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HomeMy WebLinkAboutResolution - 197 - Lease Agreement - Local American Red Cross - Building At 2201 Ave X - 06_28_1979T DGV:hw , RESO #197 - 6/28/79 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Lease Agreement between the City of Lubbock and the Lubbock County Chapter of the American Red Cross for the lease of a building located at 2201 Avenue X, formerly known as City of Lubbock Fire Station No. 2, attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 28th day of June ,1979. D K WEST, MAYOR ATTEST: Evelyn Gafogi, City S c ry-Treasurer APPROVED AS TO FORM: .'Vandiver, First Asst. City Attorney TIED TO RESO #197 - 6/28/79 LEASE AGREEMENT STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § This Lease Agreement entered into this day between the City of Lubbock, Texas, a home rule municipal corporation, as Lessor, hereinafter called "City," and the Lubbock County Chapter of the American Red Cross as Lessee, hereinafter called "Red Cross." WITNESSETH: I. The City does hereby lease to the Red Cross a building located at 2201 Avenue X, formerly known as City of Lubbock Fire Station No. 2. II. The term of this lease shall be for five (5) years beginning July 1, 1979, and ending July 1, 1984. It shall be renewable at expiration upon mutual agree- ment of the parties as to terms and conditions for subsequent periods. III. The Red Cross shall pay to the City as rental for such premises the sum of ONE HUNDRED DOLLARS ($100.00) per month with the payment for the first month due upon execution of this agreement and a like sum being due upon the same day of each month of this Lease. IV. The Red Cross hereby agrees to perform the following duties: 1. Maintain electric utility service with Lubbock Power & Light. 2. Pay all utility bills on or before their due dates. 3. Make no structural changes or remodeling of the building without first obtaining the consent of the City Manager of the City of Lubbock or his delegated agent. 4. Pay for all structural changes or remodeling. 5. Fully insure the building for any or all occurrences, including vandalism or acts of God, in an amount of not less than TWO HUNDRED THOUSAND DOLLARS ($200,000.00). 6. Keep the building in a condition acceptable to the City Manager of the City of Lubbock and consistent with its condition upon the commencement of this Lease. 7. Make no unlawful, improper or offensive use of the building. 8. Will not sublease or assign the building or any part of it to another without the express written permission of the City Manager of the City of Lubbock. 9. Hold the City of Lubbock harmless from any or all claims for damages arising from the use of the premises by the Red Cross, its agents or employees, or any member of the public. V. This Lease may be terminated by (1) the expiration of the term stated hereinabove, (2) upon violation of any of the conditions of this Lease, (3) by mutual agreement of the parties, or (4) unilaterally by either party upon ninety (90) days written notice to the other. Notice in regard to unilateral termination shall be deemed properly delivered when a copy is handed to the City Manager of the City of Lubbock or to the Director of the Local Chapter of the American Red Cross. Executed this 28th day of June, 1979. LUBBOCK COUNTY CHAPTER AMERICAN RED CROSS: irector CITY OF LUBBOCK: MAYOR ATTEST: City Secretary -Treasurer APPROVED AS TO CONTENT: (/ —E>qyffRU'lav� Director Public ervices APPROVED AS TO FORM: g� Assistant City Attorney CALCULATION OF MONTHLY RENT AMOUNT FOR FIRE STATION BUILDING Fair appraisal of building $191,050 Divided by 25 years building service = $7,642 (annual rent) Deduct these services to the City: $3,500 - Building Maintenance 592 - Insurance Coverage 480 - Instructor time for Red Cross Training of City Employees 1,000 - Emergency Activities 420 - Training of Lifeguards for City Pools 480 - Training of Water Safety Instructors $6,472 - Total Deductions from Annual Rental $7,642 - 6,472 $1,170 - Adjusted Anual Rental Cash rental of $1,170 divided by 12 months = $97.50 or $100.00 per month Figures above for deductions for Red Cross training are conservative since they are initial training costs and do not include annual re-training costs. In 1978, the Red Cross conducted class in re-training for 546 City employees. :4merican Red croji Mr. Peter Nuckles Public Works Department City of Lubbock 916 Texas Avenue Lubbock, Texas 79401 Dear Pete: LUBBOCK COUNTY CHAPTER 1313 AVENUE L • 765.8534 LUBBOCK, TEXAS 79401 July 19, 1979 Enclosed is a copy of the pertinent part of our Corporate Insurance Plan that will apply to Fire Station #2, per your request. WAA/bs enc. Best regards, 44;t?er A. Ahrens Executive Director J,-, 2n197� Q Cf J S� � t�et�RY I The UnlCetl wag of Luhhaok EMBER AGENCY Page - 1. AMERICAN NATIONAL RED CROSS A INTRODUCTION - CORPORATE INSURANCE PLAN The purpose of this statement is to define and summarize the coverages and pro- tection afforded by the new corporate insurance plan which applies to the American National Red Cross and all of its divisions, chapters, and branches located in the fifty states, the District of Columbia and Puerto Rico. The necessary procedures for filing claims and reports under the new plan are also set forth herein. This statement should be used as a guide and for reference in conjunction with the current Insurance Manual, ARC 