CC 2016-09-13_09c Lease Agreement_Public Parking Lot
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Item 9.c. - Page 1
CITY COUNCIL
CONSIDERATION OF APPROVAL OF LEASE AGREEMENT FOR PUBLIC PARKING
AREA
SEPTEMBER 13, 2016
PAGE 2
the City Attorney. City staff has designed and distributed bids for the repair and resurfacing
of this parking lot. The proposed work will be completed within the next six months.
Additionally, the City’s contracted street sweeping firm will sweep the parking lot and the
walkway monthly. City staff will conduct litter removal in the parking lot and the walkway
weekly.
Representatives of the Mankins Family Trust have agreed to renewal of the lease. If the
City Council authorizes the Mayor to sign the lease, it will become effective on December 1,
2016 and expire on November 30, 2021. The lease can be terminated by either party upon
thirty (30) days prior written notice.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Approve and authorize the Mayor to execute the Lease Agreement;
- Direct staff to renegotiate changes in the conditions of the lease; or
- Provide direction to staff.
ADVANTAGES:
The agreement extends the term of the lease for an additional five years, providing the
public with connected and additional parking at the Le Point Street parking lot at a very
minimal cost.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
This agreement is exempt from environmental review per California Environmental Quality Act
(CEQA) Guidelines Section 15061(b)(3).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.c. - Page 2
1
LEASE
THIS LEASE, executed in duplicate, at Arroyo Grande, California, on the ____ day of
_______________, 2016, by and between Blair B. Mankins and DeAnne P. Mankins, Trustees of
the Blair and DeAnne Mankins Revocable Trust under Declaration of Trust dated September 9,
2015 and Mark H. Mankins and Ginger Mankins, Trustees of the Mark and Ginger Mankins
Revocable Trust under Declaration of Trust dated April 20, 2015, hereinafter collectively called
Lessors, and the City of Arroyo Grande, hereinafter called Lessee.
IT IS AGREED that in consideration of the rents and covenants hereinafter reserved and
contained on the part of the Lessee to be paid, performed and observed, said Lessor hereby
leases to Lessee that certain property in the City of Arroyo Grande, County of San Luis Obispo,
State of California, more particularly described in Exhibit "A" attached hereto and incorporated
herein (“Premises”) and all upon and subject to the terms and provisions herein contained.
TO HAVE AND TO HOLD the said premises, with the specified rights unto the Lessee for the
term of five (5) years, commencing December 1, 2016, at the following rent, to wit: ONE DOLLAR
($1.00) per month, which payment should be made to Lessor’s property manager, B&M
Investments, at 1005 El Camino Real, Arroyo Grande, CA 93420-2518.
It is mutually agreed that as additional consideration for the lease that Lessee shall pay to Lessor
all City and County taxes assessed to the Premises during the term of the lease -or any
extension period. It shall be the duty of the Lessor to secure a separate assessment and tax bill
on the hereinafter described property and to provide Lessee with said tax bill no later than thirty
(30) days before the San Luis Obispo County taxes become delinquent, and Lessee shall not be
deemed to have breached the terms of this lease unless it is so provided. Furthermore, in the
event the Lessee is not furnished with a separate tax bill for the leased Premises, Lessee will not
be responsible for any penalties and interest charges because of the late payment of said taxes,
although it will not be relieved of the obligation to pay said property taxes.
It is mutually agreed that this lease may be terminated by either party hereto at any time during
the term of the lease, upon thirty (30) days written notice to the other party.
Lessee agrees to maintain the Premises, and the pedestrian walkway leading from the Premises
to East Branch Street known as APN No. 007-192-051 (“Walkway”) by removing trash and
accumulated debris from the walkway weekly and by sweeping the walkway monthly. All
landscaping is to be maintained by the Lessor. Lessee shall maintain and clean the Parking Lot
on a regular basis, by performing weekly liter removal and a once a month sweeping. The
Lessee shall also fill and repair potholes as necessary and shall resurface and seal the Parking
Lot as well as paint all parking stalls within one year of the effective date of the Lease.
Lessee hereby agrees to keep said Premises and the Walkway insured under its Municipal
Liability Insurance Policy and agrees to indemnify and hold Lessor harmless and exempt from
any damage or injury to any person or property arising from the use of the Premises or Walkway,
or from failure of Lessee to keep the Premises or Walkway in good condition and repair, as
herein provided. It is specifically agreed that Lessor shall not, other than to the extent of Lessor’s
sole negligence, be liable for any claims for death or injury to persons, or damages to or
destruction of property by Lessee or by any other person using the Premises or Walkway. The
policies for insurance required by this Section shall name Lessor as an additional insured, and
Item 9.c. - Page 3
2
shall not be cancelable without thirty (30) days’ prior written notice by insurer to Lessor.
All notices required by law, or by this lease, to be given to the Lessee, City of Arroyo Grande,
shall be deemed made by depositing the same in the United States mail, postage prepaid and
addressed as follows:
City of Arroyo Grande, Attn: City Manager
300 E. Branch Street
Arroyo Grande, CA 93420
All notices required by law, or by this lease, to be given to the Lessors shall be deemed
made by depositing the same in the United States mail, postage prepaid and addressed to:
B&M Investments
1005 El Camino Real
Arroyo Grande, CA 93420-2518
At any time either party may notify the other of the change of address, and notices will thereafter
be sent to the said changed address.
Lessee shall, at its sole cost and expense, comply with all of the applicable requirements of
municipal, State and Federal authorities now in force or which hereinafter be enforced pertaining
to the Premises and the use of the Premises as provided in this Lease.
Lessee agrees not to assign or transfer in whole or in part or rent or sublet any portion of leased
Premises without first having obtained written consent of the Lessor.
It is mutually agreed that Lessee will not use, or permit said Premises or any part thereof to be
used, for any purpose or purposes other than the purpose or purposes for which the said
premises are leased, demised and let unto the Lessee, that is for City off-street parking
purposes.
Lessee shall not permit the use, storage, transportation or disposal of any hazardous substances
(as that term is defined in either Federal or State law) on the Premises or Walkway.
It is mutually agreed the Lessee will not commit, or suffer to be committed, any waste upon the
said Premises or any public or private nuisance; that the Lessee will not make or suffer to be
made any additions or alterations of the said Premises or any part thereof, except paving,
general maintenance, signs or meters, without the written consent of the Lessor first had and
obtained and that any additions of the said Premises, except City signs and parking meters, if
any, shall become, at once, a part of the realty and belong to the Lessors.
If an act is commenced to enforce any provisions of this Lease, the prevailing party shall, in
addition to its other remedies, be entitled to recover its reasonable attorneys’ fees.
Item 9.c. - Page 4
3
IN WITNESS WHEREOF, the Lessor and Lessee have hereunto set their respective hands and
seals, this _____ day of _______ 20___.
LESSORS: THE BLAIR AND DEANNE MANKINS
REVOCABLE TRUST UNDER DECLARATION
OF TRUST DATED SEPTEMBER 9, 2015
By:___________________________________
Blair B. Mankins, Trustee
By:___________________________________
DeAnne P. Mankins, Trustee
THE MARK AND GINGER MANKINS
REVOCABLE TRUST UNDER
DECLARATION OF TRUST DATED
APRIL 20, 2015
By:________________________________
Mark H. Mankins, Trustee
By:________________________________
Ginger Mankins, Trustee
LESSEE: CITY OF ARROYO GRANDE
___________________________________
Jim Hill, Mayor
ATTEST:
___________________________________
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
___________________________________
Heather Whitham, City Attorney
Item 9.c. - Page 5
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