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HomeMy WebLinkAbout04- Bozeman School District No 7 LEASE AGREEMENT BOZEMAN POLICE DEP AR TMENT BOZEMAN SCHOOL DISTRICT #7 ORIGINAL This Lease Agreement ("Lease"), made and entered into as of this ~ day of July 2004, by and between Bozeman School DistrictNo_ 7, with principal otTices at 404 W. Main Street, Bozeman, Montana, hereinafter called "Lessor," and Bozeman Police Department, adivisionoftheCity of Bozeman, a municipal corporation of the State of Montana with principal ofIices at411 E. Main Street, Bozeman, Montana, hereinafter called "Lessee," WITNESSETH: WHEREAS,Lessoris theownerofcettain real property situated in the City of Bozeman, Gallatin County, State of Montana, hereinafter referred to as the "premises," which Lessor wishes to lease to Lessee. NOW THEREFORE, in consideration ofthe rent reserved and the covenants hereinafter set forth, it is agreed as follows: 1. GRANT 1.1 Term. Lessor does leascto the Lesseethe premises commonly known as Room 84 ofthe old Willson School Building lor law enforcement training for the BozemcU1 Police Department TO HA VE AND TO HOLD the same for a term of one year, commencing the first day oUhe month following the execution of this Lease, which term is hereinafter called the "lease term." The lease term is automaticallyrenewablef(xa like term upon paymentoftherentduewithin 45 daysofthe expiration oftheoriginalleaseterm and any successive leaseterm_ Lesseemayexercisethis option by making payment or by providing notice of the intent to exercise this option to Lessor prior to the expiration of the lease term_ If either party desires to renegotiate this lease or any of its terms, such negotiations must occur prior to the expiration of the leasetenn or any payment being made ornotice being given as provided above. Tfthe Lessor does not desire to renew the lease, the Lessor must noti(y the I"essee at least three months prior to termination of the lease that the lease will not be renewed. 1.2 Possession. Possession date of the premises shall be upon execution of this Lease and payment of the requ ired annual rent, and shall conti nue throughout the term of th i s Lease, barri ng an y default or termination by cither party hereto. 2. RENT During the tenn of the Lease, Lessee shall pay rent to the Lessor at its offices in Bozeman, Montana, in the amountof$2000.00 per year. Rent shall be payable by Lesseeto Lessor at its offices by 5:00 p.m. no later than 45 days from the datc ofthc commencement of the lease term. Bozeman PJ)/TVillson Schoof Lease {i 1 of 10 3. IMPROVEMENTS. Lessee shall not make any alterations, additions or improvements to the premises without the prior consent of the Lessor, except for installation of unattached, movable fixtures which may be installed without drilling, cutting or otherwise defacing the premises. Any plans fix structural changes must be approved in writing by Lessor prior to commencement and must be performed in accordance with all applicable state and local ordinances and laws. Any such structural changes may not deleterious I y affect the structural integrity of the premises. Any movement of heavy equipmentorfumiture, in orout of the premises, shall be done with the oversight of Lessor's appropriate representative, to ensure the safety of common areas and building components. 4. UTILITIES. Lessor shall be rcsponsible for payment of any utilities (including butnot limited to gas, electric, water and sewer) required fortheleased premises during the lease term. Lessee shall beresponsiblefor any telephone connections and any charges related to such connections. 5. USE OF PREMISES AND RESTRICTIONS THERETO. Lessee shall have the use of the premises for law enforcementtraining for the Bozeman Police Department. Lessee shall, at its sole cost, comply with any and all laws, govemmental regulations, and requirements pertaining to theuseofthe premises, and shall likewise be solely responsible, at its own cost, for any and all I icenses and perm its required for LL'Ssee's proper use ofthe premises, from all governmental and/or regulatory entities. Due to the nature of the infonnation and items to be stored on the premises, it is understood that access to the premises shall be limited to Lessee, its agents and assigns unless prior permission is obtained. Lessor shall insure that electrical connections are maintained so as not to cause damage to computer equipment and programming. 