HomeMy WebLinkAboutReso 46-22 05-24-22 USCG Storage LeaseRESOLUTION NO. 46-22
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING A LEASE AGREEMENT
WITH THE UNITED STATES COAST GUARD
TO LEASE A STORAGE/MAINTENANCE BUILDING AND YARD SPACE
LOCATED AT 1620 EMBARCADERO ROAD
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, since 2014, the United States Coast Guard Station Morro Bay has
leased a Harbor Department storage/maintenance building and yard area to help the
Coast Guard serve its mission on the Central Coast; and,
WHEREAS, the current one-year lease agreement with four one-year options for
renewal is set to expire on September 30, 2022; and
WHEREAS, the United States Coast Guard wishes to execute another one-year
lease agreement with four one-year options for renewal and the City wishes to continue
this beneficial relationship; and
WHEREAS, the United States Coast Guard and City have agreed to terms and
conditions to enter into a new lease agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California as follows:
1. Approval of the attached new lease agreement with the United States Coast
Guard for storage at 1620 Embarcadero is hereby approved and the Mayor is
hereby authorized to execute the lease document.
2. The Harbor Director is hereby authorized to execute each of the four one-year
options to renew if the United States Coast Guard exercises its right to renew
the lease.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 24th day of May, 2022 on the following vote:
AYES: Headding, Addis, Barton, Ford, Heller
NOFS: None
ABSENT: None
AIR r
ik
John H'- or
ATTEST:
Swarl'son, City Clerk
U. S. GOVERNMENT LEASE FOR REAL PROPERTY
DATE OF LEASE
01 October 2022
LEASE NO. HSCG89-22-1-0029
PURPOSE: Pursuant to specific Congressional appropriations and 14 USC 501 (e), the statutory authority, the parties
understand that the sole purpose of this lease is to secure for the United States a lease for a maintenance building at Station
Morro Bay. The address of the leased building is 1620 Embarcadero, Morro Bay 93442.
THEREFORE THIS LEASE, made and entered into this date by and between City of Moro Bay, whose address is 1275
Embarcadero, Morro Bay, CA 934222, and whose interest in the property hereinafter described is that of owner
("LESSOR"), and the Commanding Officer US Coast Guard SILC, Product Line Divis'on, Portfolio Management Branch,
Oakland, CA, on behalf of the UNITED STATES OF AMERICA, hereinafter called the ( `Government:"), pursuant to 14
U.S.C. 501 (E), for the consideration hereinafter mentioned.
WITNESSETH: The parties hereto for the considerations hereinafter mentioned, covenant and agrees as follows:
Lessor hereby leases to the Government the following described premises:
1. To be used for: Exclusive use of a 1,000 square foot building and a fenced outdoor layout area
approximately 5,100 square foot located at 1620 Embarcadero, Morro Bay, CA 93442 in San Luis Obispo
County. Latitude: 35.376027, Longitude —120.859968
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning on
1 October 2022 through 9/30/2027 subject to termination and renewal rights as may be hereinafter set forth.
ACCOUNTING DATA:
3. The Government shall pay the Lessor annual rent of $10,099.33 annually in arrears with a monthly payment of
$841.61, provided annual appropriations are granted by Congress. Rent for a lesser period of time shall be prorated.
Electronic (ACH) rent payments shall be made to lessor and processed as explained in paragraph 26.
4. The Government may terminate this lease, at any time without cause, by giving at least thirty (30) days' written
notification to the Lessor. Rent shall not accrue from date of termination. Said notice shall be computed commencing with
the day after the date of mailing.
5. This lease may be renewed at the option of the Government for 4 (four) (1) one year options starting 01
October 2023 periods with the same conditions and payment formula listed in article #3 (three) above provided adequate
funds are appropriated annually by Congress. For each of the 4 (four) extension periods the rent will be increased by 2%
(annually) over the then effective rent.
6. The Lessor shall furnish to the Government the following:
a. The right of ingress and egress over the adjacent property of the Lessor for the Government, its contractors
or other duly authorized representatives, necessary or convenient for the maintenance, repair operation and replacement of
Government equipment located on its leased premises.
b. The right to maintain the range lines of sight for navigation free from obstruction and debris.
c. The Lessor shall notify the Government, in writing, within thirty (30) days of any:
1) Transfer of ownership of the described premises.
7. The following are attached and made a part hereof:
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA — FPR (41 CFR) 1-16.601
a. The General Clauses (GSA form 3517B as amended) — Contract Article 27
b. Area Map Exhibit "A"
8. SUCCESSORS BOUND: The Lease shall bind, and inure to the benefit of, the parties and their respective
heirs, executors, administrators, successors, and assigns.
