Agenda Item No: 1.j
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: December 3, 2024
Submitted by: Jeannette Ortega
From: Community Services
Subject:
Approval of New Lease Agreement Between the City of Placentia and the Placentia Founders Society for Use of the Bradford House
Financial Impact:
Fiscal Impact:
Expense: $8,500 Per Year
Budgeted: $8,500 FY 2024-25 Risk Management Fund (404582-6201) Summary:
The current Lease Agreement ("Lease") between the City and Placentia Founders Society ("Founders") for the use, maintenance, and upkeep of the historical Bradford House began in 2002 and has had five (5) amendments since that date. On October 15, 2019 the City Council approved a new Lease Agreement commencing on January 1, 2020 for a four (4) year period, ending on December 31, 2024. The City is recommending entering into a new Lease Agreement with the Placentia Founders Society, commencing on January 1, 2025 for a four (4) year period, ending on December 31, 2029.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Approve the Lease Agreement between the City and the Placentia Founders Society for the use, maintenance, and upkeep of the Bradford House for a term ending December 31, 2029; and
2. Authorize the Acting City Administrator and/or her designee to make non -substantive amendments as necessary and execute the lease on behalf of the City, in a form approved by the City Attorney.
Strategic Plan Statement:
There is no strategic plan objective or goal associated with this action.
Discussion:
The original Lease between the Founders and the City expired in 1997. A subsequent new agreement extended the Lease for an additional five-year period, which expired on December 31, 2002. On or about November 2002, the City and the Founders entered into a Lease whereby the City leased to the Society that certain parcel of real property with improvements thereon situated in the City of Placentia, County of Orange, State of California, commonly 1041
known as the Bradford House, located at 136 East Palm Circle, Placentia, California 92870, and including an eight (8) foot border around the structure ("site"). The original term of the Lease was January 1, 2003 through December 31, 2007 and was subsequently amended five (5) times with updates to insurance requirements.
On October 15, 2019 a new lease agreement was approved by the City Council and entered effectively on January 1, 2020. The new lease agreement was for a period of four (4) years, ending on December 31, 2024.
The annual cost expended by the Founders to oversee and manage the Bradford House ranges between $20,000 to $28,000. These expenses are for utilities, staffing, insurance, and maintenance. The Founders lease a room in the house to a caretaker, which brings an annual income of $18,000. All revenue received from the Lease is used for maintenance. The Lease requires the renter to have renter's insurance.
The Founders updated their Use Policy for the property in February 2019, and the City sees the need to enter into a new Lease with the Founders.
TERMS:
The new Lease is fundamentally the same as the previous agreement. The following are some of the main Lease points:
• The term of the agreement is from January 1, 2025 through December 31, 2029. • The City will maintain fire insurance on the structure while the Founders will be responsible for providing fire insurance on the contents of the house and maintain public liability, property, and general liability insurance.
• The City will provide up to $8,500 per year to assist the Founders with their insurance needs.
The Founders continue to communicate and work well with City Staff on programs at the Bradford House and any other issues that may arise.
Fiscal Impact Summary:
The City will provide up to $8,500 to assist the Founders with their insurance needs. This appropriation will be adjusted during the Midyear Budget review for Fiscal Year 2024-25 Risk Management Fund budget.
Attachments
Lease of Real Property Bradford House - 11.20.2024.pdf
Attachment 2 - Use Policy Oct 2024.pdf
Attachment 3 - PFS Expenses 23-24.pdf
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LEASE OF REAL PROPERTY LOCATED AT
136 E. PALM CIRCLE, PLACENTIA, CALIFORNIA
This LEASE OF REAL PROPERTY ("Lease") is made and entered by and between the CITY OF PLACENTIA, a Charter City and municipal corporation (herein referred to as "City"), and the PLACENTIA FOUNDERS SOCIETY, INC., a California non-profit corporation (herein referred to as "Society").
In consideration of the covenants, promises and agreements herein contained, it is hereby agreed as follows:
1. PROPERTY LEASED
The City, for and in consideration of the rents herein reserved and agreed to be paid by the Society, and in further consideration of the covenants and agreements herein contained on the part of the Society to be kept, performed and fulfilled, hereby leases and lets to the Society, and the Society hereby hires and leases from the City that certain real property and improvements situated in the City of Placentia, County of Orange, State of California, commonly known as the Bradford House, located at 136 East Palm Circle, Placentia, California 92870, and including an eight (8) foot border around the structure, for the term commencing on January 1, 2025 and ending December 31, 2029, unless sooner terminated as provided herein.
The Society shall also have the right to use the adjacent Bradford Park at 136 E. Palm Circle, Placentia, CA 92870, up to four (4) times a year at no cost for the Society -sponsored fundraising events in connection with its business operations, not to exceed six (6) hours per use, as available, provided that each use is reserved on the City's master reservation calendar no less than four (4) weeks in advance, and such scheduling shall be subject to the availability of Bradford Park. Longer periods may be allowed at the City's discretion.
2. RENTAL PAYMENT
The Society agrees to pay, and the City agrees to accept as rental for said premises, a rental payment of $1.00, payable on execution of this Lease. This rental is paid for and in consideration of the use and occupancy of the real property, building and other improvements in a manner consistent with the terms of the deed by which the City acquired the property and in consideration of the continued quiet use and enjoyment thereof for the terms of the Lease.
3. COVENANTS OF THE FOUNDERS SOCIETY
The Founders Society promises as follows:
a) That it will use said premises only for purposes consistent with the deed of the City. b) That it will comply with such lawful requirements of State, municipal and public authorities as relating to its use and occupancy of said premises.
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c) That it will maintain said premises and improvements and make all replacements and repairs necessary to said premises and improvements during the term hereof, ordinary wear and tear excepted.
d) That it will permit City to examine the premises at any time upon reasonable written or oral notice to any caretaker of the Society.
e) That it will pay for all gas, electricity, light, heat, power, water and other service or utility used on or supplied to said premises, specifically, the structure and eight -foot perimeter described in Section 1 and all utility services shall be under the Society's name. f) That in addition to and as part of rent, the Society agrees to pay during the term of the Lease all real and personal taxes and assessments on or in respect to said premises and/or improvements and/or leasehold, and any and all installments of specific assessments against said premises and/or improvements which may become due and payable during the term of this Lease, if any.
g)
That each tax, assessment, imposition and charge to be paid by the Society shall be paid by it and notice of payment furnished to the City not less than five (5) days prior to delinquency date.
h) That it will protect, defend, indemnify, and hold free and harmless the City, its officers, officials, agents, employees, and volunteers, at its sole expense, from and against any and all claims, liabilities, demands, actions, expenses, damages, suits, or other legal proceedings brought against the City, its officers, officials, agents, employees, and volunteers arising out of or in any way connected with the performance of the Society, its employees, and/or authorized subcontractors' work undertaken pursuant to this Lease including all acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of the Society, its employees, and/or subcontractors. The defense obligation provided hereunder shall apply whenever any claim, action, complaint, or suit asserts liability against the City, its officers, officials, agents, employees, and volunteers based upon the work performed by the Society, its employees, and/or authorized subcontractors under this Lease, whether or not the Society, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable, and whether or not there is any evidence of fault or wrongdoing by the Society, its employees, and/or its subcontractors. Notwithstanding the foregoing, the Society shall not be liable for the defense or indemnification of the City for claims, actions, complaints, or suits arising out of the sole active negligence or willful misconduct of the City. i) That City will at all times on and after the date on which the term of this Lease commences, at its own expense, keep all of the improvements on the leased premises insured against loss of damage by fire and other risks covered by standard extended coverage endorsement, and by vandalism and malicious mischief. That the Society, at their own expense, will procure and maintain in force during the term of this Lease fire insurance coverage for the contents of the Bradford House. Also, that the Society will procure and maintain in full force during the term of this Lease all of the following minimum scope of insurance coverages:
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j)
i. General liability insurance with coverage at least as broad as the most current version of ISO Commercial General Liability coverage form CG 00 01, in a form at least as broad as ISO form CG 00 01 04 13, and shall include broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury, and personal and advertising injury with a policy limit of not less than One Million Dollars ($1,000,000) per occurrence and One Million Dollars ($1,000,000) general aggregate. Umbrella liability coverage may also be applied to meet the limits specified above.
The general liability insurance policy shall be endorsed to contain the following: The City of Placentia, its officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Society pursuant to its Lease with the City and premises occupied or used by the Society. The insurance provided to the City as additional insured must apply on a primary and non- contributory basis with respect to any insurance or self-insurance program maintained by the City. The Society grants a waiver of any right to subrogation which any insurer of the Society may acquire against the City.
All insurance shall be carried with insurance companies approved by the City and licensed to do business in the State of California. A renewal policy shall be procured not less than ten (10) days prior to the expiration of any such policy. The Society shall furnish to City certificates of insurance showing the required insurance coverages, as well as furnish to City the required endorsements and waivers in a form and content approved by the City.
The proceeds of any insurance required under this Lease shall be paid into the treasury of City in a special trust account.
All insurance and City's liability in connection with the Bradford House shall be reviewed annually by the City's Risk Management for sufficiency of coverage and any alterations or changes requested by the City shall be made to the Founders Society no later than sixty (60) days prior to the annual anniversary date of the above-mentioned policies.
That if any mechanic's lien or liens shall be filed against the leased premises for work done by or for, or materials furnished to the Society, the Society shall forthwith, or within ninety (90) days thereafter, either cause the same to be discharged by paying the amount of the lien or shall litigate the same with due care and diligence to a final judgment or decree from which there is no appeal, and in the event such judgment or decree upholds said lien in whole or in part, the Society shall forthwith pay the same. k) In the event Society sublets or otherwise rents the living quarters located on the site, Society agrees that any person(s) to whom Society sublets or rents said living quarters shall be required to obtain and keep in full force and effect for the duration of any such sublet or rental term, full and complete renter's insurance relating to such renter's or subletter's use and enjoyment of the living quarters.
4. COVENANTS OF THE CITY
The City promises as follows:
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a) That on or before the renewal date of the Society's insurance, which is procured for the benefit of City, and upon receipt of an invoice from the Society, City will pay an amount not to exceed $8,500 annually toward the cost of insurance. If $8,500 is not sufficient to cover the insurance cost, the Society may, in writing, request additional funds from the City Council. Any such additional funds to be paid hereunder, shall be in the sole discretion of the City Council whose decision shall be final. b) That City has suffered or permitted no encumbrances or liens upon its title to the premises and that City has full right and authority to execute this Lease, and agrees that the Society, upon paying said rent and performing the covenants of this Lease, shall quietly have, hold and enjoy the demised premises during the term hereof, including reasonable vehicle access to the premises.
c) That the Society shall not have the right to make alterations, additions, changes, or improvements without the written consent of City. Any alterations, additions, changes or improvements for which City's consent has been obtained shall become and remain a part of the building, provided, however, that improvements and property placed by the Society in or on the leased premises which do not actually become a part of the building standing thereon, or any replacement thereof, may be removed without permanent injury or damage if fully repaired by the Founders Society prior to the surrender of the leased premises.
5. THE CITY'S REMEDIES UPON DEFAULT
As an alternate remedy to any other remedies available to City, upon default by the Society in the payment of any amount due under the terms of this Lease, or upon the violation of any of the terms or conditions hereof, and the failure to remedy such default within sixty (60) days after written notice from City to do so, the City may at its option enforce the terms of this agreement from time to time and/or file suit for the payment of said delinquent rental or for damages or for the performance of any such covenant or agreement or condition and/or City, in addition to other rights and remedies reserved to it by law may, at its option and without further notice or other formality, reenter the premises and take full possession thereof. No reentry of said premises by City shall be construed as an election on its part to terminate this Lease, unless written notice to that effect is delivered to the Society and all rights, powers, options, privileges and remedies herein expressly given to City shall be cumulative to each other and to any other legal or equitable remedy, right, power, or privilege which City might otherwise have in the event of any default by Society, and no option, right, power, remedy or privilege of the City shall be construed as being exhausted or discharged by the exercise thereof in one or more instances, and it is agreed that each and all of the rights, powers, options, or remedies shall be cumulative and no one of them exclusive of any remedy provided by law.
The Society shall pay interest on all obligations in arrears and on all other sums which it is or may become obligated to pay under the terms of this Lease at the rate of seven percent per annum from the date when the same becomes due until paid. In any action or proceeding which either City or Society may prosecute to enforce its respective rights hereunder, including any action to collect rental or other money due, the prevailing party shall be entitled to its costs and reasonable attorney's fees, both of which are to be allowed by the court as part of the judgment in
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such proceedings. If City shall fail to keep and perform faithfully the covenants and conditions herein imposed and such failure shall continue for sixty (60) days after Society shall have given City written notice thereof, then and in such event Society may at its option terminate this Lease.
6. ASSIGNMENT BY THE FOUNDERS SOCIETY
The Society may not assign this Lease or any of its interests hereunder or transfer such lease or interests in trust as security. Furthermore, Society may not sublease any portion of its interest without the written consent of the City.
7. NOTICES
All notices herein required shall be in writing, and delivered in person or sent by registered mail, postage prepaid.
Notices required to be given to City shall be addressed as follows:
City Clerk
City of Placentia
401 E. Chapman Avenue
Placentia, CA 92870
Notices required to be given to Society shall be addressed as follows:
President
The Founders Society
136 Palm Circle
Placentia, CA 92870
Provided that parties may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.
8. NO WAIVER BY OMISSION TO ENFORCE
No acquiescence, failure or neglect of either City or Society to insist on strict performance of any or all of the terms hereof in one instance shall be considered or constitute a waiver of the right to insist upon strict performance of the terms hereof in any subsequent instance.
9. GENERAL CONDITIONS OF AGREEMENT
Each and all of the terms and agreements herein contained shall be binding upon and insure to the benefit of the successors in interest of City and Society respectively. It is hereby covenanted and agreed that time is of the essence of this agreement except where otherwise expressly provided.
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If any section, paragraph, sentence, clause, phrase, or portion of this Lease is invalid or shall be held to be invalid, such invalidity shall not affect the validity of the balance or remainder.
There are no covenants and warranties other than those expressed herein, other than the warranty of title.
10. RENEWAL AND/OR CANCELLATION OF LEASE
Society shall notify City in writing of its intention to apply for a renewal or cancellation of the Lease ninety (90) days prior to the expiration date of this lease. City does hereby reserve the right to review, amend, or cancel this Lease at any time during the four (4) year term.
In witness whereof, the parties hereto have executed this Lease as of the Effective Date.
Approved as to form:
Christian L. Bettenhausen
City Attorney
SOCIETY
Placentia Founders Society
CITY
Rosanna Ramirez
Acting City Administrator
City of Placentia
ATTEST
Robert S. McKinnell
City Clerk
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USE POLICY FOR THE BRADFORD HOUSE
❖ The Bradford House is available for small special events. Reservations must be made thirty (30) days in advance by calling (714-993-2470) or in writing to 136 Palm Circle, Placentia, CA 92870. ❖ Group size is limited to 45 people in the downstairs rooms only; upstairs rooms are off limits for events. The porch is available. Children in attendance must be supervised. ❖ All events must be completed by 9:00 p.m. which will include actual event and clean-up. ❖ Alcoholic beverages or drugs are not allowed in the Bradford House or on the grounds. ❖ Smoking is not allowed inside the Bradford House or on the porch. ❖ High heeled footwear is not allowed in the house.
❖ Users must provide all linens, supplies and food, and are responsible for clean-up. Bradford House will provide folding chairs.
Nailing, stapling or taping of any materials to the Bradford House or Bradford Park trees is not allowed.
Only ribbon, pipe cleaners, or string may be used to fasten decorating materials. The use of lighted candles is not allowed. All decorations must be removed immediately following the event. ❖ If special permission is granted to use the upstairs, no items must be placed on the beds, tables or dressers. ❖ All chairs and areas designated by ropes must not be used or entered. ❖ If an event requires clothing or costume changes, these must be in a designated area approved at the time of the reservation.
❖ A Bradford House representative must be present at all functions. (A docent can be available upon request to give a tour.)
❖ No flash photography is allowed.
❖ Vehicles may not turn around or park on the grass. Delivery services must be instructed to use the driveway.
Direct catering vehicles must be instructed to the back of the house. ❖ It is the sole responsibility of the User to secure the safety of all personal property. The Placentia Founders Society disclaims any responsibility for security of personal property of any kind. •;•
Should the police be called to the site for any reason, the event will be immediately closed. The security deposit will not be refunded.
I have read and understand the above information. I agree to abide by these regulations of the Bradford House Use Policy.
User Phone
Address E-mail
Bradford House Representative Date
Rev.Oct 2021049
Placentia Founders Society Expenses
July 2023 -June 2024
Committee Expenses $ 419.08
Dues and Membership Expense $ 698.99
Events Expense $ 1,160.25
House Maintenance Gardner Expense $ 2,600.00
House Maintenance Indoor Expense $ 2,550.00
House Maintenance Pest Control Expense $ 939.94
House Maintenance Repairs Expense $ 16,116.41
Internet Expense $ 2,328.43
Office Supplies Expense $ 266.44
Postage Expense $ 183.30
Printing Expense $ 75.00
Professional Fees Expense $ 1,200.00
Bank Charges and CC Fees $ 491.23
Security Expense $ 907.75
Taxes and Licenses Expense $ 192.50
General Fund Account $ 390.00
Trash Expense $ 374.95
Utilities Electric Expense $ 2,015.40
Utilities Gas Expense $ 1,085.56
Website Expense $ 624.25
Total Expenses $ 34,619.48
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