2001-11 Family YMCA - Child Care Lease Agreement004,
is •c�
OF TNtO
LEASE AGREEMENT
by and between
CITY OF LA QUINTA
"Lessor"
and
THE FAMILY YMCA OF THE DESERT,
"Lessee"
Page 1
TABLE OF CONTENTS
Page
ARTICLE 1. TERM OF LEASE
1.2
Premises ...............................
1
1.3
Reservation ..............................
1
1
1.4
Term ..................................
1.5
Date of Lease and Legal Effect ..................
1
ARTICLE
II
OWNERSHIP OF IMPROVEMENTS
2.1
Ownership of Improvements and Furnishings,
Fixtures, Equipment and Personal Property ...........
2
ARTICLE
III
RENT
3.1
Minimum Rent ............................
2
3.2
Additional Payments .........................
2 a;
3.3
Place of Payment; Late Payments .................
ARTICLE
IV.
USE OF PREMISES AND COMPLIANCE WITH
LAW
4.1
Permitted Uses ............................
2
4.2
Use of Premises by Community Organizations
......... 3
4.3
Nondiscrimination ..........................
3
4.4
City Resident Incentives .......................
3
ARTICLE
V.
PAYMENT OF EXPENSES . . . . . . . . . .
...... • • • • 3
ARTICLE
VI.
MAINTENANCE OF LEASED PREMISES
6.1 Lessee's Obligations ......................... 4
6.2 Lessee's Obligations for Maintenance ............... 5
ARTICLE VII. INSURANCE AND INDEMNITY
Page 2
7.1 Lessee's Insurance ........................ .
7.2 Covenant to Indemnify and Hold Harmless .......... •
7.3 Waiver of Subrogation .......................
ARTICLE VIII. UTILITY CHARGES .......................
ARTICLE IX.
ALTERATIONS AND ADDITIONS ..............
ARTICLE X.
CASUALTY LOSS AND RESTORATION
10.1
Non -Termination ...........................
10.2
Repair of Damage .........................
10.3
Continued Operations .......................
ARTICLE XI.
ASSIGNMENT AND SUBLETTING
6
7
8
E
9
9
10
11.1 Agency's Consent Required .................... 10
11.2 Lessee Remains Obligated .................... 10
ARTICLE XII. DEFAULT
12.1
Events of Default ..........................
12.2
Remedies ..............................
12.3
Default by Lessor ..........................
12.4
Legal Expenses and Collection Costs ............. .
ARTICLE XIII.
HOLDING OVER .........................
ARTICLE XIV. ACCESS BY LESSOR .......................
ARTICLE IV. QUIET ENJOYMENT .......................
ARTICLE XVI. FURNITURE, FIXTURE AND EQUIPMENT
FINANCING ............................
ARTICLE XVII. TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ARTICLE XVIII. FORCE MAJEURE ....••••••••••••••"
Page 3
11
11
13
14
14
14
15
15
16
16
ARTICLE IXX. MISCELLANEOUS
19.1
Waiver ................................
17
19.2
Notices ............... . .0 0. . . .
. . . . . . . . . .
17
19.3
Relationship to Parties .......................
17
19.4
Accord and Satisfaction ......................
17
19.5
Time of Essence . . . . . . . . . . . . . . . . .
. . . . . . . . . .
18
19.6
Remedies Cumulative .......................
18
19.7
Effect of Invalidity . . . . . . . . . . . . . . .
. . . . . . . . . .
18
19.8
Successors and Assigns . . . . . . . . . . . .
. . . . . . . . . .
18
18
19.9
Entire Agreement ..........................
19.10
Interest of Past -Due Obligations .................
18
19.11
Execution of Lease; No Option ..................
19
19.12
Corporate Authority ........................
19
19.13
Controlling Law ...........................
19
19.14
Specific Performance ........................
19
19.15
Survival of Indemnities and Warranties .............
19
•
Page 4
LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") is entered into this 19' day of June, 2001 by and
between the CITY OF LA QUINTA ("Lessor"), a municipal corporation formed under the laws of
the State of California, and the FAMILY YMCA OF THE DESERT, a California nonprofit
corporation ("Lessee").
In consideration of the payments to be made hereunder and the covenants and
agreements contained herein, the parties hereto agree as follows:
ARTICLE I. TERM OF LEASE
1.1 Premises. Lessor is currently the owner of that parcel of real property located in the City
of La Quinta, legally described in Exhibit "A" attached hereto and incorporated herein by this
reference (the "Premises"). The address of the Premises is 49-955 Park Avenue, La Quinta,
California. Lessor agrees to lease to Lessee and Lessee agrees to lease from lessor the Premises
upon the terms and conditions expressed herein.
1.2 Reservation. Lessor reserves to itself, its successors, and assigns, together with the right
to grant and transfer all or a portion of the same, the non-exclusive right to enter upon the Premises
in accordance with any rights of Lessor set forth in this Lease.
1.3 Exceptions to Leasehold Estate. This lease is made subject to all covenants, conditions,
restrictions, reservations, rights, rights -of -way, easements, and all other matters of record or
apparent upon a visual inspection of the Premises affecting the Premises or the use thereof on the
date this Lease is executed by Lessee.
1.4 Term. The "Term" of this Lease shall be ten (10) years, commencing on the date (the
"Term Commencement Date") that this agreement has been executed.
1.5 Date of Lease and Legal Effect. The terms, covenants and conditions of this lease shall
become legally binding on the Term Commencement Date.
ARTICLE II. OWNERSHIP OF IMPROVEMENTS
2.1 Ownership of Improvements and Furnishings, Fixtures, Equipment and Personal
Property. During the entire Term of this Lease, the improvements and all Fixtures that are made
in or on the Premises by Lessee, and all changes, alterations Improvements and addition thereto,
shall be owned by and considered as the property of Lessor. Furniture and Equipment that is
purchased by the Lessee that is not affixed to the Improvements or property shall be owned by and
considered as property of Lessee.
Page 5
ARTICLE III. RENT
3.1 Minimum Rent. During the Term of this Lease, Lessee shall pay to Lessor for each year
from the Term Commencement Date One Dollar ($1.00) (the "Rent"). The Rent owing for the full
Term of the Lease shall be payable in advance of the Term Commencement Date.
3.2 Additional Payments. Except as otherwise provided in this lease, all sums of money
or charges whatsoever required to be paid by Lessee to Lessor under this Lease other than Rent shall
be due and payable fifteen (15) days after demand, presented in writing by certified mail, without
any deductions or offsets whatsover. Lessor shall have no obligation to bill Lessee for monthly
Rent, security charges, or other operational expenses. Lessee's failure to pay any such amounts or
charges when due shall carry with it the same consequences as Lessee's failure to pay Rent and shall'
be deemed to be additional Rent.
3.3 Place of Payment: Late Payments. Lessee agrees to pay the rental and other charges
herein reserved to Lessor at 78-495 Calle Tampico, La Quinta, California 92253, payable to Lessor
or to such other person and/or at such other location as Lessor may from time to time designate in
writing. All payments shall be made by check for an account in lawful money of the United States.
All payments requiring proration shall be prorated on the basis of a thirty (30 ) day month.
ARTICLE IV. USE OF PREMISES AND COMPLIANCE WITH LAW
4.1 Permitted Uses. Lessor's primary purpose for entering into this Lease is to provide for
the operation of the Facility which shall be used to provide child care services and a center for the
youth oriented activities of other community organization. In furtherance of this purpose, Lessee
shall use the Premises to operate thereon the Facility. Lessee shall not use the Premises for any
other purposes without prior written consent of Lessor.
Lessee, at Lessee's expense, shall promptly comply with all present and future laws,
ordinances, orders, rules, regulations and requirements of all governmental authorities having
jurisdiction affecting the Premises or the cleanliness, safety, occupancy and use of the same, whether
or not any such law, ordinance, order, rule, regulation or requirement is substantial, or foreseen or
unforeseen, or ordinary or extraordinary or shall necessitate structural changes of the Improvements
or interfere with the use and enjoyment of the Premises. If any governmental license or permit shall
be required for the proper and lawful conduct of the Premises as a child care center, Lessee shall
procure and thereafter maintain such license or permit at its sole cost and expense and shall submit
the same for inspection by Lessor.
4.2 Use of Premises by Community Organizations. Lessor agrees that the Premises shall
be available for use by community organizations other than Lessee. Lessee shall be responsible for
scheduling use of the Premises by community organizations which shall be available to these
organizations after 6:30 P.M. Monday through Friday and all day Sunday. Lessor shall be
responsible for scheduling use of the Premises by community organizations which shall be available
all day Saturday. Lessee and Lessor shall incorporate a security deposit system when scheduling
Page 6
the facility to cover any damages to furniture, equipment or property.
4.3 Nondiscrimination. Lessee covenants for itself, its heirs, executors, administrators, and
assigns, and all persons claiming under or through it, that this Lease is made and accepted upon and
subject to the condition that there shall be no discrimination against or segregtion of any person or
group of persons on account of race, color, creed, religion, sex, age, national origin, ancestry,
political affiliation or physical handicap associated with the construction, operation and maintenance
of the Premises.
4.4 City Resident Incentives. Lessee is hereby required to develop an incentive program
(the "Program") for residents of the City of La Quinta in the form of priority placement on waiting
lists, if any. The Program shall provide preference for admission in the following order: (i) children
of La Quinta residents; (ii) children of persons who work in La Quinta; and (iii) all other applicants.
Failure to provide a Program shall constitute a "default" as such term is used in Section 12.1 hereof.
ARTICLE VI. PAYMENT OF EXPENSES
Lessee shall pay all of the costs and expenses in the operation, management, and
maintenance of the Facility. Such expenses shall include, without limitation, the following: (i)
expenses incurred by Lessee in connection with the Facility for general maintenance, painting,
lighting, cleaning, trash removal, security, fire protection;(ii) all charges, surcharges and other levies
imposed by, and all costs (whether or not capital in nature) of compliance with the requirements of
any federal, state or local governmental agency regulating use of the Facility as a child care center;
and (iii) the actual cost of repairs to the Facility, excluding major repairs. Lessor shall pay the costs
of major repairs to the Facility, which shall include repairing and replacing the roof, plumbing,
heating, air conditioning and electrical systems. Prior to authorization of any major repairs, Lessee
shall obtain written authorization by Lessor indicating approval of contractor and amount of
contractor's estimate.
ARTICLE VI. MAINTENANCE OF LEASED PREMISES
6.1 Lessee's Obligations for Maintenance.
(a) Lessee's Obligations. Lessee, at Lessee's expense without cost to Lessor, shall
maintain in good order, condition, quality, and repair, the Facility and every part thereof and any and
all appurtenances thereto wherever located, and all other repairs, replacements, renewals and
restorations, ordinary and extraordinary, foreseen and unforeseen.
If Lessee wishes to make any repairs to the Premises which would result in a change
in use of the Premises permitted by this Lease or adversely affect the value of the Premises or
Improvements or materially change the external structure or appearance of the Facility, Lessee shall
submit to Lessor for its approval documentation which describes the desired repairs, including floor
plans, building sections, building materials and components, samples of proposed exterior building
materials, and the like, to the extent relevant to the particular repair. Lessor's approval shall be
Page 7
given within a reasonable period of time not to exceed sixty (60) days after receipt by Lessor from
lessee of all necessary documents and information relating to such repairs (which sixty(60) day
period does not include the Lessor's normal development review requirements) and such approval
shall not be unreasonably withheld provided that the proposed repair shall not, in Lessor's
reasonable judgment, impair or diminish the value or structural integrity of the Improvements, have
the likely result of diminishing the income or revenues of Lessee over the Term of the Lease, or not
be in harmony with neighboring buildings.
(b) Standard of Maintenance. Lessee shall keep and maintain the Premises and the
Improvements in a clean, sanitary and safe condition in accordance with the laws of the State of
California and in accordance with all directions, rules and regulations of the health officer, Fire
Marshall, building inspector or other proper officials of the governmental agencies having
jurisdiction, and Lessee shall comply with all requirements of laws and ordinances affecting the
Premises and the improvements, all at the sole cost and expense of Lessee. At the time of the
expiration of the tenancy created herein, Lessee shall surrender the Premises and the Improvements
thereon in good order, condition and repair.
(c) Liens. Lessee shall keep the Premises, the Improvements, or any part thereof free
from any and all liens arising out of any work performed, materials furnished or obligations incurred
by or for Lessee, and agrees to cause to be discharged of record any mechanic's or materialmen's
lien within twenty (20) days after the lien has been filed or within ten (10) days after receipt of
written request from Lessor, whichever shall be the sooner. Lessee shall give Lessor at least fifteen
(15) days written notice prior to commencing or causing to be commenced any work on the Premises
(whether prior or subsequent to the commencement of the Term), so that Lessor shall have
reasonable opportunity to file and post notices of non -responsibility for Lessee's work. Lessor may
condition its consent to work upon Lessee posting lien and material and/or completion bonds in
amounts as may be necessary to cover the anticipated cost of such work and potential overruns.