9. SUBLETTING/ASSIGNMENT: Government may not sublet or assign lease premises to without the prior
written consent of the Lessor, which consent shall not be unreasonably withheld.
10. ENVIRONMENTAL PROTECTION: The Government is limited by Federal Law as to the assumption of
liability for its acts or omissions. Within its legal limitations and appropriations, the Government agrees to the following:
Government may not unlawfully pollute the air, giound or water nor create a public nuisance. Government shall at no cost to
the Lessor, promptly comply with all applicable Federal, state and local laws, regulations, and directives regulating the
quality of the environment. This does not affect the Government s right to contest the validity of such laws, regulations or
directives or to try to enjoin their applicability. Government shall use all requited means to protect the environment and
natural resources from any damage arising from Lessee's use of the facility and activities incident to its use. If any damage
results to the environment of natural resources, Government shall restore the environment or damaged resources. Government
agrees to comply with all applicable federal, state and local environmental laws and regulations, including, but not limited, to
those laws concerning any petroleum pioducts, toxic substances, medical wastes and hazardous materials, substances or
wastes.
11. ANTI -DEFICIENCY ACT: (31 USC § 1341 as amended). Nothing in this Lease shall constitute an
obligation of funds of the United States in advance of appropriation thet eof.
12. INDEMNIFICATION: The Government, in the manner and to the extent provided by the Federal Tort Claims
Act (28 USC Sections 2671-2680) shall be liable for claims for damages or cost and expenses, including but not limited to fire
damage, loss of property, personal injury or death caused by the acts or omissions of the Government, its officers, invitees,
employees and agents in the use of the property.
13. INSURANCE: Government is a sovereign entity and as such is not required to provide Lessor with any
certificate of insurance or notice of renewal, termination, cancellation, expiiation or alteration of insurance policy
14. OWNERSHIP OF IMPROVEMENTS:
It is under stood and agreed that any improvements added by the Government belong to the Government.
15. EQUIPMENT INSTALLATION AND OPERATION. The Government shall have the right during the term of
this Lease to install, operate, maintain, repair, and replace upon the Premises, including but not limited to any other
improvement presently existing of to be constructed upon the Premises, or related or ancillary to, the operation, performance,
and maintenance of the equipment and infi astructure. Upon termination of this Lease, the Lessor shall pei mit the
Government all reasonable access to the Premises for the purpose of removing or otherwise disposing of the equipment or
any part thereof, and the Government shall conduct its removal of the equipment or any part thereof in a i easonable and safe
manner and within a seasonable period of time, in accordance with all Federal, state, and local law.
16. IMPROVEMENTS AND ALTERATIONS. The Government shall have the right during the term of this
lease, as long as the prior written consent of Lessor is received by the Government which consent shall not be unreasonably
withheld or delayed by Lessor, to make improvements and alterations erect structures, and attach fixtures and signs upon the
Premises. Government acknowledges that Lessor's consent to the installation of any such improvements may be conditioned
upon a reasonable increase in the Rental Amount payable by Government to Lessor pursuant to condition 3 of this
Agreement. If Lessor consents to the installation of such improvements, Lessor shall deliver to Government an amendment
to this Agreement and any other documents required to evidence such a modification. The Government shall have the right
to tie into or make any physical connection with any structure located on the property as is reasonably necessary for
appropriate utilization of the Piemises. Any improvements, structures, fixtures or signs attached to or otherwise erected upon
the Premises shall remain the property of the Government and may be removed or otherwise disposed of by the Government.
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA— FPR (41 CFR) 1-16.601
Such disposition by the Government may include abandoning the improvement, structure, fixture, or sign in place. The
Government shall be under no obligation to restore the Premises, or any part thereof, upon termination of this Lease.
17. OFFICIALS NOT TO BENEFIT: No member or delegate to Congress or Resident Commissioner shall
be admitted to any share or part of this Lease or any benefit to arise there from, but this provision shall not be construed to
extend to this Lease if made with a corporation whose membership, includes a member or delegate to Congress or Resident
Commissioner, who indirectly receives a general benefit from this Lease.
18. AMENDMENT OR MODIFICATION: No amendment or modification shall be valid unless evidenced by an
agreement in writing signed by both parties.
19. GOXERNING LAW: The parties shall construe the Lease to be in accordance with and governed by the laws
of the State of
insofar as those laws are consistent with applicable federal laws and regulations.
20. SEVERABILITY: If any term or provision of this Lease is held invalid or unenforceable, the remainder of this
Lease shall not be affected thereby and each term and provision hereof shall be valid and enforced to the fullest extent
permitted by law.
