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HomeMy WebLinkAboutResolution - 2019-R0174 - Lease From Mikaela Allmand And Alan Pitts - 5618 FM 40 - 05/21/2019 Resolution No. 2019-RO174 Item No. 3.2.6 May 21, 2019 RESOLUTION WHEREAS, Lubbock Power & Light ("LP&L") is in need of an area to store materials related to transmission and distribution related construction projects; WHEREAS, LP&L has located a tract of real property to lease for such purposes; WHEREAS, the Electric Utility Board and the City Council of the City of Lubbock,possess j oint jurisdiction over the leasing of real property for use by LP&L; WHEREAS, the City of Lubbock, as Lessee, and Mikaela Allmand and Alan Pitts,as Lessors, now desire to enter into a Commercial Lease providing for the lease of such real property interests; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Director of Electric Utilities of the City of Lubbock BE and is hereby authorized and directed to execute, for and on behalf of the City of Lubbock, that certain Commercial Lease("Lease"),by and between the City of Lubbock,as Lessee, and Mikaela Allmand and Alan Pitts, as Lessor, in the form attached hereto and incorporated herein for all purposes, along with any necessary documents related thereto. BE IT FURTIIER RESOLVED BY TIIE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT this Resolution shall be null and void if the Electric Utility Board shall not likewise authorize and direct the Director of Electric Utilities of the City of Lubbock to execute the Lease within thirty (30) days of the date hereof. Passed by the City Council this 21 st day of May, 2019. DANIEL M. POPE, MAYOR ATTEST: &,OLt"C-�-4 J Becic Garza, City Secretar APPROVED AS TO CONTENT: "AZA tLA-- [Jr Blair McGinnis Chief Operating Officer-LP&L APPROVED AS TO ORM: Richard K. Ca General Counsel — LP&L COMMERCIAL LEASE This Lease is made between Mikaela Allmand &Alan Pitts ("Lessor"), and the City of Lubbock,acting by and through its Electric Utility Board and City Council_ i"Tenant" or "LP&L") Tenant hereby offers to lease from Lessor the real property located in the County of Lubbock, State of Texas. With a common address of 5618 E FM 40 Lubbock County, Texas 79403, as described on Exhibit "A", attached hereto (the "Real Property"), upon the following terms and conditions. (This document shall hereafter be referred to as the "Lease"). TERMS AND CONDITIONS 1. Term and Rent. Lessor leases to Tenant the above Real Property for a term of one 1 year(s), commencing May 16`h, 2019 (the "Effective Date"),and terminating on May 31, 2020 , as provided herein at the monthly base rental of One thousand Eight Hundred and Fifty Dollars ($1,850.00) per month ("Rent") payable in equal installments before or on the first(1St) day of each month for that month's rent, during the term of this Lease. All rental payments shall be deposited by Direct Deposit, wire transfer to Lessor. Security Deposit of$3,000.00 due upon the execution of this lease in immediately available funds. Rent equaling two Thousand Eight Hundred thirty-five dollars and fifty-six cents ($2,835.56)is due upon May 21st,2019. Grace period: There is a five 5 day grace period for monthly payments. If payment is late there will be a fee of 10% equaling the amount of One Hundred Eighty-Five dollars ($185.00) due in addition to the rent of One thousand Eight Hundred and Fifty Dollars($1,850.00) per month. Security Deposit: Upon signing of this lease,the Tenant shall give the amount of Three thousand Dollars ($3,000.00) as a security deposit to be used in the event of a default by the tenant of the obligations under the lease, including, but not limited to: (a) for the payment of any Rent, (b) for the payment of any other amount that Lessor may spend or become obligated to spend by reason of such default by Tenant, and (c) for any other loss or damages that Lessor may suffer by,reason of such default by Tenant. If any portion of the Security Deposit is so used or applied, Tenant will, upon demand by Lessor, deposit with Lessor cash in an amount sufficient to restore the Security Deposit fully.At the end of this Lease, if no Event of Default exists, Lessor will return to Tenant the remaining portion of the Security Deposit within thirty (30) days after the date Lessor receives possession of the Premises in accordance with the provisions of this Lease. The Security Deposit may be commingled with Lessor's other funds, and no interest will be paid on it. If Lessor transfers its interest