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#2 Approve a lease agreement with American Legion Baseball (File Res. #2011-779)CITY MANAGER’S OFFICE MEMORANDUM March 7, 2011 TO: City Council FROM: Rebecca Smith, Management Assistant SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to Execute a Lease with the American Legion Baseball of Janesville, WI for the Operation of a portion of Riverside Park (File Resolution #2011-779) Summary Riverside Park has been home to American Legion baseball games since the 1960s. With the elimination of city funding to maintain Veteran’s Field, the American Legion has agreed to lease and maintain the facility so they may continue to use it for their games. Request Staff requests the Council agree to lease the baseball facility to the American Legion. Recommendation Staff recommends the City Council adopt File Resolution #2011-779 to authorize the City Manager to execute an operating lease with the American Legion for a portion of Riverside Park. City Manager Recommendation The City Manager recommends approval. Suggested Motion I move the Council approve File Resolution #2011-779 to authorize the City Manager to execute an operating lease with the American Legion for a portion of Riverside Park. Lease Details Staff has negotiated a 1-year lease with the American Legion commencing March 1, 2011 and ending on February 28, 2012. The American Legion may extend this lease agreement annually for an additional five (5) years, thereby terminating on February 28, 2017, if mutually agreed upon by the American Legion and the City. The City or the Legion have the option of terminating the lease agreement with ninety (90) days notice. The general terms of the lease are as follows: 1. The City will continue to mow the grass to baseball game standards. 2. The American Legion will be responsible for utilities, field maintenance, line striping, field irrigation, and all other tasks associated with having baseball games at the facility. 3. The American Legion may use the city-owned liner and drag to maintain the field; however, the Legion will need to pay for the supplies (diamond dry, gas, oil). 4. The American Legion will continue to offer concessions, as they have for many years. 5. The American Legion may install advertising on the fencing; all advertising must be approved by the City and must comply with all ordinances. Analysis The American Legion has been a good partner with the City of Janesville over the years and their willingness to take on the maintenance of the Veteran’s Field is a significant undertaking for their volunteer group. The Parks Division has confidence in their abilities to maintain the field for their games. Cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager/Administrative Services Director Attachments: Resolution 2011-779, Lease agreement, Lease agreement exhibit 2 Resolution # 2011-779 A Resolution Authorizing the City Manager to Execute a Lease with the American Legion Baseball of Janesville, WI for the Operation of a portion of Riverside Park WHEREAS, Riverside Park has been home to American Legion baseball and Janesville School District baseball since the 1960s; WHEREAS, the City is the owner of the land located in the City of Janesville, Rock County, Wisconsin, known as Riverside Park, upon which is situated a building known as the American Legion Baseball Multi-Purpose Building (2900 Parkside Drive), owned by the City and a baseball field known as Veteran’s Field, owned by the City; and WHEREAS, the American Legion desires to lease the facility from the City; WHEREAS, the American Legion and the City Administration have negotiated a proposed one (1) year lease, commencing March 1, 2011 and ending on February 28, 2012. The lease may be extended annually for an additional five (5) years, thereby terminating on February 28, 2017 if mutually agreed upon by the American Legion and the City; 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 American Legion 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 American Legion for the operation of a portion of Riverside 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 AMERICANLEGIONBASEBALLOFJANESVILLE,WI CITY OF JANESVILLE This LEASE AGREEMENT is made by and between the , a CITY Wisconsin Municipal Corporation, hereinafter referred to as “”, and the AMERICAN LEGION BASEBALL OF JANESVILLE, WI , a Wisconsin non-profit American Legion corporation, hereinafter referred to as “”. WHEREAS , the City is the owner of the land located in the City of Janesville, Rock County, Wisconsin, known as Riverside Park, upon which is situated a building known as the American Legion Baseball Multi-Purpose Building (2900 Parkside Drive), owned by the City and a baseball field known as Veteran’s Field, owned by the City; and WHEREAS , Riverside Park has been home to American Legion baseball and Janesville School District baseball since the 1960s; WHEREAS , the City eliminated funding for Riverside Park baseball field maintenance for fiscal year 2011 and funding is not anticipated to be available in future years for baseball field maintenance; 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 without the support of city funds; and WHEREAS , the City desires to lease this facility; and WHEREAS , the American Legion desires to lease the facility from the City; WHEREAS , the Common Council of the City of Janesville has authorized the City Manager execute an agreement with the American Legion authorizing the American Legion 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 American Legion for the term and upon the conditions hereinafter set forth, those premises in Riverside Park situated in the City of Janesville, County of Rock, State of Wisconsin, as follows: A. The City hereby permits non-exclusive use of the American Legion Baseball Multi-Purpose Building, including the concessions and scorekeepers areas; the fenced baseball field (Veteran’s Field); infield; warning track, fence, use of the scoreboard and the flagpole. The American Legion understands that these areas are also used by the Janesville School District for high school baseball games each year. The leased premises are shown on Exhibits A which are attached hereto and made a part of this Agreement. 1 2. Term of the Lease Agreement. The initial term of this lease shall be for one (1) year, commencing March 1, 2011 and ending on February 28, 2012. The lease may be extended annually for up to an additional five (5) years, thereby terminating on February 28, 2017 if mutually agreed upon by the American Legion and the City. If the American Legions desires to extend the lease, annually the American Legion shall notify the City not less than sixty (60) days prior to the expiration of this Agreement. At such extension time the parties shall agree to update the lease if appropriate. 3. Use of Facility. A. The City and American Legion understand this field is to be maintained at game-playing standards and is used primarily for American Legion and Janesville School District baseball games. This field is not to be use used for practices not associated with games or activities un- related to baseball games. B. The American Legion understands that there may be a few times per year where the outdoor lights at the ball fields are used for a special event organized by the City taking place outside of the leased premise. The City would pay for the electricity used in these instances. 