PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
SUBJECT/TITLE:
LEASE FOR PROPERTY AT 350 PISMO AVENUE (WOLOSZ PARKING LOT), SITE
OF A PAID PARKING LOT IN THE DOWNTOWN
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to enter into a three-year lease for use of 350 Pismo Avenue as a paid parking lot (the Wolosz Lot), in an amount not to exceed $252,000 over three years.
BACKGROUND:
The City of Pismo Beach has leased property at 350 Pismo Avenue from the Wolosz Family Trust, now the Joseph J. Wolosz Survivor Trust, since 2007, for the purpose of providing additional public parking in Downtown Pismo Beach. The lot represents approximately 23% of the available paid parking and is a critical lot to provide adequate parking for visitors during a longer peak season.
Proposed Lease Changes from Previous Lease
The prior lease at $6,500 per month ended April 30, 2023. Staff and Mr. Wolosz communicated over several months to develop the proposed lease. The following list describes the proposed lease changes compared to the previous lease:
The term of the proposed lease begins August 1, 2023, for a term of three years. The agreed-upon price for the lease of the site is $6,500 per month for the first year, then $7,000 per month for the second year starting August 1, 2024, and a $7,500 per month for the third year starting August 1, 2025.
The proposed lease also provides clarification on the type of fence around the property following the conclusion of the lease, as well as the duration. All other provisions remain the same.
Staff has negotiated a lease agreement that will continue to provide additional parking in the City’s Downtown for the next three years.
Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute the Lease (Attachment 1.A).
FISCAL IMPACT:
The fiscal impact of adopting the Resolution is an additional cost of $252,000 over the three-year lease term, or $78,000 in the first year, $84,000 in the second year, and $90,000 in the third year in the Parking Enterprise Fund. The fiscal impact for fiscal year (FY) 2024 is an additional cost of $71,500. Staff projects that parking revenues from the
9.E-1Council Agenda 8-1-2023
76 paid parking spaces in this lot will support the full cost of this lease. There are sufficient budgeted funds within the Parking Enterprise Fund to support this lease.
ALTERNATIVES:
1. Provide other direction.
ATTACHMENTS:
1. 1. Resolution
1.A. Exhibit A to Resolution: Lease
Meeting Date: August 1, 2023 Submitted by:
Nadia Feeser, Administrative Services Director
Interim City Manager Approval:
9.E-2Council Agenda 8-1-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO A THREE- YEAR LEASE FOR USE OF 350 PISMO AVENUE AS A PAID PARKING LOT (THE WOLOSZ LOT), IN AN AMOUNT NOT TO EXCEED $252,000 OVER THREE YEARS WHEREAS, the City of Pismo Beach has leased property at 350 Pismo Avenue (APN:
005-076-027) from the Wolosz Family Trust, now the Joseph J. Wolosz Survivor Trust, since 2007, for the purpose of providing additional public parking in Downtown Pismo Beach; and
WHEREAS, there is sufficient Parking Enterprise Fund budgeted funds to support the additional cost of a new lease for the site, which is estimated to be offset by parking revenues from the lot.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a lease with the Joseph J. Wolosz Survivor Trust (August 1, 2023 to July 31, 2026), attached as Exhibit A, not to exceed $78,000 in the first year, $84,000 in the second year, and $90,000 in the third year.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 1st day of August 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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Attachment 1
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Recording Requested by and
When Recorded Return to:
City Clerk
City of Pismo Beach
760 Mattie Road
Pismo Beach, California 93449
============================================================= LEASE
350 Pismo Avenue, Pismo Beach, California
APN: 005-076-027
THIS LEASE IS ENTERED INTO on August 1, 2023, between the City of Pismo Beach, a municipality (referred to as “City”) and Joseph J. Wolosz Survivor Trust, (referred to as “Wolosz”).
1.LEASED PREMISES:
The City hereby leases from Wolosz that certain premises located at 350 Pismo Avenue, Pismo Beach, California, more particularly described in Exhibit “A”, which is attached hereto and incorporated by reference (hereinafter referred to as the “Leased Premises”).
2.TERM:
(a)The Term of this Agreement shall be three (3) years, commencing on August 1, 2023 and terminating on July 31, 2026. City shall have an option to extend this Agreement for a period of one year, provided that Wolosz has not given notice to City to vacate the Leased Premises at the end of the Term. Such notice to vacate shall be given not later than December 31, 2025, and if not given by that date, City may exercise the option to extend upon written notice to Wolosz. Such notice by City shall be given to Wolosz not later than March 31, 2026. Except as extended by the exercise of this option, this Agreement shall expire as of the end of the Term, unless a mutually agreed upon extension is executed in writing by the parties.
(b)At the end of the Term, City shall remove all improvements it placed on the Leased Premises, and City agrees to restore the Leased Premises to substantially the same condition that existed prior to the Term; City has asphalted the Leased Premises, such asphalt shall remain at the expiration of the Term; City will rent and cause to be installed a six-foot high chain-link fence around the property upon the expiration of the Term for a maximum period of six months, unless otherwise directed by Wolosz to not install a fence.
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3.USES:
The Leased Premises may be used and occupied only for public parking of vehicles, including such improvements, equipment, machinery, and structures as are deemed necessary by City to provide public parking of vehicles, and for community events such as the Pismo Beach annual car show and farmer’s markets. Costs for improvements shall be solely borne by City. City shall maintain the Leased Premises and shall be responsible for all costs, expenses and repairs to the Leased Premises as required during the term of this Agreement. City shall pay for any and all costs of managing, maintaining, improving, policing, monitoring, and staffing the proposed public parking lot on the Leased Premises, all at no cost or liability to Wolosz.
4.RENT:
During the Term of this Agreement, City agrees to pay Wolosz, as rent, the following sums
• $6,500 per month, payable on the first day of each month from August 1, 2023 through July 31, 2024
• $7,000 per month, payable on the first day of each month from August 1, 2024 through July 31, 2025
• $7,500 per month, payable on the first day of each month from August 1, 2025 through July 31, 2026
Should the lease be extended pursuant to the City’s option in Section 2(a), the monthly rental shall continue at $7,500 per month starting August 1, 2026.
5.ZONING:
City represents and warrants that no zoning changes will be sought or implemented on Leased Premises during the Term of this Agreement.
6.EMINENT DOMAIN/RIGHT OF FIRST NEGOTIATION:
As further consideration for Wolosz’s agreement to enter into this Agreement, City agrees that during the Term, and for a period of five (5) years following the Term, City shall take no action to commence eminent domain proceedings against the Leased Premises.
7.CITY AS TENANT ONLY:
Except as expressly provided in this Agreement, the capacity of City in this Agreement shall be as a tenant only, and any obligations or restrictions imposed by this Agreement on City shall be limited to that capacity and shall not relate to or otherwise affect any activity of City in its governmental capacity, including, but not limited to, enacting laws, inspecting structures, reviewing and issuing permits, and all other legislative, administrative, or enforcement functions of City pursuant to federal, state, or local law.
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8.LIABILITY AND INDEMNIFICATION:
(a)During the Term, City assumes all liability for loss on the Leased Premises, including theft, disappearance, damage or injury to goods, wares, merchandise, or property of any kind, including, without limitation, property of City and property of employees of City, except for Wolosz’s sole negligence or Wolosz’s willfully wrongful acts. During the Term, City assumes liability for injury or death of any person occurring on the Leased Premises from any cause whatsoever except Wolosz’s sole negligence or Wolosz’s willfully wrongful acts. (b)City shall at all times relieve, indemnify, protect, and save harmless Wolosz and any and all of his agents and employees from any and all claims and demands, actions, proceedings, losses, liens, costs and judgments of any kind and nature whatsoever for death of or injury to persons or damage to property, and for civil fines and penalties, that may arise from or be caused directly or indirectly by:
(1)Any dangerous, hazardous, unsafe, or defective condition of, in or on the Leased Premises, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the Leased Premises by City, its officers, agents, employees, sublessees, licensees or invitees; (2)Any operation conducted upon or any use or occupation of the Leased Premises by City, its officers, agents, employees, sublessees, licensees, or invitees under or pursuant to the provisions of this Agreement or otherwise; (3)Any act, omission or negligence of City, its officers, agents, employees, sublessees, licensees or invitees in the use of the Leased Premises, regardless of whether any act, omission or negligence of Wolosz, or Wolosz’s agents or employees contributed thereto; or
(4)Any failure of City, its officers, agents or employees to comply with any of the provisions or conditions of this Agreement or any applicable federal, state, regional, or municipal law, ordinance, rule or regulation in the use of the Leased Premises.
9.INSURANCE:
City will, at its own expense, procure and keep in force during the entire Term, a plan of pooled risk liability self-insurance coverage that covers the Leased Premises, with amounts of coverage equal to that provided by City for other City property, but in no event less than $2,000,000 per occurrence. Should City, during the Term, discontinue this self insurance or substantially similar program, City shall obtain commercial liability insurance with a minimum limit of $2,000,000 per occurrence protecting Wolosz and City against claims for bodily injury, personal injury, and property damages based upon or arising out of the ownership, use, operations, and maintenance of the Leased Premises and all appurtenant improvements located
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thereon. Such insurance shall be on an occurrence basis.
10. ASSIGNMENT AND SUBLETTING:
City shall not, without prior written consent of Wolosz, assign or sublet the Leased Premises in whole or in part. Any attempt to assign or sublet the Leased Premises without prior written consent of Wolosz shall be void and of no effect for any purpose and shall furnish grounds for immediate termination of this Agreement.
This provision shall not limit City’s ability to make the Leased Premises available for public parking, vendor parking, and booths and activities associated with downtown promotional events such as the car show, festivals, farmer’s markets, or other such events.
11. UTILITIES:
City shall pay for all utility services furnished to the Leased Premises, including water, electricity, gas, telephone service and other similar services, and shall hold Wolosz absolutely free and harmless therefrom.
12. MISCELLANEOUS:
The word or words appearing at the commencement of paragraphs and subparagraphs of this Agreement are included only as a guide to the contents thereof, and are not to be considered in the construction of this Agreement. This Agreement shall bind and inure to the benefit of the successors and assigns of the parties.
Pursuant to Government Code Section 37393, this Agreement shall be recorded in the office of the Recorder of San Luis Obispo County. If any provision or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other provision and condition of this Agreement shall be valid and enforceable to the fullest extent possible permitted by law. This Agreement constitutes the sole and entire agreement between the parties with respect to the subject matter hereof. This Agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this Agreement. All agreements or representations respecting the subject matter of this Agreement not expressly set forth or referred to in this Agreement are null and void.
CITY OF PISMO BEACH
A Municipal Corporation
By:
Jorge Garcia, Interim City Manager
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Date: _______________________
APPROVED AS TO FORM:
_____________________________________
David Fleishman, City Attorney
JOSEPH J. WOLOSZ SURVIVOR TRUST
By:
Joseph Wolosz, Trustee
Date: _______________________
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ACKNOWLEDGMENT
State of California
County of )
On before me,
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
ACKNOWLEDGMENT
State of California
County of )
On before me,
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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Attachment 1A
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EXHIBIT A
DESCRIPTION OF LAND
To the Agreement dated August 1, 2023, by and between City of Pismo Beach, a municipal corporation, as Tenant, and The Wolosz Family Trust, as Landlord.
The Leased Premises is described and/or depicted as follows: APN: 005-076-027 LOTS B-1, C-1, D-1, G, H, I, J, K, L, M, N, O AND P IN BLOC 2 OF THE TOWN OF
EL PIZMO, IN THE CITY OF PISMO BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD JUNE 5, 1905 IN BOOK A AT PAGE 155 OF MAPS, IN THE OFFICIAL RECORDS OF THE
COUNTY RECORDER OF SAID COUNTY
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Attachment 1A