549, until a new manual is prepared to incorporate the provisions of this plan in more detail. Please bear in mind the summaries of insurance coverages contained herein and in the current Insurance Manual do not set forth all details and provisions of the insurance policies involved but only give such information as is necessary for routine reference. It should be understood also that these summaries cannot alter the provisions of the actual insurance policies, which are the controlling contracts in all instances. Questions which cannot be answered from the information in this statement or the Insurance Manual should be referred to appropriate division headquarters office by chapters, divisions and field offices of the national organization to their area head- quarters, and area headquarters to the office of insurance at national headquarters. Under this corporate insurance plan the national organization will be responsible for purchasing and administering, effective July 1, 1975, insurance coverages for the entire organization, consisting of the following major categories: Property Protectionsuch as: J B ldingW nd canteuta,,comprehensive coverage includes boiler and machinery, extra expense, glass, burglary and theft, rents, etc. (#) Automobile, comprehensive and collision (+') Fidelity and Forgery Bond Transit or shipments Marine Cargo Medical Payment for Accidentssuch as: Premises medical (*) Automobile medical (*) Accident and Sickness Workmen's compensation L10ility Protection, such as: Comprehensive general liability Comprehensive automobile liability Aircraft liability acess automobile liability for volunteers Excess personal liability for volunteers Miscellaneous such as: Business travel accident Personal accident (Optional) (#) - Represents coverages which many chapters have purchased locally in the past. After July 1, 1975, such purchases will not be required. Page - 2. INTRBDUCTION STATE rYT (Continued) It is important to note that group life and medical, unemployment compensation, and disability insurance for chapter employees are not included in the new corporate insurance plan. Chapters will be expected to continue these coverages for their employees in accordance with their personnel practice and state requirements. Therefore, the provisions and instructions contained in the current Insurance Manual, ARC 549, under Section I, Group Insurance, are still applicable. In reviewing the summarized insurance coverages contained in this statement per- taining to the new corporate insurance plan, the following information is provided so that the plan can be better understood, efficiently administered and the advantages appreciated: A. Some of the insurance coverages will be a guaranteed cost type for which there is a fixed premium. However, several of the major coverages will be purchased under a single comprehensive rating or cost plan which is referred to as a "retrospective rating" plan. Yany large organizations purchase insurance under this type of plan because it is less expensive than fixed premium insurance plans, if losses are kept to an absolute minimum. The premium cost, under a retrospective plan, is equal to actual loss plus cost of administration. In other words, Red Cross money is being spent when an insurance company is required to pay a claim under the organization's retrospective plan. There- fore, all Red Cross volunteers and employees must continue their efforts to be extremely accident prevention conscious and at all times perform their Red Cross assignments accordingly. Red Cross money will actually be saved by having fewer accidents. The American Red Cross has a long standing tradition of being a safety conscious organization and it has compiled an enviable record. B. To expedite the settlement of claims and to minimize administrative red tape and paper work, arrangements have been made for full utilization of telephone reporting service when accidents, losses or damages occur anywhere in the fifty states, the District of Columbia or Puerto Rico. Accordingly, telephone reports to the claim offices of the following two insurance companies or to the General Adjustment Bureau (G.A.B.) will be made when any.of their indicated insurance coverages are involved: 1. The Travelers Insurance Company, for: a. Comprehensive general liability coverage b. Comprehensive automobile liability coverage c. Excess automobile liability coverage for volunteers d. Excess personal liability coverage for volunteers e. Premises medical payment coverage f. Automobile medical payment coverage 2. The Centennial Insurance Company (member of The Atlantic Companies Group) or the General Adjustment Bureau (G.A.B.), for: a. Real and persoBgl M,�eg$jZ buildi s and contents) and ancillary cover- ages (rents, extra expenses, trans tt or s pmen -,--boiler and machinery, builders risk, and replacing valuable papers). b. Automobile collision and comprehensive (fire and theft) coverages. Additional information and instructions relative to telephone reporting are contained in the sections in this statement under "Accident Reporting Procedure" for each coverage listed above. Page - 3. INTRODUCTION STATINENT (Continued) is C. Irrespective of eliminating the written report to the above insurance companies, the Red Cross as an organization must have written records of all its accidents, losses or damagea. Such written records or reports must be maintained for at least three years at the following locations: 1. The Red Cross unit where accident, loss or damage occurred. 