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HomeMy WebLinkAbout04248 - PS YOUTH CENTER BOXING CLUB LEASE MO 6658 Page 1 of 2 Kathie Hart From: Jay Thompson Sent: Thursday, June 02, 2005 3:33 PM att To: Kathie Hart � � a�7 Cc: Scott Mikesell Subject: FW: Lease's/Contracts 44111111 Kathie, per Scott close agreement A4248 with Boxing Club. + A4984 and A4985 will expire on October 315t. Please make a note to close them on October 31 st. THANKS, Jay And thank you Scott for keeping up with these! JAY From: Scott Mikesell Sent: Thursday, June 02, 2005 2:35 PM To: Jay Thompson Cc: Troy Butzlaff Subject: Lease's/Contracts I On the 33 page Document Tracking document you handed out today, there are only three agreements pertaining to the Parks Department. I On page #5, document A4248, Boxing Club Lease, this can be eliminated from the system as it is no longer valid even though the term runs through 9/1/05. On page #29, documents A4984 and 4985, both of these expire on October 31 2005 and will be replaced by new agreements at that time. Aren't I a good boy? Scott Mikesell—Director Department of Parks and Recreation P.O. Box 2743 Pahn Springs, CA 92263-2743 (760)323-8281 scottm ci.palm-springs.cams . ?ALM; V, 0 "This message is intended onlyfor the addresses shown above It nay contain information that rs p'ivileged,confidential,or otherwise protected fi wn disclosure. Any review,dissemination,or use ofthis transmission or its contents by persons other than the addressee is strictly prohibited.Ifyou haverecerved this message 6/2/2005 I PS Youth Center Boxing Club Lease AGREEMENT #4248 M06658, 7-19-00 BOXING CLUB LEASE AGREEMENT Thy B03 ING CLUB LEASE AGREEMENT("Lease") is made and entered into this day of 2000 ("Effective Date"), by and between the CITY OF PALM SPRINGS, a Calif niia municipal corporation ("City"), and PALM SPRINGS YOUTH CENTER, a California non- profit corporation ("PSYC"). RECITALS A. The City and PSYC are mutually interested in providing quality recreational activities for the youth of the City of Palm Springs. B. City is the owner of that certain real property located at 255 South El Cielo Road,Palm Springs, California, including all improvement thereon existing as of the Commencement Date ("Site"), as legally described in Exhibit "A" attached hereto. C. The City wishes to make the Site available to PSYC and PSYC wishes to use such Site under the terms of this Lease to fulfill the goal of providing quality recreational activities for the youth of the City of Palm Springs. D. The parties recognize that through a cooperative Lease between the City and PSYC for use of the Site under the terms herein,the community will be afforded the fulfillment of a major recreational goal for the youth in the City of Palm Springs. AGREEMENT 1.0 LEASE AND CONDITION OF SITE. 1.1 Lease of Site. City hereby leases and demises to PSYC and PSYC hereby hires from City,for the term and upon the conditions set forth herein, the Site, as legally described in Exhibit "A." 1.2 Condition of Site. PSYC agrees that it accepts the Site "AS-IS"and"WHERE-IS"without any representations and warranties of any nature or kind whatsoever from City. 2.0 LEASE TERM. 2.1 Lease Commencement Date. The Lease Commencement Date shall mean the date this Lease is executed by City. 2.2 Lease Term. The Lease Term shall mean the period commencing upon the Lease Commencement Date and continuing for five (5) years. 2.3 Delivery of Possession. City shall tender delivery of possession of the Site to PSYC within five (5) business days following the Lease Commencement Date. 3.0 RENT. 3.1 Rent. PSYC shall not be obligated to pay any rent to City for the lease of the Site. The parties acknowledge that the service provided by PSYC to the community under this Lease serves as a benefit to the City in establishing a valuable youth program which provides the consideration for City's obligations hereunder. 3.2 Net Rent. It is the intention of the parties that the rent herein specified shall be net to the City in each year during the term of this Lease,that all costs,expenses and obligations of every kind relating and allocable to the Site (except as may be otherwise specifically provided in this Lease) which may arise or become due during the Lease Term shall be paid by PSYC and that City shall be indemnified by PSYC against such costs, expenses and obligations. 3.3 Additional Rent. All taxes, charges, costs and expenses which PSYC is required to pay hereunder, together with all interest and penalties that may accrue thereon in the event of PSYC's failure to pay such amounts, and all damages, costs and expenses which City may incur by reason of any default of PSYC,or failure on PSYC's part to comply with the terms of this Lease, shall be deemed to be additional rent and,in the event of non-payment by PSYC,City shall have all rights and remedies with respect thereto as City has for the non-payment of rent. 4.0 USE OF SITE. 4.1 Use of the Site. PSYC shall use the Site solely for the purpose of operating a boxing club ("Boxing Club") for use by the general public,pursuant to the Amateur Boxing Rules and Regulations and Bylaws on file with the Contract Officer at Palm Springs City Hall located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92263. Except for said conditional use,PSYC has no additional rights,privileges or obligations with respect to the use of the Site, and, in particular, has no additional rights, privileges, or obligations with respect to the subsurface of the Site. PSYC shall not expand or change such use without the express written consent of City. PSYC shall further comply with the following requirements: 4.1.1 Membership, Rules, Registration and Bylaws (a) PSYC shall insure that its activities are, at all times, conducted in accordance with the Arnateur Boxing Rules and Regulations and Bylaws on file with the Contract Officer. (b) PSYC agrees to support the City by informing its participants regarding the Amateur Boxing Rules and Regulations and Bylaws on file with the Contract Officer, and any additional safety rules necessary to avoid any injuries arising from the activities of PSYC at the Site. (c) All coaches and assistants provided by PSYC at the Site shall,at all times,be certified under any applicable federal, state or local standard for the provision of sports medicine first aid. -2- (d) An adult designated by PSYC, who shall be certified pursuant to Section 4.1.1 (c) immediately above and qualified to supervise youth activities, shall be present at all times during the hours of operation. 