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10-0601_CREER-COMUNIDAD Y FAMILIA_D12_Agenda ReportucCo_3b 6/1/2010 AGENDA REPORT D12 TO: Joe Tait, City Manager( FROM: Karen Crocker, Community Services Director SUBJECT: Consideration of License Agreement for Use of Portion of the Stonefield Office Building (CREER-Comunidad y Familia) RECOMMENDATION: By motion, 1. Approve a license agreement between the City of San Juan Capistrano and CREER-Comunidad y Familia for use of portion of the Stonefield Office Building. 2. Approve the Monthly Facility Use Fee of $1.21 per sq. ft. at $343.64 per month. SITUATION: A. Summary and Recommendation CREER-Comunidad y Familia, a volunteer, grassroots community organization is requesting the use of the Stonefield Office Building for administrative purposes of their organization. Staff is recommending the approval of a two-year license agreement with CREER-Comunidad v Familia. B. Backaround CREER-Comunidad y Familia is a registered 503(c) nonprofit organization that began in 2005 as an initiative of Latino Educational Attainment. The goals of the organization are to develop cultural, educational, and social potential leadership for all residents of San Juan Capistrano. In addition, the group is working with the Police Services Department to serve as a liaison between residents and the City to create stronger working relationships for public safety and educational awareness. Previously, in an effort to support the success of a new organization within the community, CREER-Comunidad y Familia was granted a fee waiver for the use of the Stonefield Office Building and La Sala Auditorium since they had little funding for their organization. At that time, it was stipulated that by the City waiving their monthly facility use fee to help give them time to succeed financially, they would become self-sustaining by obtaining funding through private donations and foundation grants. The City has approved similar requests in the past to organizations such as CARE, Coastal Mountain Youth Academy and Camino Real Playhouse. As a result, CREER-Comunidad y Familia has obtained funding and now will be required to pay the monthly facility use fees. Agenda Report Page 2 June 1, 2010 Staff is recommending a monthly facility use fee for the use of the Stonefield office space at $343.64 per month, for an annual amount of $4,123.68. This facility use fee is based on $1.21 per sq. ft. Staff is recommending that the use of the La Sala Auditorium and other City facilities, such as Historic Town Center Park and Stonefield, will be processed through the Community Services Department facility use application process. The usage fees shall be in accordance to the City's fee resolution schedule, which is adopted by City Council. A refundable cleaning and compliance deposit of $500 for the rental of the facilities would be required. This deposit would be refunded after the two-year license agreement expires and the renter chooses not to renew, providing that the site is restored to original condition, left clean, and there is compliance with all conditions. Overview of the License Agreement The proposed license agreement addresses a variety of issues including allowable uses, term of license, utility responsibilities, tenant improvements, maintenance and repairs, insurance and indemnity, and termination of the agreement (Attachment 1). The proposed term of this license agreement is for a period of two years from the date of its execution, with the possibility of an additional one-year period extension upon mutual consent of both parties. Financial Analysis Staff has done a comprehensive analysis on building costs regarding the use of City facilities by various organizations. It has been a challenge for the Stonefield Office space due to the fact that it is in between a public park restroom that the City operates and an office building that Capistrano Unified School District operates. The office space is 284 sq. ft. and is not a standalone building; therefore, there has been very little maintenance costs associated with the use. For consistency purposes regarding fees, staff is recommending to use the same fee facility cost analysis as the Old Fire Station Complex (Attachment 2). Staff is recommending that the use of the Stonefield office space be $1.21 per sq. ft. for a monthly fee of $343.64. This fee is consistent with the cost of the office space at the Old Fire Station Complex that CHEC had been occupying for their administrative functions. Due to the economic climate, the market value to rent other commercial sites within the City of San Juan Capistrano ranges from $.82 per sq. ft. to $1.75 per sq. ft. forfull services. Agenda Report Page 3 COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: June 1, 2010 This item will be presented at the June 21, 2010 Parks, Recreation and Equestrian Commission meeting, as a receive and file item. FINANCIAL CONSIDERATIONS: The facility rental fee for Stonefield Office Building is $4,123.68 per year. NOTIFICATION: In addition, notification regarding this item has been mailed to neighborhood residents and property owners within a radius of 1,000' of the Stonefield Office Building by the Community Services Department. Richard Ybarra, Executive Director, CREER-Comunidad y Familia Orrie Brown, Resident RECOMMENDATION: By motion, 1. Approve a license agreement between the City of San Juan Capistrano and CREER-Comunidad y Familia for use of portion of the Stonefield Office Building. 