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Tri-State Modelers Lease Agreement 2004 D~ ~ck~ MEMORANDUM March 29, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Lease Agreement with Tri-State Modelers Leisure Services Manager Gil Spence is recommending City Council approval of a three-year lease agreement with the Tri-State Modelers for a section of the former Roosevelt Park. I concur with the recommendation and respectfully request Mayor and City Council approval. M;jj ~i ~.CL MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gil D. Spence, Leisure Services Manager ~ ..~ CITY OF DUBUQUE, IOWA MEMORANDUM March 22, 2004 TO: Michael C. Van Milligen, City Manager FROM: Gil D. Spence, Leisure Services Managet SUBJECT: Lease Agreement with Tri-state Modelers INTRODUCTION The purpose of this memorandum is to recommend that the City Council approve the attached lease agreement with the Tri-state Modelers for a section of the former Roosevelt Park and that the Mayor be authorized to sign it. DISCUSSION The Tri-state Modelers have used this section of the former Roosevelt Park for a number of years and have had a formal lease agreement for several years. A three- year agreement is recommended at this time to allow for the Park Study to be completed once the design of the Southwest Arterial is finalized. I would anticipate a long-term agreement being recommended at that time unless the design recommendation impacts the landing strip. It does not appear that the Southwest Arterial will impact this area of the property. Over the years, the Tri-State Modelers have been a good group to work with. They have a quality operation and provide a good service to the community. This property is a good location for their activity because they are removed from any neighbors and do not bother anyone. They have invested a fair amount of money, time and effort into the landing strip and take great pride in their club. RECOMMENDATION I recommend this lease agreement with the Tri-state Modelers be approved by the City Council. ACTION STEP The action step is for the City Council to approve the lease agreement with the Tri-state Modelers and the Mayor be authorized to sign it. GDS:et attachment LEASE AGREEMENT THIS LEASE AGREEMENT is entered into on the 5th day of April, 2004, by and between the City of Dubuque, Iowa, hereinafter referred to as the "City", whose address for the purpose of this Lease is 2200 Bunker Hill Road, Dubuque, Iowa, and Tri-state Modelers hereinafter referred to as the "Club", whose address for the purpose of this Lease is 1695 Mt. Pleasant Street, Dubuque, Iowa, 52001. WITNESSETH: WHEREAS, the City is the owner of a public facility known, called and named Franklin D. Roosevelt Park, hereinafter called the "Park"; and WHEREAS, the Club desires to lease a section of the Park, shown on Exhibit A, from the City to fly remote controlled model airplanes; and WHEREAS, it is deemed to be in the best interest of both parties to this agreement and to the public in general that the Club lease this area. NOW, THEREFORE, the parties hereto have mutually agreed as follows: Section 1, TERM OF LEASE AGREEMENT. This Lease Agreement shall be for a term of three (3) years, from May 1, 2004, through April 30, 2007. Section 2, RENT. The annual rental of $300.00 shall be paid to the City on or before the 1 st day of May, 2004, 2005 and 2006. Section 3, USE OF THE AREA. The Club agrees that during the life of the Lease Agreement, the area shall be used exclusively for the flying of remote controlled model airplanes and associated activities. The area shall not be utilized by any other individuals, groups, organizations or agencies without prior written permission from the Leisure Services Manager. page 1 of 9 Section 4, GROUNDS AND BUILDING MAINTENANCE. (a.) The Club shall be responsible for all roadway maintenance from the access gate to the landing strip, to the level needed for the Club's use. (b.) The Club shall be responsible for all grounds maintenance and improvements, including but not limited to grass cutting, walkway, tree, flowerbed, and general grounds maintenance. (c.) The Club shall be responsible for all building maintenance and improvements, including but not limited to interior and exterior building repair and painting, heating system maintenance, plumbing, electric, roof repair and maintenance, and pest control. (d.) Any improvements made by the Club shall remain on the leased premises upon termination of this Lease, and shall then become the property of the City. Any proposed material improvements or modifications to the leased premises shall be submitted in writing to the Leisure Services Manager for approval, which approval shall not be unreasonably withheld. All improvements made by the Club shall be built, erected and maintained in strict conformity with all applicable federal, state or municipal statutes and ordinances, and rules and regulations of the Park and Recreation Commission of the City. Section 5, UTILITIES AND REFUSE. The Club shall pay the costs of all utilities serving the area and shall remove all trash. Section 6, MANAGEMENT AND CONTROL. It is agreed and understood that sole management authority and control of the area, for and within the use stated in Section 3, shall be with the Club. The Club agrees that all monies and contributions derived from the landing strip shall be used to operate, maintain, and improve the area. Section 