4.1.2 Safety Equipment: (a) PSYC shall provide, at its sole cost and expense, safety equipment that provides the highest level of safety and is adequate for the protection of users of the Site from injuries arising from PSYC's activities tinder this Lease. The safety equipment provided by PSYC shall comply with any applicable minimum safety requirements under federal, state or local standards for boxing activities. (b) PSYC shall pay for and assume full responsibility for all supplies, equipment and uniforms relating to PSYC's activities at the Site. 4.2 Hours of Operation. PSYC shall maintain the Site open for public use during hours to be approved in advance by the Contract Officer. PSYC may request changes in the hours and days of operation from time to time in response to the public demand for use of the Site. PSYC shall submit such requests in writing to the Contract Officer,who shall approve or disapprove the request within five(5)working days after receipt. Requests may be submitted by fax. Any request not approved or disapproved within five(5) working days shall be deemed disapproved. 4.3 Compliance with Law. PSYC agrees that all operations and activities by or wider PSYC on the Site shall be conducted in compliance with all applicable statutes,ordinances,orders,laws,rules and regulations, and the requirements of all federal, state and municipal governments and appropriate departments, commissions,boards and offices thereof,which may be applicable to the Site or to the use or mariner of use of the Site. PSYC shall indemnify and hold the City harmless against all actions, claims and damages by reason of(i) PSYC's failure to perform the terms hereof, or (ii) PSYC's non-observance or non-performance of any statute, ordinance, order, law, rule, regulation and/or governmental requirement related to PSYC's use and occupancy of the Site or the condition thereof. 4.4 Miscellaneous Restrictions. PSYC agrees in using the Site: 4.4.1 Not to commit any waste or suffer any waste to be committed upon the Site. 4.4.2 Not to perform any acts or cant'on any practices that may injure adjoining buildings or property or be a nuisance or menace to other persons or businesses in the area or disturb the quiet enjoyment of any person, nor to conduct or permit to be conducted any public or private nuisance on the Site. 4.4.3 Not to engage in any activity on or about the Site that violates any "Enviromnental Law" (as defined below), and to promptly, at PSYC's sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency or Enviromnental Law for clean-up and removal of any contamination involving any "Hazardous Material" (as defined below)created or caused by -3- or under PSYC. The teen"Environmental Law"shall mean any federal,state or local law,statute,ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on,under or about the Site including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. Sections 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976("RCRA"),42 U.S.C. Sections 6901 et seq.; (iii) California Health and Safety Code Sections 25100 et seq.; (iv)the Safe Drinking Water and Toxic Enforcement Act of 1986,California Health and Safety Code Section 25249.5 et seq.; (v)the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 et seq.; (vi) California Water Code Section 1300 et seq.;and(vii)California Civil Code Section 3479 et seq.,as such laws are amended and the regulations and administrative codes applicable thereto. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined or listed as a "hazardous waste", "extremely hazardous waste", "restrictive hazardous waste" or "hazardous substance" or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms "Hazardous Materials" and "Environmental Laws" in their broadest sense. PSYC shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq. PSYC shall provide prompt written notice to City of the existence of Hazardous Substances on the Site and all notices of violation of the Environmental Laws received by PSYC. PSYC's obligations pursuant to this Section shall be referred to in this Lease as "Environmental Compliance". 4.5 Public Access. Except as provided in this Section 4.5,the Site shall be open to the general public during the hours of operation approved by the Contract Officer in accordance with Section 4.2. No preferential or exclusive rights shall be granted to any individual user of the Site, or any portion thereof, except that preferential rights may be granted to students of the Palm Springs Unified School District and other regional school districts for educational purposes. The general public may be excluded during such times as the Site is being used by school districts for such purposes. Notwithstanding the foregoing,PSYC may,with the written approval of the Contract Officer, exclusively use the Site during non-operating hours for its private purposes such as fundraising or promotions. 5.0 ALTERATIONS, MAINTENANCE AND REPAIRS. 5.1 By City. The City agrees, at its sole expense,to maintain all exteriors of the buildings existing as of the Effective Date in good condition and repair,including the exterior walls,roof,air conditioning and heating equipment, patios, outdoor structures and outdoor lighting facilities at the Site. City shall have no responsibility for defects in materials or workmanship incorporated into or for the defective design of the Site or any appurtenants thereto,except that it shall repair any item within the scope of its maintenance and repair duties under this Section 5.1. 