21. PAYMENTS OF TAXES AND ASSESSMENTS:
The Government is not responsible for or liable for the payment of any real property taxes, personal taxes or assessments
levied or assessed upon or against the leased premises.
22. ENTIRE AGREEMENT: This Lease, with attachment, constitutes the only agreement between Lessor and
Government. Any prior understanding or representation of any kind, which proceeded the date of this Lease, are not
binding on either party, except to the extent the understandings are incorporated into this Lease.
23. MUTUAL AUTHORITY: Lessor and Government represent and warrant to each other that they have full
right, power and authority to enter into this Lease without the consent or approval of any other entity or person and make
these representations knowing that the other party will rely thereon. Furthermore, the signatories on behalf of Lessor and
Government further represent and warrant that they have full right, power and authority to act for and on behalf of Lessor
and Government in entering into this lease.
24. LEASE ADMINISTRATION:
The following office shall administer this Lease:
25. TAX IDENTIFICATION: Government regulations require a Lessor tax identification number (TIN/SSN).
Lessor hereby certifies that the following TIN/SSN and telephone number are correct:
TIN/SSN:
Telephone Number:
DUNS:
Reg'stered in SAM:
D.te
qs-a3og0aci
ws-en (3-(a a-00
d(om`iuSei1
es No
Signat ire
26. PAYMENT BY ELECTRONIC FUNDS TRANSFER- SYSTEM FOR AWARD MANAGMENT:
a. Method of Payment:
1) All payments by the Government under this Lease shall be made by electronic transfer (EFT),
except as provided in Subparagraph a.2 of this Paragraph. As used in this Paragraph, the term "EFT" refers to the funds transfer
and may also include the payment information transfer.
3
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA— FPR (41 CFR) 1-16.601
2) In the event the Government is unable to release one or more payments by EFT, Lessor agrees to
either accept payment by check or some other mutually agreeable method of payment or request the Government extend the
payment due date until such time as the Government can make payment by EFT (see Subparagraph d. of this Paragraph).
b. Lessor EFT information. The Government shall make payment to Lessor using the EFT information
contained in the System for Award Management (SAM) database In the event the EFT information changes, Lessor shall be
responsible for providing the updated SAM database.
c. Mechanisms for EFT payment. The Government may make payments by EFT through either the Automated
Clearing House (ACH) network, subject to the rules of the National Automated Clearing House Association, or Fedwire Transfer
System. The rules governing Federal payments through the ACH are contained in 31 CFR part 210.
d. Suspension of payment. If Lessor EFT information in the SAM database is incorrect, then the Government
need not make payment to Lessor under this Lease until correct EFT information is entered into the SAM database; and any
invoice or contract financing request shall be deemed not to be proper invoice for the purpose of prompt payment under this
Lease. The prompt payment terms of this Lease regarding notice of an improper invoice and delays in accrual of interest penalties
apply. For purposes of clarification, during any such suspension all payments due under the lease shall continue to accrue, and be
payable when Lessor's EFT information is corrected in the SAM database.
e. Lessor EFT arrangements. If Lessor has identified multiple payment receiving points (i.e., more than one
remittance address and/or EFT information set) in the SAM database, and Lessor has not notified the Government of the payment
receiving point applicable to this Lease then the Government shall make payment to the first payment receiving point (EFT
information set or remittance address is applicable) listed in the SAM database.
f. Liability for incomplete or erroneous transfer:
1) If an incomplete or erroneous transfer occurs because of the Government used Lessor's EFT
information incorrectly, then the Government remains responsible for making a correct payment, paying any prompt payment
penalty due and recovering any erroneously directed funds.
2) If any incomplete or erroneous transfer occurs because Lessor's EFT information was incorrect, or
was revised within thirty (30) days after the Government release of the EFT payment transaction instruction to the Federal Reserve
System, and if funds are no longer undei the control of the payment office, then the Government is deemed to have made payment
and Lessor is responsible for recovery of an erroneously directed funds or if the funds remain under the control of payment office,
then the Government shall not make payment, and the provisions of Subparagraph d of this Paragraph shall apply.
g. EFT and prompt payment. A payment shall be deemed to have been made in a timely manner in accordance
with the prompt payment terms of this Lease if, in the EFT payment transaction instruction released to the Federal Reserve
System, the date specified for settlement of the payment is on or before the prompt payment due date; provided that the specified
payment date is a valid date undei the rules of the Federal Reserve System.
