CITY OF
�.i
DATE:
STAFF REPORT
July 27, 2026
TO: Honorable Mayor and City Counci)V`
FROM: Dr. Sean M. Moore, City Manager l/
PREPARED BY: Megan Wolfe, Director of Community Services NW SUBJECT: Rotary Club of Yucaipa Lease Agreement
RECOMMENDATION:
That the City Council:
Item No. 1
1. Approve and authorize the Facility Lease Agreement with Rotary Club of Yucaipa at the Scherer Community Center's Nutrition Facility; or,
2. Provide further direction to staff.
BACKGROUND/DISCUSSION:
On June 22, 2026, the City Council considered this item. Following additional administrative review, the City Manager directed staff to return the item to the City Council for reconsideration.
The Scherer Community Center, also known as the City's senior center, serves as an important community asset that supports recreational programming, senior services, community gatherings, and rental opportunities. In an effort to maximize utilization of the facility during non -operational hours and support community -based organizations, City staff have evaluated a recurring facility use arrangement with the Rotary Club of Yucaipa.
On June 8, 2026, City Council approved the Rotary Club's Community Activity Grant (CAG) request in the amount of $11,028.43 to support usage of the facility for 39 Tuesdays annually for morning meetings. This use occurs outside of standard operating hours and requires City staff support for facility access, security, and post -use cleanup and reset.
The proposed lease agreement expands access to all 52 Tuesdays of the year and establishes a recurring monthly lease fee of $900, totaling $10,800 annually. The approved CAG allocation is intended to fully fund the lease fee associated with this agreement and exceeds the total annual lease cost, ensuring full cost coverage of facility use under the agreement. The Club will still be responsible for the standard refundable security deposit as required under the lease terms.
Under the proposed agreement, the Rotary Club of Yucaipa would be granted access to the Scherer Community Center's Nutrition Facility on a recurring weekly basis every Tuesday from 6:00 a.m. to 8:00 a.m. The agreement also includes access to one designated storage area to support the Club's ongoing meeting and service activities.
This fee reflects the increased level of access provided under the lease (52 annual uses) while maintaining a cost-effective arrangement compared to equivalent per -use facility reservation rates and associated staffing costs. The proposed structure also reduces the administrative burden associated with processing and reconciling individual reservations and grant reimbursements.
This coordinated approach ensures that Community Activity Grant funding fully offsets the lease costs associated with facility use, while maintaining consistent weekly access for the organization.
The Rotary Club of Yucaipa provides significant value to the community through volunteer service, youth and senior support initiatives, scholarship and educational programs, and active participation in community events and civic engagement efforts. Their continued partnership contributes to strengthened community services and enhances civic engagement throughout the City.
FISCAL IMPACT:
The recommendations do not result in a fiscal impact.
Attachment(s):
1. Lease Agreement
ATTACHMENT 1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City Clerk
City of Yucaipa
34272 Yucaipa Boulevard
Yucaipa, CA 92399
EXEMPT FROM FEES PER G.C. 6103 1
SPACE ABOVE FOR RECORDERS USE ONLY
FACILITY LEASE AGREEMENT
12202 First Street, Yucaipa, CA 92399
This lease agreement ("Lease") is made and entered into this 22°d day of June 2026 (the "Lease") by and between the City of Yucaipa, a municipal corporation ("City") and Rotary Club of Yucaipa, a California Nonprofit Community Service Organization ("Tenant" or "Rotary"). The parties to this Lease may be referred to herein as "Party" or collectively as the "Parties." I. SCOPE OF AGREEMENT
City grants to Tenant and Tenant accepts from City a lease to use the Scherer Community Center's Nutrition Center, located at 12202 First Street, (hereinafter referred to as "the Leased Premises") on the terms and conditions set forth herein.
II. ENTIRE AGREEMENT
This Lease is the complete agreement of the Parties with respect to the subject matter hereof.
III. TERM OF LEASE; EXTENSION; TERMINATION
The term of this Lease starting on July 1, 2026, and ending on June 30, 2029. This Lease may be terminated by either Party, with or without cause, upon sixty (60) days written notice to the other Party. City shall provide such notice only after specific action by the City Council to terminate this Lease.