5.2 By PSYC. PSYC agrees, at its sole expense, to maintain all interior areas of the buildings existing at the Site at the Effective Date,and interior and exterior of all buildings installed after the Effective Date,in good condition and repair throughout the Lease Term and any extensions thereof including,but not limited to plate and window glass, interior walls, interior lights, including entrances and all window and -4- door moldings,and floor coverings. PSYC shall further maintain all areas within the Site,including exterior walls and window glass of any building and landscaping,in a clean condition and free and clear of trash and debris. Landscaping maintenance shall include but not be limited to: irrigation, fertilization, mowing, edging,weeding,removal and replacement of dead or unhealthy plant material,trimming of grass,and tree and shrub pruning. During any time building improvements are not constructed upon the Site,PSYC shall take such measures as may be reasonably necessary to control weeds,blowing dirt and sand,trash,etc.,with respect to any unimproved portion of the Site. In the event PSYC fails to maintain the Site,City shall have the right but not the obligation to enter upon the Site to correct or cure the problem and any cost to City,plus a 15%administrative charge,shall be billed to PSYC and shall be paid by PSYC within thirty(30)days after receipt of such invoice;provided,however,that the foregoing right of City to enter upon the Site to correct or cure a maintenance problem shall not be exercised unless and until City has provided written notice to PSYC specifying the problem and the action needed to correct or cure it, and the expiration of a period of twenty(20)days given to PSYC to correct or cure problems pertaining to building improvements,or ten(10) days pertaining to landscaping, or five(5)days pertaining to dirt, graffiti,trash, and similar problems. The irrigation system for any landscape area to be maintained by PSYC shall be metered to the Site. PSYC, at its sole expense, shall finther be responsible for the complete maintenance, repair, and replacement, as may be necessary, of all furniture, furnishings and equipment at the Site or used for the Boxing Club. 5.3 Waiver of Repairs. PSYC hereby expressly waives any right or privilege under statute or otherwise to require that repairs be performed by City, or at the expense of City, to the Site, except those repairs required to be performed by the City under Section 5.1 herein or if such repairs are caused by the negligence or willful misconduct of City or its agents, employees or representatives. 5.4 Alterations. In the event that either prior to or during the Lease Term any alteration, addition,or change or otherwise to the Site, or any portion thereof, is required by law or regulation or rule, the same shall be made by PSYC, at PSYC's sole cost and expense. Subject to obtaining all requisite governmental permits and authorizations, PSYC shall have the right to make non-structural alterations to the interior of any building constructed by PSYC upon the Site,provided that the same when complete are of a character as not adversely to affect the value of the building immediately before such alteration. Except for the alterations permitted by the preceding provisions of this Section,PSYC shall not make or permit any alterations, additions or improvements to be made to or upon the Site or to the common and parking areas upon the Site without first obtaining the written consent of City. Any alterations,additions or improvements made by PSYC in accordance with this Section 5.4 shall be diligently constructed, at no cost or expense to City, and in a good and workmanlike manner according to and in conformity with any laws, rules and regulations of all govermnental bodies and agencies. 5.5 Mechanic's Liens. PSYC agrees that it will pay or cause to be paid all costs for work done by it or caused to be done by it on the Site of a character that may result in liens on City's estate therein,and PSYC will keep the Site free and clear of all mechanic's liens or other liens on account of work done or alleged to have been done by or.for PSYC or persons claiming under it. City and its representatives shall have the right to post and keep posted on the Site such notices as City may deem necessary for the protection -5- of its interest in the Site during the period that any work is being performed that might result in a lien being filed against the Site. At least twenty (20) days prior to PSYC's placing any materials upon the Site or causing any labor or work of construction of any alterations, additions or improvements or repairs having a cost in excess of TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) to be performed, PSYC shall deliver to City notification thereof specifying the nature and location of the intended work and the expected date of commencement thereof All construction to be performed by PSYC or performed by or under PSYC shall be performed without cost or expense to City. Notwithstanding the above, PSYC may contest the validity of any such mechanic's lien claim filed against the Site or City's estate therein,provided that in such event,PSYC shall first notify City and,if requested by City,shall,within ten(10)days of the City's request, either bond such lien or cause such lien to be bonded in the mariner authorized by law so as to release the real property subject thereto from such lien. 5.6 Utilities. PSYC shall,at its own expense,pay before delinquency all charges for water,gas, heat, electricity, power, sewer, telephone service, trash removal and all other services and utilities used in, upon, or about the Site by PSYC or any of its subtenants, or licensees during the Lease Term. 6.0 INSURANCE AND INDEMNITY. 6.1 Insurance Provided by City. City shall maintain fire and extended coverage insurance throughout the term of this Lease. PSYC understands that City's coverages hereunder do not include PSYC's furniture, fixtures or merchandise. PSYC hereby waives any right of recovery from City, its officers and employees, and City hereby waives any right of loss or damage (including consequential loss) resulting from any of the perils insured against as a result of said insurance. 