Lessee shall reimburse Lessor for any and all costs and expenses which may be incurred by Lessor
by reason of the filing of any such liens and/or removal of same, such reimbursement to be made
within ten (10) days after receipt by Lessee from Lessor of a statement setting forth the amount of
the costs and expenses.
(d) Lessor's Substitute Performance. In the event Lessee fails, refuses or neglects to
commence and complete promptly and adequately any of the Improvements, required repairs or
maintenance within the times set forth in the Schedule of Performance, to remove any lien, to pay
any cost or expense relating to such matters, or to otherwise perform any act or fulfill any obligation
required of Lessee pursuant to this Section 6.1, Lessor may, but shall not be required to, make or
complete any such repairs, remove such lien, or pay such cost and expense, and Lessee shall
reimburse Lessor for all costs and expenses of Lessor thereby incurred within fifteen (15) days after
receipt by Lessee from Lessor of a statement setting forth the amount of such costs and expenses
which shall be deemed to be additional Rent and subject to the same consequences as herein
provided for failure to pay Rent. If reasonably possible under the circumstances, Lessor shall give
Lessee written notice fifteen (15) days prior to commencement of any substitute performance. Any
failure by Lessor to give such notice, however, shall not prejudice Lessor's rights hereunder
Page 8
or after Lessee's obligations hereunder or after Lessee's obligations hereunder. Lessor's rights and
remedies pursuant to this subsection (d) shall be in addition to any and all other rights and remedies
provided under this Lease or at law.
6.2 Lessor's Obligations For Maintenance
(a) Grounds and Playground. Lessor shall maintain the grounds surrounding the
Facility including all landscaping areas, playgrounds, and equipment excluding trash enclosure areas
which shall be the responsibility of Lessee. Lessor shall also maintain, repair and replace the
parking areas located on the Premises.
(b) Trash Removal. Lessor shall be responsible for removing all trash on the Premises
which is generated by Lessor's maintenance of the grounds.
ARTICLE VII. INSURANCE AND INDEMNITY
7.1 Lessee's Insurance.
(a) Types. Lessee, at no cost and expense to Lessor, shall procure and keep in full force
and effect during the Term or cause to be procured and kept in full force and effect for the mutual
benefit of Lessor and Lessee, insurance policies meeting the minimum requirements set forth below
or such greater requirements that are generally obtained from time to time for properties,
improvements, activities, and operations similar to those on the Premises in the Southern California
area:
(i) comprehensive general liability insurance with respect to the Premises and the
operations of or on behalf of Lessee or its agents, officers, directors, and employees in,
on or about the Premises in an amount not less than One Million Dollars ($1,000,000)
per occurrencecombined single limit bodily injury, personal injury, death and property
damage liability per occurrence, subject to such increases in amount as Lessor may
reasonably require from time to time. Coverage shall include, but not be limited to
personal injury liability, premises and operation, blanket contractual, cross liability,
severability of interest, broad form property damage, and independent contractors. The
policy or policies shall include that Lessor and its officers, employees, and agents shall
be additional insured under such policy or policies;
(ii) worker's compensation coverage as required by the laws of the State of
California together with employer's liability coverage.
(iii) with respect to the improvements, fixtures, furnishings, equipment and other
items of personal property located on or in the Premises, insurance against fire, peril of
flood, extended coverage, vandalism and malicious mischief, and such other additional
perils, hazards and risk as now are or may be included in standard "all risk" forms in
general use in Riverside County, California, for an amount equal to not less than the
Page 9
full current actual replacement cost thereof. Lessor shall be an additional insured under
such policy or policies and such insurance shall contain a replacement cost endorsement;
(b) Standard. All policies of insurance required to be carried by Lessee under this
Lease shall be written by responsible and solvent insurance companies authorized to do business in
the State of California. Any such insurance required of Lessee hereunder may be furnished by
Lessee under any blanket policy carried by it or under a separate policy therefor. A copy of each
paid -up policy evidencing such insurance (appropriately authenticated by the insurer) or a certificate
of the insurer, certifying that such policy has been issued, providing the coverage required by this
Section and containing provisions specified herein, shall be delivered to Lessor prior to the date
Lessee is given the right of possession of the Premises or as Lessor may otherwise require, and upon
renewals, not less than thirty (30) days prior to the expiration of such coverage. Lessor may, at any
time, and from time to time, inspect and/or copy any and all insurance policies required to be
procured by Lessee hereunder. In no event shall the limits of any policy be considered as limiting
the liability of Lessee under this Lease.
(c) Specific Provisions in Policy. Each policy evidencing insurance required to be
carried by Lessee pursuant to this Article shall contain the following provisions or clauses:
(i) a provision that the insurer will not cancel or materially change the
coverage provided by such policy without first giving Lessor thirty (30) days prior
written notice; and
(ii) a waiver by the Lessee's insurer of any right to subrogation against
Lessor, its agents, employees or representatives which arises or might arise by
reason of any payment under such policy or policies or by reason of any act or
omission of Lessor, its agents, employees or representatives.
(d) Lessor's Substitute Performance. In the event that Lessee fails to procure,
maintain and/or pay for at the times and for the durations specified in this Section 7.1, any insurance
required by this Section, or fails to carry insurance required by law or governmental regulation,
Lessor may (but without obligation to do so) at any time or from time to time, after thirty (30) days
written notice to Lessee, procure such insurance and pay the premiums therefor, in which event
Lessee shall repay Lessor all sums so paid by Lessor together with interest thereon as provided
elsewhere herein, within fifteen (15) days following Lessor's written demand to Lessee for such
payment.
7.2 Covenant to Indemnify and Hold Harmless. Lessee covenants to defend and
indemnify Lessor, its officers, directors, partners, representatives, agents and employees, and save
them from and against any and all claims, actions, losses, damages, liability, and expenses,
including attorneys' fees, in connection with the loss of life, bodily injury and/or damage to property
arising from or out of or in connection with any occurrence in, upon or at the Premises, or the
occupancy or use by Lessee of the Premises or any part thereof, or arising from or out of Lessee's
failure to comply with any provision of this Lease or otherwise occasioned wholly or in part by any
Page 10
act or omission of Lessee, its agents, directors, representatives, contractors, employees, servants,
invitees or licensees, excepting that the foregoing indemnification and hold harmless provision shall
not apply in the event of any uninsured willful or actively negligent misconduct on behalf of Lessor
or any of its agents, representatives, or employees, or in the event any such claims, actions, losses,
damages, liability, costs, or expenses arise out of a breach by Lessor of its obligations under this
lease.
If Lessor is made a party to any litigation commenced by or against Lessee, then Lessee shall
protect, defend and hold Lessor harmless and shall pay all costs, expenses and reasonable attorneys'
fees incurred or paid by Lessor in connection with such litigation. Lessor may, at its option, require
Lessee to assume Lessor's defense in any action covered by this Section 7.2 through counsel
selected by Lessor and reasonably satisfactory to Lessee. Lessee, as a material part of the'
consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in, upon
or about the Premises and Improvements from any cause whatsoever, and Lessee hereby waives all
its claims in respect thereof against Lessor excepting only damage or injury arising out of (i) the
uninsured willful or actively negligent misconduct or Lessor or any of its agents, representatives,
or employees, or (ii) a breach by Lessor of its obligations under this Lease.
7.3 Waiver of Subrogation. Each party hereto does hereby waive, remise, release and
discharge the other party hereto and any officer, director, shareholder, beneficiary, partner, agent,
employees or representative of such other party, of and from any liability whatsoever hereafter
arising from loss or damage for which insurance containing a waiver of subrogation is carried by
the injured party under such insurance. Lessee shall, upon obtaining the policies of insurance
required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver
of subrogation is contained in this Lease.
ARTICLE VIII. UTILITY CHARGES
Lessee shall pay all charges for gas, water, sewer, electricity, telephone and other utility
services used on or in the Premises. If any such charges are not paid when due, Lessor may pay the
same after giving Lessee fifteen (15) days prior written notice, and any amount so paid by Lessor
shall thereupon become due to Lessor from Lessee as additional Rent.
ARTICLE IX. ALTERATIONS AND ADDITIONS
Without Lessor's prior written consent, which consent may be withheld or granted in
Lessor's sole discretion, Lessee shall not have the right to make changes or alterations to the
Improvements or the Premises, except on the following conditions:
(a) Lessee shall not make any alterations, whether structural or non-structural, which will
decrease the value of the Premises or the Improvements. If the cost of such changes or alterations
to the Improvements or the Premises exceeds Five Thousand Dollars ($5,000), Lessee shall submit
to Lessor plans and specifications for approval.
Page 11
(b) Before"the commencement of any work, Lessee shall pay the amount of any increased
premiums on insurance policies provided for hereunder;
(c) Lessor shall in no event be required to make any alterations, rebuilding, replacement,
changes, additions or Improvements or repairs to the Premises, except as specifically provided in
this Lease;
(d) All such changes, alterations, rebuilding, replacements, additions, improvements and
repairs to the Premises made by Lessee shall be deemed to have attached to the realty and to have
become the property of Lessor upon the expiration of the Term or upon sooner termination of this
Lease.
ARTICLE X. CASUALTY LOSS AND RESTORATION
10.1 Non -Termination. Except as provided herein, no destruction or damage to the
Improvements or the Premises by fire, windstorm or other casualty whether insured or uninsured
shall entitle Lessee to terminate this Lease.
10.2 Repair of Damage
(a) Obligation to Repair Damage Due to Casualty Covered by Insurance. Subject
to Section 10.5 below, if the Premises shall be totally or partially destroyed or rendered wholly
untenantable by fire or other casualty required to be insured by Lessee, Lessor shall promptly
proceed to obtain insurance proceeds and take all steps necessary to begin reconstruction and,
immediately upon receipt of insurance proceeds, promptly and diligently commence the repair or
replacement of the Improvements to substantially the same condition as they are required to be
maintained in under this Lease, so long as the insurance proceeds are sufficient to cover the actual
cost of restoration, and shall complete the same as soon as possible so that Lessee may continue in
occupancy. If, however, the insurance proceeds are insufficient or the then -existing laws of any
other governmental agencies with jurisdiction over the Premises do not permit the restoration,
Lessor may elect to terminate this Lease by giving notice to Lessee.
Notwithstanding the above, the Lessor is not required to obtain earthquake coverage
insurance and shall not be obligated to reconstruct following damage sustained due to an earthquake
unless such damage is covered by other provisions of its insurance policy (i.e. fire).
10.3 Continued Operations. During any period of repair, Lessee shall continue, or cause
the continuation of, the operations of its programs on the Premises and use of the Facility by
community groups to the extent reasonably practicable. However, irrespective of the continued
operation during such period for repair, the Rent payable hereunder shall not be deferred and shall
not be abated. Upon completion of such repair and restoration, Lessee shall promptly refixture and
restock the Improvements, if necessary, substantially to the condition prior to the casualty, or as
otherwise required by this Lease, whichever is greater, and shall reopen if closed by the casualty.
Page 12
ARTICLE XI. ASSIGNMENTS AND SUBLETTING
11.1 Agency's Consent Required. Notwithstanding any provision herein to the contrary,
Lessee agrees and covenants (which covenants shall be binding upon the heirs, executors, and
administrators of Lessee) that Lessee shall not, either; voluntarily or by operation of law, assign,
sell, encumber, pledge or otherwise transfer all or any part of Lessees's leasehold estate hereunder,
or permit the Premise to be occupied by anyone other than Lessee. Lessee's employees or invitees,
or sublet the Premise, or any portion thereof, without Lessor's prior written consent. No assignment,
whether voluntary or involuntary, by operation of law, under legal process or proceedings, by
receivership, in bankruptcy, or otherwise, and no subletting shall be valid or effective without such
prior written consent, and at Lessor's election, shall constitute a default.
11.2 Lessee Remains Obligated. No subletting or assignment, even with the consent of
Lessor, shall relieve Lessee of its obligation to pay Rent and all of its other obligations hereunder.
The acceptance by Lessor of any payment due hereunder from any person or entity other than Lessee
shall not be construed as a waiver by Lessor of any provision of this Lease or as a consent to any
assignment or subletting. Consent by Lessor to an assignment of the Lease or to a subletting of the
Premises shall not operate as a waiver or estoppel to the future enforcement by Lessor of its rights
pursuant to this Lease.