7, CONTROL AND ACCESS. The control gate to the main section of the park must be kept locked. After each club member enters the park, the gate must be locked behind them. The Club shall provide padlocks for the control gate and distribute keys to its members. A padlock provided by the City will also be provided to allow access for City staff. The three piece chain used to secure the gate will be provided by the City. page 2 of 9 The Club members, when using the area, are to proceed directly to the landing strip and not use the remaining sections of the park, unless to retrieve a downed aircraft. Special events must have prior approval of the Leisure Services Manager. Section 8, INSURANCE. A" The Club shall provide insurance as required by the attached "Insurance Schedule Section 9, INDEMNITY. The Club agrees to indemnify and hold harmless the City from any and all damages or claims whatsoever, to persons or property, by reason of the Club's use or misuse of the leased premises. Section 10, ASSIGNABILITY. The Club shall not assign or transfer any interest in this Lease Agreement without prior written approval of the City. Such prohibition includes contracts with third parties for custody, management or operation of the area. Section 11, TERMINATION. In the event either party shall fail to keep, perform and observe in a timely and proper manner any of its covenants or obligations under this Lease Agreement and any such violation shall not be cured or remedied within thirty (30) days after the date the party receives written notice from the other party of such failure or violation (or, if not practicable to cure or remedy such failure or violation within such thirty-day period, within such longer period as shall be reasonable under the circumstances, and as shall be specified in such notice), then, in such event, the other party may, at its option, terminate this Lease Agreement, by written notice to the other. Upon termination, the City shall have the right to enter the area of the park and to assume exclusive use and control. This lease may also be terminated by the City, with sixty (60) days written notice, if the park is sold or the area is needed for any purpose deemed appropriate by the City. Upon termination of this Lease Agreement, for any cause whatsoever, the Club, at the option of the City, agrees to surrender possession of the leased premises in its condition as when first leased, or to restore the leased premises to substantially the same condition, ordinary wear and tear excepted. page 3 of 9 Section 12, INSPECTIONS. The City reserves the right to conduct periodic inspections of the area of the park for the purpose of determining whether the terms and conditions of this Lease Agreement are being promptly and faithfully performed by the Club. Signed in duplicate by the parties hereto. ATTESTED: CITY OF DUBUQUE, IOWA By: JEANNE F. SCHNEIDER, CITY CLERK TERRANCE M. DUGGAN, MAYOR DUBUQUE MODEL AIRPLANE CLUB By: page 4 of 9 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A of better in the current AM. Best Rating Guide. 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. shall furnish a Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include copies of the following policy endorsements: a) Thirty day notice of cancellation to the City of Dubuque. b) Commercial General Liability policy is primary and non-contributing. c) Commercial General Liability additional insured endorsement. d) Governmental Immunity Endorsements. e) Waiver of recovery under workers compensation. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. shall be required to carry the following minimum coveragellimits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 This coverage shall be written on an occurrence, not claims made, form per location. All deviations or exclusions from the standard ISO page 5 of 9 commercial general liability form CG 0001 or Businessowners form BP 0002 shall be clearly identified. Governmental Immunity Endorsement identical or equivalent to form attached. An additional insured endorsement identical or equivalent to ISO Form CG 2026 or CG 2011 and include as additional insureds: "The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers." b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: $100,000 each accident $100,000 each employee-disease $500,000 policy limit-disease Policy shall include an endorsement waiving right of recovery against City of Dubuque. c) UMBRELLA/EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case-by-case basis by Finance Director. page 6 of 9 POLICY NUMBER COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person Or Organization: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers. (If no entry appears above, information required to complete this endorsement will be shown in the Deciarations as applicable to this endorsement) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. Copvriqht Insurance Services Office. Inc. 1994 CG20261185 page 7 of 9 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmentallmmunitv. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to'the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coveraqe. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunitv. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits . accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Chanqe in Policv. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. page 8 of 9 ~'illl ßI T A