Option to Extend. Provided that Tenant shall not be in default or breach of any term of this Lease, by Tenant may extend the term of this Lease by two (2) calendar years by written notice to the City given at least ninety (90) days prior to the expiration of the original (or extended) term hereof, on the same terms and conditions of this Lease, provided that in no event shall the initial term plus any extensions exceed a term of 55 years.
4912-5035-4717.1
IV. LEASING OF FACILITY; RENT
In consideration of the mutual covenants contained herein and the payment by Tenant to City rent of $900 per month, by the 5th day of each calendar month, without prior notice or demand, and without offset or deduction, City hereby leases to Tenant, and Tenant hereby leases from City, the Scherer Community Center's Nutrition Center, located at 12202 First Street, Yucaipa, California.
The monthly rent authorizes the following permitted uses:
• Dining room access after 6:00 a.m. and until 8:30 a.m., on Tuesdays • Use on mutually agreed holidays, subject to City approval • Use of one (1) storage area.
All use shall be scheduled in advance and coordinated with City staff.
Any use of the Leased Premises beyond the days, times, or spaces identified above shall be considered additional use and must be requested in advance and approved by the City.
Additional use of the facility shall be subject to the CITY's standard fees and charges in effect.
V. UTILITIES AND MAINTENANCE
1. Tenant Responsibilities:
a. Tenant shall be responsible for ensuring that all waste generated by Tenant's use of the Leased Premises is properly disposed of in compliance with local regulations. b. During the term of this Lease, Tenant shall conduct routine maintenance at its cost. The Parties agree that the term "routine maintenance" shall include the day-to-day or periodic maintenance activities, such as janitorial services, removal of trash, which are intended to maintain the premises in a manner such that it will not deteriorate from its condition before leased, normal wear and tear excluded.
2. Cily Responsibilities:
a. City is responsible for utilities and cost of utilities defined as water, gas, electricity, and sewer usage.
b. City agrees to perform and pay for landscaping and any major or structural maintenance of the building excluding damage caused by Tenant, in addition to the cost of irrigation water for the front yard.
c. City reserves the use of the Leased Premises for City -approved classes and activities.
The schedule for classes will be coordinated with Tenant. 4912-5035-4717.1
VI. USE OF LEASED PREMISES
1. The leased premises will be used by Tenant to hold meetings for the Rotary Club of Yucaipa.
2. Tenant may use the parking lot near the North and West corners of the Property to park.
3. Modifications to the leased premises may not be made by Tenant.
4. Tenant agrees that it will, upon termination of this Lease, return the leased premises in the same condition as at the commencement of the term of the lease, reasonable wear and tear excluded.
VII. INSURANCE REQUIREMENTS
Tenant shall procure and maintain, for the duration of the Lease, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with Tenant's operation and use of said premises:
Commercial General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage ($500,000 sub -limit for property damage). If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Coverage shall be at least as broad as ISO CGL occurrence form GC 0001. Workers' Compensation as required by the Labor Code of the State of California and Employers' Liability Insurance. Automotive Liability:
$1,000,000 combined single limit (CSL) for bodily injury and property damage. This shall include owned, hired, and non -owned automobiles. Coverage shall be as broad as ISO CGL occurrence form CG 0001. Auto liability is required only if autos are used in performance of this contract. All policies, except for Workers' Compensation (requires Certificate of Insurance only), shall name City of Yucaipa, its employees, officers, agents, and volunteers as additional insureds. The insurance provided to the City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self- insurance program maintained by the City. Certificates of insurance shall be provided to City prior to or concurrent with the Tenant's execution of this Lease. The coverage shall provide that such insurance afforded to the additional insureds shall be primary, but only as respects to this Lease, and insurance maintained by City, its employees, officers, agents, and volunteers shall be non-contributing. Each insurance policy required by this clause shall state that coverage shall not be cancelled except after thirty (30) days prior written notice has been given to City.
Waiver of Subrogation
Tenant hereby grants City a waiver of any right to subrogation which any insurer of said Tenant may acquire against City by virtue of the payment of any loss under such insurance.