ARTICLE XII. DEFAULT
12.1 Event of Default. The word "default", as used in this Section 12.1, shall mean and
include any one or more of the following events or occurrences:
(a) The failure by Lessee to make any payment or rent, or other payment required to by
made by Lessee hereunder, when due and the continuance of such failure for a period of
fifteen (15) days after Lessor has given Lessee written notice specifying the same;
(b) The failure of Lessee to perform any term, condition, covenant or agreement of this
Lease, excluding the payment of Rent, and the continuation of such failure for a period
of thirty (30) days after Lessor shall have given Lessee written notice specifying the
same, or in the case of a situation in which the default cannot reasonably be cured within
thirty (30) days, if Lessee shall not promptly, within thirty (30) days after receipt of such
notice, commence to remedy the situation by a means that can reasonably be expected
to remedy the situation within a reasonable period of time, and diligently pursue the
same to completion;
(c) The failure of Lessee to make the Improvements listed in the Schedule of Performance
(Exhibit B) by the respective times set therefor;
(c) The abandonment by Lessee of the Premise or a substantial portion thereof;
(e) Lessee's (i) application for, consent to, or suffering of, the appointment of a receiver,
Page 13
trustee, or liquidator for all or for a substantial portion of its assets; (ii) making a general
assignment for the benefit of creditors; (iii) being adjudged a bankruptcy; (iv) filing a
voluntary petition or suffering an involuntary petition under any bankruptcy,
arrangement, reorganizations or insolvency law (unless in the case of an involuntary
petition, the same is dismissed with thirty (30) days of such filing); or (v) fifteen (15)
consecutive days any attachment, levy, execution or seizure of all or a substantial portion
of the Lessee's assets or of Lessee's interest in this Lease;
12.2 Remedies.
(a) General. In the event of any default by Lessees, including the expiration of any
applicable cure period, Lessor may:
(i) Terminate Lessee's right to possession of the Premises by any lawful
means, in which care this Lease shall terminate and Lessee shall immediately
surrender possession of the Premises to Lessor.
In the event Lessor shall be entitled to recover from Lessee:
(1) The worth at the time of award of the unpaid Rent which had been earned at the
time of termination;
(2) The worth at the time of award of the amount by which the unpaid Rent which
would have been earned after termination until the time of award exceeds the amount
of such loss that Lessee proves could have been reasonably avoided;
(3) The worth at the time of award of the amount by which the unpaid Rent for the
balance of the Term after the time of award exceeds the amount of such loss that
Lessee proves could be reasonably avoided; and
(4) Any other amount deemed necessary and/or allowable by applicable statute or
decision to compensate Lessor for all the detriment proximately caused by Lessee's
failure to perform its obligations under this Lease or which, in the ordinary course
of events, would be likely to result therefrom, including, but not limited to, the cost
of recovering possession of the Premises, expenses of reflecting, expenses of
restoring the Premises to the condition required hereunder (if applicable), reasonable
attorneys' fees, and any other reasonable costs.
The "worth at the time of award" of the amounts referred to in subparagraphs (1) and
(2) above shall be computed by allowing interests at a rate equal to ten percent (10%)
from the dates such amounts accrued to Lessor until the date of payment by Lessee.
(iii) Lessor may terminate this Lease by express written notice to Lessee of
its election to do so. Such termination shall not relieve Lessee of any obligation
Page 14
hereunder which has accrued prior to the date of such termination. In the event of such
termination, Lessor shall be entitled to recover from Lessee the amounts determined
pursuant to paragraph (1) above.
(b) Reasonable Rental Value. In any action for unlawful detailed commenced by
Lessor against Lessee by reason of any default hereunder, the reasonable rental value
of the Premises for the period of the unlawful detailed shall be deemed to be the
amount of Rent and other charges reserved in this Lease for such period unless
Lessor or Lessee shall prove to the contrary by competent evidence.
(c) Cumulative Remedies. Except as may be specifically provided herein, the
rights and remedies reserved to Lessor and Lessee herein, including those not
specifically described, shall be cumulative and, except as provided by California
statutory or decisional law in effect at the time, either Lessor or Lessee may pursue
any or all of such rights and remedies at the same time or otherwise.
(d) Lessor's Non -Waiver. No delay or omission of Lessor to exercise any right or
remedy shall be construed as a waiver of any right or remedy or of any default by
Lessee hereunder. The acceptance by Lessor of Rent or any additional rent
hereunder shall not be a waiver of any preceding breach or default by Lessee of any
provision hereof, other then the failure of Lessee to pay the particular Rent accepted,
regardless of Lessor's knowledge of such preceding breach or default at the time of
acceptance of such rent, or a waiver of Lessor's right to exercise any remedy
available to Lessor by virtue of such beech or default. The acceptance of any
payment from a debtor in possession, a trustee, a receiver or any other person acting
on behalf of Lessee or Lessee's estate shall not waive or cure a default under Section
12.1(e).
(e) Lessor's Reentry. Lessee hereby irrevocably consents to Lessor's peaceable
reentry, if Lessor so elects, to the Premises upon the occurrence of any of the events
of default specified in Section 12.2 (a) (ii) above, including the expiration of any
applicable cure period.
(f) Lessor's Advances. In the event of any default by Lessee in the payment of
money, other than Rent, or the performance of Lessee's obligations required under
this Lease, and the expiration of any period expressly provided for herein for Lessee
to cure said default after the delivery of notice by Lessor, in addition to the other
remedies herein granted to Lessor, Lessor may, but shall not be obligated to do, so,
and without waiving or releasing Lessee from any obligations of this Lease, make
any payment and perform any other act on Lessee's part to be made or performed as
provided in this Lease. All sums paid by Lessor and all necessary incidental costs,
together with interest thereon at the rate of ten percent (10%) per annum from the
date of the payment by Lessor shall be payable by Lessee to Lessor on demand. The
sums shall be deemed to be additional Rent and subject to the same consequences as
Page 15
herein provided for failure to pay Rent.
12.3 Default by Lessor. Lessor shall not be deemed to be in default in the performance of
any obligation required to be performed by it hereunder unless and until it has failed to perform such
obligation within thirty (30) days after written notice by Lessee to Lessor specifying in reasonable
detail the nature and extent of any such failure; provided, however, that if the nature of Lessor's
obligation is such that more than thirty (30) days are required for its performance, then Lessor shall
not be deemed to be in default if it shall commence such performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.
12.4 Legal Expenses and Collection Costs. If either party incurs any expense, including
actual costs of collection, reasonable attorneys' fees, expenses of discovery, preparation for
litigation, expert witness fees and litigation expenses and costs, in connection with any action or
proceeding instituted by either party by reason of any default or alleged default of the other party
hereunder, the party prevailing in such action or proceeding shall be entitled to recover its
reasonable expenses from the other party. For purposes of this provision, in any unlawful detailed
or other action or proceeding instituted by Lessor based upon any default or alleged default by
Lessee hereunder, Lessor shall be deemed the prevailing party if (a) judgement is entered in favor
of Lessor or (b) prior to trial or judgement Lessee shall pay the Rent and charges claimed by Lessor,
or eliminate the condition(s), cease the act(s) or otherwise cure the omission(s) claimed by Lessor
to constitute a default by Lessee hereunder.
ARTICLE XIII. HOLDING OVER
This Lease shall terminate and become null and void without further notice upon the
expiration of the Term herein specified, and any holding over by Lessee after such expiration shall
not constitute a renewal or extension hereof or give Lessee any rights under this Lease, except when
in writing signed by both parties hereto.
ARTICLE XIV. ACCESS BY LESSOR
In addition to the right of Lessor to reserve use of the Facility under Article IV, Section 4.2,
Lessor and those agents, contractors, servants and employees of Lessor who are identified in writing
to Lessee shall have the right, after reasonable notice to Lessee, to enter the Premises during normal
business hours (a) to examine the Premises, to perform any obligations of Lessor or to exercise any
right or remedy reserved to Lessor in this Lease; (b) to exhibit the Premises to prospective
purchasers, mortgagees or lessees of Lessor's interest therein; (c) to make such repairs as Lessor
may be entitled to make after a default by Lessee under Article XII above; and (d) to take all
materials into and upon the Premises that may be required in connection with such repairs, provided
that any such entry shall be performed in such a manner that does not unreasonably interfere with
Lessee's use of the Premises. If Lessor exercises its rights of entry in compliance with this Article
XIV, such entry shall not constitute a constructive or actual eviction of Lessee, in whole or in part,
Page 16
and the Rent shall not abate while any such repairs are being made. If, during the last month of the
Term, Lessee shall have removed all or substantially all of Lessee's property therefrom, Lessor may
immediately enter and alter, renovate and redecorate the Premises without elimination or abatement
of Rent and without other compensation and such action shall have no effect upon this Lease.
Nothing herein contained, however, shall be deemed or construed to impose upon Lessor any
obligation, responsibility or liability whatsoever for the care, supervision or repair of the Premises.
ARTICLE XV. QUIET ENJOYMENT
Upon payment by Lessee of the Rents provided herein, and upon the observance and
performance of all of the covenants, terms and conditions on the part of Lessee to be performed
hereunder, Lessor covenants and warrants that Lessee may peaceably and quietly hold and enjoy the
Premises for the Term.
ARTICLE XVI. FURNITURE, FIXTURE, AND EQUIPMENT FINANCING
It is contemplated that during the Term of this Lease, Lessee shall place or cause the
placement from time to time of Furniture, Fixtures or Equipment (collectively FF&E) on the
Premises which shall be subject to lease and/or purchase financing encumbrances (collectively
"FF&E" Financing). Prior to Lessee having the right to place any FF&E on the Premises subject
to FF& E Financing, Lessee shall be required to deliver to Lessor written notice of any such
proposed FF&E Financing at least sixty (60) days prior to the creation of such FF&E Financing,
together with documentation in reasonable detail so that Lessor may review and approve or
disapprove, in Lessor's reasonable discretion, the FF&E Financing. Such information shall include,
but not be limited to, the following: (i) a complete description of the FF&E; (ii) the lease term, Rent
payments and security deposits required in connection with any leasing of FF&E; (iii) the purchase f
price, terms of payment and conditions of any purchase or loan in connection with purchasing o
FF&E; and (iv) copies of all relevant documents to be executed between Lessee and the lender,
seller or lessor of the particular FF&E in question. For a period of thirty (30) days following receipt
by Lessor of the notice from Lessee together with all of the information required above, Lessor may
approve or disapprove such FF&E Financing by written notice to Lessee. Lessors approval of any
such FF&E Financing shall not be unreasonably withheld. In the event Lessor reasonably object
all or a portion of such FF&E Financing, Lessor shall within said thirty (30) day period give Lessee
written notice of its objection, detailing the reasons thereof. In such event, Lessee shall be
prohibited from entering into such FF&E Financing but Lessee may submit to Lessor such response
to Lessor's objections and/or revisions to the terms and conditions of the FF&E Financing in order
to satisfy Lessor's objections thereto. Any such newly submitted information shall again be subject
to Lessor's thirty (30) day right to review and reasonably object thereto. Lessors failure to timely
object within said thirty (30) day period to any such proposed FF&E Financing for which pro
per
notice has been given by Lessee to Lessor shall constitute approval of the particular FF&E
Financing in question and no further approval by Lessor for such FF&E Financing shall be required.
Lessor's rights hereunder shall not be construed as requiring Lessor to participate in any way in any
Page 17
such FF&E Financing nor shall approval by Lessor of any such FF&E Financing obligate Lessor
in any manner.
ARTICLE XVII. TAXES.
Lessee shall be responsible for, and agrees to pay, prior to delinquency, any and all taxes,
assessments, installments of taxes, levies, fees, and other governmental charges of every kind or
nature (hereinafter collectively called "Taxes") in the event such Taxes are levied or assessed by
municipal, county, state, federal, or other taxing or assessing authorities or governmental agencies
or entities upon, against, or with respect to (i) the Premises or any portion thereof; (ii) all fixtures,
equipment, and any other property of any kind owned by Lessee or placed, installed, or located
within, upon, or about the Premises for which Lessor might be assessed or which might become a
lien on the Premises if not paid by Lessee; (iii) all alterations, addition, and improvements of
whatsoever kind or nature, if any, made to the Premises or the Improvements; (iv) rentals or other
charges payable by Lessee to Lessor (other than state and federal income taxes applicable to Lessor);
and (v) any other interest in the Premises (including the leasehold interest created by this Lease),
irrespective of whether any of the items described in clauses (i) through (v) above are assessed as
real or personal property, and irrespective of whether any of such items are assessed to or against
Lessor, Lessee or any other person.