6. REPAIRS AND MAINTENANCE. Lessee shall be responsible for, and maintain in good condition, all property located within the leased premises. Any repairs or mai n tenance caused, required or necessitated to the prem ises through the faultofthe Lessee or its agents, customers, invitees, independent contractors, or employees shall bepaid by the Lessee. Lessor, at his expense, will supply fulljanitorial service to the building, Lessor shall provide Lessee with notice ofthe individuals providing the janitorial service and notice orany changes to that list. Lessee reserves therightto refuse the service. Further, Lessor shall provide and maintain the entire building in satisfactOIY working condition, including but not limited to proper heating, plumbing, lighttixtures, bulbs and all utilities. /3ozeman pnTVillson School Lease p. 2 oj'TO Lessee shall keep the premises in a clean and sanitary condition. Lessee shall maintain the prem ises in as good condition and state of repair as it exists at the time Lessee takes possession and the Lessee improvements, if any, are complete, reasonable wear and tear excepted. Any repairs and replacements to the premises shall be made with Lessor's prior approval and shall be done in a workmanlike manner and be in conformance with all applicable building cod<..,'S and regulations. Lessee shall report all maintenance issues to Lessor with a request forrepair in a timely manner. Lessee shall not be responsible for damages or injuries to the premises or occupants once the report has been made. In the event that Lessee fails to timely cause repairs, maintenance and replacements directly attributab Ie to Lessee's use ofthe premises to be made, the Lessor shall not be responsible to the Lessee for any loss ordamagethat may acctUeto its business by reason thereof and if Lessor makes or causes such repai rs, maintenance and replacements to be made, the Lessee agrees that it will, upon demand, pay to the Lessorthecostthereot~ subjectto Lessee's rightto challenge the costofparticularrepairs as being unnecessary, unreasonab Ie, ornot to appropriate standards. Lcssor shall be responsib Ie to Lessee for any damage or injury which occurs due to inaction or delayed action in properly maintaining or repairing damage it has been notified of by Lessee or reasonably known damage. 7. LIENS AND ENCUMBRANCES. Lessee will, during the term ofthis lease, keep the real property constituting the prem ises and improvelnents thereon free and clear of any and all liens, mortgages or other encumbrances. Lessee acknowledges that Lessor may, from time to time, execute liens, mortgages or other encumbrances upon the real property, which includes the leased premises described herein. Lessor agrees that such liens, mortgages or other encumbrances shall not include the personal property ofthe Lessee. Ifsubordination of this lease is necessary, Lessor shal I notify the Lessee and fotWard to Lessee for review and approval any documents concerning such subordination. Lessee will promptly execute and deliver any agreements which may be reasonab Ie and necessary, provided, however, that any subordination shall provide that, so long as Lessee is not in default, its tenancy shall not be disturbed. Lessee shall have and retain the right of cancellation of this lease as provided herein rather than execute the documents above or subordinate the rights of Lessee under this Agreement. 8. INSURANCE. Lessor shall keepinsurancethroughoutthetenn ofthis leaseon theinteriorofthepremises, as well as the fixtures, equipment, personal property, stock and inventory (building itself to be insured by the Lessor) of the following types and amounts: A. Fire, including extended coverage, and additional perils insurance in an amount equal to full Hozeman PJ)./fillson School rease p. 3 ({IO replacement cost of the interior improvements, equipment, stock and fixtures. B. Comprehensive general liability coverage, including: - Premises and Operations - Products and Completed Operations - Personal Injury and Advertising Injury - Independent Contractors - Additional Insured Endorsement, naming the Lessor as an additionally named insured Limits ofLiability: $1,000.000.00 Each Occurrence $2,000,000.00 Product & Completed Operations Aggregate $2,000,000.00 General Aggregate $1,000,000.00 Personal Injury and Advertising InjUlY $ 50,000.00 Fire Legal Liability $ 5,000.00 Voluntary Premise Medical Payments C. Workmen's Compensation Insurance. Section A: Statutory Section B: Employer's Liability $500,000.00 Each Accident 500,000.00 Disease, Policy Limit 500,000.00 Disease, Each Employee The Parties to this agreement acknowledge that the Ci ty of Bozeman is insured by the Montana Municipal Insurance Authority, an agency which insures municipalities only and therefore cannot name the Bozeman School District as an additional insured on its policy. However, the Lessee shall CatTy comprehensive general liability insurance in commercially reasonable amounts and provide the Lessor with a copy of the current Memorandum of Liability CoveragefortheperiodJuly 1,2003 -July 1,2004, and make that Memorandum available for inspection in succeeding years as it is issued, as evidence of coverage. 9 LESSEE'S ASSIGNMENT AND SUBLEASE. Lessee shall not have the right to assign all ora portion orits interest in this lease or to sublease any portion of the premises without the prior written consent of the Lessor. 