2. Division headquarters office for chapters under its jurisdiction or by area headquarters office for field offices of the national organization under its jurisdiction. 3. Office of insurance at national headquarters. When a written copy of a telephone report is not received back from an insurance company, three copies of a written report must be prepared. A copy will be retained by the Red Cross unit involved and two copies forwarded through normal Red Cross channels so that a copy reaches the office of insurance at national headquarters; division headquarters will retain one copy. When it is necessary to prepare a written report, one of the following applicable standard insurance forms should be used: 1. Property Loss Notice (Form ACORD 1), when real or personal property or ancillary coverages are involved. See Page 26 herein for sample copy. Sections to be completed are marked. 2. Auto Accident Notice (Form ACORD 2), when vehicle physical damage (collision or comprehensive coverages) is involved. See Page 27 herein for sample copy. Sections to be completed are marked. ,These forms are prepared in sets of three copies along with carbon paper and they will be provided free of charge to Red Cross. An initial supply will be forwarded through normal Red Cross channels and subsequent supplies should be obtained from the nearest office of The Centennial Insurance Company (member of The Atlantic Companies Group), division headquarters office, or area office of insurance, or officeof insurance at national headquarters. Additional information and instructions relative to preparing and submitting written reports are contained in the sections in this statement under "Accident Reporting Procedure" for each coverage. D. There may be occasions when the name and address of the insurance agent, producer, or broker of the American National Red Cross (divisions, chapters, branches, or national organization) will be requested. This information is: Fred S. James & Company of New York, Inc. 55 Water Street New York, N. Y. 10041 Normally, contacts with the Fred S. James & Company are processed through the office of insurance at national headquarters. E. When a telephone report of an accident or loss is made to The Travelers Insurance Company, the Red Cross person making the report should specifically request that a typed copy of The Travelers report be promptly mailed to them and not to the insurance agent, producer, or broker. Page - 10. II. Property Protection A. Real and Personal PugertX Insurance (exec t automobile coverage which is explained in Item B below) - Applies to all buildings, contents and other property (including Improvements and betterments of every description) owned by the American Red Cross or for which the organization may be liphle by written agreement or in which there is an insurable interest or for which there is responsibility to provide insurance. Also, applies to personal property of officials, volunteers and employees of the American Red Cross while on the organization's premises, subject to a $10,000 limit. 1. Insurance Carrier - Centennial Insurance Company (A member of the Atlantic Companies Group), see Section VI herein for the addresses and telephone numbers of various offices. 2. Policy Number and Policy Period 291-644-963 July 1, 1975 to July 1, 1978 3. G.A.B. (General Adjustment Bureau) Number - TAS 458-0 4. Property and Ancillary Coverages subject to the Deductible and the Coverage Liability Limits per Occurrence as indicated: a. Real and Personal Propert - Coverage against All Risk of physical loss or damage from any of the insured perils-I5ted below (includes any expense incurred in removing debris of insured property damaged by any insured peril), subject to 'S1,000 deductible. b. For rents (Rent Insurance) - To pay the rent if the Red Cross is obligated to continue paying when property being rented is rendered wholly or partially untenantable as a result of physical damage. Coverage Liability Limit of A50,000. c. For extra expenses (Extra Expense Insurance) = To pay expenses necessarily incurred to continue as much as possible the Red Cross operations had no loss occurred. Coverage Liability Limit of S100,000. d. Transit or Shipments Insurance - Coverage against all risk of physical -loss or damage on property in transit, subject to $1,000 deductible. Coverage Liability Limit of $250,000. P. Boiler and Machinery Insurance - Comprehensive coverage on a repair and replacement basis for boilers, refrigeration and air conditioning systems, auxiliary steam piping, and for unfired vessels (hot water tanks, sterilizers, steam cookers, air storage tanks, etc.). Coverage for first 90 days of new policy period (July 1 1975 through e em er j will be on a blanket basis for all Red Cross buildings._Thereafter , coverage wi a y to only those u ings forrww icE the n oxma ion Form 33 identifying the need for this coverage has been submitted through regular Red Cross channels to the office of insurance at national headquarters. Coverage Liability Limit of $1,000,000. f. Builders Risk coverage for new construction, subject to $1,000 deduct- ible. Coverage Liability Limit off, 0; however, if needed, additional coverage may be obtained upon written request to the office of insurance at national headquarters. g. Coverage for. Replacingaluable Papers - Accounts, manuscripts, mechanical drawings, and other records or documents not specifically excluded below are covered, subject to $1,000 deductible. Coverage Limit of Liability is $50,000. Property and Ancillary Coverages (Continued) Page - 11. (� 5. Frpperty_Not Covered (Exclusions): a. Deeds, evidence of debt, notes, and securities, (money would be covered). b. Trees and shrubs. c. Aircraft or motor vehicles licensed for highway use. d. Property sold by the Red Cross under conditional sale, trust agreement, installment plan or other deferred payment plan, after delivery. e. Data processing media (includes tapes). 