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.
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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.
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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
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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.
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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
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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
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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
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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
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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.
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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
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Attest:
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Secretary
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By
Its m _ Acti ng Ci ty Manager
Lessee
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Clerk of the City Commission
Hozeman/'/)'IVil!soll School Lease
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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
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