10. DEFAULT. l3ozemalll'J)/WiI!sO/l School /,ease p.4oflO If Lessee defaults in the payment of rent orany partthereofand fails to pay it within fifteen (15) days after written notice of the amountofrentowing, orifthe Lessee defaults in the performance of any othertenn or condition ofthis lease and fails to correct such default within the timespecitically described herein, orwithin ten (10) days ifnotime is prescribed, after written notice from Lessordescribingthe default, or if Lessee receives three (3) notices of default in the payment of rent in any period oftwelve (12) months or less, or receives three (3) notices of default for any and all other lease violations within any three (3) months or less, Lessee will be considered to have breached this lea.,>e.ln that event, Lessor shall have the right, besides other rights and remedies Lessor may have, to: (A) Re-enter the premises without demand or further notice, remove any property of Lessee found on the premises, perform such maintenance and repairs as may be required, and relet the premises; or (B) Terminate the lease, such tetmination to beefTectiveten (1 0) days following the date the written notice of intention to terminate is sent to Lessee. Lessor understands and agrees that any removal of property which occurs under (A) above will be done without damage to the property, and the property will be maintained in a safe location until claimed by Lessee, its agents or assigns. Any damage incurred as a result of such action shall be the responsibility of the Lessor. 11. NOTICE. Any notice required by this lease shall be deemed received by the party to whom it is directed when such notice is personally served or is deposited in the United States mail, mailed Certified or Registered mail, return receipt requested, and addressed as follows: A. To Lessor: Bozeman School District Attn: Maintenance and Operations PO Box 520 Bozeman, MT 59771-0520 Hozefllalll'lYJVi/!soll School/,ease p. 5 (lflO B. To Lessee: Bozeman Police Department Attn: D. Chief Marty Kent 615S.16thAve. Bozeman, MT 59715 And: Bozeman City Attorney's Office Attn: Susan L Wordal PO Box 1230 Bozeman, MT 59771-1230 A party wishing to change its designated address shall do so by notice in writing to the other party. Rejection orothcr refusal to accept or the inability to deliver because of chang cd address of which no notice was given shall not affect the effectiveness of the notice given. 12. REMEDIES CUMULATIVE. The remedies herein given to either party hereunder shall be cumulative, and the exerci se of any one remedy by either party shall not be to the exclusion of any other remedy. 13. LESSOR ACCESS. The Lesseewill not be required to allowtheLessororits duly authorized representative free access to the premises hereby leasedexceptuponaminimum twenty-four (24) hour notice due tothe nature of the computerandothcrequipment in use and stored in the facility, and then only upon pemlission for the purpose of examining the premises, or to make any needed repairs or alterations to the premises which the Lessor may seefitto make and which has been previously identifiedas needed and discussed with the Lessee. Lessee shall not unreasonably refuse a request for access made in accordance with this provision. [,essor shall endeavor, at all times during access under this provision, to have a representative of Lessee present, subject to a written agreement to the contrary. The Lessor may contac1:Deputy Chief Martin Kent orthe ranking officer on shift with the Bozeman Police Department at any hour in the event an emergency requires immediate access to the facility. 14. DESTRUCTION OF THE PREMISES. Should the premises be destroyed by fire or other casualty and the damage is so extensive as to amount, for all practical purposes, to the total des truction of the prem ises or of such bui Iding wherein the premises are located, and Lessor elects not to rebuild, this lease shall cease and the rent shall be apportioned from the time of the damage. In cases where the Lessor elects to rebuild the premises which have been extensively damaged, orwhich are patti all y damaged by fireorothercasuaIty, the Lessor shall repair the damage with insurance proceeds with reasonable dispatch, and, ifthe damage has rendered the premises partially untenantable, in whole or in part, there shall be an appOltionment of the rent based upon the habitability of the premises until the damage has been repaired. F or the purposes of this paragraph, partial dam age or des tmction means the s tmcture itself remains intact and the damage or destruction experienced is limited to the interior portions of the building. In detenniningwhatconstitutes reasonable dispatch, consideration shall be given to delays caused by strikes, adjustment of insurance, and other causes beyond Lessor's control. When the premises have been repaired, the obligation to pay rent shall resume. IS. REMOVAL OF PERSONAL PROPERTY. Lessor agrees that, at the time oftennination of this lease, Lessee may remove all of Lessee's personal property from the premises, butthat in doing so, Lesseeshall be obligated to repair any damages Bozeman rDiWillson School Lease p. 6 (!