ARTICLE XVIII. FORCE MAJEURE
In the event the performance by either party of any of its obligations hereunder is delayed
by reason of the act or neglect of the other party, act of God, stormy or inclement weather, strike,
labor dispute, boycott, lockout or other like defensive action by such parry, inability to obtain labor
or materials, governmental restrictions, riot, insurrections, war, catastrophe, casualty, act of the f
public enemy, or any other cause, whether similar or dissimilar, beyond the reasonable control o
the party from whom such performance is due ("unavoidable delays"), the period for the
commencement or
completion thereof shall be extended for a period equal to the period during which performance is
so delayed.
ARTICLE IXX. MISCELLANEOUS
19.1 Waiver. The waiver by either Lessor or Lessee of any breach of any term, condition
or covenant contained herein shall not be deemed a waiver of such term, condition or covenant or
any subsequent breach of the same or any other term, condition or covenant contained herein.
q
19.2 Notices. All notices, demands or other writing to be made, given or sent hereunder, or
which may be so given or made or sent by either Lessor or Lessee to the other shall bedeemedto
have been given when in writing and personally delivered or if mailed on the third (3 ) day after
Page 18
being deposited in the United States mail, certified or registered, postage prepaid, and addressed to
the respective parties at their addresses set forth below:
To Lessor: City of La Quinta
PO. Box 1504
78-495 Calle Tampico
La Quinta, California 92253
To Lessee: Family YMCA of the Desert
43-930 San Pablo Avenue
Palm Desert, California 92260
19.3 Relationship of Parties. Nothing contained herein shall be deemed or construed by
the parties hereto, nor by any third party, as creating the relationship of principal and agent or of
partnership or of joint venture between the parties hereto, it being understood and agreed that neither
the method of computation of rent, nor any other provision contained herein, nor any acts of the
parties herein, shall be deemed to create any relationship between the parties hereto other than the
relationship of Lessor and Lessee.
19.4 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a lesser
amount than the Rent or other charges herein stipulated shall be deemed to be other than on account
of the earliest due stipulated Rent or other charges, nor shall any endorsement or statement on any
check or any letter accompanying any check or payment as Rent or other charges be deemed a s
accord and satisfaction, and Lessor shall accept such check or payment without prejudice to Lessor
right to recover the balance of such Rent or other charges or pursue any other remedy in this Lease
provided.
19.5 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease
and of each and every term, covenant and condition hereof which relates to.a date or period of time.
19.6 Remedies Cumulative. The remedies herein given to Lessor and Lessee shall be
cumulative and are given without impairing any other rights or remedies given Lessor and Le
ssee
by statute or law now existing or hereafter enacted, and the exercise of any one(1) remedy by Lessor
or Lessee shall not exclude the exercise of any other remedy.
19.7 Effect of Invalidity. If any term or provision of this Lease or the application thereof
remainder of
to any person or circumstances shall, to any extent, be invalid or unenforceable, the other than
this Lease, or the application of its terms and provisions to persons and circumstances
those to which it has been held invalid or unenforceable shall not be affected thereby, and each term
and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.
No
the
acquisition by Lessor of all or any of the interest of Lessee in or to the Premises or
Improvements, and no acquisition by Lessee of all or any interest of Lessor in or to the Premises
shall constitute or work a merger of the respective interest, unless expressly provided for.
Page 19
19.8 Successors and Assigns. This Lease and the covenants and conditions contained herein
shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of
Lessor and to the permitted successors and assigns of Lessee, and all references in this Lease to
"Lessee" or "Lessor" shall be deemed to refer to and include all permitted successors and assigns
of such party.
19.9 Entire Agreement. This Lease and the exhibits hereto contain the entire agreement
of Lessor and Lessee with respect to the matters covered hereby, and no other agreement, statement
of promise made by either Lessor or Lessee which is not contained herein, shall be valid or binding.
No prior agreement, understanding or representation pertaining to any such matter shall be effective
for any purpose. No provision of this Lease may be amended or added to except by an agreement
in writing signed by Lessor and Lessee.
19.10 Interest on Past -Due Obligations. Any amount due from Lessee to Lessor hereunder
which is not paid when due (including, without limitation, amounts due as reimbursement to Lessor
for costs incurred by Lessor in performing obligations of Lessee hereunder upon Lessee's failure
to so perform) shall bear interest at the rate of ten (10%) percent from the date due until paid, unless
otherwise specifically provided herein, but the payment of the interest shall not excuse or cure any
default by Lessee under this Lease.
19.11 Execution of Lease: No Option. The submission of this Lease to Lessee shall be for
examination purposes only, and does not and shall not constitute a reservation of or option for
Lessee to lease, or otherwise create any interest by return to Lessor shall not be binding upon Lessor
notwithstanding any time interval, until Lessor has in fact executed and delivered this Lease to
Lessee.
19.12 Corporate Authority. Each individual executing this Lease on behalf of a
corporation, nonprofit corporation, partnership or other entity or organizations, represents and
warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation,
partnership, entity or organization and that his Lease is binding upon same in accordance with its
terms. Lessee shall, at Lessor's request, deliver a certified copy of its board of directors resolution
or certificate authorizing or evidencing such execution.
19.13 Controlling_ Law. This Lease shall be governed by and construed in accordance with
the laws of the State of California.
19.14 Specific Performance. Nothing contained in this Lease shall be construed as or shall
have the effect of abridging the right of either Lessor or Lessee to obtain specific performance of
any and all of the covenants or obligations of the other party under this Lease.
19.15 Survival of Indemnities and Warranties. The obligations of the indemnifying party
under each and every indemnification and hold harmless provision contained in this Lease shall
survive the expiration or earlier termination of this Lease to and until the last to occur of (a) the last
date permitted by law for the bringing of any claim or action with respect to which indemnification
Page 20
may be claimed by the indemnified party against the indemnifying party under such provision or (b)
the date on which any claim or action for which indemnification may be claimed under such
provision is fully and finally resolved, and, if applicable, any compromise thereof or judgement or
award thereon is paid in full by the indemnifying party and the indemnified party is reimbursed by
the indemnifying party for any amounts paid by the indemnified party in compromise thereof or
upon judgment or award thereon and in defense of such action or claim, including reasonable
attorneys' fees incurred. The representations, warranties, and covenants of the parties contained
herein shall survive the termination of this Lease without regard to any investigation made by the
parties.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
day and year above written.
"LESSOR'
CITY OF LA QUINTA
BY:
PE&A,Alar
Approved As To Form:
M. KATHERINE JENS , City Attorney
"LESSEE"
FAMILY YMCA OF DESERT
By: C -\A
S:\Community Services\YMCATease Agreement 2001.wpd
Page 21
SUPPLEMENTAL INDEMNIFICATION AGREEMENT
CITY OF LA QUINTA AND FAMILY YMCA OF THE DESERT
This SUPPLEMENTAL INDEMNIFICATION AGREEMENT (the "Agreement") is
made this _-- day of August, 2002, by and between FAMILY YMCA OF THE DESERT
("YMCA"), and the CITY OF LA QUINTA, a California municipal corporation ("City").
RECITALS
A. YMCA is the lessee of that certain real property owned by and located in the City
of La Quinta, County of Riverside, State of California, located at 49-955 Park Avenue, La
Quinta, California ("Property"). YMCA desires to improve the Property for the reasons stated in
Attachments "A" and "B" of the Riverside County Children and Families Commission Award
Letter ("Letter") attached hereto as Exhibit "A" and incorporated herein by this reference
("Project").
B. YMCA has applied for and received a grant of Proposition 10 funds from the
Riverside County Children and Families Commission ("Grant").
D. The City and YMCA have entered into a lease agreement ("Lease") dated June
19, 2001, whereby City has agreed to lease the Property to YMCA on the terms and conditions
stated therein. YMCA desires to construct the improvements associated with the Project on the
Property. YMCA intends to use some or all of the Grant to fund the costs and expenses
associated with the Project.
E. The City and YMCA desire to enter into this Agreement to supplement the Lease
provisions with respect to the improvements to be constructed for the Project.
NOW, THEREFORE, for good and valuable consideration the parties agree as follows:
1. Supplemental Indemnification.
1.1 Claims. To the full extent permitted by law, YMCA shall indemnify, defend, and
hold City harmless from and against all liability, loss, damage, costs, and expenses (including
reasonable attorneys' fees, expert fees, and court costs) arising from, or as a result of the
construction of the Project. YMCA shall further indemnify, defend, and hold City harmless from
and against any liability, loss, damage, cost or expenses (including reasonable attorneys' fees,
expert fees, and court costs) arising from the failure of YMCA or its contractors or
subcontractors to pay the applicable prevailing wages in accordance with applicable law.
2. Additional Insurance.
2.1 Increased Insurance. Pursuant to Article IX(b) of the Lease, YMCA shall obtain
the following insurance relating to the improvements being installed pursuant to the Project.
975/015610-0002
295434.02 PM02
Prior to the issuance of the building permits for the construction of the Project
improvements, YMCA or its contractor shall furnish the City satisfactory evidence of additional
insurance of the kinds and in the amounts specified below. This insurance shall be kept in full
force and effect by YMCA during the entire period of construction and all premiums thereon
shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30
days unconditional written notice to the City and shall name the City as an additional insured.
YMCA shall furnish evidence of having in effect, and shall maintain, Workers Compensation
Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-
insurance, in accordance with the Workers Compensation laws of the State of California. Failure
to maintain the required amounts and types of coverage throughout the duration of this Contract
shall constitute a material breach of this Contract
a. Commercial General Liability Policy
YMCA or its contractor shall take out and maintain during the construction, a
Commercial General Liability Policy, on an occurrence basis, with a minimum limit of not less
than One Million Dollars ($1,000,000) combined single limit for bodily injury and property
damage for any one occurrence and a Two Million Dollar ($2,000,000) annual project aggregate,
for all of the following:
(1) Premises Operations, including Explosion, Collapse and Underground (X, C, and U)
Coverage.
(2) Completed Operations/Products, including X, C, and U Coverage.
(3) Independent Contractors.
(4) Blanket Contractual.
(5) Deductible shall not exceed One Thousand Dollars ($1,000).
b. Commercial Business Auto Policy
YMCA or its contractor shall take out and maintain during the period of construction a
Commercial Business Auto Policy, on an occurrence basis, with a minimum amount of not less
than One Million Dollars ($1,000,000) combined single limit for bodily injury and property
damage, providing at least all of the following coverage:
(1) Coverage shall be applicable to any and all leased, owned, hired, or non -owned
vehicles used in pursuit of any of the activities associated with this Agreement.
(2) Any and all mobile equipment, including cranes, which is not covered under said
Commercial Business Auto Policy shall have said coverage provided for under the Commercial
General Liability Policy.
(3) Deductible shall not exceed One Thousand Dollars ($1,000).
975/015610-0002
295434.02 PM02
3. Miscellaneous.
3.1 Execution in Counterpart. This Agreement may be executed in several
counterparts, and all so executed shall constitute one agreement binding on all parties hereto,
notwithstanding that all parties are not signatories to the original or the same counterpart.
3.2 Authority. The City and YMCA represent and warrant that each is duly
authorized to execute and deliver this Agreement, acting by and through their duly authorized
principals or officers.
3.3 Other Provisions. All provisions of the Lease shall remain in full force and
effect and shall fully apply to the improvements being constructed for the Project.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.
FAMI Y YM Fr ESERT:
B
Its
Print Name
Its
Print Name
A PROV AS FO F LA QUINTA
/y
VA kath—eienso Vity Attorney Thomas P. Genovese, Executive Director
ATTEST:
Ju reek, City Clerk
975/015610-0002
295434.02 PM02
RIVERSIDE COUNTY CHIDLREN AND FAMILIES COMMISSION
AWARD LETTER
GRANT OF FUNDS 2001/2002 FUNDING
RCCFC Award #01-9261 CO
Recipient: Family YMCA of the Desert
43-930 San Pablo Avenue
Palm Desert, California 92260
(760)341-9622
Tax Identification Number: On File
The recipient designated above is hereby certified for a grant of funds ("Grant") in the amount of
$140,000.00 as awarded by the Riverside County Children and Families Commission
(Commission), provided pursuant to Proposition 10, to provide services as set forth in
Attachment A and B as incorporated herein by reference, subject to the following terms and
conditions:
TERMS AND CONDITIONS
1. SOURCE AND SCOPE OF FUNDING -
a. This grant award is valid and enforceable only if sufficient funds are
available to the Commission from the California Children and Families
Commission for the fiscal year 2001/2002 for the purposes of this program.
In addition, this grant award is subject to any additional restrictions,
limitations or conditions enacted by the State of California, which may affect
the provisions, terms or funding of this grant award in any manner.
b. It is mutually agreed that if the State does not appropriate sufficient funds for
the program, this grant award shall be amended to reflect any reduction in
funds.
c. The Commission retains the option to amend the grant award to reflect any
reduction of funds.
2. OFFICIAL DOCUMENTS - Upon the grant award approval by the Commission,
one (1) completed set of this document will be sent to the recipient. Such copy
shall be the officially approved agreement for the conduct of the approved project.
3. DEFINITIONS - "Recipient" means the government or other legal entity to which a
grant is awarded and which shall be accountable to the Commission for the use of
funds provided.
4. REPORTS, AND RECORDS -
a. The Recipient shall make such reports to the Commission in such form and
containing such information as may be required to enable the Commission to
perform its duties.
1
b. Recipient shall submit the following reports to the Commission, to be filed
within (30) days of the end of the quarter, and at the end of the term of the
grant:
i. Progress Reports on a quar,,erly basis on the form as required by the
Commission;
I Final Report at the conclusion of the term of the grant on a form as
required by the Commission.
c. Recipient shall retain such reports, and all records associated with this grant
for at least five (5) years following the close of the fiscal year in which this
grant is in effect. This obligation is not terminated upon termination of this
grant, whether by recessions or otherwise. Recipient agrees to require any
subcontractors to retain all records associated with the grant for the same time
period.
d. Books and records shall be maintained in accordance with general accounting
standards for book and record -keeping.
e. Where medical records, and or/ client records are generated under this grant,
Recipient shall safeguard the confidentiality of the records in accordance with
all state and federal laws, and all regulations promulgated hereunder. j y/ :.,
f. Recipient of funds exceeding $1.50,000 shall provide a copy of their annual
financial audit to the Commission covering any time period that funds are
received, or services provided pursuant to this grant.
5. PUBLIC DISCLOSURE OF DOCUMENTS - Recipient acknowledges and agrees
that information, communications and documents given by or to the Commission,
and meetings involving Commission member, staff or advisory committee members
may be subject to applicable law on public disclosures and/or public meetings.
Recipient shall use its best efforts to cooperate with the Commission in order that it
may fully comply with the requirements of such laws and regulations.
6. INSPECTION BY COMMISSION The Commission is empowered to review,
audit, and inspect the project for compliance with the terms of this grant. All
books, financial records and data of the Recipient relating to the performance of this
grant must be open to inspection, examination, or copying during normal business
hours by the Commission Staff or duly authorized representatives from the State or
Federal Government. Records shall be made available at reasonable times at
Recipient's place of business or at such other mutually agreeable location. in
California.
7. CONTROL OF FUNDS AFTER AWARD - The control of funds and title of
property derived there from shall be in the Recipients agency for the uses and
purposes provided; Recipient shall administer such property and funds and shall
apply funds only for the purposes for which they were granted.
8. REIMBURSEMENT OF FUNDS — Notwithstanding any other provision herein,
Recipient agrees to reimburse, in full, any and all funds received from the
Commission, upon demand of the Commission, where such funds are determined,
2
by the Commission that they are not, or have not been utilized by Recipient for their
purpose as intended by the Commission. The terms and conditions of
reimbursement shall be in the sole discretion of the Commission.
9. REQUIREMENT OF SUPPLEMENTING PROGRAM - The funds received
pursuant to this grant shall not be used to supplant any program of Recipient.
Funds shall ONLY be used to supplement Recipient's program.
10. GOVERNING LAW AND VENUE -
a. This grant is entered into under the provisions of Health and Safety Code
section 130100 et esq., as may be amended from time to time, and any other
applicable law.
b. This grant, and its construction and interpretation as to validity, performance
and breach shall be construed under the laws of the State of California. In the
event any provisions in this grant is held by a court of competent jurisdiction
to be invalid, void, or unenforceable, the remaining provisions will
nevertheless continue in full force without being impaired on invalidated in
any way.
c. The provision of the Government Claims Act ( Government Code Section 900
et seq.) must be followed first for any disputes under this grant.
d. All actions and proceedings arising in connection with this grant shall be tried
and litigated exclusively in the state or federal (if permitted by law and a party
elects to file an action in federal court) courts located in the county of
Riverside, State of California.
11. TERM —
a. The term of this grant shall be from September 01, 2001 to and including June
30, 2002. This grant shall be subject to termination by the Commission
immediately upon notice to the Recipient. Recipient may terminate this grant
upon the giving of thirty (30) days written notice to Commission. Funds shall
not be automatically renewed by the Commission upon or after the term of the
grant except by formal amendment approved by the Commission.
b. Recipient may have thirty (30) calendar days prior to the commencement of
the program for start-up activities (the "start-up period").
c. Recipient agrees that if a start-up period is granted the program shall begin on
or before the end of the thirty day start-up period as provided in sub -section b.
herein.
12. ALLOCATION OF FUNDS FROM THE COMMISSION - Commission shall
allocate the funds to Recipient as follows:
One half (1/2) of the total funds approved herein shall be allocated upon
approval of the Award Letter by the parties. The second one half (1/2) of the
total funds approved herein shall be allocated upon successful completion of
the project, and after review of the project by Commission staff.
3
13. NON-DISCRIMINATION - This grant hereby incorporates by references the
provisions of Title 2, CCR. Section 8107 et Seq, as may be amended from time to
time. Recipient agrees to comply with the provisions of Title 2, CCR, Section 8107
et. Seq. and further agrees to include this Non -Discrimination clause in any and all
subcontracts to perform services under this grant.
14. INDEPENDENT CONTRACTOR - It is understood and agreed that Recipient is an
independent contractor and that no relationship of employer -employee exists
between Recipient and Commission. Neither Recipient, nor Recipient's officers,
agents, employees or subcontractors, shall be entitled to any benefits payable to
employees of Commission, including Worker's Compensation.
15. INDEMNIFICATION -
a. Recipient shall indemnify, and hold harmless Commission, its officer,
employees and agents from any liability whatsoever, including wrongful
death, based or asserted upon any act or omission of the Recipient, its
employees, subcontractors and agents relating to or in any way connected with
the accomplishment of the work or performance of service under this grant.
As part of the foregoing indemnity, Recipient agrees to protect and defend at
its own expense, including attorney's fees, Commission, its officers, agents
and employees in any legal action based upon any such alleged acts or
omissions.
b. Where Recipient is a public entity, as defined by applicable law, Commission
and Recipient, to the extent that liability may be imposed on Commission by
the provisions of Government Code Section 895.2, shall be liable for their
own acts or omissions, including all claims, liabilities, injuries, suits, and
demands and expenses of all kinds which may result or arise out of any
alleged malfeasance or neglect, caused or alleged to have been caused by
either Commission or Recipient, their employees or representatives,
performance or omission of any act or responsibility of either party under this
grant. In the event that a claim is made against both Commission and
Recipient, it is the intent of both parties to cooperate in the defense of said
claim and to cause their insurers to do likewise
c. Recipient agrees to indemnify Commission for all Federal/State withholding
or State retirement payments, which Commission may be required to make by
the Federal or State government as a result of this Agreement. If for any
reason, Recipient is determined not to be an independent contractor to
Commission carrying out the terms of the Agreement, such indemnification
shall be paid in full to Commission upon sixty (60) days written notice to
Recipient if a Federal and/or State determination is made that such payment is
required.
4
16. ASSIGNMENT - This grant shall not be assigned by Recipient, either in whole or
in part, without prior written consent of Commission, as approved and authorized
by formal action of the Commission
17. ALTERATION AND/OR AMENDMENT - No alteration, amendment, or variation
of the terms of this Grant shall be valid unless made in writing and signed by the
parties hereto, and no oral understanding or agreement not incorporated herein shall
be binding on any of the parties hereto. Only the Commission, by formal action,
may authorize any alteration or revision to this grant on behalf of the Commission.
The parties expressly recognize that individual Commission members, advisory
committee members, or staff to the Commission is without authorization to either
change or waive any requirements of this Commission without formal action of the
Commission.
18. CONFLICT OF INTEREST - Recipient shall have no interest, and shall not acquire
any interest, direct or indirect, which will conflict in any manner or degree with the
performance of services required under this grant.
19. NOTICES - All correspondence and notices required or contemplated by this grant
shall be delivered to the respective parties at the addresses set forth below and are
deemed submitted one day after their deposit in the United States mail, postage
prepaid:
Commission:
Carolyn Wylie, Executive Director
2020 Iowa Avenue, Suite 101
Riverside, California 92507
Recipient:
Family YMCA of the Desert
43-930 San Pablo Avenue
Palm Desert, California 92260
Or to such other address(es) as the parties may hereafter designate.
20. CONDUCT OF BUSINESS -
a. Recipient shall be in compliance, and shall remain in compliance with all
applicable State and/or federal laws, regulations or requirements during the
term of the grant.
b. Recipient shall conduct its business, pursuant to this grant, in compliance with
all applicable state, and /or federal laws, regulations or requirements.
c. Recipient shall obtain and shall maintain any business and/or professional
licenses, and/or accreditations, where applicable, in good standing, which are
required under the laws of the State of California or the federal government at
all times while performing services under this grant.
d. Recipient shall obtain and maintain liability insurance.
e. Recipient shall notify Commission upon the filing of any action in bankruptcy
within thirty (30) calendar days of the date of filing.
f. Recipient shall notify Commission upon the commencement of any litigation,
whether Recipient is the plaintiff or defendant, where such litigation may
interfere with the ability of Recipient to perform its duties under this grant,
and where Commission is not a party to such litigation within thirty (30)
calendar days of the date of commencement of such litigation.
g. Recipient shall notify Commission upon the commencement of any
investigation, and/or activity by a regulatory agency against Recipient, which
may interfere with the ability of' Recipient to perform its duties under this
grant within ten (10) calendar days of the date of commencement of such
activity.
h. Recipient shall acknowledge the Commission as the funding agency for all
materials and publications developed under the terms of this grant. The
recipient shall be acknowledged as the creator. Acknowledgement shall '
include a written statement within the material or publication.
21. WAIVER AND SEVERABILITY - Any waiver by Commission of any breach of
any one (1) or more terms of this grant shall not be construed to be a waiver of any
subsequent or other breach of the same term of any other term herein. In the event
any provision in this Agreement is held by a court of competent jurisdiction to be
invalid, void, or unenforceable, the remaining provisions will nevertheless continue
in full force without being impaired or invalidated in any way.
22. SUBCONTRACTOR FOR WORK OR SERVICES - Commission does not
recognize subcontractors under this grant. Commission holds Recipient solely
responsible for the performance of all duties and obligations under this grant.
Recipient agrees and understands that Commission does not enter into, or assumes
any legal relationship with any subcontractor of Recipient for performance under
this grant. Recipient agrees to remedy, any and all breaches of any agreements with
any subcontractor, and further agrees that Recipient may not look to Commission
for any payment, liability, or assistance in the remedy of any actual or alleged
breach.
71
23. DISALLOWANCE - In the event Recipient receives payment for services under
this grant, which are later, disallowed for nonconformance with the terms and
conditions herein, Recipient shall promptly refund the disallowed amount to
Commission upon request. Commission retains the option to offset the amount
disallowed from any payment due to Recipient under this grant, or under any other
grant, contract or agreement between Recipient and Commission.
24. INCORPORATION BY REFERENCE OF THE APPLICATION SUBMISSION
OF RECIPIENT - The application submission of Recipient is hereby incorporated
by reference to the extend that the application has not been altered or amended by
the provisions of Attachment A hereto.
25. ENTIRE AGREEMENT - This grant constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and all prior or
contemporaneous agreements of any kind of nature relating to the same shall be
deemed to be merged herein. Any modifications to the terms of this grant shall be
by the provisions of the section entitled "Alteration and/or amendment" herein.
26. CERTIFICATION OF AUTHORITY TO EXECUTE THIS DOCUMENT -
Recipient certifies that the individual signing below has authority to execute this
document on behalf of Recipient, and may legally bind Recipient to the terms and
conditions of this grant, any attachments hereto.
IN WITNESS WHEREOF, Commission and Recipient have executed this Award Letter.
Riverside County Children and Recipient
Families Commissb3w
Executive e for
ATTEST:
6b -01
o ssion Secretary Date
%I
ATTACHMENT A
SCOPE OF PROGRAM
Summary is attached on next page.
ATTACHMENT "A"
RIVERSIDE Ca 9261 - Original
CHILDREN AND FAMI S UU1vMMISSIUA
"A Public Entity"
2001-02 CAPITAL OUTLAY/ONE THE ONLY
APPLICATION
Family YMCA of the Desert
Name of Agency
Rob Ballew
Program Contact Person/Title
43-930 San Pablo Avenue
Agency Address
Palm Desert, CA 92260
City, Zip
Estimated Amount of Application Request
Rob Ballew
Name of Agency Director
Dick Baxley
Name of President of Board of Directors
(760)341-9622
c Z
Telephone No.
