#3 Approve lease with Rock Aqua Jays (File Res. #2010-696)CITY MANAGER’S OFFICE MEMORANDUM
April 16, 2010
TO: City Council
FROM: Rebecca Smith, Management Assistant
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to Execute a
Lease with the Rock Aqua Jays Water Ski Club, Inc. for the Operation of a
portion of Traxler Park (File Resolution #2010-696)
Summary
Traxler Park has been home to the Rock Aqua Jays since the team's inception in 1961. Their
lease has expired and they have asked to renew it for twenty years. Staff supports the
renewal of this lease.
Request
The Rock Aqua Jays requests the City renew their lease so that they may continue to operate
their water ski show activities at Traxler Park.
Recommendation
Staff recommends the City Council adopt File Resolution #2010-696 to authorize the City
Manager to execute an operating lease with the Rock Aqua Jays for a portion of Traxler Park.
City Manager Recommendation
The City Manager concurs with the staff recommendation.
Suggested Motion
I move the Council approve File Resolution #2010-696 to authorize the City Manager to
execute an operating lease with the Rock Aqua Jays for a portion of Traxler Park.
Lease Details
A 20-year lease with the Rock Aqua Jays has been negotiated commencing May 1, 2010 and
ending on April 30, 2030. The Aqua Jays may exercise their right to extend this lease
agreement for an additional twenty (20) years, thereby terminating on April 30, 2050.
Most of the lease details remain the same as prior lease updates, including requirements that
the Aqua Jays pay the utilities, generally maintain all structures and improvements within
their leased area and perform all ordinary maintenance. Four concepts were added to this
lease that may be of interest:
1. If major structural work or extraordinary maintenance or repair work is needed, the City
and the Aqua Jays shall discuss the work and decide how to apportion responsibility
for said work.
2. In the event of catastrophic flooding, defined as flooding equal to or greater than the
“100 year flood,” the City shall, at the discretion of the Janesville City Council, be
responsible for the repair or replacement of any structures on the leased premises. In
the event of catastrophic flooding, the City would likely become eligible for federal
disaster funding for remediation of the flooded area. If a local match was required to
receive this funding, the lease dictates the Aqua Jays would be responsible for
providing the local match. For the 2008 flood, the leased portion of Traxler Park was
not eligible for FEMA funding due to the lease language that was in place; this clause
should clarify the responsibilities of each party and would assist the leased area in
becoming FEMA-eligible if another disaster would strike this area.
3. The lease requires the Aqua Jays pay the City’s insurance claim deductible if they
make a claim against the City.
4. The Aqua Jays are required to work with the Parks Division to encourage recycling in
the park during their shows and practices.
Analysis
The Aqua Jays have a long history of providing free, family entertainment to Janesville
residents and visitors through their water ski shows at Traxler Park. Their special events,
such as tournaments, positively impact the local economy and their working relationship with
the City of Janesville is strong. Their lease has worked very satisfactorily and staff supports
the execution of this lease.
Cc: Eric Levitt, City Manager
Jay Winzenz, Assistant City Manager/Administrative Services Director
Attachments: Resolution 2010-696, Lease agreement, Lease agreement exhibits
2
Resolution # 2010-696
A Resolution Authorizing the City Manager to Execute a Lease with the Rock
Aqua Jays Water Ski Club, Inc. for the Operation of a portion of Traxler Park
WHEREAS, Traxler Park has been home of the Rock Aqua Jays Water Ski Club,
Inc. (“Aqua Jays”) since the team's inception in 1961; and
WHEREAS, the City is the owner of the land located in the City of Janesville,
Rock County, Wisconsin, known as Traxler Park, upon which is situated a building
known as the Aqua Jays’ Clubhouse, owned by the City; and
WHEREAS, the Aqua Jays, a non-profit organization, desires to lease and use a
portion of Traxler Park for twenty years for their water ski show activities; and
WHEREAS, the Aqua Jays and the City Administration have negotiated a
proposed twenty (20) year Lease for such purposes for the term commencing May 1,
2010 and running through and including the end date of April 30, 2030 and the Aqua
Jays by written notification may exercise their right to extend this lease agreement for
an additional twenty (20) years, thereby terminating on April 30, 2050; and
WHEREAS, the proposed Lease and all of its above and other terms, obligations,
and provisions are reiterated and incorporated by reference herein as if fully set
verbatim; and
WHEREAS, the Common Council hereby find that this Lease and its execution
by the City is in the best interest of and of benefit to the City of Janesville, the
community, its residents, businesses, as well as the surrounding area; and
WHEREAS, such Lease and its terms, conditions, obligations, and promises are
permitted by law and the Common Council are empowered to enter into such Lease,
pursuant to Wis. Stats. §§ 66.0101, 62.11(5), 62.22, and 62.23(17) (b), and other
pertinent Wisconsin Statutes.
