HomeMy WebLinkAboutOrdinances 1934 08/16/1993-_ ~~
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ORDINANCE NO. 1934 N.C.S.
Introduced by Seconded by
Jane Hamilton Bonnie Nelson
AN ORDINANCE AUTHORIZING LEASE OF REAL
PROPERTY LOCATED AT 27 HOWARD STREET,
PETALUMA, CALIk'ORNIA TO BURBANK HOUSING
DEVELOPMENT CORPORATION
AND AUTHORIZING THE CITY MANAGER TO SIGN SAID LEASE
WHEREAS, pursuant to Ordinance 1922 N.C.S. adopted May 3, 1993, the City
Council previously authorized entering into a lease for this property with CPC Redwoods
Hospital, which lease has not been possible to execute; therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
35 Section 1. The real property located at 27 Howard Street, Petaluma, California is
36 hereby authorized to be leased to Burbank Housing Development Corporation as a
37 residential rental unit as outlined under the terms and conditions set forth in the
38 agreement entitled "Lease Agreement" attached hereto as Exhibit A and incorporated
39 herein by reference. The City Manager is authorized to sign the lease.
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41 Section 2. The City Clerk be, and she is hereby directed to publish/post this
42 ordinance for the period and in the manner required by the City Charter.
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44 Section 3. If any section, subsection, sentence, clause or phrase or word of this
45 ordinance is for any reason held to be unconstitutional by a court of competent jurisdiction,
46 such decision shall not affect the validity of the remaining portions of this ordinance. The
47 City Council of the City of Petaluma hereby declares that it would have passed and
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Ord. 1934 NCS
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adopted this ordinance and each and all provisions thereof irrespective of the fact that any
one or more of said provisions be declared unconstitutional.
INTRODUCED and ordered posted/~~l~h~~ this 2nd day of August ,
1993.
ADOPTED this 16th day of August , 1993 by the following vote:
AYES: Nelson, Shea, Vice Mayor Read, Mayor u;"~~^°°
NOES: None
ABSENT: Sobel, Hamilton ABSTAI]
ATTEST
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APPROVED AS TO FORM:
City ttorney
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Ord. 1934 NCS
EI~H~IB~IT A
LEASE AGItEEMEN'T
27 ~Ioward Street
Petaluma, California
This lease is entered into this ~ ~D day of u~~ , 1993, by and between the
City of Petaluma, hereinafter referred to as "City" and Burbank Housing Development Corporation,
hereinafter referred to as "Burbank".
WITNESSETH
WHEREAS,, the City desires to utilize aCity-owned building which is known as 27 Howard Street
as a residential rental property; and
WHEREAS, Burbank has a Property Management Division with the expertise to sub-lease and
operate the premises as a residential rental property;
NOW, THEREFORE, in consideration of the promises and mutual covenants contained in this
agreement, the- parties hereby agree as follows.
CONDITIONS:
1. TERM: The term of this Lease Agreement shall be for two (2) years commencing on
August 2, 1993 unless terminated as provided herein. This Lease Agreement is terminable
by mutual written consent of the. City and Burbank, by either party giving the other party
sixty (60) days'' written notice of such termination by certified or registered mail as provided
in Paragraph 13 of this Lease Agreement. Upon the termination of this lease, all alterations
and additions to the building or ,grounds shall remain the property of the City.
2. RENT: The rent payment required of Burbank for the .lease of this facility shall be a
minimum of $717.00 per month, payable on the first business day of each month upon rent-
up of the residence. It is understood by both parties to this lease that rent is due and payable
to the city by Burbank only when the residence has been sub-leased. It is further understood
that'while-Burbank shall. use due diligence to maintain consistent rent-up, Burbank shall not
be held liable for rent payments to the City when the residence is vacant.
In addition, Burbank may charge to the tenant an additional amount to be set aside in a
maintenance, operating, replacement and insurance reserve account to be spent at
Burbank's discretion as they deem necessary. At end of lease term, balance of the reserve
account shall be returned to the City of Petaluma.
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3. UTILITIES:. Payment of utilities and services shall be the responsibility of Burbank or its
sub-leasor, at Burbank's discretion.
4. USA: The premises shall be used as a rental residence for a qualified household. (For
purposes of this lease, a qualified household is defined as a family of at least four persons,
earning no more than 80°"0 of the median, adjusted annually by the Department of Housing
and Urban .Development, paying- 30% of their income on rent.) Burbank shall not change
the use. without the prior written consent of the City Manager..
5. ORDIiVANCES AND STATUTES: Burbank agrees to fully comply with all local, city,
state and federal laws, regulations and ordinances governing use of the premises.
6. ASSIGNMENT AND .SUBL,ETTING: This lease is designed with the intention of
Burbank subletting to suitable tenants selected by its. Property Management Division, as set
out in Paragraph 4. Burbank will utilize its standard form of sublease.