2. Approve the Monthly Facility Use Fee of $1.21 per sq.ft. at $343.64 per month Respectfully submitted, ,l AN�? Karen Crocker Community Services Director Attachments: 1. Proposed License Agreement Exhibit A Exhibit B 2. Facility Lease Matrix 3. Location Map LICENSE AGREEMENT This License Agreement is made this 1 day of June , 2010, by and between the City of San Juan Capistrano, hereinafter referred to as "City", and CREER-Comunidad y Familia, hereinafter referred to as "CREER". RECITALS: WHEREAS, CREER is a nonprofit organization dedicated to providing quality social, cultural, and recreational services to a targeted population of San Juan Capistrano; and WHEREAS, CREER desires to utilize for administrative office purposes the Stonefield Office Building, located at 31322 Camino Capistrano; and WHEREAS, City desires to make available such facility to CREER for such purposes under the terms and conditions set forth in this agreement. NOW, THEREFORE, BE IT MUTUALLY RESOLVED BETWEEN CITY AND CREER AS FOLLOWS: Section 1. Grant of License. City hereby grants a license to CREER for the purpose of allowing CREER to utilize a portion of the Stonefield Office Building for administrative office purposes only. The Stonefield Office Building, which is the subject of this License grant, is specifically described in the Site Plan attached as Exhibits "A" and "B", and incorporated herein by reference. CREER is further entitled to make certain improvements. Any future improvements desired by Licensee must be submitted in writing to the City, and then approved, in writing, by the City. Section 2. Facility Use Fees. In consideration of the foregoing, CREER agrees to pay monthly facility fees in the sum of $343.64 per month. Section 3. Allowable Uses. CREER may not utilize the property for any other uses than those specifically set forth in Exhibit "B", attached and incorporated herein by reference. -1- ATTACHMENT1 Section 4. 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 an additional one (1) year period upon the mutual written agreement of both parties. In addition, CREER is hereby granted a 90 -day hold -over period with respect to the one year term wherein CREER may remain upon the property for up to 90 days to accommodate any need CREER may have to transition to another property. Section 5. Utilities. CREER shall be responsible for the cost of all utility services, except electricity, to conduct activities within the building space authorized under this Agreement. City shall not require sub -metering of authorized areas. Telephone Services: Telephone -related expenses are the sole responsibility of CREER. CREER shall be responsible for opening/closing facility for installation, repairs, and/or removal of these services. City staff will not meet vendor for delivery, installation, repair, nor removal appointments. Section 6. No License Consideration. Except for Facilities Use Fees per Section 2 above, licensee shall not be required to pay a license consideration for the privilege of utilizing property described in Exhibits "A" and "B". Section 7. Use of Adjacent Meetina Room. CREER agrees and understands that Capistrano Unified School District (CUSD) reserves the right to allow groups and individuals to utilize the adjacent meeting room. Section 8. 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 CREER's use of the premises. Section 9. Compliance with Law, E -Verify. 9.1. Compliance with Law. CREER shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. 9,a 9.2. E -Verify. If CREER is not already enrolled in the U.S. Department of Homeland Security's E - Verify program, CREER shall enroll in the E -Verify program within fifteen days of the effective date of this Agreement to verify the employment authorization of new employees assigned to perform work hereunder. CREER shall verify employment authorization within three days of hiring a new employee to perform work under this Agreement. Information pertaining to the E -Verify program can be found at http://www.uscis.gov, or access the registration page at httl)s://www.vis-dhs.com/employerregistration. CREER shall certify its registration with E -Verify and provide its registration number within sixteen days of the effective date of this Agreement. Failure to provide certification will result in withholding lease until full compliance is demonstrated. Section 10. Condition of Premises. CREER agrees to accept said facility in an "as is" condition, and agrees to assume all further liability arising out of the condition of such facility. Section 11. Maintenance, Repairs, and Improvements. (a) Refundable Restoration Requirement: In order to ensure that the facility is returned to its original condition at the conclusion of this agreement, a refundable restoration deposit of $500 has been established. Any damage resulting from use of this facility shall be corrected at CREER's expense. When vacating the facility, if CREER does not restore the site to its original condition, the cost to restore the facility shall be deducted from this deposit. In the event that the costs exceed the deposit, CREER shall be invoiced for the outstanding restoration costs. All monies remaining after restoration is completed shall be refunded to CREER. (b) 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 CREER's use of the premises. City shall also accept responsibility for the following items: Exterior Painting Roofing Windows and Doors (excluding screen doors) Exterior Wall Repair HVAC and plumbing Exterior Lighting (c) Custodial Responsibilities. CREER shall be responsible for office and storage rooms of the Stonefield Office Building. (d) Tenant Improvements. CREER shall submit to the Community Services Department, in writing, any desired changes/improvements to the Stonefield Office Building. This shall include any modifications to existing walls, windows, floors, doors, 150 interior, and exterior. CREER must receive written approval from City prior to making any improvements or modifications to the facility. All improvements shall be the financial responsibility of CREER. Furthermore, CREER shall restore said facility back to its original condition at the end of the use agreement, unless City provides written permission to leave improvement in place. Section 12. 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. (a) Comprehensive General Liability. Throughout the term of this Agreement, Licensee 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. (b) Proof of Insurance Requirements/Endorsement. CREER 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. (c) Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be canceled, nor the coverages 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. (d) Indemnity. CREER 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 CREER's use of said facilities under the terms and conditions of this License Agreement. Section 13. Conditions of Operation. A. CREER 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. CREER 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. -4- C. CREER shall submit a semi-annual performance report, due December31,2010 and June 30, 2011; December 31, 2011, and May 31, 2012, to the Community Services Director in accordance to City Council Policy 014. The report shall include: 1. Disclosure of all activities CREER has conducted both at the facility and in the community on an outreach basis; 2. The number of citizens receiving benefits from activities, including meetings, classes, events, services; 3. The city of residence of citizens receiving benefits from activities, including meetings, classes, events, services; 4. Description of any routine maintenance of premises; 5. Proof of CREER's continued nonprofit status; 6. Information on the total revenue and expenditures received by CREER during the reporting period, and disclosure of the sources of that revenue. E. Parking spaces adjacent to this facility shall be shared with Capistrano Unified School District employees and the public. No parking spaces shall be reserved for CREER. F. Restrooms are to be kept locked when not in use. CREER must ensure restroom is locked after each use. G. CREER is responsible for all furniture, equipment, and supplies for this space usage. H. City shall issue keys to names provided by CREER; all keys must be signed-out in accordance with City procedure. When a person leaves CREER's program, CREER must return the key to City so that person's name can be removed from City records. CREER is not to re -issue any key to another employee. Section 14. Termination. (a) This Agreement may be terminated upon the default of one of the parties. In the event of a dispute between the parties, City and CREER shall first meet and confer regarding the matter. If the dispute cannot be resolved through a meet and confer session within thirty (30) days of written notice of a default, then the Agreement may be unilaterally terminated by the non -defaulting party. (b) City and CREER shall have the right to terminate this Agreement without cause by giving ninety (90) days advance written notice of termination to the other party. (c) Upon termination of this Agreement, CREER shall remove all equipment and materials, clean the premises, and leave facility in a condition substantially similar to -5- that prevailing at the time of the commencement of this lease, with the exception of normal wear and tear, acts of God, and events beyond control of CREER. CREER shall restore the property to its original condition without any cost to City. Section 15. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with respect to 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. To City: Karen Crocker, Community Services Director City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 To Licensee: CREER-Comunidad y Familia Mr. Richard M. Ybarra P.O. Box 1347 San Juan Capistrano, CA 92675 (b) Attornev's Fees. 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. [SIGNATURE PAGE TO FOLLOW] la CITY OF SAN JUAN CAPISTRANO 0 Dr. Londres Uso, Mayor CREER-Comunidad y Familia m ATTEST: Maria Morris, City Clerk APPROVED AS TO FORM: 11 �W""llf, nm Richard M. Ybarra, Executive Director -7- EXHIBIT "A" Site Plan Stonefield Office BUilding (284 sq. R) Camino Capistrano 10 EXHIBIT "B" Allowable Uses Stonefield Office Building CREER-Comunidad y Familia Allowable Uses Include: • Administrative office hours shall be Monday - Friday, 8:00 a.m. - 9:00 p.m. and on weekends when needed • There shall be a maximum of four (4) workstations in this area • The maximum number of persons to be in this area at any one time is ten (10) • Types of activities to take place at this site include: administrative/office functions • Storage of equipment and supplies is permitted only within the interior of the office/storage area • Applicant shall have access to adjacent restroom facilities Applicant may not utilize the property for any other uses than those specifically established in this agreement 0 CITY OF SAN JUAN CAPISTRANO FACILITY LEASE FEE CALCULATION FACILITY: Old Fire Station Complex - Lacoua ue LEASED TO: CHEC ADDRESS AND LOCATION: 31411 La Matanza Room 1 SQUARE FOOTAGE: 790 SQ FT PERCENT OF TOTAL FIRE STATION COMPLEX 1 10% LAST UPDATED: October 1, 2009 EXPENSE ids Maintenance 2009-10 507 ng Maintenance 2009-10 1,103 Maintenance 2009-10 - ng Repairs 2009-10 436 sciation 2009-10 1,551 Interest (457) al Properly Finance 2,359 Gas 2008-09 155 Water 2008-09 182 Electric 2008-09 1.607 GRAND TOTAL ANNUAL FACILITY EXPENSE $11,4451 ATTACHMENT P I1 11 THE CITY OF SAN JUAN CAPISTRANO Consideration of License Agreement for Use of Portion of the Stonefield Office Building (CREER- Comunidad Y Familia) Stone Field Community Building 31322 Camino Caoistrano r�&f�,j flrt'.�9..���si.� yes 6 0 3000 6000 9000 Feet Attachment 3