NOW THEREFORE BE IT RESOLVED by the Common Council of the City of
Janesville that the Lease with the Aqua Jays is approved and authorized upon the
terms, conditions, obligations, provisions, and promises set forth above and therein as
proposed by the City Administration; and further, the City Manager and/or his
designee(s), on behalf of the City of Janesville, are authorized to execute and enter into
the Lease with the Aqua Jays for the operation of a portion of Traxler Park; and
BE IT FURTHER RESOLVED by the Common Council that the City Manager
and/or his designees are hereby authorized to negotiate, renew, amend, execute, and
enter into such documents, papers, agreements, and forms, and to take whatever other
actions, that the City Manager may, from time to time, find necessary, desirable, and/or
beneficial to effectuate the Lease and/or the intent of this Resolution.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Truman
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Parks Division
Prepared by: Management Assistant & City
Attorney
LEASE AGREEMENT BETWEEN
THE CITY OF JANESVILLE AND
ROCK AQUA JAYS WATER SKI CLUB, INC.
CITY OF JANESVILLE
This LEASE AGREEMENT is made by and between the , a
CITYROCK AQUA
Wisconsin Municipal Corporation, hereinafter referred to as “”, and the
JAYS WATER SKI CLUB, INC.
, a Wisconsin non-profit corporation, hereinafter referred to
AQUA JAYS
as “”.
WHEREAS
, the City is the owner of the land located in the City of Janesville, Rock
County, Wisconsin, known as Traxler Park, upon which is situated a building known as the
Rock Aqua Jays’ Clubhouse, owned by the City; and
WHEREAS
, the Common Council of the City of Janesville finds that it is in the best
interest of the City and benefit to its residents to promote the use of these facilities; and
WHEREAS
, the City desires to lease this facility; and
WHEREAS
, the Aqua Jays desires to lease the facility from the City;
WHEREAS
, Traxler Park has been home of the Rock Aqua Jays since the team's
inception in 1961;
WHEREAS
, the Common Council of the City of Janesville has authorized the City
Manager and the City Clerk to execute an agreement with the Aqua Jays authorizing the
Aqua Jays to use the facility;
NOW, THEREFORE
, in consideration of the fulfillment of the obligations of the parties
IT IS MUTUALLY AGREED
hereinafter set forth, as follows:
1. Premises.
The City hereby permits the use of and leases and lets unto the
Aqua Jays for the term and upon the conditions hereinafter set forth, those premises in
Traxler Park situated in the City of Janesville, County of Rock, State of Wisconsin, as follows:
A. The City hereby permits exclusive use of the building known as the Rock
Aqua Jays’ Clubhouse in Traxler Park.
B. The City hereby permits non-exclusive use of park grounds immediately
surrounding the building described as: the area bounded by the asphalt road to the north and
east, a line from the south edge of the concrete area on the south end of the site extended
from the river to the asphalt road, and the Rock River to the west. Docks attached to the
property are included. The leased premises are shown on Exhibits A and B, which are
attached hereto and made a part of this Agreement.
C. In addition to the premises described in Paragraphs A and B, the City
also grants to the Aqua Jays for the term of this lease the non-exclusive riparian rights related
to the leased premises sufficient to enable the Aqua Jays to place a water ski jump in the
Rock River. If necessary, the Aqua Jays shall apply to the Department of Natural Resources
for a renewal of the existing permit for placement of said water ski jump. The City shall have
no obligation regarding the construction, maintenance, repair, or liability of said jump, nor
regarding the use of said jump by any person, whether authorized or unauthorized by Aqua
Jays; and the Aqua Jays hereby indemnify and hold harmless the City and each and every
one of the City’s elected and appointed officials, officers, employees, representatives, agents
and their successors from any and all such liability of whatsoever kind or nature. This
indemnification and this section shall survive this Agreement.
2. Term of the Lease Agreement.
The initial term of this lease shall be for
twenty (20) years, commencing May 1, 2010 and ending on April 30, 2030. The Aqua Jays
by written notification may exercise their right to extend this lease agreement for an additional
twenty (20) years, thereby terminating on April 30, 2050. Such notification shall occur not
less than sixty (60) days prior to the expiration of this Agreement. At such extension time the
parties may agree to update the lease if appropriate.