6.2 Insurance Provided by PSYC. (a) PSYC to Provide Personal Property Insurance. PSYC, at its expense, shall maintain fire and extended coverage insurance written on a per occurrence basis on its trade fixtures, equipment,personal property and inventory within the Site from loss or damage to the extent of their full replacement value and shall provide plate glass coverage. (b) PSYC to Provide Liability Insurance. During the entire term of this Lease, the PSYC shall, at the PSYC's sole cost and expense,but for the mutual benefit of City and PSYC, maintain comprehensive general liability insurance insuring against claims for bodily injury, death or property damage occurring in, upon or about the Site and on any sidewalks directly adjacent to the Site written on a per occurrence basis in an amount not less than either (i) a combined single limit of ONE MILLION DOLLARS ($1,000,000.00)for bodily injury,death, and property damage or(ii)bodily injury limits of$250,000.00 per person,$500,000.00 per occurrence and$500,000.00 products and completed operations and property damage limits of$100,000.00 per occurrence and $250,000.00 in the aggregate;provided,however,if City so elects City may provide such insurance and, in such event, PSYC agrees to pay its pro rata share of the cost of said insurance on the same basis as provided in Section 6.1 above. (c) PSYC to Provide Worker's Compensation Insurance. PSYC shall, at the -6- PSYC's sole cost and expense,maintain a policy of worker's compensation insurance in an amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the PSYC and the City against any loss,claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the PSYC in the course of conducting PSYC's business in the Site. (d) General Provisions Applicable to PSYC's Insurance. All of the policies of insurance required to be procured by PSYC pursuant to this Section 6.2 shall be primary insurance and shall name the City,its officers,employees and agents as additional insureds. The insurers shall waive all rights of contribution they may have against the City, its officers, employees and agents and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing 30 days prior written notice by registered mail to the City. Prior to the Commencement Date or such earlier date as PSYC takes possession of the Site for any purpose; and at least 30 days prior to the expiration of any insurance policy, PSYC shall provide City with certificates of insurance or appropriate insurance binders evidencing the above insurance coverages written by insurance companies acceptable to City, licensed to do business in the state where the Site are located and rated A:VII or better by Best's Insurance Guide. In the event the Risk Manager of City ("Risk Manager") determines that (i) the PSYC's activities in the Site creates an increased or decreased risk of loss to the City, (ii)greater insurance coverage is required due to the passage of time, or(iii) changes in the industry require different coverages be obtained, PSYC agrees that the minimum limits of any insurance policy required to be obtained by PSYC may be changed accordingly upon receipt of written notice from the Risk Manager;provided that PSYC shall have the right to appeal a determination of increased coverage by the Risk Manager to the City Council of City within ten (10) days of receipt of notice from the Risk Manager. City and PSYC hereby waive any rights each may have against the other on account of any loss or darnage occasioned by property damage to the Site, its contents, or PSYC's trade fixtures, equipment, personal property or inventory arising from any risk generally covered by insurance against the perils of fire, extended coverage,vandalism,malicious mischief,theft, sprinkler damage, and earthquake sprinkler leakage. Each of the parties, on behalf of their respective insurance companies insuring such property of either City or PSYC against such loss, waive any right of subrogation that it may have against the other. The foregoing waivers of subrogation shall be operative only so long as available in California and provided further that no policy is invalidated thereby. 6.3 Indemnification of City. PSYC, as a material part of the consideration to be rendered to City under this Lease,hereby waives all claims against City for damage to equipment or other personal property, trade fixtures, leasehold improvements, goods, wares, inventory and merchandise, in, upon or about the Site and for injuries to persons in or about the Site, from any cause arising at any time. PSYC agrees to indemnify the City,its officers, agents and employees against,and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance ofthe work,operations or activities of PSYC,its agents,employees,subcontractors,or invitees, provided for herein, or arising from the use of the Site or the parking and common areas by PSYC or its -7- employees and customers,or arising from the failure of PSYC to keep the Site in good condition and repair, as herein provided, or arising from the negligent acts or omissions of PSYC hereunder, or arising from PSYC's negligent performance of or failure to perform any term, provision covenant or condition of this Lease, whether or not there is concurrent passive or active negligence on the part of the City, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or employees, who are directly responsible to the City, and in connection therewith: (a) PSYC will defend any action or actions filed in cormection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith; (b) PSYC will promptly pay any judgment rendered against the City,its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of PSYC hereunder; and PSYC agrees to save and hold the City,its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against PSYC for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of PSYC hereunder,PSYC agrees to pay to the City,its officers,agents or employees,any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees. 7.0 TAXES. 