in the Premises,then Lessor shall either assign the Security Deposit to the transferee and thereafter Lessor will have no further liability or obligation for the return of the Security Deposit or return, within ten (10) days,the Security Deposit to Tenant .Tenant waives the provisions of any Laws, whether now or in the future in effect, or common law rule,to the contrary of this clause. INT: /A& INT: Page 1 of8 INT: INT: Insurance: a) General Liability Insurance: Tenant at Tenant's expense, shall maintain General Liability Insurance of at least one million dollars' ($1,000,000.00)worth of liability coverage per occurrence, in addition, Lessor will be named as Additional Insured. Tenant shall provide Lessor with a Certificate of Insurance showing Lessor as additional insured.The Certificate shall provide for a ten-day written notice to Lessor in the event of cancellation or material change of coverage. b) Tenant will deliver to Lessor an insurance company certificate for General Liability Insurance and any other policies placed on the Real Property, on or before May 21, 2019.Tenant will maintain the insurance required by herein and not less than thirty (30) days prior to the expiration or termination of any such insurance,Tenant will deliver to Landlord renewal certificates therefor. Tenant will provide Lessor with copies of the policies promptly upon request from time to time. c) If Tenant at anytime fails,neglects or refuses to keep general liability insurance for the Leased Premises as hereinabove provided,then Lessor may,at its election,terminate this lease or procure or renew such insurance.Tenant shall reimburse Lessorfor any amounts paid therefor by Lessor no later than the first day of the next calendar month after any such payment. d) In lieu of the above-described insurance coverage, Tenant may elect to self-insure against all losses and in the amounts prescribed above and including Lessor as Additional Insured, and in such event, except as concerns self-insurance requirements,all requirements related to the provision of insurance under this Lease shall be inapplicable. 2. Use. Except as may be otherwise provided herein, Lessor makes no guarantee that property is suitable for Tenant's intended use Tenant shall use and occupy the Real Property for the commercial purpose of storing equipment related to LP&L's business. Tenant will not, nor will allow employees and or its affiliates to use the Real Property in any other manner than stated above, including but not limited to personal housing purposes. Tenant agrees to abide by any and all rules and regulations from the State of Texas pertaining to Tenant's activities on the Premises. LP&L agrees not to store any items on the real property that could cause an environmental hazard, including but not limited to; leaking or damaged electrical transformers. Chemicals: All chemicals used by Tenant, its employees on the Premises, and/or contained in operational or stored equipment on the Premises, specific but not limited to Tenants trade, will be properly disposed of and will not be disposed of or dumped on real property, including gasoline and oil.. Tenant, as between Lessor and Tenant,will be liable for any improper disposal or dumping of any hazards substance, including disposal of chemicals into septic system, according to the rules and regulations set under the TCEQ(Texas Commission on Environmental Quality.) INT: Kk I NT:0— Page 2 of8 INT: INT: Hazardous Materials. Tenant shall not keep on the Premises any item of a dangerous, flammable,or explosive character that might unreasonably increase the danger of fire or explosion on the Premises, or that might be considered hazardous or extra hazardous by any responsible insurance company. To the extent permitted by law, as between Tenant and Lessor, Lessor shall not be liable for any damage or injury, including death, to Tenant,Tenants employee's or patrons, or any other person, or to any property,occurring on the Real Property or any part thereof related to the release or disposal of hazardous materials by Tenant, and Tenant agrees to indemnify and hold Lessor harmless from any claims for damages, related thereto. 