3. Use of Facility.
The City reserves the right of prior approval and use of the
outside grounds and spectator areas of the leased premises by special groups when the City
decides, from time to time, that such use is in the best interest of the public. Groups utilizing
the outside grounds under special City permits or permission shall be governed by the terms
of said permit or permission and such other reasonable terms and conditions as may be
imposed by the City, such as those which facilitate protection of the Aqua Jays’ personal
property.
4. Maintenance and Repairs.
A. Except as set forth in paragraphs B, C and D hereunder, Aqua Jays shall
throughout the term of this lease, at its own cost and without any expense to the City, keep
and maintain the premises, including all structures and improvements thereon of any kind, in
as good or better condition than said structures and improvements were in at the beginning of
the term of this lease, reasonable wear and tear excepted. All ordinary maintenance and
repair shall be carried out in a manner satisfactory to the City and shall be sufficient to ensure
the preservation of said property and to prevent the deterioration thereof. Examples of
ordinary maintenance include, but are not limited to: litter control, painting, and power
washing. Time herein is of the essence. If the Aqua Jays fail to keep the premises in a
reasonably clean condition, the City may notify the Aqua Jays in writing of such failure to
maintain the premises or keep the premises adequately clean. The Aqua Jays shall have
thirty (30) days in which to make necessary repairs or clean the premises or the City may
cause the premises to be cleaned or repaired and charge the cost thereof to the Aqua Jays
without the necessity for further notice or permission. The Aqua Jays shall make no outside
alterations, additions, or improvements to the leased premises or any significant alterations,
additions, or improvements to the inside of the Aqua Jays’ clubhouse unless prior written
approval has been obtained from the City. The City shall have the right to inspect the
premises at all times.
B. If major structural work or extraordinary maintenance or repair work is
needed, the City and the Aqua Jays shall discuss the work and decide how to apportion
responsibility for said work
C. In the event of catastrophic flooding, defined as flooding equal to or
greater than the “100 year flood,” the City shall, at the discretion of the Janesville City
Council, be responsible for the repair or replacement of any structures on the leased
premises, excluding docks and jump, which are damaged in such catastrophic floods. The
LESSEE
shall pay the local share, if any, required by federal authorities to receive federal
reimbursement for catastrophic damage. Aqua Jays shall be responsible for the repair or
replacement of its personal property, inventory, docks, jump and any equipment damaged in
such catastrophic floods.
Aqua JaysCITY
D. If the make a claim against any insurance policy, then
Aqua Jays
the shall pay the insurance claim deductible, if any. This provision does not
Aqua Jays’
create any right to or in said claim, however.
5. Concessions.
Aqua Jays are permitted to vend food concessions approved by
the Rock County Health Department providing such foods and beverages are dispensed in a
sanitary manner according to County, City and State laws. Aqua Jays are responsible for
applying for, obtaining, maintaining and paying for all licenses and permits and shall at all
times comply with all laws.
6. Insurance.
The Aqua Jays shall obtain and maintain at all times, solely at its
own expense, general liability insurance, including bodily injury coverage, of at least
$1,000,000 each occurrence and $1,000,000 aggregate, naming the City and Aqua Jays as
co-insured under the Aqua Jays’ policy. Such insurance shall cover all Aqua Jays’ activities
in and upon said leased premises and shall indemnify and save harmless the City and Aqua
Jays from and against all losses, costs (including attorney’s fees), damages, expenses and
liability (including statutory liability), in connection with claims for damages as a result of
injury or death of any person or property damage which may arise from any act or omission
on or about the leased premises by the Aqua Jays. Upon request, the Aqua Jays shall
furnish the City with an insurance policy or certificate of insurance showing coverage as
herein required. Aqua Jays shall take such other actions as may be necessary for the
protection of the health, safety, and welfare of the public. The Aqua Jays’ insurance and
obligations hereunder shall survive this Lease Agreement.
7. Utility Charges.
The Aqua Jays shall pay all charges for utilities servicing the
leased premises. The City agrees to pay the cost for electricity utilized by the Aqua Jays or
their vendors for City approved special events.
8. Assignment and Subleasing.
Aqua Jays shall not mortgage, hypothecate,
pledge, convey, or otherwise encumber or assign the leasehold herein created; neither shall
Aqua Jays sublet or sublease the leased premises in whole or in part.