7.1 Personal Property Taxes. PSYC agrees to pay,prior to delinquency, all taxes levied upon personal property, if any, including trade fixtures, and inventory, not owned by City and kept on or about the Site by or under PSYC. 7.2 Real Property Taxes. PSYC agrees to pay all real property taxes(including any possessory interest taxes and special and ad valorem taxes) and assessments levied or assessed upon the Site and all improvements thereon from and after the Lease Commencement Date during the Lease Term. Any tax or assessment relating to a fiscal period, a part of which precedes the Lease Commencement Date or which continues beyond the end of the Lease Term, shall be prorated so PSYC shall pay only that portion thereof which relates to the portion of the subject tax period commencing with the Lease Commencement Date included within the Lease Term. The term"real property taxes and assessments" shall include any increases in any such tax or assessment imposed by reason of this Lease or a transfer, either partial or total, of City's and/or PSYC's interests in and to the Site and/or the underlying realty and/or any imposition added to any such tax or assessment by reason of any such transfer. PSYC shall pay the real property taxes and assessments levied or assessed on the Site directly to the taxing governmental authority prior to delinquency. -8- 7.3 Proof of Payment. All taxes payable by PSYC pursuant to this Section 9 shall be paid by PSYC prior to delinquency. PSYC shall provide City with cancelled checks(or other reasonable evidence) evidencing the payment of all taxes payable by PSYC wider this Lease within sixty (60) days of the delinquency date for the payment of said taxes. 8.0 CASUALTY DAMAGE. 8.1 Right to Terminate. In the event the whole or any part of the improvements at the Site shall be damaged or destroyed by any casualty other than those for which the City shall insure pursuant to Section 6.1,at any time during the Lease Term,PSYC shall with all due diligence,at PSYC's sole cost and expense, repair, restore and rebuild such improvements on the same plan and design as existed immediately prior to such damage or destruction and to the same condition that existed immediately prior to such damage, provided, however, that in the event of the damage or destruction is such that restoration of such improvements cannot be reasonably accomplished within one (1) year following commencement of such restoration work, then PSYC may cancel this Lease by giving written notice of its election to do so to City within sixty (60) days after PSYC receives notice or acquires knowledge of such damage or destruction meeting the criteria above, in which event PSYC need not restore or rebuild the improvements, but shall release to City any interest of PSYC and/or its encumbrancers in and to any insurance proceeds from the insurance to be provided by PSYC pursuant to Section 6.2 above. 8.2 Insurance Proceeds. In the event of any restoration or reconstruction pursuant to this Section 8, City agrees to cooperate with PSYC and PSYC's insurer to obtain the release of the insurance proceeds available in consequence of such damage as PSYC's restoration and reconstruction progresses, subject only to City's approval of normal architect's certificates, mechanic's lien waivers and other reasonable and customary construction disbursement documentation. Prior to any such restoration and reconstruction as herein provided,the drawings and specifications therefor shall be submitted to City and any other necessary parties for their approval. City agrees that its approval of such drawings and specifications shall not unreasonably be withheld or delayed. All such work performed by PSYC shall be constructed in a good and workmanlike manner according to and in conformance with the laws, rules and regulations of all govermnental bodies and agencies and the requirements of this Lease applicable to the original construction of the Improvements. In the event PSYC terminates this Lease under Section 8.1 above, City shall have the right to retain all insurance proceeds other than those attributable to PSYC's trade fixtures,equipment and personal property,provided,however,that in the event such insurance proceeds are in excess of the amount required to repair and/or restore the Improvements,City agrees to pay to PSYC any excess proceeds. 9.0 ASSIGNMENT AND SUBLETTING. 9.1 City's Consent Required. PSYC shall not,either volmrtarily or by operation of law,assign or encumber PSYC's leasehold estate hereunder or sublet the Site,or any portion thereof(all of which shall be referred to herein as a "Transfer"),without City's prior written consent in each instance, which consent shall not be unreasonably withheld, conditioned, or delayed, or, except in connection with a permitted sublease,permit the Site to be occupied by anyone other than PSYC or PSYC's employees,contractors,and -9- volunteers. Consent by City to one or more Transfers of this Lease or of the Site or to any such occupancy shall not release PSYC from the requirement that City's consent be obtained to all subsequent Transfers. 9.2 No Release. No Transfer by PSYC, or by any of PSYC's successors or assigns in interest, even with the consent of City, shall relieve PSYC of its obligations to perform all of the other obligations to be performed by PSYC hereunder. The acceptance by City of any payment due hereunder from any other person shall not be deemed to be a waiver by City of any provision of this Lease or to be a consent to any Transfer. Any waiver by City must be in writing and PSYC may not rely upon or assert any estoppel or waiver based upon airy alleged oral statement or warranty. 10.0 DEFAULT; TERMINATION. Either party may terminate this Lease upon a default by the other party. A party shall be in default under this Lease if that party fails to perform obligations required of it within a reasonable time, but in no event later than thirty (30) days after written notice from the other party, specifying wherein the nonperforming party has failed to perform such obligations; provided, however, that if the nature of the nonperforming party's obligation is such that more than thirty(30) days are required for performance then the nonperforming party shall not be in default if it commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. 11.0 QUIET ENJOYMENT. Subject to all rights reserved to City under this Lease including, without limitation, City's right of inspection as hereinbelow provided, and upon PSYC observing and performing all of the terms, covenants and conditions on PSYC's part to be observed and performed, City hereby warrants, represents and covenants that, PSYC may peaceably and quietly have, hold, occupy and enjoy the Site and all of the appurtenances thereto without hindrance or molestation from City or those lawfully claiming an interest in or to the Site through or under City. 12.0 MISCELLANEOUS. 