(760) 341-9622 N
Telephone No. 9
(760) 779-9651 s
Fax No. o
desertyceo(cr�,aol.com 3
E-mail Address
�/
T r�ugk Jude 30, 2 0 : $ �SA;�80
of President of Board of Directors
Fd( Tax Exempt, charitable organization, 501 (c)(3) Include copy of IRS determination letter. If not a
public charity, specify type of agency: Attachment I
❑ Government tax-exempt unit ❑ Other, please specify:
G� Tax ID# 95-3673295
Gd' Organization is in good standing with all applicable California and/or federal licensing laws and/or
regulations.
Specific geographic service area(s) to be benefited by this project: (✓ all that apply)
gEast Riverside County
❑ South Riverside County
❑ County Wide
❑ West Riverside County
❑ Pass Area
Which of the three strategic plan areas will your application address?:
❑ Perinatal and Child Health
❑ Parent Support and Provider/Parent Education
CExpanded Quality Child Care and Provider Retention
Application Deadline:
June 12, 2001 at 4:00 p.m.
Riverside County Children and Families Commission
2020 Iowa Avenue, Suite A-101
Riverside, California 92507
(909) 955-9800 or (800) 266-3880
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
1. Provide a brief history of your organization/agency. Include the services and programs
provided by your organization. Provide past accomplishments or current projects that
_____relate to_this.proposal.__Attach a copy of -your current oreanizational chart.
Attachment H
' he Family YMCA of Desert was founded in 1982 and is part of the Young Men's Christian Organization, the
argest international youth organization in the world. Nationally, the YMCA is celebrating its 15& anniversary.
[he purpose of our YMCA is to "Build Character in Kids" with its specific mission "To put Judeo-Christian
principles into practice through programs that build healthy spirit, mind, and body for all". Founded in 1982,
?amily YMCA of the Desert served 3,500 children and families during the past year in a variety of programs
ncluding pre-school and after school childcare, swim lessons, summer camp, sports leagues, family programs
and many more. In fact, our YMCA is the largest provider of childcare in the Coachella Valley. Our
organization has a 501(c)(3) status as determined by the Internal Revenue Service.
Currently our YMCA operates 11 preschools and after school and drop in centers throughout the Coachella
Valley with an average daily enrollment of just over 700 children. Because we are a state contracted program -
all fees are affordable and are on a sliding scale. Scholarships are available and no child is turned away.
The 11 sites operated by our YMCA are located in the following areas:
La Quinta - preschool and after school programs on City property; and an after school program at John Adams
Elementary School.
Palm Desert - James Earl Carter and Gerald R. Ford Elementary Schools have after school programs; Palm
Desert Middle School has a drop -in center for teens; the Jean Benson Preschool Center on City property; and
San Pablo Center after school program on City property (YMCA headquarters also located at this site).
Indio — James Monroe Elementary School has an after school program; Doris Mechanick Preschool Center on
City property; Indio Center Teen Drop -in program on City property.
Rancho Mirage - Rancho Mirage Elementary School has an after school program.
Our YMCA Preschools have been recipients of the YMCA of the USA excellence in performance awards.
These awards are presented to childcare sites which are conducted utilizing the highest of standards. Our
childcare programs have received 2 grants from the Wiebe Foundation which funds preschools doing excellent
work
The Family YMCA of the Desert has a positive track record, growth, strong history and collaborations but
there is much more to be done! In addition to our childcare programs, the YMCA offers swim lessons, sports
camps and leagues, resident camps and family programs.
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
r
4. Since this proposal is for one time only funding what is the length of time required to
complete this project? Provide scope of work and timelines by specific dates, which
demonstrate when the key tasks will be accomplished.
This request for $150,000 is TO ASSIST in one time funding to add 1,500 square feet to our current facility in
La Quinta. This expansion will allow the La Quinta Pre -School to add at least 40 preschool age children to the
current enrollment of 92. The plan is for construction to begin in January 2002 with expected completion
scheduled for Fall 2002.
Once the facility is completed, YMCA fees, State contractual agreement and continuous fund raising activities to
provide scholarships will sustain the operation of the program.
Other funding sources received and anticipated are as follows:
YMCA (California Department of Education) reserves for Preschool construction
2. Berger Foundation
3. Rotary Club of La Quinta
4. Lions Club of La Quinta
5. Hoedown (YMCA special event)
January 3, 2001
March 8
May 10
June 7
June 12
+^ August 1
August 2
Sept. 3
n Sept. 10
Jan. 2002
Aug. 1
Sept. 2
--/?X
Timeline for Building Addition at the
YMCA La Quinta Preschool Center
YMCA funds reserves for childcare expansion
Contact City of La Quinta for "Concept Idea" opinion
Request site visit from State Licensing for their feedback
Site visit with original architect
Prop 10 application submitted
If funded by Prop 10 we continue
Contract architect to develop working drawings
Interview contractors
nO� Enter into agreement with general contractor
Construction begins
Job complete grand opening
School begins and we have added at least 40 preschoolers
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
$100,000
$ 30,000
$ 2,500
$ 2,500
$15,000
7. How do these results complement the Strategic Plan for the Riverside County Children
and Families Commission?
The Family YMCA of the Desert project strikes at the core of the Strategic Plan for the Riverside County Children
and Families Commission Child Care Goal - "Expand the availability and affordable child care services". Our
enlarged center will provide space for an additional 40 preschool kids.
All YMCA preschool and after school programs offer extended hours during the school day and services during
school vacations, selected holidays and minimum teacher days. Staff is trained and knowledgeable in their ability to
direct families to affordable health services, child and family education resources, information, and referral systems.
Our YMCA serves children and families of all ethnic, economic and faith backgrounds. It is a policy of the YMCA
that no child is turned away because of lack of financial resources. Scholarships are available to all families.
8. Describe any involvement by other agencies or community members ("natural partners")
in the planning and implementation of this project. Have they been involved in the
development of this proposal?
Agencies and organizations that have assisted in the planning and development of the project are as follows:
City of La Quinta - La Quinta City Council
Indian Wells Garden Club
La Quinta Rotary, Kiwanis, and Lions Club
State of California - Preschool Contract
Kids' Oasis donated $30,000 in playground equipment
H.N. & Frances Berger Foundation has committed $15,000 to assist in the set-up and development of the
outdoor play area
Desert Sands Unified School District has assisted the YMCA in the development of its Pre -School
curriculum to make sure we are providing the proper education in preparation of the children entering
Kindergarten
Jean Benson and Doris Mechanick, prominent childcare advocates in the area, serve as advisors to our programs
In addition over 200 volunteers assist in our fundraising programs, special events, parent/child advisory
committees and serve on our Board of Directors and the various committees that report to the Board including tl
program committee, long range planning committee, etc. .
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
7
11. Applicants seeking funding should demonstrate a commitment to provide complete
smoke free environment including all indoor space owned, leased or occupied by
applicant agency/organization and any outdoor areas including parking lot owned, leased
or under control of the applicant agency/organization. Please attach a copy of your
agency Smoke -Free Environment Policy.
Attachment III
12. Budget: Complete the Budget Form attached. Identify your internal controls and the
process used for budget monitoring. Describe any plans for leveraging funds from other
sources and explain any in -kind services to be provided. Funds must NOT be used to
supplant any proLyram or project.
Dur internal controls are very strict and far more involved than most private or non-profit controls. This is because
we are involved in several State of California contracts. All of our daily business practices are based on GAAP
(General Accepted Accounting Principles). The preparation of yearly budgets is developed by staff and reviewed by
management, YMCA Finance Committee, our CPA firm, and approved by the Board of Directors.
All monthly Profit and Loss Statements in respect to budget are reviewed by management, our CPA, YMCA Finance
Committee and the Board of Directors. Our yearly audit is a very complete audit known as a "yellow boob', and it is
based on government accounting standards.
Leveraging Proposition 10 funds to help us secure additional gifts and in -kind services is what the YMCA does best.
Success builds on success! Our childcare centers are well known and as we build this addition we have pledges for
playground equipment, fencing, landscaping and interior furnishings along with commitments from service clubs and
individuals. The $150,000 request from Proposition 10, if funded, will develop another $150,000 from other sources.
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
9
PF,.OGRAM BUDGET
September 01, 2001 through June 30, 2002
Amount Requested:
Estimated Customer/Client Fees to be Allocated:
Other Income (Identify): listed in items #12
Total Program Income:
BUDGET
Personnel (List Positions Including FTE)
Total Personnel
Benefits
Total Benefits
Other Operating Expenses
Supplies
Printing
Postage
Other Supplies
Contracts *
Service Agreements
Utilities
Rents and Leases
Insurance
Travel & Conferences
Advertising
Maintenance/Repairs
$150,000.00
$150,000.00
$300,000.00
.E
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N/A
$0.00
$0.00
$0.00
N/A
$0.00
$0.00
$0.00
* Identify Expenditure 1
Internal Revenue Service
Department of the Treasury
Date: May 24, 2001
Family YMCA Of The Desert
43 390 San Pablo Ave.
Palm Desert, CA 92260
Dear Sir or Madam:
P. O. Box 2508
Cincinnati, OH 45201
Person to Contact:
Tracy Garrigus #31-07307
Customer Service Representative
Toll Free Telephone Number:
8:00 a.m. to 9:30 p.m. EST
877-829-5500
Fax Number:
513-263-3756
Federal Identification Number:
95-3673295
This letter is in response to your request for a copy of your organization's determination letter. This letter will
take the place of the copy you requested.
Our records indicate that a determination letter issued in January 1989, granted your organization exemption
from federal income tax under section 501(c)(3) of the Internal Revenue Code. That letter is still in effect.
Based on information subsequently submitted, we classified your organization as one that is not a private
foundation within the meaning of section 509(a) of the Code because it is an organization described in
section 509(a)(2).
This classification was based on the assumption that your organization's operations would continue as stated
in the application. If your organization's sources of support, or its character, method of operations, or
purposes have changed, please let us know so we can consider the effect of the change on the exempt
status and foundation status of your organization.
Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its
gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th
day of the fifth month after the end of the organization's annual accounting period. The law imposes a
penalty of $20 a day, up to a maximum of $10,000, when a return is filed late, unless there is reasonable
cause for the delay.
All exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance
Contributions Act (social security taxes) on remuneration of $100 or more paid to each employee during a
calendar year. Your organization is not liable for the tax imposed under the Federal Unemployment Tax Act
(FUTA).
Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the
Code. However, these organizations are not automatically exempt from other federal excise taxes.
Donors may deduct contributions to your organization as provided in section 170 of the Code. Bequests,
legacies, devises, transfers, or gifts to your organization or for its use are deductible for federal estate and
gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code..
-2-
Family YMCA Of The Desert
95-3673295
Your organization is not required to file federal income tax returns unless it is subject to the tax on unrelated
business income under section 511 of the Code. If your organization is subject to this tax, it must file an
income tax return on the Form 990-T, Exempt Organization Business Income Tax Return. In this letter, we
are not determining whether any of your organization's present or proposed activities are unrelated trade or
business as defined in section 513 of the Code.
The law requires you to make your organization's annual return available for public inspection without charge
for three years after the due date of the return. You are also required to make available for public inspection
a copy of your organization's exemption application, any supporting documents and the exemption letter to
any individual who requests such documents in person or in writing. You can charge only a reasonable fee
for reproduction and actual postage costs for the copied materials. The law does not require you to provide
copies of public inspection documents that are widely available, such as by posting them on the Internet
(World Wide Web). You may be liable for a penalty of $20 a day for each day you do not make these
documents available for public inspection (up to a maximum of $10,000 in the case of an annual return).
Because this letter could help resolve any questions about your organization's exempt status and foundation
status, you should keep it with the organization's permanent records.
If you have any questions, please call us at the telephone number shown in the heading of this letter.
This letter affirms your organization's exempt status.
Sincerely,
g,w, Z C
John E. Ricketts,/Director, TEIGE
Customer Account Services
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Family YMCA of the Desert
No Smoldng Policy
Attachment III
The Family YMCA of the Desert maintains a smoke -free environment within all buildings
owned and operated by the YMCA.
In order to promote and protect the health and safety of the employees and members of the
YMCA and members of the public utilizing the facilities of the YMCA, smoking is prohibited
within the YMCA buildings. This policy covers all individuals working, visiting or receiving
programs in the YMCA.
Smoking is discouraged by the YMCA as a behavior that is inconsistent with health promotion
practices. However, the YMCA provides designated Smoking Areas for those members and staff
who cannot refrain from smoking while at the YMCA. There should be no smoking outside any
entrance to the YMCA as this conveys a poor image to the public.
It is the responsibility of every employee to assist in the enforcement of this policy.
Reference Administration Policy and Procedure Manual.
