19.11 Waivers. No waiver of any provision hereof shall be deemed a waiver of any other
provision hereof or of any subsequent breach of the same or any other provision. The acceptance
of Rent by City shall not be a waiver of any preceding breach by Tenant of any provision hereof.
19.13 Counterparts. This Lease may be executed (whether simultaneously or on separate
counterpart pages) in more than one counterpart, each of which shall be deemed to be an
original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, City and Tenant have hereunto and to a duplicate hereof, set their
respective hands and seals, the day and year first written above written.
CITY OF ROHNERT PARK SENIORS' CRAFT SHOPPE
a municipal corporation a California non -profit corporation
City Manager
Signature provisions (City approval required)
ATTEST:
Deputy City Clerk
APPROVED AS TO FORM:
City Attorney
Manager