12.1 Inspection. City reserves the right for City and for its agents, servants and representatives: 12.1.1 Upon twenty-four (24) hours prior notice, to enter upon the Site at any reasonable time, during PSYC's normal business hours, for the purpose of attending to its business and interests hereunder, including, but not limited to, assuring compliance by PSYC of all terms and obligations of this Lease (provided that prior notice and limitation to business hours shall not apply in the event of an emergency). 12.1.2 To inspect the Site and make any repairs or improvements which City shall at any reasonable time deem necessary or proper for the preservation of the Site and other Improvements if PSYC defaults in its obligation to do so hereunder; provided that nothing herein contained shall be construed as obligating City to make any such repairs or improvements. -10- 12.2 Condemnation. In the event a condemnation or a transfer in lieu thereof results in a taking of any portion of the Site, City may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty-five percent (25%) or more of the Site, PSYC may, upon written notice given within thirty(30)days after such taking or transfer in lieu thereof,terminate this Lease. PSYC shall not be entitled to share in any portion of the award and PSYC hereby expressly waives any right or claim to any part thereof. PSYC shall,however,have the right to claim and recover,only from the condemning authority(but not from City),any amounts necessary to reimburse PSYC for the cost of removing its furniture,equipment and merchandise. If this Lease is not terminated as above provided, City shall use a portion of the condemnation award to restore the Site. 12.3 Surrender at End of Term. Any improvements built, constructed,or placed upon the Site by or under PSYC, other than PSYC's trade fixtures,equipment and personal property, shall remain on the Site and become the absolute property of City without any cost to City upon the termination of this Lease, whether by lapse of time or by forfeiture by reason of default provided that PSYC shall have the right to remove its trade fixtures, removable tenant improvements, equipment and personal property on or before expiration or earlier termination of this Lease,provided that PSYC repairs any damage occasioned by such removal. If, at the end of the Lease Term or earlier termination as herein provided, PSYC has left any merchandise, furniture or fixtures in or about the Site, City may give PSYC written notice to remove said property. In the event said property is not removed within thirty(30)days of the sending of said notice,City may dispose of said property in any manner whatsoever, at PSYC's cost, and PSYC hereby waives any claim or right to said property or any proceeds derived from the sale thereof. 12.4 Bolding Over. In the event PSYC shall hold over the Site after the expiration of the Lease Term (including any extensions) with the consent of City either express or implied including, without limitation,a hold over by a sublessee,such holding over shall be construed to be only a tenancy from month to month, subject to all the covenants, conditions and obligations hereof, and PSYC hereby agrees to pay City the same rentals and charges provided for by this Lease for such additional time as PSYC shall hold such property. 12.5 Force MAeure. If either party is delayed,prevented or hindered from the performance of any covenant or condition of this Lease because of acts of the other party, Acts of God, adverse weather conditions not reasonably anticipated,war,invasion,insurrection,acts of apublic enerny,riot,mob violence, civil commotion, sabotage, labor disputes, inability to procure or general shortage of labor, materials, facilities,equipment or supplies on the open market,unusual delay in transportation,laws,rules,regulations or orders of governmental or military authorities, or any other cause beyond the reasonable control of the parties so obligated, whether similar or dissimilar to the foregoing, financial inability excepted, such perfonmance shall be excused for the period of the delay, and the period for such performance shall be extended for a period equivalent to the period of such delay. 12.6 Waiver. No written waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Lease shall be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions and conditions hereof. City's acceptance of any sum payable -11- by PSYC to City under this Lease while PSYC is in default under the terms of this Lease shall not constitute a waiver by City of such default, other than a default by PSYC in payment of the sum so accepted by City. PSYC shall not rely on any oral waiver and shall not rely on any course of conduct as a waiver of any provision of this Lease. PSYC may rely only on specific waivers confirmed in writing. 12.7 Notices. Whenever in this Lease it shall be required or permitted that notice or demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served and shall not be deemed to have been duly given or served unless said notice is in writing and is either personally served (including service by overnight courier) upon the person for whom intended or mailed, by registered or certified mail, with postage prepaid, addressed to the party for whom intended at the address that follows: City: City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92263 Attn: City Manager With a Copy to: David J. Aleshire, Esq. RUTAN & TUCKER, LLP 611 Anton Boulevard Suite 1400 Costa Mesa, CA 92628 PSYC: Palm Springs Youth Center a. 130X Qi53o Palm Springs, CA 92263 Attn: G2��— V�� c� kS Either City or PSYC may change such address by notifying the other party in writing as to such new address as PSYC or City may desire used and which new address shall continue as the address until further written notice. If any notice or demand is sent by mail as aforesaid, the same shall be deemed served or delivered three (3) days after the mailing thereof in the manner provided above. If any notice or demand is sent by overnight courier as aforesaid, the same shall be deemed served or delivered twenty-four (24) hours after deposit of the same with an overnight courier for delivery to the party to whom intended at the address provided above for such party pursuant to this Section. 