6. Deductible - The Red Cross is responsible for the first $1,000 of each loss or damage to insured property or ancillary coverages, except boiler and machinery, rents, and extra expenses on which there is no deductible. The insurance carrier will cover losses or damages exceeding the $1,000 deduct- ible for coverages to which it applies, subject to coverage limits of liability as indicated above. The $1,000 deductible will be administered within Red Cross in the following manner for the coverages to which it applies: a. The national organization will provide coverage for the insured property of chapters frcm the first dollar for'each lose or damage caused by any of the Named Insured Perils listed below up to the maximum $1,000 deductible. b. Chapters will assume the first $250 for each loss or damage to insured property caused by Other Insured Perils listed below. The national organization will provide coverage in this category for each loss or damage in excess of $250 and up to the maximum $1,000 deductible. 7. Named Insured Perils (No Deductible to Chapters): a. Fire and lightning - excluding electrical injury or disturbance to electrical appliances, devices, or wiring from artificial causes, unless fire ensues, and then only for that portion of loss or damage caused by such ensuing fire. b. Windstorm and hail. c. Weight of snow, ice, sleet. d. Riot, riot attending a strike or civil commotion. e. Aircraft and vehicles. f. Falling objects - including, but not limited to, the falling of trees or their limbs, and the cost of their removal. g. Smoke - excluding smoke from fireplaces or from industrial furnaces. h. Vandalism, malicious mischief and sabotage. I. Sprinkler leakage - covers loss by discharge of water or other substance from within an automatic sprinkler system. Includes direct loss caused by collapse or fall of a tank from a part of in automatic sprinkler system. Covers cost of repairs and replacement to the automatic sprin- kler system when the damage suvtained is caused directly by breakage of any of its parts resulting in Sprinkler Leakage, or freezing. j. Explosion. a Property and Ancillars`Coveraim (Continued) Page - 12. 8. Other Insured Perils (6250. Deductible to Chapters): a. Earthquake - Loss by earthquake shock shall include, as a single loss, all damage therefrom occurring during the continuous period of 72 hours. b. Flood - Loss by flood shall include, as a single loss, all damage there- from occurring during the continuous period of 72 hours. c. Burglary - Covers damage to the premises and to property within the premises, if caused by burglary, robbery of a workman, or attempt there- at, provided the Red Cross is owner of the premises or is liable for damage to the premises. d. Plate glass breakage. e. Collapse or subsidence. f. Seepage. g. Backup of sewers or drains. 9. Perils Not Insured A.aainst (Exclusions): a. Infidelity of Red Cross officers or employees. Fidelity and Forgery Bond provides coverage for infidelity of employees and volunteers (see Item C. below). b. Any unexplained loss, mysterious disappearance, or loss or shortage disclosed on taking inventory. c. Normal wear and tear. d. Loss by normal settling, shrinkage, or expansion in foundations, walls, floors or ceilings. e. Nuclear reaction or nuclear radiation or radioactive contamination whether controlled or uncontrolled. f. Hostile or warlike action in time of peace or war. g. Loss occasioned by enforcement of any ordinance or law regulating the construction, repair or demolition of any real property insured under this policy. 10. Automatic Coverage Extension - Newly acquired locations $500,000 limit. Newly acquired locations must be reported, giving the replacement value, within 90 days of acquisition to the office of insurance at national headquarters. 11. Basis of Recovery - In case of loss the basis of adjustment shall be as follows, subject to applicable deductible and limit of coverage: a. Buildings and structures, at replacement cost at time and place of loss if actually replaced, if not replaced, at actual cash value on date of loss. b. Contents - Machinery, equipment and any other insured property not otherwise provided for, at replacement cost if actually replaced, otherwise at actual cash value on date of loss. c. Improvements and betterments, at replacement cost at time and place of loss if actually replaced, if not replaced, at actual cash value on date of loss. d. Accounts, manuscripts, mechanical drawings and other records or documents not specifically excluded, at value plus cost of transcribing. e. Exhibitions and displays, at cost to the Red Cross. 12. Appraisal - Will be made available in case of disagreement as to amount of property loss. F ndAncillary Coverages (Continued) Page - 13. . Subrogation - The Red Cross may, without prejudice, and prior to loss, release others from loss by the insured perils. Waiver er of subrogation is available from the Fred S. James & Company, Inc. upon request in advance through normal Red Cross channels to the office of insurance at national headquarters. 14. Payments for Losses - Payments will be made to the American National Red Cross or to the Mortgagees of real and personal property as their interests may appear. The American National Red Cross is obligated to notify the Fred S. James & Company, Inc. at once, through normal Red Cross channels to the office of insurance at national headquarters, of any loss payable circumstances, and to obtain mortgagee certificates of insurance for the property covered. When payment to the American Red Cross is indicated the appropriate Red Cross official at a location having a loss shall sign the Proof of Loss statement provided by the insurance company adjuster. The insurance company will send all settlement checks to the office of insur- ance at national headquarters along with a copy of the signed Proof of Loss. After applying any applicable deductible, as outlined in item 6 above, settlement check(s) will be forwarded through channels by the office of insurance to the Red Cross unit having the loss. In order for the office of insurance at national headquarters to accurately audit loss settlements and administer the deductible provisions, it is absolutely essential that they receive timely and complete reports on all property losses or damages. 15. Loss or Damage Reporting Procedure - The appropriate administrative person at a Red Cross location having a loss shall be responsible for complying with the following instructions with respect to extent of loss or damage and location: a. For any loss or damage to insured property appearing to involve more than $1,000 or when boiler and machinery, rents, or extra expenses are involved for any amount: (1). Immediately make a complete telephone report with respect to location as follows: (a). From locations other than in Alaska, Hawaii and Puerto Rico call 800-621-5410 (from Illinois call 800-972-5402). These are 24 hour claim reporting numbers, toll free, and further instructions will be provided by the individual taking the report. When calling it is necessary to identify the name and location of chapter or unit of national organization reporting and always refer to the American Red Cross G.A.B. (General Adjustment Bureau) identification number TAS 458-0. (b). From locations in Alaska call the nearest office of the General Adjustment Bureau (G.A.B.). The telephone numbers and addresses for their five offices located throughout Alaska are listed in Section VII, A. herein. These offices will administer claim service for the Centennial Insurance Company. Call collect, if a toll charge is involved. When calling always identify the name and location of chapter or unit of the national organization reporting and refer to the American Red Cross G.A.B. identification number TAS 458-0. Property and Ancillary Coverages (Continued) Page - lb. (c). From all locations in Hawaii call the office of the General Adjustment Bureau (G.A.B.) located in Honolulu, Oahu. The telephone numbers and the address of this office are listed in Section VII, B. herein. This office will administer claim service for the Centennial Insurance Company. CAll collect, if a toll charge is involved. When calling always give the name of the American Red Cross unit reporting and refer to the organization's G.A.P. identification number TAS h58-0. W . From locations in Puerto Rico call the nearest office of the General Adjustment Bureau (G.A.£.). The telephone numbers and addresses for their three offices located in Puerto Rico are listed in Section VII, C. herein. These offices will administer claim service for the Centennial Insurance Company. Call collect, if a toll charge is involved. When calling always give the name of the American Red Cross unit reporting and refer to the organization's G.A.B. identification number TAS 458-0. NOTE - While the telephone reports from any of the locations in the f fty states, the District of Columbia, or Puerto Rico, as out- lined above, will satisfy the requirements of the insurance carrier and result in immediate claim service, it will not be possible to obtain a written report in return; therefore, (2). A written report on the form provided (Property Loss Notice, ACORD 1) must be prepared by any Red Cross unit involved. The original and one copy must be forwarded through normal Red Cross channels to the office of insurance at national headquarters. Division headquarters office will retain one of the copies when submitted by a chapter under its jurisdiction. (3). Indicated action should be taken to protect the property involved from further damage. b. For any loss or damage definitely under $1,000 and not involving boiler and machinery, rents, or extra expenses, all Red Cross units should prepare a written report on the form provided (Property Loss Notice, ACORD 1). The original and one copy must be forwarded through normal Red Cross channels to the office of insurance at national headquarters along with two copies of applicable repair or replacement bill(s). Division headquarters office will retain one copy of the form and the bill(s) for their records.