3. Care and Maintenance of Real Property. a. Except as provided herein, Tenant accepts the Real Property in "AS I S" condition. Tenant shall, at its own expense and at all times, maintain the Real Property in good and safe condition, including but, not limited to all electrical, plumbing, heating and A/C and any other system or equipment upon the Real Property and shall surrender the same, at termination hereof, in as good condition as received, reasonable wear and tear excluded. Tenant shall be responsible for all repairs required.Tenant shall be responsible for damage caused by Tenant,Tenant's employee's and or any and all affiliates of the Tenant, invited or not invited,to be on the Real Property. and for all repairs of the Real Property related thereto. Tenant shall also maintain in as good condition as received, reasonable wear and tear excepted, such portions adjacent to the Real Property,such as sidewalks, driveways, lawns and shrubbery. Notwithstanding the above, Lessor represents and warrants to Tenant that all HVAC systems on the Premises are in good condition and working as of the Effective Date of this Lease. MAINTENANCE,REPAIR, AND RULES: Tenant will, at its sole expense, keep and maintain the Premises and appurtenances in good and sanitary condition and repair during the term of the Lease and, without limiting the generality of the foregoing,Tenant shall: A. Not obstruct the driveways, sidewalks, courts, entry ways, stairs and/or halls, which shall be used for the purposes of ingress and egress only; B. Keep all windows, glass, window coverings, doors, locks and hardware in good, clean order and repair; C. Not obstruct or cover the windows or doors; D. Not leave windows or doors in an open position during any inclement weather; E. Not cause or permit any locks or hooks to be placed upon any door or window without the prior written consent of Landlord; F. Keep all air conditioning filters clean and free from dirt; filters must be changed every 30 days. G. Keep all lavatories, sinks, toilets, showers and all other water and plumbing apparatus in good order and repair and shall use same only for the purposes for which they were constructed. Tenant shall not allow any sweepings, rubbish,sand, rags, ashes or other substances to be thrown or deposited therein. Any damage to any such apparatus and the cost of clearing stopped plumbing resulting from misuse shall be borne by Tenant; H. Deposit all trash, garbage, rubbish or refuse in proper disposal locations and shall not allow any trash, garbage, rubbish or refuse to be deposited or permitted to stand on the interior and exterior of any building or on or around Real Property. I.Tenant must have weekly trash service. Burning of trash is NOT permitted on the real property. J. NO SMOKING is allowed in ANY PORTION of Buildings. All trash related to smoking must be disposed of properly. K. NO PETS ALLOWED IN AlgTORTION OF BUILDING OR PROPERTY. INT:_V_A)k_ INT: 0,A Page 3 of8 INT: INT: Pest Control: Tenant,at Tenants expense, will maintain the Premises in a manner conducive to limiting the presence of pests, such as rodents and roaches, on the Premises. 4. Provisions. The following conditions shall apply: (1) The Tenant shall lease from Lessor all of the Real Property, in accordance with the terms and provisions hereof; (2)Lessor shall obtain and provide to Tenant non-disturbance agreement(s), in form and substance satisfactory to Tenant, executed by all lienholders against the Premises. Lessor represents and warrants to Tenant that any and all debt secured by any lien against the Premises is current, and that no default exist as concerns such indebtedness and/or liens securing same. 5. Alterations. Tenant shall not,without first obtaining the written consent of Lessor which shall not be unreasonably withheld, make any alternations, additions, or improvements, in,to or about the Real Property. Tenant shall have the obligation to conduct any construction or remodeling(at Tenant's expense)that may be required for tenant to use the Premises for its business specialized needs.Tenant may also construct such fixtures on the Premises (at Tenant's expense)that appropriately facilitate the use for such purpose. Such construction shall be undertaken, and such fixtures may be erected only with the proper written consent of the Landlord and any applicable permits, if required. Tenant shall not install awnings or advertisements on any part of Premises without Lessor's written consent.All alterations or improvernents that are affixed stay with the Real Property and become part of the Real Property.Tenant may not change locks to any doors or gates on the Real Property without written consent from the Lessor. Codes must be emailed and texted to Lessor and keys must be sent to Lessor via overnight mail, at the address provided below, in the event that any access points have been given permission to be changed.Tenant, at its sole cost and expense, shall have the right to construct and place signage outside the Real Property, upon approval of the Lessor; provided, however that all such signage must be permitted by all applicable laws, rules and regulations. 