12.8 No Oral Agreements. This(i)Lease covers in full each and every agreement of every kind or nature whatsoever between the parties hereto concerning this Lease, (ii) supersedes any and all previous obligations, agreements and understandings,if any,between the parties,oral or written,and(iii)merges all preliminary negotiations and agreements of whatsoever kind or nature herein. PSYC acknowledges that no representations or warranties of any kind or nature not specifically set forth herein have been made by City or its agents or representatives. -12- 12.9 Inurement. Each of the covenants, conditions and agreements herein contained shall inure to the benefit of and shall apply to and be binding upon the parties hereto and their respective heirs,legatees, devisees, executors, administrators, successors, assigns, sublessees or any person who may come into possession of said Site or any part thereof in any manner whatsoever. Nothing in this Section shall in any way alter the provisions against assignment or subletting hereinabove provided. 12.10 Assignment by City. In the event City shall transfer or convey or be divested of its fee estate in and to the Site,and as a part of said transaction shall transfer, convey, assign or be divested of its interest as City in and to this Lease,then from and after the effective date of said assignment,transfer, conveyance, divestiture or reverter and assumption of this Lease by the transferee, City shall have no further liability, except for liabilities which shall have accrued and be unsatisfied as of such date,for all of which liabilities City shall continue to be obligated notwithstanding any such assignment,transfer, conveyance, divestiture or reverter. 12.11 Severabilitv. If any term, covenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term,covenant or condition of this Lease shall be valid and be in force to the fullest extent permitted by law. 12.12 Authority ofPSYC. Each individual executing this Lease on behalf of the PSYC represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of the PSYC, in accordance with the bylaws of the PSYC, and that this Lease is binding upon said PSYC. Each individual executing this Lease on behalf of City represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of City and that this Lease is binding upon City. 12.13 City's Officers and Employees. 12.13.1 Non-liability of Officers and Employees. No officer, official, agent, contractor,or employee of City shall be personally liable to PSYC,or any successor in interest,in the event of any default or breach by City or for any amount which may become due to PSYC or to its successor, or for breach of any obligation of the terms of this Lease. If the PSYC is a corporation(including a 501(c)(3) corporation)or limited liability company,no official,agent,contractor,director,or employee of PSYC shall be personally liable to City, or any successor in interest, in the event of any default or breach by PSYC or for any amount which may become due to City or to its successor, or for breach of any obligation of the terms of this Lease. 12.13.2 Conflict of Interest. No officer or employee of City shall have any financial interest, direct or indirect, in this Lease nor shall any such officer or employee participate in any decision relating to this Lease which affects the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any state statute or regulation. 12.14 Non-Discrimination. There shall be no discrimination against or segregation of any person or group of persons on account of race, color creed,religion, sex,marital status, handicap, age, ancestry or -13- national original in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Site herein leased nor shall the PSYC itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection,location,number, use or occupancy of lessees, sublessees, subtenants or vendees of the Site herein leased. 12.15 Authority of Contract Officer. Whenever a reference is made herein to an action or approval to be undertaken by City,the person designated by the City Manager,which person is referred to herein as the Contract Officer, is authorized to act on behalf of City unless specifically provided otherwise or the law or otherwise requires. 12.16 Real Estate Broker. PSYC and City each represent and warrant to the other that it has not dealt with any real estate broker and knows of no real estate broker, agent, or finder that may claim a commission in connection with this Lease, PSYC and City shall each indemnify,defend,and hold the other harmless from and against any claim for any broker's or finder's fee arising out of the acts or omissions of the indemnifying party. 13.0 NONDISCRIMINATION AND FAA REOUIRED CLAUSES 13.1 PSYC,for itself,its successors and assigns,as a part of the consideration hereof,does hereby covenant and agree "as a covenant running with the land" that in the event facilities are constructed, maintained or otherwise operated on the said property described in the lease for a purpose for which a Department of Transportation("DOT")program or activity is extended or for another purpose involving the provision of similar services or benefits, PSYC shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 13.2 PSYC,for itself,its successors and assigns,as a part of the consideration hereof,does hereby, covenant and agree "as a covenant running with the land" that: (1)no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon,no person on the grounds of race, color,or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (3)that PSYC shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the DOT-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be arnended. 13.3 That in the event of breach of any of the above nondiscrimination covenants,City shall have the right to terminate the lease and reenter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights. -14- 13.4 PSYC shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair,reasonable and not unjustly discriminatory prices for each unit or services; provided that PSYC may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers. 13.5 Noncompliance with Section 13.4 above shall constitute a material breach thereof and in the event of such noncompliance, City shall have the right to terminate this Lease and the estate hereby created without liability therefor, or, at the election of City or the United States, either or both said governments shall have the right to judicially enforce provisions. 