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HomeMy WebLinkAbout6/20/2001 - STAFF REPORTS (8) DATE: June 20, 2001 TO: City Council FROM: Assistant City Manager-Administration SUBJECT: Welwood Murray Memorial Library - Lease Extension RECOMMENDATION: That the City Council approve a five-year lease extension with The Welwood Murray Memorial Library, Inc.,effective July 7,2002,for continued operation of the Welwood Murray Memorial Library. SUMMARY: The Welwood Murray Memorial Library, Inc. has requested, and staff recommends, a Third Amendment to its lease agreement with the City of Palm Springs to provide a second five- year extension of a lease entered into on July 7, 1992, for a new lease expiration date of July 6, 2007. BACKGROUND: The Welwood Murray Memorial Library has been operated as a library by The Welwood Murray Memorial Library, Inc.,a California non-profit benefit corporation,since July 1, 1992. The lease currently is in effect until July 6, 2002. The operator has requested a five(5) year extension of its lease with the City a year in advance for planning purposes. Staff can report that the operator has complied with the lease conditions very cooperatively and conscientiously, and recommends this requested lease extension be approved. Highlights of the Lease are as follows: Lease Term • Original 5-year Lease Term was for the period July 7, 1992 to July 6, 1997. • Lease was extended for five (5) years to July 6, 2002. • Request is for lease extension of five (5) years, effective July 7, 2002, to expire July 6, 2007. Operating Hours • Must be operated as a free public library and be open a minimum of 20 hours per week, except during the month of August, when facility may be closed. Rental • No monthly rent to City. • The following monetary obligations of the Tenant are deemed as rent: Insurance; Real Property Taxes; Personal Property Taxes; and Utilities. City Council Report June 20, 2001 Re: Welwood Murray Memorial Library - Lease Extension Maintenance • Tenant is responsible for all repairs and maintenance of the facilities and contents, except the City is responsible for repair of the exterior walls, roof and sidewalks,all heating,air conditioning, plumbing and electrical systems,and any building code violations not caused by the Tenant. Insurance • City maintains fire and extended coverage insurance on the building; • Tenant provides: 1) Personal Property Insurance (fire and extended coverage) on interior trade fixtures, equipment, and personal property, 2) Liability Insurance; and 3) Workers Compensation Insurance as required under state law. Termination • City has unilateral right to terminate the lease at any time,such termination to be effective 120 days from the date of notice. Attached is the proposed Third Amendment to Lease providing for a five-year lease extension to July 6, 2007, and a proposed Minute Order approving the subject Third Amendment. la_e�'Z_42 Dallas J. Flicek, Assistant City Manager-Administration APPRO EV D City Manager Attachments: 1. Third Amendment to Lease 2. Minute Order l�z THIRD AMENDMENT TO LEASE forthe WELWOOD MURRAY MEMORIAL LIBRARY THIS THIRD AMENDMENTTO LEASE("Amendment')is made and entered into on , 2001 by and between the CITY OF PALM SPRINGS, a Municipal Corporation ("Landlord") and THE WELWOOD MURRAY MEMORIAL LIBRARY, INC., a non-profit corporation (`Tenant'). RECITALS A. Landlord and Tenant entered into that certain lease dated July 1, 1992, whereby Tenant leased the real property commonly known as The Welwood Murray Memorial Library, located at 100 south Palm Canyon Drive (the "Premises") in the City of Palm Springs, County of Riverside, State of California (the "Lease') as amended by that certain Second Amendment.to the Lease dated June 4, 1997 ("Second Amendment'). B. The initial term of the Lease commenced on July 7, 1992, to expire on July 6, 1997 ("Initial Term"). The parties, by the Second Amendment, extended the Initial Term of the Lease for a five-year period to July 6, 2002 ("First Extended Term"). C. Landlord and Tenant desire to extend the Lease, as amended, upon the terms and conditions contained herein. All capitalized terms, unless specifically defined herein, shall have the same meaning as set forth in the Lease. NOW, THEREFORE, the parties hereto hereby agree as follows: 1. Extension of Lease. The First Extended Term of the Lease as set forth in the Second Amendment is hereby extended to July 6, 2007, unless earlier terminated as provided in Section 5 of said Second Amendment. 2. Effective Date. The Effective Date of this Third Amendment shall be July 7, 2002. 3. Effect of Second Amendment. Except for the change in lease duration by this Amendment, the Second Amendment to the Lease shall continue in full force and effect. 4. Effect of Third Amendment. Except for the change in lease terms as specifically set forth in the Second Amendment to the Lease and this Third Amendment,the Lease shall continue in full force and effect as previously written. 5. Counterparts. This Amendment may be executed in counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or same counterpart. C � 3 Third Amendment to Lease City of Palm Springs, Landlord - Welwood Murray Memorial Library, Inc., Tenant Page 2 IN WITNESS WHEREOF, this Third Amendment to Lease was executed to be effective as of the date first written above. LANDLORD: ATTEST: CITY OF PALM SPRINGS, a Municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP By: TENANT: City Attorney THE WELWOOD MURRAY MEMORIAL LIBRARY, INC., a non-profit corporation By: Its: / . MINUTE ORDER NO. 6861 APPROVING THIRD AMENDMENT TO LEASE FOR THE WELWOOD MURRAY MEMORIAL LIBRARY, EFFECTIVE JULY 7, 2002, EXTENDING SAID LEASE TERM TO JULY 6, 2007. ------------------ I HEREBY CERTIFY that this Minute Order, approving Third Amendment to lease for the Welwood Murray Memorial Library, effective July 7, 2002, extending said lease term to July 6, 2007, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 20th day of June, 2001. PATRICIA A. SANDERS City Clerk