9. Compliance with Laws.
Aqua Jays shall, at all times, comply with all
applicable rules, regulations, laws, ordinances, statutes, and orders of any governmental unit,
authority, federal, state or local, lawfully exercising authority over the premises or over the
operations or activities of the Aqua Jays.
10. Miscellaneous.
A. Not withstanding this Agreement, the general public may make, and the
Aqua Jays shall permit, use of the surrounding area and facilities adjacent to the building
consistent with park rules and regulations governing such use. The Aqua Jays shall not use
the leased premises for financial gain other than water ski shows and related purposes
without the prior express permission of the City.
B. The restrooms located inside the Clubhouse are operated according to
rules established by the Aqua Jays and are not normally made available to the public.
C. Any improvements made to said property by the Aqua Jays shall become
part of the premises and, upon termination of this Agreement for any cause, belong to the
City.
D. The Aqua Jays shall not store any equipment outside the building with
the exception of the ski jump, which may be stored outside in the parking lot or the boat
launch area when not in the water, and the backdrop, which may be stored under the
bleachers during the skiing season.
E. The Aqua Jays may erect a sign advertising Rock Aqua Jay events at or
near the corner of Hyatt Street and N. Parker Drive. Size, design and placement shall be
subject to City approval and applicable City ordinances.
F. The Aqua Jays shall keep the clubhouse building and surrounding area
free of all equipment and litter and shall, immediately after each ski show, team practice or
other activity, clean the area and dispose of all non-yard or non-recyclable waste in a
dumpster provided to the Aqua Jays by the City. The Aqua Jays will pay the monthly
disposal costs of all Aqua Jays’ waste. The Aqua Jays shall maintain the dumpster enclosure
previously constructed by the Aqua Jays. The City will mow the grass and empty the trash
receptacles within the leased premises in its customary manner. No yard waste or recyclable
materials are permitted in any trash receptacles. The Aqua Jays shall promote recycling
when applicable in conformance with State laws and City ordinances. With the
implementation of recycling in Traxler Park in 2010, the Aqua Jays shall work with the Parks
Division to encourage recycling during Aqua Jays’ shows and practices.
G. The Aqua Jays are permitted to solicit donations from the ski show
spectators during their scheduled ski shows at Traxler Park.
11. Defaults.
If the Aqua Jays breach any of the covenants, promises, obligations,
conditions or agreements contained in this Lease Agreement, the City may notify the Aqua
Jays of such breach and give the Aqua Jays an opportunity to remedy the breach. If, after
the City gives notice, the breach continues for ten days, the City shall have the right solely at
its option to forthwith terminate this Lease Agreement and all rights of the Aqua Jays
hereunder. The City shall have the right to retake immediate possession of said property
upon such termination, in which event all surviving provisions specifically set forth in this
Lease Agreement shall survive and remain in full force and effect.
12. Termination of Lease Agreement.
This Agreement may be terminated at any
time upon mutual agreement of the parties.
13. Indemnification.
Aqua Jays shall and hereby does indemnify, save, and hold
harmless the City and each and every one of its elected and appointed officials, officers,
employees, representatives and agents and their successors from any and all liability,
damages, judgments, costs, fees and disbursements, awards, orders and payments including
but not limited to attorney fees, of whatsoever kind, nature or amount directly and/or indirectly
arising from Aqua Jays’ acts and/or omissions of whatsoever kind or nature and those of
each and every one of the Aqua Jays’ members, employees, officers, officials, guests,
invitees, permittees, representatives, agents, and all other persons authorized, occurring
upon or surrounding the above-described leased City property or the water ski jump placed
on the Rock River. This indemnification shall survive this Lease Agreement.
14.
By signing this Lease Agreement, the Aqua Jays’ President and Secretary
hereby attest and certify that they are duly authorized by the Aqua Jays to enter this Lease
Agreement on behalf of and so bind the Aqua Jays.
IN WITNESS WHEREOF,
the parties have hereunto set their hands and seals this _____ day
of ______________________, 2010.
CITY OF JANESVILEROCK AQUA JAYS WATER SKI CLUB, INC
: .:
____________________________ ____________________________________
Eric Levitt, City Manager Joel Shapiro, President
City of Janesville Rock Aqua Jays Water Ski Club, Inc.
____________________________ _________________________________
Jean Wulf, City Clerk Treasurer Barb Palmby, Corresponding Secretary
City of Janesville Rock Aqua Jays Water Ski Club, Inc.
APPROVED AS TO FORM:
________________________________
Waldemar Klimczyk, City Attorney
City of Janesville
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