h. EFT and assignment claims. If Lessor assigns the proceeds of this Lease as provided for in the assignment of
claims terms of this Lease, then Lessor shall require, as a condition of any such assignment, the assignee shall register in the SAM
database and shall be paid by EFT in accordance with the terms of this Paragraph. In all respects, the requirements of this clause
shall apply to the assignee as if it were Lessor. EFT information that shows the ultimate recipient of the transfer to be other than
Lessor, in the absence of proper assignment of claims acceptable to the Government, is incorrect EFT information within the
meaning of Subparagraph d. of this Paragraph.
i. Liability for change to EFT information by financial agent. The Government is not liable for errors resulting
from changes to EFT information made by Lessor's financial agent.
j. Payment information. The payment or disbursing office shall forward to Lessor available payment
information that is suitable for transmission as of the date of release of EFT instruction to the Federal Reserve System. The
Government may request Lessor to designate a desired format and method(s) for delivery of payment information from a list of
formats and methods the payment office is capable of executing. However, the Government does not guarantee any particular
format or method of delivery is available at any particular payment office and retains the latitude to use the format and delivery
method most convenient to the Government. If the Government makes payment by check in accordance with Subparagraph a. of
this Paragraph, then the Government shall mail the payment information to the remittance address contained in the SAM database.
method most convenient to the Government. If the Government makes payment by check in accordance with paragraph (a) of this
clause, the Government shall mail the payment information to the remittance address contained in the SAM database.
28. ADDITIONAL TERMS OF LEASE:
-4
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA— FPR (41 CFR) 1-16.601
a. This lease is being written executed and subject to the terms and conditions stated in Easement Number LD 2229-10
0437, between the City of Morro Bay and the Pacific Gas and Electric Company; and successors. Section 28 of the lease is
being used to identify this fact and include the following terms to this lease.
1.) The City of Morro Bay shall notify the Coast Guard in writing, no less than 30 days, and prior to
any revocation or termination of Easement Number: LD 2229-10-0437.
2.) In the event that Easement Number: LD 2229-10-0437 is revoked or becomes invalid, this lease
would be subject to termination under Section 4 of this lease. Any and all other termination clauses
found in this lease will remain in full effect.
27 CLAUSES INCORPORATED BY REFERENCE. This lease incorporates one or more clauses by reference
with the same force and effect as if they were given in full text. The full text may be found in GSA Form 3517B (Rev.
4/2015), and the following clauses are incorporated by reference:
GSA Form 3517B
Clause Number 48 CFR Reference
3 552 270-23
4
5
6
8
9
10
14
17
18
19
20
21
22 52 232-33
552 270-24
552 270-25
552 270-26
552 270-28
52 204-7
52 204-13
552 270-31
552 232-23
24 552 270-32
28 552 270-30
30 552 270-13
31
32 552 215-70
34 52 233-1
35 52.222-26
36 52.222-21
38 52.222-35
39 52.222-36
40 52.222-37
Clause Title
SUBORDINATION, NON -DISTURBANCE AND
ATTORNMENT
STATEMENT OF LEASE
SUBSTITUTION OF TENANT AGENCY
NO WAIVER
MUTUALITY OF OBLIGATION
DELIVERY AND CONDITION
DEFAULT BY LESSOR
COMPLIANCE WITH APPLICABLE LAW
SYSTEM FOR AWARD MANAGEMENT
SYSTEM FOR AWARD MANAGEMENT MAINTENANCE
PROMPT PAYMENT
ASSIGNMENT OF CLAIMS
PAYMENT
PAYMENT BY ELECTRONIC FUNDS TRANSFER —
SYSTEM FOR AWARD MANAGEMENT
COVENANT AGAINST CONTINGENT FEES
PRICE ADJUSTMENT FOR ILLEGAL OR IMPROPER
ACTIVITY
PROPOSALS FOR ADJUSTMENT
CHANGES
EXAMINATION OF RECORDS BY GSA
DISPUTES
EQUAL OPPORTUNITY
PROHIBITION OF SEGREGATED FACILITIES
EQUAL OPPORTUNITY FOR VETERANS
EQUAL OPPORTUNITY FOR WORKERS WITH
DISABILITIES
EMPLOYMENT REPORTS VETERANS
IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written.
LESSOR
5-
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA — FPR (41 CFR) 1-16.601
Juh�
SIGNATURE
NAME OF SIGNER
okfIdin*,,filearL
CSENCE OF
SIGNATURE
SCaleY.-S410/14-0411, Cur•kr.
N OF SIGNER
SIGNATURE
NAME OF SIGNER
UNITED STATES OF AMERICA
SIGNATURE
NAME: Loren Mollner
OFFICIAL TITLE OF SIGNER
Real Estate contracting Officer
CEU Oakland Calfornia
-6
STANDARD FORM 2 (REV. 6/2003)
Prescribed by GSA— FPR (41 CFR) 1-16.601