13.6 PSYC agrees that it shall insert Section 13.1 through 13.5 above in any sublease or contract by which PSYC grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the premises herein leased. 13.7 PSYC assures that it will undertake an affirmative actionprogram as required by 14 CPR Part 152, Subpart E, to insure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E.PSYC assures that non person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. PSYC assures that it will require that its covered sub-organizations provide assurances to PSYC that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations,as required by 14 CRF Part 152, Subpart E, to the same effort. 13.8 City reserves the right to further develop or improve the landing area of the Palm Springs International Airport ("Airport") as it sees fit, regardless of the desires or views of PSYC and without interference or hindrance. 13.9 City reserves the right,but shall not be obligated to PSYC,to maintain and keep in repair the landing area of the Airport and all publicly-owned facilities of the Airport,together with the right to direct and control all activities of PSYC in this regard. 13.10 The Lease shall be subordinate to the provisions and requirements of any existing or future agreement between the City and the United States relative to the development,operation or maintenance of the Airport. 13.11 There is hereby reserved to the City,its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the premises herein (leased, licensed,permitted). This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from, or operation on the Airport. -15- 13.12 PSYC agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulation in the event future construction of a building is planned for the leased premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the leased premises. 13.13 PSYC, by accepting this, expressly agrees, for itself, its successors and assigns, that it will not erect nor permit the erection of any structure or object, nor permit the growth of any tree on the land leased hereunder above the mean sea level elevation of 530 feet. City reserves the right to enter upon the land leased hereunder and remove the offending structure or object and cut the offending tree, all of which shall be at the expense of PSYC. 13.14 PSYC, by accepting this Lease, agrees, for itself, it successors and assigns, that it will not make use of the leased premises in any man ier which might interfere with the landing and taking off of aircraft from the Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the owner reserves the right to enter upon the premises here leased and cause the abatement of such inter- ference at the expense of PSYC. 13.15 It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a). 13.16 The lease and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire affecting the control, operation, regulation and taking over of said Airport or the exclusive or nonexclusive use of the Airport by the United States during the time of war or national emergency. [End - Signature Page and Exhibits Follow] -16- IN WITNESS WHEREOF, City and PSYC have caused this Lease Agreement to be executed and to be effective as of day and year first hereinabove written. "CITY" CITY OF PALM SPRINGS, a California municipal corporation ity anager ATTEST: -I City Clerk APPROVED AS TO FORM: City Attoiri!q ���, "PSYC" PALM SPRINGS YOUTH CENTER, a California non-profit corporation Board Member Board Member11,7 oarMeber 0 Board Memb r [End of Signatures] -17- e EXHIBIT "A" LEGAL DESCRIPTION OF SITE Portion of Parcel 2 of Parcel Map 15576, recorded August 13, 1980, in Parcel Map Book 81, Pages 37 - 38, records of Riverside County. -18- EXHIBIT "B" SPECIAL REQUIREMENTS Section 6.2 (a) "PSYC to provide Personal Property" shall be waived. EXHIBIT "B" TO BOXING CLUB LEASE AGREEMENT -19- ACORD CERTIFICAO OF LIABILITY INSUR,*C&PID CM DAM(MMIDD/YY) J PALMS-3 02/25/00 PRooucEq THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Dick Wardlow Insurance Brokers ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Lic. #DB99800 HOLDER.THIS CERTIFICATE DOES NOT AMEND, EXPEND OR - 233 High Street n ALTER THE COVERAGE AFFORDED BY THE POLICIES BELCLW., „,j Moorpark CA 93021 �" \ COMPANIES AFFORDING COVERAGE 1 ` COMPANY Phene Ne. 805-553-0505 Fax Nn. 805-553-0606 A Superior National Ins Cc INSURED COMPANY B COMPANY Palm Springs Youth Center C P. 0. BOX 9530 COMPANY Palm Springs CA 92264 D COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES,LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, CO TYPE OF INSURANCE POLICY EFFECTIVE POLICY EXPIRATION LTR POLICYNUMBER DATE(MMRJD/YV) DATE(MMJDD/VY) LIMITS GENERAL LIABILITY GENERAL AGGREGATE S COMMERCIAL GENERAL LIABILITY PRODUCTS-0OMP;OP AGO $ CLAIMS MADE OCCUR PERSONAL 6 ADV INJURY $ OWNER'BBCONTHACTOR'S PROT EACH OCCURRENCE S FIRE DAMAGE(Any one lire) $ MED EXP(Any one person) $ AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT $ ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) HIRED AUTOS BODILY INJURY $ NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY-EA ACCIDENT S ANY AUTO OTHER THAN AUTO ONLY EACH ACCIDENT $ —j AGGREGATE S EXCESS LIABILITY EACH OCCURRENCE S UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ WORKERS COMPENSATION AND WC STATI- OTH. EMPLOYERS'LIABILITY TORY IMITS PR _ EL EACH ACCIDENT $ 1000000 A PARTNETHE RS/EXECUTIVE S/EXEPROPRIETOR/ INCL WDN64418C 10 01 PgRTNERS/E%ECUTIVE / /99 10/01/00 � EL DISEASE-POLICY LIMIT $ 1000000 OFFICERS ARE: EXCL EL DISEASE-EA EMPLOYEE $ 1000000 OTHER DESCRIPTION OF OPERATIONSILOCATIONSNEHICLEB/SPECIAL ITEMS _ Coverage applies 3 225 So. El Cielo Rd., Palm Springs, Ca. 922641 - CERTIFICATE HOLDER CANCELLATION CITYPS.— SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING COMPANY WILL ENDEAVOR TO MAIL City of Palm Springs 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Attn: Evelyn Clark BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR UABILITY 3200 E. Tahquitz Cyn Way - Palm Springs CA 92262 OF ANY KIND UPON THE COMPANY,ITS AGEjITS OR REPRESENTATIVES. AUTHORiZEDfiIEPRESENTATIVE ACOR D 25-S(1/95) D,CORPORATION 1988