(JO to the structure of the bui Iding caused by the removal and shall r('Store the premises to a condition as closely approximating the condition at the time of occupancy as possible, reasonable wear and tear excepted 16. ABANDONING PREMISES OR PERSONAL PROPERTY. Lessee shall not vaeatc or abandon the premises at any time during this term without appropriate notice. Abandonment, vacation, or cessation of operations shall be a default ofthis lease. I fLessee does vacate or abandon the premises or is dispossessed by process oflaw, or ceases operation, any personal property belonging to Lessee and left on the premises shall be returned to the City of Bozelnan. 17. SURRENDER AND HOLDING OVER. Lessee shall surrender the prem ises to Lessor on expiration ofthis lease ortennination ofthe lease as provided for herein. At the time of surrender, the premises shall bein the same or approximately the same condition as when all interior improvements were completed by Lessee, with the exception of any alterations approved by the Lessor, nonnal wear and tear excepted. Lessee shall not make any claim in the premises againstthe interest of Lessor, and if Lessee holds the premises after expiration orternlination of the lease, a tenancy from month to month shall be created thereby at a monthl y rental in proportion to the year! y rental amount. The acceptance ofthis monthly rental by the Lessor wi 1I not cxtend the term of this Lease beyond the period covered by the rental amount. 18. UNLAWFUL DETAINER AND ATTORNEY'S FEES. In case suit shall be brought for an unlawful detainer of the premises, legal action is undertaken for the recovery of any rent due under the provisions of this lease, or for Lessee's breach of any other condition herein, Lessee shall pay to Lessor a reasonable attorney's fee which shall be fixed by the court, and such attorney's fee shall be deemed to have accrued on the commencement ofthe action and shall be paid upon successful completion of such action/suit by Lessor. Lessee shall be entitled to attorneys' fees in thc same manner i(judgment is rendered for Lessee, including but not limited to the fees and salary paid to the City Attorney or other in-house counsel. 19. TIME OF ESSENCE. Time is ofthe essence with respectto the performance of every provision ofthis Lease, and the strict performance of each shall be a condition precedent to a party's rights. 20. FORCE MAJEURE. In the eventthat either patty shall be delayed or hindered or prevented from the performance of any actrequired hereunder by reason of any strike, lock-out, civil commotion, war-like operation, invasion, rebellion, or riot, hosti 1 ity, mil itary, or usurped power, sabotage, govemmental restrictions, or regulations, orthe inabilityto obtain any services, materials, orfinancing, or for any cause beyond the control ofthe I ,essoror Lessee, the performance of such act shall be excused for the period ofthe delay and the period J3ozemalll'J)/IVill.wm School Lease p -; 0(10 t'ortheperronnanceofany such act shall be extended for the period necessary to complete peIT(Jrmance after the end of the period of such delay. 21. LESSEE'S ACCESS. Lessee agrees to close, lock and secure all doors and gates and other related access poi nts when utilizing the premises and will indemnify and hold harmless Lessor for any loss suffered and incurred thereby. 22. INTERFERENCE. Lessee shall not use the premises in any way which interferes with the use ofthe areas adj acent to the premises by Lessor, its business partners or representatives, including inted'erence with uses, conditions orrestrictions which Lessor may place upon the premises after the commencement of this Lease. Lessor shall be required to give reasonable notice of such uses and changes to Lessee in order to enforce compliance with this provision. Lessee shall not be subject to interf'erence in the use of the leased premises by other tenants of Lessor, Lessor shall be notified of any such interference and shall immediately take steps to term inate the interference and rectify the situation. 27. MISCELLANEOUS TERMS. A. INTERPRETATION. This lease shall be deemed to be made and shall beconstlUed in accordance with the lawsofthe state of Montana. Whenever the context ofthis lease so requires, the singular shall include the plural, the plural shall include the singular, the whole shall include any partthereot: and any gender shall include all other genders. B. SEVERABll.JTY. In the event anyone or more of the provisions of this lease and agreement as herein set forth, reserved and contained are found and detennined to be unenforceable by a court of competent jurisdiction, or through the act or actions ofthe Legislature of this State, the remaining provisions of this agreement shall nevertheless continue in full force and effect and be binding on the parties hereto, their heirs, personal representatives, and assigns. c. INTEGRATION. This