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08-0115_AMERICAN LEGION_D9_Agenda Report• AGENDA REPORT TO: Dave Adams, City Manager 01- FROM: ` FROM: Karen Crocker, Community Service Director • 1/15/2008 SUBJECT: Consideration of License Agreement and Request for Fee Waiver for Use of Portion of the Nydegger Building and Old Firestation Complex Garage (American Legion) RECOMMENDATION: By motion, 1. Approve the license agreement between the City of San Juan Capistrano and American Legion for the use of a portion of the Old Firestation Complex garage for administrative purposes only, and, 2. Waive annual fees in the amount of $2,256 for use of office space, storage in the Old Firestation Garage and American Legion monthly meetings in the Nydegger Building. SITUATION: A. Summary and Recommendation American Legion has been using the Nydegger Building Room for their monthly meetings for many years. In addition to the monthly meetings, they use a portion of the Old Firestation garage for storage and office space. As well as the proposed License Agreement, staff is presenting this item to the City Council at the request of the American Legion for a fee waiver for the use of the Nydegger Building and the Old Firestation garage. In the past, there has been a verbal understanding that the American Legion would receive a fee waiver for use of the Nydegger and Old Firestation garage Buildings for monthly meetings, office space and storage. As a housekeeping item, staff is recommending formalizing the fee waiver request by the American Legion. B. Background American Legion has been a continuous facility applicant of the Nydegger Building at the Old Firestation Complex for more than twenty years. They have conducted their monthly meetings in the Nydegger Building as a non-profit organization. Although they have been conducting their monthly meetings in the Nydegger Building, their administrative duties have been conducted in a portion the Old Firestation garage for office space to accommodate their computer, files and storage. The Community Services Department has identified this area as the American Legion office space in the Old Firestation garage. The 0 Agenda Report Paqe 2 0 January 15, 2008 attached license agreement identifies the allowable uses of the office space. The amount of use in the office space is very minimal, with one or two members utilizing the office at one time. The office is predominately used to store files and memorabilia. There have been no complaints from the neighbors regarding the American Legion's use of the garage for office space and their meetings. C. Fee Waiver Below is a breakdown of the fee waiver for the use of the Old Firestation Complex: Nydegger Building =$33.00 x 4 hours = $1,584.00 (annually) Old Firestation garage=$122sq ft x .50x12mo = 672.00 (annually) TOTAL FEE WAIVER = $2,256.00 Administrative Policy No. 606 requires a series of standards to be considered for fee waivers. The American Legion organization meets the criteria regarding the intent of the policy in regards to significant number of volunteer service hours by members and monetary contributions to the community; therefore, staff recommends the Commission consider the fee waiver. COMMISSION/BOARD REVIEW, RECOMMENDATION: This item has been presented to the Parks, Recreation, and Equestrian Commission at their meeting of December 17, 2007, at which time they voted unanimously to forward a recommendation of approval for City Council's consideration. FINANCIAL CONSIDERATIONS: As specified in the proposed license agreement, American Legion will be responsible for a monthly payment related to telephone related expenses, such as, telephone and/or internet services. NOTIFICATION: Gus Real, American Legion Commander* Tony and Orrie Brown, Resident David and Judy Norman, Resident Mike Secor, Resident Ed and Jacque Nunez, Resident * Mailed copy of agenda report 0 Agenda Report Paqe 3 RECOMMENDATION: 0 January 15, 2008 By motion, 1. Approve the license agreement between the City of San Juan Capistrano and American Legion for the use of a portion of the Old Firestation Complex garage for administrative purposes only, and, 2. Waive fees in the amount of $2,256 for use of office space, storage in the Old Firestation Garage and American Legion monthly meetings in the Nydegger Building. Respectfully submitted, Karen Crocker Community Services Director Attachment: 1. Proposed License Agreement Prepared by Cnthia Alexander Interim Community Services Manager 0 0 LICENSE AGREEMENT This License Agreement is made this _ day of 2008, by and between the City of San Juan Capistrano, hereinafter referred to as "City", and American Legion, hereinafter referred to as "American Legion." RECITALS: WHEREAS, American Legion is a nonprofit organization dedicated to providing quality social and organization services to a targeted population of San Juan Capistrano; and WHEREAS, American Legion desires to utilize for administrative office purposes a portion of the Old Firestation Garage, located at 31411 La Matanza Street, Suite C; and NOW, THEREFORE, BE IT MUTUALLY RESOLVED BETWEEN CITY AND American Legion AS FOLLOWS: Section 1. Grant of License. City hereby grants a license to American Legion for the purpose of an administrative office only. The portion of the Old Firestation Garage, which is the subject of this License grant, is specifically described in the Site Plan attached as Exhibits "A", and incorporated herein by reference (the "property"). American Legion is further entitled to make certain improvements. Any future improvements desired by American Legion must be submitted in writing to the City, and then approved, in writing, by the City. Section 2. Term of License. The term of this License shall be two (2) years from the effective date of this Agreement. The Agreement may be extended for up to a maximum of three (3) additional years, upon the mutual written agreement of both parties. Section 3. Facility Use Fees. In consideration of American Legion's nonprofit status and its social services to the City, the City agrees to provide a waiver of fees for the use of the Old Firestation garage. ATTACHMENT 1 Page 1 0 0 Section 4. Allowable Uses. American Legion may not utilize the property for any other uses than those specifically set forth in Exhibit "A", attached and incorporated herein by reference. Section S. Utilities. The City will be responsible for utilities and utility costs, except for telephone and internet services. Section 6. No License Consideration. American Legion shall not be required to pay a license consideration for the privilege of utilizing property described in Exhibit "A". Section 7. Reservations to City. City reserves the right to enter the property at any reasonable time for the purpose of inspection and /or repairs for which the City is responsible, or to carry out any municipal function. This right shall not be exercised in any manner which will unreasonably interfere with American Legion's use of the premises. Section 8. Condition of Premises. American Legion agrees to accept the property in "as is" condition, and agrees to assume all further liability arising out of the condition of the property. Section 9. Maintenance, Repairs, and Improvements. 9.1 Restoration Requirements. In order to ensure that the facility is returned to its original condition at the conclusion of this agreement, any damage resulting from use of this facility shall be corrected at American Legion's expense. When vacating the premises, if American Legion does not restore the premises to its original condition, the cost to restore the premises will be invoiced for monies within thirty (30) days of American Legion,leaving the premises. 9.2 Repairs and Damages. City shall be responsible for any major structural repairs to the premises, including such items as leaking roofs, plumbing, and related improvements, providing that the damage to be repaired has not been caused directly by American Legion's use of the premises. City shall also accept responsibility for following Items: Exterior Painting Exterior Lighting Roofing Page 2 0 0 Windows and Doors (excluding screen doors) Exterior Wall Repair HVAC Plumbing 9.3 Custodial Responsibilities. American Legion shall be responsible for office/storage room of the Old Firestation Complex garage. 9.4 Tenant Improvements. American Legion shall summit to the Community Services Department, in writing, any desired changes/improvements to office space in the Old Firestation garage. This shall include any modifications to existing walls, ceiling, flooring, and doors, lighting, interior and exterior. American Legion must receive written approval from City prior to making any improvements or modifications to the facility. All improvements and their maintenance shall be the financial responsibility or American Legion. Furthermore, American Legion shall restore said premises back to its original condition at the end of the Agreement, unless City provides written permission to leave improvement in place. Section 10. Insurance/Indemnity. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A - Class VII or better. 10.1 Comprehensive General Liability. Throughout the term of this Agreement, American Legion shall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period Page 3 0 0 10.2 Proof of Insurance Requirements/Endorsement. American Legion shall submit the certificate of liability insurance, naming the City as additional insured, and an additional insured endorsement to the City for certification that the insurance requirements of this Agreement have been satisfied. 10.3 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be canceled, nor the coverage reduced until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 10.4 Indemnity. American Legion shall indemnify, save, and defend City, its elected and appointed officials and employees harmless from and against any and all claims, demands, suits, actions and proceedings, of any kind or nature, for damages to property or injuries to or death of any persons arising out of American Legion's use of said facilities under the terms and conditions of this License Agreement. Section 11. Consideration. A. America n Legion shall, at all times, keep City advised of the name, address, and telephone number of the person responsible for the operation of the aforesaid facility. B. America n Legion shall, at all times, take and maintain the utmost caution and care in every respect of its operation and shall observe and maintain the highest standard of safety. C. Parking spaces adjacent to this facility shall be shared with VFW, Juaneno Band of Missions and the public. No parking spaces shall be reserved for American Legion. All parking shall be in the lot. Additional parking is available in the public lot, located at the corner of EI Horno and EI Camino Real. No on - street parking allowed. D. Facility is to be kept locked when not in use. American Legion must ensure the facility is locked after use. E. America n Legion is responsible for all furniture, equipment, and supplies for this space usage. F. City shall issue keys to names provided by American Legion; all keys must be signed-out in accordance with City procedure. When a person leaves American Legion's organization, American Legion must return the key to City so that person's name can be removed from City records. American Legion is not to re -issue any key to another member. Page 4 Section 12. Termination. A. City shall have the right to terminate this Agreement without cause by giving ninety (90) days advance written notice of termination to the other party. B. Upon t ermination of this Agreement, American Legion shall remove all equipment and materials, clean the premises, and leave facility in a condition substantially similar to that prevailing at the time of commencement of this lease, with the exception of normal wear and tear, acts of God, and events beyond control of American Legion. American Legion shall restore the property to its original condition with any cost to City. Section 13. No Assignments. American Legion shall not assign this License or any interest herein, or sublet the property or any part thereof, or license the use of all or any portion of the property or business conducted therein or thereon, or encumber or hypothecate the property or this License, without first obtaining the written consent of the City. Any assignment, subletting, licensing, encumbering, or hypothecating of the property or this License without such prior written consent of the City, shall be void and shall be cause for immediate cancellation of this License by the City at its option. Section 14. No Relocation Benefits. This License is not intended to convey a property interest but to permit the American Legion to use the property as provided for herein. The American Legion acknowledges the rights granted by State and/or Federal Relocation Assistance Laws and regulations and, notwithstanding any other provision of this License, expressly waives all such present and future rights, if any, to which the American Legion might otherwise be entitled from the City with regard to this License and the business operated on the property. The American Legion shall not be entitled to relocation assistance, relocation benefits, or compensation for loss of goodwill upon the termination of this License. Section 15. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with respect of the matters covered herein, and no other previous agreement, statement or promise made by any party hereto which is not contained herein shall be binding or valid. Section 16. Notices. All notices, demands, consents, or other communications required to be given under this agreement shall be accomplished by first class mail, postage prepaid, and deposited in the U.S. mail, or personally served upon the other party. Page 5 011 To City: Karen Crocker, Community Services Director City of San Juan Capistrano 25925 Camino del Avion San Juan Capistrano, CA 92675 To American Legion: Richard Hill Adams, American Legion Commander 33532 Valle Rd. San Juan Capistrano, CA 92675 Section 17. Attorney's Fees. 0 In the event any legal action or proceeding is commenced to interpret or enforce the terms of, or obligations arising out of this Agreement, or to recover damages for the breach thereof, the party prevailing in any such action or proceeding shall be entitled to recover from the non -prevailing party all reasonable attorney's fees, costs and expenses incurred by the prevailing party. IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. ATTEST: Margaret R. Monahan, City Clerk APPROVED AS TO FORM: L -4N/ • I/1 .! - al CITY OF SAN JUAN CAPISTRANO Joe Soto, Mayor American Legion Byle�d hard Hi Adams, o ander 11 Allowable Uses 0 Old Firestation Garage Located at 31411 La Matanza Street, Suite C American Legion Allowable Uses Include: • The maximum number of persons to be in this area at one time is three (3). • Type of activity to take place at this site is administrative/office functions. • Storage of equipment and supplies is permitted only with the interior of the office/storage area. • Applicant shall have access to adjacent restroom facilities. • Hours of office use available, Monday through Sunday, 8:00 a.m.-5:00 p.m., • No office space operations on the annual Swallows Day Parade. Applicant may not utilize the property for any other uses than those specifically established in the agreement. Page 7