6. Ordinances and Statutes. Tenant shall comply with all applicable statutes,ordinances, regulations, covenants, conditions and requirements of all municipal,state and federal authorities (including owner's association and similar entities) now in force, or which may hereafter be in force, pertaining to the Real Property, occasioned by or affecting the use thereof by Tenant. 7. Assignment and Subletting. Tenant shall not assign this Lease or amendments or sublet any portion of the Real Property without the prior written consent of Lessor. Any such assignment or subletting without consent shall be void and, at the option of the Lessor, Lessor may terminate this Lease. 8. Utilities. All applications and connections for necessary utility services on the Real Property shall be made in the name of Tenant only,Tenant will be solely liable for utility charges as they become due, including but not limited to those for sewer, water, gas, electricity, and telephone services. Any utility connections constructed to provide service to Real Property will remain with property, to the extent permitted by the applicable utility. INT: AA,k INT: Page 4 of8 INT: INT: 9. Lessor Entry a) Inspection: Tenant shall permit Lessor(and/or Lessor's lenders and/or their agents and representatives) ("Lessor Parties")to enter upon the Real Property during day light hours for the purpose of inspecting,with no less than forty-eight(48) hours' notice. Tenant shall have the right, but not obligation, to accompany the Lessor Parties on the Real Property in the event of the exercise of the rights granted herein. b) Remodeling: Lessor retains Right of Access for remodeling and construction purposes during the term of the lease, if it does not interfere with Tenant's regular business activities. 10. Possession. Tenant obtains possession of the Premises upon the Effective Date of this Lease 11. Indemnification of Lessor. To the extent permitted by law, (i) Lessor shall not be liable to Tenant for any damage or injury to Tenant, or any other person,or to anyproperty,occurring on the Real Property or any part thereof during the term of this Lease, to the extent caused by the negligence, of any type,or willful misconduct of Tenant; and (ii)Tenant agrees to indemnify and hold Lessor harmless from any claims for damages, no matter how caused,to the extent caused by the negligence, of any type, or willful misconduct of Tenant, relating to Tenant's exercise of the rights granted by this Lease. To the extent permitted by law, (i)Tenant shall not be liable to Lessor for any damage or injury to Lessor, or any other person, or to any property,occurring on the Real Property or any part thereof during the term of this Lease, to the extent caused by the negligence, of any type, or willful misconduct of Lessor; and (ii) Lessor agrees to indemnify and hold Tenant harmless from any claims for damages, no matter how caused,to the extent caused by the negligence, of any type, or willful misconduct of Lessor, relating to Tenant's occupation of the Premises pursuant to the rights granted by this Lease. 10. Eminent Domain. If the Real Property or any part thereof or any estate therein, or any other part of the building materially affecting Tenant's use of the Real Property, shall be taken by eminent domain,this Lease shall terminate on the date when title vests pursuant to such taking.The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to Tenant.Tenant shall not be entitled to any part of the award for such taking or any payment in lieu thereof. 