Tenant agrees to obtain any endorsement that may be necessary to affect this waiver of 4912-5035-4717.1
subrogation, but this provision applies regardless of whether or not Tenant has received a waiver of subrogation endorsement from its insurer. However, the Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of Tenant for all work performed by the Tenant, its employees, agents, invitees, members, and subcontractors.
VIII. INDEMNIFICATION AND HOLD HARMLESS
To the fullest extent permitted by law, Tenant shall indemnify, protect, defend (with legal counsel reasonably selected by City) and hold harmless City and any and all of its elected and appointed officials, officers, employees, independent contractors, representatives and agents ("Indemnified Parties") from and against any and all claims, actions and proceedings (whether at law or equity, administrative or judicial), demands, orders, judgments, losses, injuries (including, without limitation, injury to or death of an employee, invitee or member of Tenant, liabilities of every kind (including, without limitation, incidental and consequential damages, court costs, and litigation expenses, and fees of expert or expert witnesses incurred in connection therewith and cost of investigation), damages, costs and expenses, including attorney's fees and costs, (collectively "Claims") that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, Lease by Tenant, its officers, agents, employees, representatives, members, invitees, anyone directly or indirectly employed by any of them, or anyone that they control. Tenant's duty to indemnify, protect, defend, and hold harmless Indemnified Parties, shall not include any Claims arising from the sole negligence or willful misconduct of the Indemnified Parties.
Tenant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from naming the Indemnified Parties as additional indemnitees.
In the event Tenant fails to obtain such indemnity obligations from others as required here, Tenant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns or heirs of Tenant and shall survive the termination of this Agreement and this section.
IX. DESTRUCTION OF PREMISES
Should the Leased Premises be damaged or destroyed by any cause not the fault of Tenant (including its members or invitees), City may, at City's sole option, repair the same.
X. MORTGAGES AND OTHER ENCUMBRANCES
Tenant shall not mortgage, hypothecate or otherwise encumber or cause any liens to be placed upon the Premises or the freehold estate of City. 4912-5035-4717.1
XI. ASSIGNABILITY
Tenant shall not sub -lease the Leased Premises or assign any part of this Lease, and any attempt to do so shall terminate this Lease without further action on City's part.
XII. DEFAULT
Except as otherwise provided in this Lease, at any time one party is in default or breach of any provision of this Lease, the other party may give written notice to remedy such default or breach. If the default or breach is remedied within sixty (60) days following such notice, then this Lease shall continue in full force and effect. If, (1) such default or breach is not remedied within said sixty (60) day period, or (2) the nature of the default or breach is such that it cannot reasonably be cured within sixty (60) days and the defaulting party fails to commence to cure within the sixty (60) day period and thereafter diligently prosecute the cure to completion, then the non -defaulting party may, at its option, terminate this Lease and, if terminated by City, take possession of the Premises without further notice and shall also be entitled to such damages or other remedies at law or in equity are available to either Party because of such default or breach. Termination of this Lease pursuant to this section shall not be considered a waiver of damages or other remedies at law or in equity available to either Parry because of such default or breach. Each term and condition of this Lease shall also be deemed to be a covenant. A waiver by either Party of any default or breach by the other Party of any provision of this Lease shall not constitute or be deemed to be a waiver of any subsequent or other default or breach. No waiver shall be binding, unless executed in writing by the party making the waiver; waivers on behalf of City shall only be given by resolution of the City Council. No waiver, benefit, privilege, or service voluntarily given or performed by either Party shall give the other party any contractual right by custom, estoppel, or otherwise. The subsequent acceptance of rent pursuant to this Lease shall not constitute a waiver of any preceding default by Tenant other than default in the payment of the particular rental payment so accepted, regardless of City's knowledge of the preceding breach at the time of accepting the rent; nor shall acceptance of rent or any other payment after expiration or termination constitute a reinstatement, extension, or renewal of the Lease or revocation of any notice or other act by City.
XIII. GENERAL PROVISIONS
Attorneys' Fees. In the event that any action is brought by either Party against the other Party for the enforcement or declaration of any right or remedy in or under this Lease or for the breach or enforcement of any covenant or condition of this Lease, the prevailing party shall be entitled to recover reasonable attorneys' fees and litigation costs from the other party.