Lease, including any attached exhibits, is the entire integrated agreement between the parties. This Lease supersedes all prior and contemporaneous oral or written promises, representations or negotiations of the parties. Bozemalll-'D/IVillsoll School Lease p. 8 olIO No al terations, modifications, or additions to this lease shall be binding unless reduced to writing and signed by the parties to be charged herewith. No covenant, term, or addition to this Lease shall be deemed waived by Lessor and Lessee unless such waiver shall be reduced to writing and signed by Lessor and l...essee. D. COUNTERPARTS. It is agreed and understood by and between the parties hereto that this Lease may be executed in two (2) or more counterparts, each of which shall be deemed an original document, but all of which together shall constitute one (1 ) and the same instrument, provided that each such counterpart must be signed by all of the parties hereto. E. WAIVER. It is agreed and understood by and between the parties that a waiver by the Lessor or Lessee of any breach of any term, covenant or condition herein shall not be deemed a continuing waiver of that breach or be deemed to imply or constitute a waiver of any subsequent breach of any term, covenantor condition under this agreement by either party. r CAPTION HEADINGS. The caption headings in this lease and agreement are tor convenience only and do not apply to, or affect, the construction or interpretation of any of the tenns hereof. G. BINDING EFFECT. All oftheterms, covenants and conditions herein set forth, reserved and contained on the part of the parties to be kept and performed shall be binding upon and inure to the benetitot: and be enforceable by the heirs, assigns and personal representatives of the parties hereto. H. EMERGENCY ACCESS. If Lessee shall not be presentto permit entry to the premises in the event of an emergency, Lessor or its representatives shall contact Deputy Chief Martin Kent of the Bozeman PoliceDepm1ment, or ifhe is not available, a ranking otliceron shift at the Bozeman Police Department, to gain access to the premises. I. STATUS OF PARTIES. Neitherthe method of computation of rent nor any other provision ofthis lease shall be deemed to create any relationship between the parties hereto other than that of Lessor and Lessee. Hozemanl'J)/IVillsoll Schoo//,ease p.91.!(/O J. SUPERSEDING NATURE. Thetenns and conditions contained in this lease are superseding to those contained in any prior or contemporaneous wlitten or oral agreement between the parties in regard to the premises. Atthe execution ofthis lease, all terms and conditions of any other such agreement between the parties for such a location shall be null and void. K. VENUE. Venuefbrany cause of action arising outofthis Agreement shall be the MontanaEighteenth Judicial District Court, Gallatin County, Montana. BOZEMAN SCHOOL DISTRICT NO.7 .~~< By :/ .....(:........:..c . / ."f.' ///.- ..... ./~. /'~. ,~ >- :/<::~.5J;(;::: .. ' ",/ /,.. Its '.' ,~::;C)~,:'~../.- , Lessof I (:. C ~',:~_ / /:;~(,~-.i:'"." ..l //~~: Attest: '11 By (~))V!tl' ~ Secretary G" , V ,1 rr\~-, L<Lv'1rL~ By Its m _ Acti ng Ci ty Manager Lessee A ttes t: ()LJ~ Clerk of the City Commission Hozeman/'/)'IVil!soll School Lease p./Oo/IO MUN IANA IVIUNILI....ALIN:;UKANGI:. AUt HUKI'-"-Y MEMORANDUM OF LIABILIT'Y COVERAGE MEMORANDUM #l-Q007 -"01 DECLARATIONS ENTtTY COVERED: ADDRESS: City of Bozeman. Montana PO Box 1230 8ozeman, Montana 59711-1230 COVERAGE PERIOD: FROM: ESTIMATED DEPOSIT PREMIUM: DEDUCTIBLE: JUt 1.2003 TO: JUL 1.2004 12:01 A.M. .$3~Oe.g07 "08 $11.250 PER OCCURRENCE MAXIMUM POiLICY LIMIT: (a) $750.000 for each claim am:j$/1.5 million for eachoccwrence: that arises or derives from injury to or death of a pe~nor persons; or damag.eto property of a pernon or parsons. regardless of the numoorof persons or antilles claiming damaiges thereby" (b) For the period lromJiuly 1, 20031hI'Qugh Daoember 31,2003 the Uabimy Program purchased reinsurance CO\fettagB with limits of $10 mrlilUon per occurrence per member above the limits In (a) abOveforOamagel$ caused by an Occurrence as defined by the MMIA Memorandum of liabiUtyCoverage that are notsUbJect to the UrtlltatiOI1S on govemme.nta! llabilityfof' dam~es in tortunderr Montana Law Sec.2~9-1 08, MeA. · ReinsuranC$ CQ\fefage provides trmft of $10 million iPer Occurrence per member with Annuai Aggregate only for Products/Completed Operations and P\.I bite Officials Errors and Omissions separately. Aggregate applies to ea.ch member of sad'l pool, .. Complete reinsurance terms and oonditions are contained in documentation retained at the MMIA offioo. A copy of which is available upon the request of a member. Reinsurance coverage availability, temm and conditions are subject to change after December 31, 2003. Endorsements Attached: . L7~z2 ',. By~; . ." --. ". . MMIA Authorized Representative DATE Jul'I1,2003 \',dc-1 \o-fficaFlfes'\\fWI!ham',Li3b\rlly\June20OJBjlljng\.Ou~ageZO{J3-, 00: