CC 2018-01-23_09e Residential Lease_202 E Le Point Street
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, PUBLIC WORKS DIRECTOR
BY: RON SIMPSON, PUBLIC WORKS MANAGER
SUBJECT: CONSIDERATION OF RESIDENTIAL LEASE FOR 202 EAST LE POINT
STREET
DATE: JANUARY 23, 2018
SUMMARY OF ACTION:
Approval and authorization of a Residential Lease between the City of Arroyo Grande
as the Landlord and Jena Simmons and Chad Jackson as the tenants for the house
located at 202 East Le Point Street.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The lease terms include payment of $1,000 per month for February increasing to $1,100
per month starting in March for rent of the residence with all utilities paid by the tenants.
This would generate $13,100 annually in revenue for the City. The administration of the
lease is not anticipated to require significant staff resources.
RECOMMENDATION:
It is recommended the City Council approve and authorize the City Manager to execute
a Residential Lease between the City of Arroyo Grande as the Landlord and Jena
Simmons and Chad Jackson as the tenants for the house located at 202 East Le Point
Street.
BACKGROUND:
In December 2016, the City finalized the purchase of a parcel of property used as, and
commonly known as, the Le Point Street parking lot. There is currently an
approximately 800 square foot residence on the parcel, which has been leased to the
current tenants by the previous property owner for several years. The City Council has
previously provided support for maintaining the current lease arrangement at this time.
Item 9.e. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESIDENTIAL LEASE FOR 202 LE POINT STREET
JANUARY 23, 2018
PAGE 2
ANALYSIS OF ISSUES:
The City purchased the property in anticipation of ultimately expanding parking in the
Village core. At some point in the future, the creation of additional parking on the site
will occur, however, there are no immediate plans for this change in use.
Upon purchase of the property, which was accomplished through the exercise of a
lease with option to purchase agreement, the City has the opportunity to continue
leasing the residence, generating revenue, until such time as the City is ready to create
additional parking spaces. The City Council has indicated support for maintaining the
lease with the current tenants, thereby not displacing the residents that have occupied
the house for a number of years. The attached one year lease agreement provides for
rent of $1,000 per month for February and $1,100 per month starting in March, that the
tenant will be responsible for the payment of all utilities and other common general
provisions for residential leases.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve and authorize the City Manager to sign the residential lease;
2. Do not approve the residential lease and direct staff to negotiate different lease
terms with the tenants; or
3. Provide further direction to staff.
ADVANTAGES:
The proposed lease generates revenue to the City and maintains the current living
arrangement for tenants in the residence. Until such time as the City is ready to create
additional parking, generation of revenue from the property is prudent.
DISADVANTAGES:
No significant disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
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.
Attachments:
1. Aerial Photo of Lot
Item 9.e. - Page 2
RESIDENTIAL LEASE
THIS RESIDENTIAL LEASE (ʺLeaseʺ) dated as of January 23 , 2018, is entered into
between the City of Arroyo Grande (ʺLandlordʺ) and Jena Simmons and Chad Jackson
(collectively ʺTenantʺ).
NOW THEREFORE, for good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows:
Section 1. Lease
Tenant leases from Landlord the premises located at 202 East Le Point Street, Arroyo Grande,
California 93420, and consisting of a single family residence, on the terms and conditions
contained in this Lease (collectively, ʺLeased Premisesʺ).
Section 2. Term
The term of this Lease shall commence on February 1, 2018 and continue for a period of one (1)
year.
Section 3. Rent
Rent shall be One Thousand Dollars ($1,000) for the month of February and then One
Thousand One Hundred Dollars ($1,100) per month (ʺMonthly Rentʺ) starting in March,
payable in advance, on the first day of each calendar month to Landlord or Landlordʹs
authorized agent, at the following address: Attn: Administrative Services Directors, 300
Branch Street, Arroyo Grande, CA 93420, or at any other place designated by Landlord
from time to time. If Tenant takes possession of the Leased Premises on a date other than the
first day of a calendar month, the first rent payment shall be prorated in accordance with the
then remaining number of days
in the month. Tenant agrees to pay a charge of Twenty Five Dollars ($25) for each dishonored
check.
Section 4. Utilities
Tenant shall be responsible for the payment of all utilities and services to the Leased Premises.
Section 5. Use
The Leased Premises shall be used as a private dwelling.
Section 6. Compliance with Law
Tenant shall comply with all laws, statutes, ordinances, and requirements of all city, county,
state, and federal authorities now or later in force pertaining to the use of the Leased Premises.