ATTACHMENT B
SCOPE OF PROGRAM
Based on the attached summary minus the following adjustments below:
■ Renovations reduced from $150,000 to $140,000
Total budget reduced from $150,000 to $140,000. Revised budget attached.
7
ATTACHMENT "B"
PROGRAM BUDGET
Amount Requested:
Estimated Customer/Client Fees to be Allocated:
Other Income (Identify): listed in items 412
Total Program Income:
BUDGET
Personnel (List Positions Including FTE)
Total Personnel
Benefits
Total Benefits
Other Operating Expenses
Supplies
Printing
Postage
Other Supplies
Contracts *
Service Agreements
Utilities
Rents and Leases
Insurance
Travel & Conferences
Advertising
Maintenance/Repairs
* Identify Expenditure
September 01, 2001 through June 30, 2002
V- 0100,0.4)0
$L5:0;899-98
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N/A
$0.00
$0.00
$0.00
N/A
$0.00
$0.00
$0.00
Other operating Expenses ContW
Other Services *
Other Expenses *
Other Expenses
Equipment Under $200.00
Equipment Over $200.00
Total Operating Expense
Capital Outlay Expenses
Renovations * construction
Site Improvements *
Total Capital Outlay
Total Program Budget NwtE,,W In--)
00 $150,000.00 $300,000.00
Amount include in budget for evaluation: $ 5000
—_--_--_--_-------------------- ---------------_--
Personnel: List all positions included in the program. Include positions to be partially funded
with other program income. Provide FTE (Full-time Equivalent) for each position.
Example: An Aide to be funded three hours per day from Prop 10 funds, plus one
hour from other program funds for a total of four hours per day would equal .5 FTE
or 50% of an eight hour day.
Benerits: Include FICA, Unemployment Insurance, SDI, Medicare, Workers' Compensation,
Employer Paid Medical Insurance and any other employer paid benefits.
Other Operating Include all operating expense to be charged to the program. This should include all
Expense: office, classroom and maintenance supplies, telephone, gas, water and electrical costs,
service agreements, such as security system monitoring.
Capital Expenses: Include renovation costs to meet ADA, Fire or Licensing standards. Site improvements
should include costs such as fencing, sidewalks or landscaping if required.
Competitive bids may be required.
Audit: Prior to award, applicant may be required to submit current financial reports such as tax
returns, audit, bank statements or statement of assets and liabilities.
Evaluation: Successful applicants will be required to participate in an evaluation process to assess
how well the program achieved its intended results. Program data will be captured from
the beginning of the funding cycle. Applicant should consider the staff time necessary to
collect data, administer surveys, review and interpret data and write reports. Applicant's.
budget should reflect these costs in an amount not to *exceed 10% of the total budget.
Amounts of more than 10% may be approved for small awards. Large awards may be
Identify Expenditure 2
RIVERSIDE COUNTY
CHILDREN AND FAMILIES COMMISSION
"A Public Entity"
2001-02 CAPITAL OUTLAY/ONE TIME ONLY
Family YMCA of the Desert
Name of Agency
Rob Ballew
Program Contact Person/Title
43-930 San Pablo Avenue
Agency Address
Palm Desert, CA 92260
City, Zip
APPLICATION
(760) 341-9622
Telephone No.
(760) 341-9622
Telephone No.
(760) 779-9651
Fax No.
desertyiceo0a?aol com
E-mail Address n
Estimated Amount of Application Request T"r uy
Rob Ballew
Name of Agency Director
Dick Baxley
Name of President of Board of Directors
1503000
irector
of President of Board of Directors
Ud Tax Exempt, charitable organization, 501 (c)(3) Include copy of IRS determination letter. If not a
public charity, specify type of agencv: Attachment I
❑ Government tax-exempt unit ❑ Other, please specify:
Y Tax ID# 95-3673295
Gd' Organization is in good standing with all applicable California and/or federal licensing laws and/or
regulations.
Specific geographic service area(s) to be benefited by this project: (✓ all that apply)
YEast Riverside County
❑ South Riverside County
❑ County Wide
❑ West Riverside County
❑ Pass Area
Which of the three strategic plan areas will your application address?:
❑ Perimtal and Child Health
❑ Parent Support and Provider/Parent Education
C1"Expanded Quality Child Care and Provider Retention
Application Deadline:
June 12, 2001 at 4:00 p.m.
Riverside County Children and Families Commission
2020 Iowa Avenue, Suite A-101
Riverside, California 92507
(909) 955-9800 or (900) 266-3880
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
1
Provide a synopsis of your program (not to exceed one page).
[he Family YMCA of the Desert serves all of the Coachella Valley including the cities of Palm Springs, Palm
desert, Rancho Mirage, La Quinta, Indio, Desert Hot Springs, Coachella, Mecca, Thermal and Cathedral City with
i population of 500,000. The 2000 census has confirmed that with 38% growth during the past decade our area is
)ne of the fastest growing in California.
The purpose of our YMCA is to "Build Character in Kids" with its specific mission "To put Judeo-Christian
principles into practice through programs that build healthy spirit, mind, and body for all". Founded in 1982, The
Family YMCA of the Desert served 3,500 children and families during the past year in a variety of programs
including preschool and after school childcare, swim lessons, summer camp, sports leagues, family programs and
many more. In fact, our YMCA is the largest provider of childcare in the Coachella Valley. All programs have
scholarships available and no child is turned away.
Solid relationships between our YMCA and the three major school districts - Desert Sands, Palm Springs and
Coachella - have a long-standing history. Good communication, common goals and shared facilities that will help
continue the expansion of YMCA Childcare programs are hallmarks of our program.
School enrollment statistics in the years 2000-2001 for elementary schools served by our YMCA indicate just over
78% Hispanic, 17% White (not of Hispanic origin), 3% Black (not of Hispanic origin) with the 2% balance being
Asian, Native American and other. It is well documented that a large percentage of Coachella Valley residents
work in hospitality and agricultural industries, most of which are minimum wage employers. Statistically these
families are shown to have the lowest per capita family incomes in the State of California.
The YMCA Current Support Campaign, utilizing over 100 volunteers, raises in excess of $200,000 in annual
is used to help low income families enroll in all YMCA
contributed support for YMCA programs. This money
YMCA is just over $2.7 million. The YMCA has a history
programs. The current annual operating budget of the
of maintaining good stewardship and achieving a balanced budget each year. In addition, the YMCA is a recipient
of United Way funds that assist in underwriting many of our programs.
Our volunteer Board of Directors consists of 29 community and business leaders who set policy for the Family
YMCA of the Desert.
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
2
T
h
ency. Include the services and
1. Provide a brief history of your organizaeio�� accomplishments or current projects�thats
provided by your organization. Proved p
nachart.
relate to this proposal. Attach a co of our current o anizatiol
Attachment II
rganization, the
he Family YMCA of Desert was founded in 1992 and is part of he SCAM en's Christian celebrating ng tso150t' anniversary.
xgest international youth organization in the world. Nationally, t
'he purpose of our YMCA is to 'Build Character in Kids" with itsnspeccif c andbody for o p"ud
t Judeo-Christian
1982,
rinciples into practice through programs that build he
spent, ,
amily YMCA of the Desert served 3,500 children and faminses during the summer campy sports leagueyear in a d family programs
ncluding pre-school and after school childcare, swim lessons,
Lnd many more. In fact, our YMCA is the largest provider
ofchildcare
ildca nun the Coe chella Valley. Our
)rganization has a 501(c)(3) status as determined by the Internal
r school and
-urrently our YMCA operates 11 preschools and afteBe Because we are a state contracted program -
Valley with an average daily enrollment of just over 700 children.
all fees are affordable and are on a sliding scale. Scholarships are available and no child is turned away.
The 11 sites operated by our YMCA are located in the following areas:
La Quinta - preschool and after school programs on City property; and an after school program at John Adams
Elementary School.
Palm Desert - James Earl Carter and Gerald R. Ford Elementary Benson Preschool Center on City propertySchools have after school programs; ; and
Desert Middle School has a drop -in center for teens; the Jean Be
on City property (YMCA headquarters
San Pablo Center after school program also located at this site).
Indio — James Monroe Elementary School has an after school program; Doris Mechanick Preschool Center on
City property; Indio Center Teen Drop -in program on City property.
Rancho Mirage - Rancho Mirage Elementary School has an after school program.
Our YMCA Preschools have been recipients of the YMCA of the
USA excellence the highest performance
rman awOur
ard
These awards are presented to childcare sites which are conduct g
childcare programs have received 2 grants from the Wiebe Foundation which funds preschools doing excellent
work.
story and collaborations but
The FamilyYMCA of the Desert has a positive track record, growth, ,thetronYMCA offers swim lessons, s
ports
there is much more to be done! In addition to our childcare programs,
camps and leagues, resident camps and family programs.
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
3
2. Describe what you are proposing to accomplish with this funding and why there currently
is an unmet need for this project.
In April 30, 2000 The Desert Sun newspaper headline reaDBooms'pay Ca`rehen it Comes tn Valley Lags' anda'Affordable
Care
Options". Additional headlines stated "As Family Population
Care Should be a Priority for Valley". All this affirms the opportunities being given to agencies like the
YMCA by the Riverside County Children and Families Commission to address this need.
The YMCA's proposed plan, if funded by Riverside County Children and Families pCotymmission, would be to
expand the preschool site at the YMCA La Quints P92 children and haool, located s a waiting list exceeding 0 preschool
at 49955 Park Ave, La
Quinta California. Currently the site is licensed for
age children. The plan is to add 1,500 square feet to the present size of 4,900 square feet. Total cost of the
project is estimated at $300,000. With this expansion we can add at least 40 preschoolers.
The YMCA La Quinta Pre -School has 2 programs, one State contracted and the other a YMCA program, both
State licensed. They are operated as two separate programronfacility.
ssithe
landemore slot providerst forpre-
of
childcare in the Coachella Valley, the YMCA operates a program that needsmorees
school children.
3. Provide a description of the children 0-5 years of age and their families that will benefit
from this project. Include the cultural and linguistic make up of the families.
Our La Quinta Pre -School feeds two key elementary schools - John Adams and Harry S. Truman. Enrollment
statistics for Adams Elementary are - 71% Hispanic, 2% Black (not of Hispanic Origin); 27% White (not of
Hispanic origin). Enrollment statistics for Truman Elementary are - American Indian 1%; Asian 1%;
Hispanic
51%; Black (not of Hispanic origin) 3%; White (not of Hispanic Origin) 44%. Our YMCA is an inclusive
organization and has the ability to blend populations.. Our staff reflects the population we serve. We have
ongoing staff development in areas of cultural diversty and our lesson plans reflect this diversity.
The October 20, 2000 Desert Sun newspaper headline read "Study Shows La Quinta Population Nearly Doubled
in 10 year Period". This headline was confirmed by the 2000 census when it was verified that La Quinta's
population increased by 93% in the decade of the 90's making it the fifth fastest -growing city in the State.
It is well documented that a large percentage of Coachella Valley residents work in lies are hospitality
anto have
riculve t t lral
showindustries, most of which are minimum wage employers. Statistically these fa
per capita family incomes in the State of California.
Our YMCA serves children and families of all ethnic, economic and faith backgrounds.
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Faxes will not be accepted-
2
4. Since this proposal is for one time only fundinS what is the length of time required to
complete this project? Provide scope of work and timelines by specific dates, which
demonstrate when the key tasks will be accomplished.
this request for $150,000 is TO ASSIST in one time funding to add 1,500 square feet to our current facility in
:,a Quinta. This expansion will allow the La Quinta Pre -School to add at least 40 preschool age children to the
,urrent enrollment of 92. The plan is for construction to begin in January 2002 with expected completion
scheduled for Fall 2002.
Once the facility is completed, YMCA fees, State contractual agreement and continuous fund raising activities to
provide scholarships will sustain the operation of the program.
Other funding sources received and anticipated are as follows:
YMCA (California Department of Education) reserves for Preschool construction
Berger Foundation
Rotary Club of La Quinta
4. Lions Club of La Quinta
5. Hoedown (YMCA special event)
January 3, 2001
March 8
May 10
June 7
June 12
August 1
August 2
Sept. 3
Sept. 10
Jan. 2002
Aug. 1
Sept. 2
Timeline for Building Addition at the
YMCA La Quinta Preschool Center
YMCA funds reserves for childcare expansion
Contact City of La Quinta for "Concept Idea" opinion
Request site visit from State Licensing for their feedback
Site visit with original architect
Prop 10 application submitted
If funded by Prop 10 we continue
Contract architect to develop working drawings
Interview contractors
Enter into agreement with general contractor
Construction begins
Job complete grand opening
School begins and we have added at least 40 preschoolers
All applications must be typewritten, no smaller than lopt pitch.