2. Waiver.
a. No waiver of any breach of any of the terms, covenants, agreements, restrictions, or conditions of this Lease shall be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, and conditions hereof. 4912-5035-4717.1
b. City's consent to or approval of any act shall not be deemed to render unnecessary the obtaining of City's consent to or approval of any subsequent act by Tenant. The acceptance of rent hereunder by City shall not constitute a waiver of any preceding breach by Tenant of any provision hereof, other than the failure of Tenant to pay the rent so accepted, regardless of City's knowledge of such preceding breach at the time of its acceptance of such rent.
Entrby City; Inspection. City reserves the right for City and City's agents and representatives to enter upon the Premises at any reasonable time and after reasonable notice to Tenant for the purpose of inspecting the Premises, to examine the condition thereof, including the Premises' environmental condition; showing the same to prospective purchasers, tenants or lenders; making such alterations, repairs, improvements or additions to the Premises, as City deems reasonable or necessary; or attending to City's business and City's interest hereunder, as City may deem necessary or desirable.
4. Relationship of the Parties. The relationship of the Parties hereto is that of landlord and tenant, and it is expressly understood and agreed that City does not in any way, nor for any purpose, become a partner of Tenant or a joint venture with Tenant in the conduct of Tenant's operations, or otherwise.
Incorporation of Prior Agreements; Modifications. This Lease contains all agreements of the Parties with respect to any matter. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing and signed by the Parties at the time of such modification.
6. Time of Essence. Time is expressly declared to be of the essence of this Lease. Each term and each provision of this Lease, performable by Tenant, shall be construed to be both a covenant and a condition.
7. Construction of Lease. This Lease's language shall, in all cases, be construed as a whole and in accordance with its fair meaning and not restricted for or against either City or Tenant. The captions of the sections and subsections of this Lease are for convenience only and shall not be considered or referred to in resolving questions of construction.
8. Choice of Law; Venue. This Lease shall be governed by the laws of the State of California, with venue for any legal actions, which may be brought by either party against the other party in the San Bernardino Superior Court, San Bernardino Justice Center.
XIV. NOTICES
Any notice to be given or other document to be delivered by either Party to the other hereunder may be delivered in person to either party, or may be deposited in the United States mail, in the State of California, duly registered or certified, with postage fully prepaid and addressed to the party for whom intended as follows:
4912-5035-4717.1
TO CITY: City Manager
City of Yucaipa
34272 Yucaipa Blvd.
Yucaipa, CA 92399
TO TENANT: Club President
Rotary Club of Yucaipa
P.O. Box 661,
Yucaipa, CA 92399
Either Party may, from time to time, by written notice to the other Party, designate a different address, which shall be substituted for the one above specified. If any notice or other document is sent by registered or certified, the same shall be deemed served or delivered on the third (3`d) business day after the mailing thereof.
XV. SEVER.ABILITY
If any provision of this Lease shall be adjudged to be invalid, void or illegal, it shall in no way affect, impair or invalidate any other provision(s) hereof, the Parties hereby agree that they would have entered into the remaining portion of this Lease notwithstanding the omission of the portion or portions adjudged invalid, void or illegal.
XVI. COUNTERPARTS
This Lease may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to the same instrument.
XVII. REVENUE & TAXATION CODE SECTION 170.6 POSSESSORY INTEREST TAX Tenant recognizes and understands that this Lease may create a possessory interest subject to property taxes and that, if a possessory interest is created, Tenant shall, in accordance with this Section hereof, be responsible for payment of property taxes levied against such possessory interest.
4912-5035-4717.1
IN WITNESS WHEREOF, the parties hereto have executed this Lease on the date and year first above written.
CITY OF YUCAIPA
Dr. Sean M. Moore
City Manager
Date
ATTEST:
Ana V. Sauseda, MMC
Director of General Services/City Clerk
APPROVED AS TO FORM:
Steven Graham Pacifico, City Attorney
ROTARY CLUB OF YUCAIPA
Club President
Date
4912-5035-4717.1