7. MAINTENANCE. REPAIl2S OR ALTERATIONS: Burbank accepts the residence to sub-
lease "as is." No other equipment, furnishings or .rehabilitation of the premises will be
provided by City. Burbank or sub-leasor shall at all 'times maintain the premises in a
habitable condition and in a clean and sanitary manner including all equipment, appliances,
and furnishings therein and shall surrender the same at termination hereof in as good
condition as received, normal wear and tear excepted.. Burbank (or sub-leasor) shall not
make any substantial alterations, install any fixtures, or make any additions or improvements
to the premises without prior written consent of City, and. appropriate permits as necessary.
8. ENTRY AND INSPECTION:.Burbank (and sub-lessor) shall permit City, its agents and/or
employees to enter the premises at reasonable Times and upon reasonable notice for the
purpose of making necessary or convenient repairs,: or to inspect the premises for
compliance with the terms of this agreement.
9. INDEMNIFICATION: Burbank shall indemnify, save, hold harmless and defend the City,
its officers, employees, and agents from and against all losses and all claims, demands, suits,
actions, payments, and judgments, including attorney's. fees and expert witness fees, arising
out of or in connection with Burbank's operation and/or use of the premises.
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City shall indemnify, save, hold harmless and defend Burbank, its officers, employees, and
agents from and against all losses and all claims, demands, suits, actions, payments, and
judgments, including attorney's fees and expert witness fees, arising out of or in connection
with the City's operation and/or use of the premises.
10. INSURANCE. Burbank, a nonprofit corporation, has maintained and shall continue to
maintain appropriate insurance coverage with the City of Petaluma. For purposes of this
specific residential rental unit, Burbank shall arrange for the property to be insured against
loss by fire and such other hazards, casualties, liabilities and contingencies and in such
amounts and for such periods as required under this lease agreement. Property insurance
policies shall name the City of Petaluma as an additional.named insured.
11. LITIGATION: In the event either party hereto shall commence any legal action arising out
of this agreement or the .performance thereof, the party prevailing in said action or
proceeding shall be entitled to recover, in addition to its court costs, reasonable attorney's
fees to be fixed by the Court.
12. I~ESTRUC'I ION: I~ during the term, the prenuses or ttze building and other improvements
in which the premises are located are totally or partially destroyed from any cause, rendering
the premises totally or partially inaccessible or unusable,. City may restore the premises or
the building and other improvements in which the premises are located to substantially the
same condition as they were in before destruction, if the restoration can be made under the
existing laws and can be completed within one hundred eighty (180) working days after the
date of destruction. Such destruction shall not terminate this lease.
If the restoration cannot be made in the time stated in this paragraph, then within thirty (30)
days after the parties. determine that the restoration cannot be made in the time stated in
this paragraph,, Burbank can terminate this lease immediately by giving notice to the City. If
Burbank fails to terminate this lease and if restoration is permitted under existing laws, City
at its election. can either terminate this lease or restore the premises or the building and
other- improvements in which the premises are located within a reasonable time and this
lease shall continue in full force and effect. If the existing laws do not permit the restoration,
either party can terminate this lease immediately by giving notice to the other party.
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13. .Notice. All notices required or permitted by this agreement, including notice of change of
address, shall be in writing and given by personal delivery or sent by United States mail,
postage prepaid, and addressed to the parties intended to be notified. Notice shall be
deemed to be given as of the date of delivery in person or as of the date when deposited in
any post office or any post office box regularly maintained by the United States Government.
Notice shall be given as follows:
City: City Clerk
City of Petaluma
Post Office 'Box 6.1
Petaluma, California 94953
Burbank: Executive Director
Burbank Housing Development Co.
3432 A. Mendocino, Ave:
Santa Rosa, California 95403
14. ODtlon to Extend Term. Burbank is given the option to extend the term on all the provisions
contained in this lease for a two (2) year period ("extended term") following expiration of the
initial term, by giving notice of exercise of the option ('option notice") to City at least four
(4) months but not more than one (1) year before the expiration of the term. Provided that,
if Burbank is in default on the date of giving the option notice, the option notice shall be
totally ineffective, or if Burbank is in default on the date the extended term is to commence,
the extended term shall not commence and this lease shall expire at the end of the initial
term.
This agreement constitutes the entire understanding between the parties hereto. as of its effective
date.
IN WITNESS WHEREOF, the parties have executed this agreement as of the day and year first
above written.
CITY OF ALi7MA BURBANK HO G DEV ORP.
By By
City anager ld ternberg
Executive Director
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ATTEST:
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FORM:
APPROVED: ' '~-~
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Department Head
APPROVED:
Ri Manager
APPROVED:
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Finance'Officer
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