Section 7. Maintenance and Alterations
Except as set forth in this Lease, Tenant agrees that as of the delivery of possession the Leased
Premises are in good working order and repair. Tenant shall, at Tenantʹs own expense and at all
times, maintain the Leased Premises in good working order and repair, including all equipment,
appliances, furniture, fixtures, and furnishings, and shall surrender the Leased Premises at
termination of this Lease in as good condition as received, normal wear and tear excepted.
Tenant shall be responsible for damages caused by Tenantʹs negligence and that of Tenantʹs
family, invitees, and guests. Tenant shall not make alterations to the Leased Premises without the
prior written consent of Landlord. Tenant shall not commit or allow any person to commit any
act resulting in the destruction, defacement, damage, impairment, or removal of any part of the
Leased Premises, including wall, ceiling, and floor coverings, and the furniture, fixtures, and
furnishings of the Leased Premises.
Item 9.e. - Page 3
Section 8. Entry
Landlord shall have the right to enter the Leased Premises for the purposes of making necessary
or agreed repairs and for showing the Leased Premises to prospective tenants, provided that,
except in the case of an emergency, such entry shall be made during normal business hours and
upon at least twenty-four (24) hours' prior notice. In the case of an emergency or Tenant's
abandonment or surrender of the Leased Premises, Landlord or Landlord's agent may enter the
Leased Premises at any time, without obtaining Tenant's prior consent. Tenant agrees not to
change the locks or add locks to the entrances of the Leased Premises without the prior consent
of Landlord and without providing Landlord with a key to any locks.
Section 9. Indemnification
Landlord shall not be liable for any damage or injury to Tenant or any other person, or to any
property, occurring on the Leased Premises or any part of the Leased Premises or in common
areas, unless the damage is the proximate result of the gross negligence or willful misconduct of
Landlord, Landlord's agents, or Landlord's employees. Tenant agrees to indemnify, defend, and
hold harmless Landlord for any liability, costs (including reasonable attorney's fees), or claims
for personal injuries or property damage caused by the negligent, willful, or intentional act or
omission to act of Tenant or Tenant's guests or invitees. Each party waives the right of
subrogation against the other party.
Section 10. Assignment and Subletting
Tenant shall not assign this Lease or any interest under this Lease or sublet the Leased Premises
or any portion of the Leased Premises without Landlord's prior written consent.
Section 11. Abandoned Property
If Tenant abandons or surrenders the Leased Premises, Landlord may consider any personal
property left on the Leased Premises to be abandoned and may dispose of it in any manner
allowed by law. If Landlord reasonably believes that the abandoned personal property has a total
resale value of less than $300, Landlord may keep the personal property for Landlord's use or
otherwise dispose of it in accordance with law. All personal property on the Leased Premises is
made subject to a lien in favor of Landlord for the payment of all sums due under this Lease, to
the maximum extent allowed by law.
Section 12. Default
If Tenant fails to pay rent when due, or to perform any term of this Lease, after not less than
three (3) days' written notice of default given in the manner required by law, Landlord, at
Landlord's option, may terminate all rights of Tenant under this Lease, unless Tenant, within the
time specified, cures the default.
Section 13. Remedies
If Tenant defaults, Landlord may elect to:
(a) continue the lease in effect, and enforce all Landlord's rights and remedies under this
Lease, including the right to recover the rent as it becomes due, or
(b) at any time, terminate all of Tenant's rights under this Lease, and recover from Tenant all
damages Landlord may incur by reason of the breach of the lease, including the cost of
recovering the Leased Premises and including the worth at the time of the termination or at the
time of an award if suit is instituted to enforce this provision, of the amount by which the unpaid
rent for the balance of the term exceeds the amount of the rental loss that the tenant proves could
be reasonably voided.
In addition to any other rights and remedies allowed by this Lease or by law, Landlord shall have
the remedies as set forth in Civil Code §§1951.2 and 1951.4.
Item 9.e. - Page 4
Section 14. Security Deposit
Tenant will deposit with Landlord the sum of One Thousand Dollars ($1,000) as a security
deposit. Landlord shall not be obligated to pay interest on the Deposit. Landlord will hold the
deposit for the full and timely performance by Tenant of Tenant's obligations under this Lease,
including payment of rent and cleaning, maintaining, and repairing the Leased Premises after
surrender. If all or any portion of Tenant's security deposit is applied by Landlord during the
term of this Lease, Landlord may demand that Tenant replenish the full amount applied. Tenant's
failure to replenish the amount within five (5) days after written demand will constitute a breach
of this Lease. The balance of all deposits shall be refunded no later than twenty-one (21)
calendar days from the date possession is delivered to Landlord or Landlord's agent, together
with a statement showing any charges made against the deposits by Landlord.
Section 15. Attorney Fees
In any legal action brought by either party to enforce the terms of this Lease or relating to the
Leased Premises, the prevailing party shall be entitled to all costs incurred in connection with
that action, including reasonable attorney's fees.
Section 16 Waiver
No failure of Landlord to enforce any term of this Lease shall be deemed a waiver, nor shall any
acceptance of a partial payment of rent be deemed a waiver of Landlord's right to the ful1 amount
of rent.
Section 17. Notices
Any notice that either party may or is required to give, may be given by mailing the notice ,
postage prepaid, to Tenant at the Leased Premises or to Landlord at the address shown below or
at any other place designated by the parties from time to time.
Section 18. Successors and Assigns
This Lease is binding upon and inures to the benefit of the heirs, assigns, successors, executors,
and administrators of Landlord and Tenant.
Section 19. Time
Time is of the essence in this Lease.
Section 20. Holding Over
Any holding over after expiration of the Lease, with the consent of Landlord, shall be construed
as a month-to-month tenancy in accordance with the terms of this Lease, as applicable. Rent
during any hold over period shall be One Hundred Fifty Percent (150%) of the rent payable prior
to the expiration of the Lease term.
Section 21. Late Charges and Default Interest
If Tenant fails to pay the Monthly Rent within five (5) days after the due date, Tenant agrees that
it would be impracticable or extremely difficult to fix the actual damage to Landlord caused by
that failure and therefore agrees to pay a late charge of Twenty Five Dollars ($25) plus interest at
Ten Percent (10%) per annum commencing on the date on which the delinquent amount was due.
The amounts due under this Section are in addition to and not in lieu of any other remedies of
Landlord.
Section 22. Construction
Headings at the beginning of each section are solely for the convenience of the parties and are
not a part of and shall not be used to interpret this Lease. The singular form shall include plural,
and vice versa. This Lease shall not be construed as if it had been prepared by one of the parties,
but rather as if both parties have prepared it. Unless otherwise indicated, all references to
sections are to this Lease.
Item 9.e. - Page 5
Section 23. Further Assurances
Whenever requested to do so by the other party, each party shall execute, acknowledge, and
deliver any further conveyances, agreements, confirmations, satisfactions, releases, powers of
attorney, instruments of further assurance, approvals, consents, and any further instruments and
documents as may be necessary, expedient, or proper to complete any conveyances, transfers,
sales, and agreements contemplated by this Lease. Each party also agrees to do any other acts
and to execute, acknowledge, and deliver any documents requested to carry out the intent and
purpose of this Lease.
Section 24. Third-Party Rights
Nothing in this Lease, express or implied , is intended to confer upon any person, other than the
parties and their respective successors and assigns, any rights or remedies under or by reason of
this Lease.
Section 25. Integration
This Lease and the attached exhibits contain the entire agreement between the parties regarding
the subject matter of the Lease, and this Lease expressly supersedes all previous or
contemporaneous agreements, understandings, representations, or statements between the parties
regarding those matters.
Section 26. Counterparts
This Lease may be executed in one or more counterparts, each of which shall be deemed an
original and all of which taken together shall constitute one and the same instrument.
Section 27. Amendment
This Lease may not be amended or altered except by an instrument in writing executed by
Landlord and Tenant.
Section 28. Partial Invalidity
Any provision of this Lease that is unenforceable or invalid or the inclusion of which would
adversely affect the validity , legality , or enforcement of this Lease shall have no effect, but all
the remaining provisions of this Lease shall remain in full force.
Section 29. Joint and Several Liability
If Tenant is more than one person, each person shall be jointly and severally liable for the
performance of Tenant's obligations under this Lease.
Section 30. Conduct of Tenant
Tenant shall not create a nuisance on the Leased Premises or otherwise disturb other tenants of
the property.
[Remainder of page left intentionally blank.]
Item 9.e. - Page 6
Section 31. Governing Law
The validity, meaning , and effect of this Lease shall be determined in accordance with California
law.
IN WITNESS WHEREOF , Tenant has executed this Lease as of the date first above written.
TENANT:
Jena Simmons
Date:
Chad Jackson
Date:
Landlord accepts and agrees to this Lease.
LANDLORD:
James A. Bergman, City Manager
Date:
ATTEST:
Kelly Wetmore, City Clerk
Date:
APPROVED AS TO FORM:
Heather Whitham, City Attorney
Date:
Item 9.e. - Page 7
ATTACHMENT 1
Item 9.e. - Page 8