Sully Transport Lease Agreement
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MEMORANDUM
April 13,2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Lease Agreement with Sully Transport, Inc.
Assistant City Manager Cindy Steinhauser is recommending City Council approval of a
month-to-month lease agreement with Sully Transport, Inc. for a portion of a city-owned
parking lot on 16th and Sycamore Streets. Since this property will be impacted by
proposed storm water improvements and this is not the highest and best use for this
property, the company has agreed to a month-to-month lease in the amount of $500 per
month.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
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MEMORANDUM
April 13,2004
TO:
Michael C. Van Milligen, City Manager
FROM:
Cindy Steinhauser, Assistant City Manager
SUBJECT: Lease Agreement with Sully Transport, Inc.
Introduction
The purpose of this memorandum is to request that the City Council approve entering
into a month-to-month lease agreement with Sully Transport, Inc. for a portion of a city-
owned parking lot on 16th and Sycamore Streets.
Discussion
Tim Scherrman contacted me on behalf of Sully Transport, Inc. to discuss the possibility
of leasing a portion of the city-owned parking lot located at 16th and Sycamore Streets
for the parking of up to 15 semi-trucks and trailers. The lease area being proposed is
approximately 150' x 100' and is shown on Attachment A of the lease agreement. Sully
Transport, Inc. provides transportation services of construction road oil materials for
Koch Materials into Iowa, Illinois and Wisconsin. Currently the company leases a
portion of space from The Bait Shack, however, the location of the city-owned lot on 16th
and Sycamore Streets is strategically located near the Iowa-Wisconsin bridge, making it
an ideal location for trucks to begin and end their routes. Since this property will be
impacted by proposed storm water improvements, the company has agreed to a month-
to-month lease in the amount of $500 per month. In reviewing this item with
Corporation Counsel Barry Lindahl, because the nature of the lease is month-to-month
no public hearing is required.
Action
The action requested is for City Council to approve the proposed lease agreement with
Sully Transport, Inc.
Cc:
Barry Lindahl, Corporation Counsel
Ken TeKippe, Finance Director
Mike Koch, Public Works Director
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
SULLY TRANSPORT, INC.
THIS AGREEMENT, made and entered into
between the City of Dubuque (City), whose address,
W. 13th Street, Dubu ue 52001 and
The parties agree as follows:
1. PREMISES AND TERM. City leases to Sully Transport, Inc. the following
real estate, situated in Dubuque County, Iowa:
together with all improvements thereon, and all ri
thereto bel on .
3. POSSESSION. Sully Transport, Inc. shall be entitled to possession on the
first day of the Lease term, or such earlier date as the parties may agree, and shall yield
possession to City at the termination of this Lease.
5. CARE AND MAINTENANCE.
(a) Sully Transport, Inc. takes the premises as is.
(b) Sully Transport, Inc. shall maintain the premises in a reasonable safe, clean
and presentable condition. Sully Transport, Inc. shall not erect any structure of any kind
on the premises without the prior written consent of City.
6. UTILITIES AND SERVICES. Sully Transport, Inc. shall pay for all utilities
and services which may be used on the premises.
7. SURRENDER. Upon the termination of this Lease, Sully Transport, Inc. will
surrender the premises to City in good and clean condition. If the building stops serving
as a funeral home, this lease is terminated.
8. ASSIGNMENT AND SUBLETTING. Sully Transport, Inc. shall not assign,
sublet or otherwise transfer the premises or any part thereof, and any attempted
assignment, subletting or transfer shall work an automatic forfeiture and termination of
this Lease.
9. INSURANCE. Sully Transport, Inc. shall obtain general liability insurance as
set forth in the City's Insurance Schedule for Lessee's of City Property as such
schedule may from time to time be amended. A copy of the current schedule is attached
here to.
10. INDEMNITY. Sully Transport, Inc. will protect, defend, and indemnify City
from and against any and all loss, costs, damage and expenses occasioned by, or
arising out of, any accident or other occurrence causing or inflicting injury or damage to
any person or property, happening or done in, upon or about the premises, or due
directly or indirectly tothe tenancy, use or occupancy thereof, or any part thereof by
Hoffmann Schneider Funeral Home or any person claiming through or under Hoffmann
Schneider Funeral Home.
11. MECHANICS' LIENS. Neither Sully Transport, Inc., nor anyone claiming
by, through, or under Sully Transport, Inc., shall have the right to file any mechanic's
lien against the premises.
12. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
A. The following shall constitute an event of default by Sully Transport, Inc.:
Failure to observe or perform any duties, obligations, agreements, or conditions
imposed on Sully Transport, Inc. pursuant to the terms of the Lease.
B. City shall give Sully Transport, Inc. a written notice specifying the default and
giving Sully Transport, Inc. ten (10) days in which to correct the default. If there is a
default that cannot be remedied in ten (10) days by diligent efforts of Sully Transport,
Inc., Sully Transport, Inc. shall propose an additional period of time in which to remedy
the default. Consent to additional time shall not be unreasonably withheld by City. City
shall not be required to give Sully Transport, Inc. any more than three notices for the
same default within any 365 day period.
C. In the event Sully Transport, Inc. has not remedied a default in a timely
manner following a Notice of Default, City may declare this Lease to be terminated and
shall give Sully Transport, Inc. a written notice of such termination. In the event of
termination of this Lease, City shall be entitled to prove claim for and obtain judgment
against Sully Transport, Inc. for the reasonable expenses of the City in regaining
possession of the premises, including attorney's fees and court costs.
D. In the event of termination of this Lease, Sully Transport, Inc. shall be entitled
to a pro rata abatement of rent.
13. NOTICES AND DEMANDS. All notices shall be given to the parties hereto
at the addresses designated unless either party notifies the other, in writing, of a
different address. Without prejudice to any other method of notifying a party in writing or
making a demand or other communication, such notice shall be considered given under
the terms of this Lease when it is deposited in the U.S. Mail, registered or certified,
properly addressed, return receipt requested, and postage prepaid.
14. PROVISIONS BINDING. Each and every covenant and agreement herein
contained shall extend to and be binding upon the respective successors, heirs,
administrators, executors and assigns of the parties hereto.
CITYOF DUBUQUE, IOWA
By
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
James Schneider
STATE OF IOWA
DUBUQUE COUNTY
: ss:
On this day of , 2004, before me, a Notary Public in
and for the State of Iowa, in and for said county, personally appeared James
Schneider for Sully Transport, Inc., to me personally known, who acknowledged
the execution of this instrument to be his voluntary act and deed.
Notary Public, State of Iowa
STATE OF IOWA
: ss:
DUBUQUE COUNTY
On this - day of ,2004, , before me, a Notary Public in and for
the State of Iowa, in and for said county, personally appeared Terrance M. Duggan and
Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that
they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal
Corporation, created and existing under the laws of the State of Iowa, and that the seal
affixed to said instrument is the seal of said Municipal Corporation and that said
instrument was signed and sealed on behalf of said Municipal corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
Notary Public, State of Iowa
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 A.M. 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. Hoffmann Schneider Funeral Home 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) Govemmentallmmunity 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. Hoffmann Schneider Funeral Home shall be required to carry the following minimum
coverage/limits 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 commercial general
liability form CG 0001 or Business owners form BP 0002 shall be clearly
identified.
Govemmentallmmunity 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."
COMMERCIAL GENERAL LIABILITY
POLICY NUMBER
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
Declarations 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.
Cocvrtaht. Insurance Services Office. Inc. 1994
CG20261185
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 Immunity. 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 Policy. The above preservation of governmental immunities shall
not otherwise change or alter the coverage available under the policy.
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