4. Maintenance and Repairs. A. Except as set forth in paragraphs B, C and D hereunder, the American Legion 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, line striping, infield maintenance, outfield fertilizing, care of the warning track, lighting and PA system maintenance, field irrigation and power washing. Time herein is of the essence. If the American Legion fails to keep the premises in a reasonably clean condition, the City may notify the American Legion in writing of such failure to maintain the premises or keep the premises adequately clean. The American Legion 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 American Legion without the necessity for further notice or permission. The American Legion shall make no outside alterations, additions, or improvements to the leased premises or any significant alterations, additions, or improvements to the inside of the American Legion Baseball Multi-Purpose Building 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 American Legion 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 2 Council, be responsible for the repair or replacement of any structures on the leased American Legion as premises, which are damaged in such catastrophic floods. The the LESSEE shall pay the local share, if any, required by federal authorities to receive federal reimbursement for catastrophic damage. American Legion shall be responsible for the repair or replacement of its personal property, inventory and any equipment damaged in such catastrophic floods. American LegionCITY D. If the makes a claim against any insurance American Legion policy, then shall pay the insurance claim deductible, if any. This American Legion’s provision does not create any right to or in said claim, however. 5. Concessions. The American Legion are permitted to vend food concessions, as per their April 14, 2009 approved Concessionaire’s Agreement with the City of Janesville, with the following changes: A. The City will no longer pay the cost for utility services. (5C, Page 4) B. Insurance requirements for the American Legion shall be as outlined in item 6, Insurance below in this lease agreement. 6. Insurance. The American Legion shall obtain and maintain during the scheduled baseball season, 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 American Legion as co-insured under the American Legion’s policy. Such insurance shall cover all American Legion activities in and upon said leased premises and shall indemnify and save harmless the City and the American Legion 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 American Legion. Upon request, the American Legion shall furnish the City with an insurance policy or certificate of insurance showing coverage as herein required. American Legion shall take such other actions as may be necessary for the protection of the health, safety, and welfare of the public. The American Legion insurance and obligations hereunder shall survive this Lease Agreement. 7. Utility Charges. The American Legion shall pay all charges for utilities servicing the leased premises. 8. Assignment and Subleasing. The American Legion shall not mortgage, hypothecate, pledge, convey, or otherwise encumber or assign the leasehold herein created; neither shall the American Legion sublet or sublease the leased premises in whole or in part. 9. Compliance with Laws. The American Legion 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 American Legion. 3 10. Baseball Field Maintenance Equipment. The City will allow the American Legion to use free of charge the existing Smithco drag and Kromer liner and drag owned by the City at the leased premise for as long as the American Legion has a lease in place with the City. The equipment may continue to be stored on city property. The American Legion will be responsible for the maintenance and supplies needed to use the equipment (gas, oil, etc.). There shall be no expectation by the American Legion of the City to replace this equipment when it is no longer able to be used. 11. Miscellaneous. A. Notwithstanding this Agreement, the general public may make, and the American Legion shall permit, use of the surrounding area adjacent to the leased premise consistent with park rules and regulations governing such use. The American Legion shall not use the leased premises for financial gain other than baseball games, concessions and tournaments and related purposes without the prior express permission of the City. B. The restrooms located inside the Baseball Multi-Purpose Building are operated according to rules established by the Janesville Parks Division and are normally made available to the public. C. Any improvements made to said property by the American Legion shall become part of the premises and, upon termination of this Agreement for any cause, belong to the City. D. The American Legion shall not store any equipment outside the building with the exception of the tarp that is stored within the fenced area. E. The American Legion may install advertising signs/banners that are in keeping with youth values on fences consistent with City ordinances, and guidelines established, from time to time, by the City. Size, design and placement shall be subject to City approval and applicable City ordinances. All signs/banner should be of the same design template and shall be approved by the city. F. The American Legion shall keep the leased premise free of all equipment and litter and shall, immediately after each game, or other activity, clean the area and dispose of all non-yard or non-recyclable waste in a dumpster that is shared with the City of Janesville. G. The City shall mow the grass to baseball-playing standards during the baseball season (once every five work days or less). H. The American Legion shall empty the trash receptacles within the leased premises and shall dispose of waste in a dumpster that is shared with the City immediately after each game, or other activity. 4 I. No yard waste or recyclable materials are permitted in any trash receptacles. The American Legion shall promote recycling in conformance with State laws and City ordinances and shall empty recycling receptacles within the leased premises as needed. 12. Defaults. If the American Legion breach any of the covenants, promises, obligations, conditions or agreements contained in this Lease Agreement, the City may notify the American Legion of such breach and give the American Legion 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 American Legion 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. 13. Termination of Lease Agreement. This lease shall be subject to termination by the City or the American Legion regardless of grounds therefore, by giving the other party ninety (90) days prior written notice of termination. 14. Indemnification. American Legion 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 American Legion’s acts and/or omissions of whatsoever kind or nature and those of each and every one of the American Legion’s members, employees, officers, officials, guests, invitees, permittees, representatives, agents, and all other persons authorized, occurring upon or surrounding the above- described leased City property. This indemnification shall survive this Lease Agreement. 5 15. By signing this Lease Agreement, the American Legion’s representative’s hereby attest and certify that they are duly authorized by the American Legion to enter this Lease Agreement on behalf of and so bind the American Legion. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this _____ day of March, 2011. American Legion: Witness: Robert Schenck Brian Martin President / Treasurer Vice President Janesville American Legion Baseball Janesville American Legion Baseball Signature Signature City of Janesville: Witness: _______________________________ __________________________ Eric J. 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