11. Lessor's Remedies on Default. If Tenant defaults in the payment of rent, or any additional rent, or defaults in the performance of any of the other covenants or conditions hereof, with the exception that Tenant provides proper Insurance Certificates, if applicable, as provided above. Lessor may elect to give Tenant notice of such default and if Tenant does not cure any such default ten (10) business days, after the giving of such notice (or if such other default is of such nature that it cannot be completely cured within such period, if Tenant does not commence such curing within five (S) business days and thereafter proceed with reasonable diligence and good faith to cure such default), then Lessor may terminate this Lease and all rights of Tenant under this Lease by such written notice. If it so terminates on the date specified in such notice the term of this Lease shall terminate, and Tenant shall then quit and surrender the Real Propert Lessor, but Tenant shall remain liable as hereinafter provided. If this Lease INT: " I NT: Page 5 of8 INT: INT: shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the Real Property by any lawful means and remove Tenant or other occupants and their effects. No failure to enforce any term shall be deemed a waiver. No act of Lessor shall be construed as terminating this Lease except written notice given by Lessor to Tenant advising Tenant that Lessor elects to terminate the Lease. In the event Lessor elects to terminate this Lease, Lessor may recover from Tenant (a)The worth at the time of award of the amount by which the unpaid rent for the balance of the term of this lease after the time of award exceeds the amount of rental loss that Tenant proves could be reasonably avoided; and (b)Any other amount legally recoverable for damages proximately caused by Tenant's failure to perform its obligations under this Lease.The term "rent" as used in this Lease shall mean Rent and all other sums required to be paid by Tenant pursuant to the terms of this Lease. 12. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to be a waiver. 13. Notices. Any notice which either party may or is required to give, shall be given by certified mailing, postage prepaid, to Tenant at the Real Property(or at the address indicated below), or Lessor at the address specified below, or at such other places as may be designated by the parties from time to time. 14. Heirs, Assigns,Successors. This Lease is binding upon and inures to the benefit of the heirs,assigns and successors in interest. 15. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument. 16. Covenant of Quiet Enjoyment. Provided Tenant is not in default of any of the terms and conditions of this Lease, and such default remains uncured after notice and opportunity to cure, as provided above, Lessor covenants and warrants that Tenant shall have quiet, peaceable possession and enjoyment of the Real Property for the term hereof. 17. Time of Essence. Time is of the essence in the performance of this Agreement. INT: MA INT: Page 6 of8 I NT: I NT: 18. Entire Agreement;Supersedes Previous Agreements This Agreement contains the entire agreement and understanding of the parties hereto with respect to the matters covered herein and supersedes all prior or contemporaneous negotiations, commitments, agreements and writings with respect to the subject matter hereof, all such other negotiations, commitments,agreements and writings shall have no further force or effect, and the parties to any such other negotiation,commitment,agreement or writing shall have no further rights or obligations thereunder. 19. Option to Extend Tenant is granted the right and option to extend the Lease for one additional one (1) year and fifteen (15) day term, said extended term to expire May, 31, 2020, upon the identical terms and provisions hereof,to be exercised by providing written notice of same to Lessor, at the address set forth below, at least thirty(30)days prior to the expiration of the original term hereof. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.The following Exhibits, if any, have been made a part of this Lease before the parties'execution hereof. Signed this day of^ 2019. Lessor: Tenant: Mik ela Allmand David McCalla PO BOX 2312 Director of Electric Utilities Abilene, TX 79604 Lubbock Power& Light 325-338-4760 1301 Broadway mjapitts@gmail.co Lubbock,TX 79401 806-775-2704 Lessor: dmccalla@lpandl.com �' s AI n itt PO BOX 2312 Abilene,TX 79604 325-518-5483 mjapitts@gmail.com INT: ,v— INT: Page 7 of8 INT: INT: a mss.,6 ami •S 0.m mm © y, r ^S. C.7 CL °> LLw�cn �....m O �i� m °�bN m m d =,z $`n .� �ci� •" .�^o� v� rte,n cy o o �m¢ ti�w o ��6 to �� V quz o 1L H N y Qi zz t. x r �w`Q" ���'`� m0%�' Zr-��vQ .�� P ��_L'�Ei - +• X613 �•�' � v W � q 6 1 e� ¢fin o-0 cz om $ ; CJS c J 7)�+9CID o nq�ba 3:C4 m� o m� o rN. m a. m cn � N N v> D: �.Q cq cam, a00 � C Ulb��� cc° ° C- co' 'E En En ¢z ON yW U.aG G a w o Z QQ� v m ,ppb v G o a c �m.r4' .N 3 55 LOO O o 9 Z O C G U 4 C N o U, IU O a W c o b U b a U 1�G± o .0— q \ <0 rn wc�Wmw_ wz�Ty; E wy c'o z ©c� c° z n .Lc = q IyWMOL mob cd. 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