Postmarked Mail, Emails or Fazes will not be accepted.
5
$100,000
$ 30,000
$ 2,500
$ 2,500
$15,000
5. At the completion of this project what will you be able to accomplish that is currently an
obstacle? Describe how the project supported by this proposal will continue to benefit
the 0-5 population and/or their families beyond the funding period.
This project, if funded, will allow the YMCA to continue its place as the largest provider of childcare services in
a community DRASTICALLY LACKING in preschool programs. This will allow this program to expand by
50% and serve needy families for years to come.
A long-term relationship with the City of La Quinta is in place. The City is committed to continue to support the
YMCA and maintains all the grounds around the Preschool.
By adding to an existing Childcare facility, we can add at least 40 preschoolers in a very short time frame at a
cost much less than if we were to build a new site. Our choice to do an addition overcomes the problem of
zoning, impact fees and the high cost of site improvements which we would have to pay in developing a new site.
The YMCA and the City of La Quinta look forward to serving the childcare needs for years to come.
6. What positive outcomes for young children 0-5 and their families do you expect to
achieve as a result of this project? How will you evaluate and document the
outcomes/results?
The mission statement of the YMCA "To put Judeo-Christian principles into practice through programs that build
healthy spirit, mind, and body for all".
The expected outcome of this program will be an opportunity for first time parents to interact with one another,
sharing child -rearing concerns through parent support groups and parent advisory committees. It is also an
opportunity for children to develop and improve their self-image and school preparation. The children will be
prepared for kindergarten having already experienced a structured educational program. They will know colors,
shapes, numbers and letters. They will have movement education programs and group work, and will be very
well prepared for kindergarten.
Evaluation of our program has several components. The State oversees our program because we are not only
licensed by the State - the State contracts with us for one-half of the facility. Twice a year we have an internal
evaluation with volunteers and parents. We have a parent advisory committee. We also occasionally utilize the
services of "phantom shopper". This is a person who calls on the phone, visits the site appearing to be an
interested parent and then reporting her findings to YMCA supervisors and volunteers Each site is given
standards of performance goals. These goals are reviewed by management twice a year. Our objective is to
achieve at least a 90% or greater parent satisfaction on our evaluations. By achieving 90% or better, it helps
insure both parents and management that our programs are meeting or exceeding our standards of quality on
which our programs are based.
A larger center will provide 40 more spaces where 40 more preschoolers can develop skills to succeed in school.
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
0
7. How do these results complement the Strategic Plan for the Riverside County Children
and Families Commission?
The Family YMCA of the Desert project strikes at the core of the Strategic Plan for the Riverside County Children
and Families Commission Child Care Goal - "Expand the availability and affordable child care services". Our
enlarged center will provide space for an additional 40 preschool kids.
All YMCA preschool and after school programs offer extended hours during the school day and services during
school vacations, selected holidays and minimum teacher days. Staff is trained and knowledgeable in their ability to
direct families to affordable health services, child and family education resources, information, and referral systems.
Our YMCA serves children and families of all ethnic, economic and faith backgrounds. It is a policy of the YMCA
that no child is turned away because of lack of financial resources. Scholarships are available to all families.
8. Describe any involvement by other agencies or community members ("natural partners")
in the planning and implementation of this project. Have they been involved in the
development of this proposal?
Agencies and organizations that have assisted in the planning and development of the project are as follows:
City of La Quinta - La Quinta City Council
Indian Wells Garden Club
La Quinta Rotary, Kiwanis, and Lions Club
State of California - Preschool Contract
Kids' Oasis donated $30,000 in playground equipment
H.N. & Frances Berger Foundation has committed $15,000 to assist in the set-up and development of the
outdoor play area
Desert Sands Unified School District has assisted the YMCA in the development of its Pre -School
curriculum to make sure we are providing the proper education in preparation of the children entering
Kindergarten
Jean Benson and Doris Mechanick, prominent childcare advocates in the area, serve as advisors to our programs.
In addition over 200 volunteers assist in our fundraising programs, special events, parent/child advisory
committees and serve on our Board of Directors and the various committees that report to the Board including the
program committee, long range planning committee, etc.
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
7
9. Describe the qualifications of current staff and any proposed staff (if applicable), which
will be funded from this project.
See Question 13, Page 10.
10. Describe how this project may improve parental/family access to services.
All YMCA preschool and after school programs offer extended hours during the school day and services during
school vacations, selected holidays and minimum teacher days. Staff is trained and knowledgeable in their ability
to direct families to affordable health services, child and family education resources, information, and referral
systems.
Program fees are affordable and are on a sliding scale. Scholarships are available to all families and no child is
turned away because of lack of financial resources.
Kids involved in Y Childcare programs are encouraged to be part of other character developing programs such as
Biddy Sports, Learn to Swim and Mini Fitness. Families of children in Y programs are encouraged to be part of
the YMCA, where they can attend family camps, lectures on family fun, safety and health issues.
Miss Lopez, a single mom in our La Quinta program, states "my four year old son has learned English, met new
friends and grown to where he loves to go to school. I have learned that the YMCA program isn't just for my son.
I have learned how to be involved in the center and my community."
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
8
11. Applicants seeking funding should demonstrate a commitment to provide complete
smoke free environment including all indoor space owned, leased or occupied by
applicant agency/organization and any outdoor areas including parking lot owned, leased
or under control of the applicant agency/organization. Please attach a copy of your
agency Smoke -Free Environment Policy.
Attachment III
12. Budget: Complete the Budget Form attached. Identify your internal controls and the
process used for budget monitoring. Describe any plans for leveraging funds from other
sources and explain any in -kind services to be provided. Funds must NOT be used to
supplant any program or proiect.
Our internal controls are very strict and far more involved than most private or non-profit controls. This is because
we are involved in several State of California contracts. All of our daily business practices are based on GAAP
(General Accepted Accounting Principles). The preparation of yearly budgets is developed by staff and reviewed by
management, YMCA Finance Committee, our CPA firm, and approved by the Board of Directors. _
All monthly Profit and Loss Statements in respect to budget are reviewed by management, our CPA, YMCA Finance
Committee and the Board of Directors. Our yearly audit is a very complete audit known as a "yellow book", and it is
based on government accounting standards.
Leveraging Proposition 10 funds to help us secure additional gifts and in -kind services is what the YMCA does best.
Success builds on success! Our childcare centers are well known and as we build this addition we have pledges for
playground equipment, fencing, landscaping and interior furnishings along with commitments from service clubs and
individuals. The $150,000 request from Proposition 10, if funded, will develop another $150,000 from other sources.
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
9
13. On this page if necessary, submit any additional information needed to complete previous
responses. Please identify the item number you are completing.
From Section 9- Page 8: Describe the qualifications of current staff and any proposed star kit appiicaole), WIUUI1
will be funded from his project.
Job Qualifications of YMCA General Director
Rob Ballew is the General Director/Chief Executive Officer, and serves as owner/agent on behalf of the YMCA with
regard to all building, expansion and renovation projects. Mr. Ballew is in his 251h year of YMCA work and holds the
position of Senior Director. Requirements for Senior Director include; four years of college, several YMCA
technical modules, ongoing education and on the job training of several YMCA management courses. Rob Ballew
has been selected by both Regional and National YMCA's as part of the program quality task force, and has overseen
two capital projects, one a childcare center well over $4 million in scope.
Job Qualifications of Childcare Director
Cathy Knudsen has worked in the childcare field since 1983, and has been an employee of The Family YMCA of the
Desert since 1991. She was hired to open the first Preschool for our YMCA, and subsequently supervised the
opening of two others. She was the Site Director of the YMCA La Quinta Preschool, and was promoted to the
position of Childcare Director in 1999. Ms. Knudsen holds a Bachelor of Science degree in Business and
Management, and has extensive training in early childhood education. She is a member of the Coachella Valley
Childcare Council, is on the taskforce for the proposed "6 to 6" Program, and possesses an exceptional knowledge of
Title 5 and Title 22 regulations. Ten Site Directors and two clerical staff report directly to Ms. Knudsen. She is
responsible for the operation of the entire Childcare Department, including staffing, supervision, and all compliance
required by the Department of Social Services.
Job Qualifications of Preschool Site Director
Ernell Batts has worked in the childcare field for 14 years, all of those years as an employee of The Family YMCA
of the Desert. Ms. Batts attended the University of Redlands and the College of the Desert and has obtained 40 units
in Early Childcare Education and 21 units in administration and management. She has attended numerous workshops
and seminars in specialized areas such as autism and literacy to further her education. Ms. Batts is responsible for
the direct supervision of 18 staff members, and for the day-to-day operations of the YMCA La Quinta Preschool,
which has a daily attendance of 92 children.
All applications must be typewritten, no smaller than 10pt pitch.
Postmarked Mail, Emails or Faxes will not be accepted.
10
PR.OrRAM BUDGET
September 01, 2001 through June 30, 2002
Amount Requested :
Estimated Customer/Client Fees to be Allocated:
Other Income (Identify): listed in items #12
Total Program Income:
BUDGET
Personnel (List Positions Including FTE)
W
Total Personnel 1$0.00
Benefits
Total Benefits
Other Operating Expenses
Supplies
Printing
Postage
Other Supplies
Contracts *
Service Agreements
Utilities
Rents and Leases
Insurance
Travel & Conferences
Advertising
Maintenance/Repairs
N/A
$0.00
$150,000.00
$150,000.00
$300,000.00
$0.00
$0.00
$0.00
$0.00
• Identify Expenditure I
otht r operating Expenses ContW
Other Services *
Other Expenses *
Other Expenses *
Equipment Under $200.00
Equipment Over $200.00
Total Operating Expense
Capital Outlay Expenses
Renovations *—construction
Site Improvements
Total Capital Outlay
Total Program Budget (mwE4w 1-)
$150,000.00 $150,000.00 $300,000.00
_Amount include in budget for evaluation: $ 5000
__-------------------
_ _ _ _ _ _ _ _ _ _
Personnel: List all positions included in the program. Include positions to be partially funded
with other program income. Provide FTE (Full-time Equivalent) for each position.
Example: An Aide to be funded three hours per day from Prop 10 funds, plus one
hour from other program funds for a total of four hours per day would equal .5 FTE
or 50% of an eight hour day.
Benefits: Include FICA, Unemployment Insurance, SDI, Medicare, Workers' Compensation,
Employer Paid Medical Insurance and any other employer paid benefits.
Other operating Include all operating expense to be charged to the program. This should include all
Expense: office, classroom and maintenance supplies, telephone, gas, water and electrical costs,
service agreements, such as security system monitoring.
Capital Expenses: Include renovation costs to meet ADA, Fire or Licensing standards. Site improvements
should include costs such as fencing, sidewalks or landscaping if required.
Competitive bids may be required.
Audit: Prior to award, applicant may be required to submit current financial reports such as tax
returns, audit, bank statements or statement of assets and liabilities.
Evaluation: Successful applicants will be required to participate in an evaluation process to assess
how well the program achieved its intended results. Program data will be captured from
the beginning of the funding cycle. Applicant should consider the staff time necessary to
collect data, administer surveys, review and interpret data and write reports. Applicant's
budget should reflect these costs in an amount not to'exceed 10% of the total budget.
Amounts of more than 10% may be approved for small awards. Large awards may be
• Identify Expenditure 2
LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") is entered into this 10:�day of 2011 by
and between the CITY OF LA QUINTA ("Lessor"), a charter city formed under tkb Constitution
of the State of California, and the FAMILY YMCA OF THE DESERT, a California nonprofit
corporation ("Lessee").
In consideration of the payments to be made hereunder and the covenants and agreements
contained herein, the parties hereto agree as follows:
ARTICLE I. TERM OF LEASE
1.1 Premises and Grant of Lease. Lessor owns the parcel of real property and
improvements thereon located in the City of La Quinta, legally described in Exhibit "A"
attached hereto and incorporated herein by this reference (the "Premises"). The address of
the Premises is 49-955 Park Avenue, La Quinta, California. Lessor agrees to lease to Lessee
and Lessee agrees to lease from Lessor the Premises upon the terms and conditions expressed
herein.
1.2 Reservation. Lessor reserves to itself, its successors, and assigns, the non-exclusive
right to enter upon the Premises in accordance with any rights of Lessor set forth in this
Lease. Lessor also reserves to itself, its successors, and assigns, the right to grant the non-
exclusive right to enter upon the Premises to others provided it does not unduly interfere with
the Lessee's use of the Premises,
1.3 Exceptions to Leasehold Estate. This lease is made subject to all covenants,
conditions, restrictions, reservations, rights, rights -of -way, easements, and all other matters of
record or apparent upon a visual inspection of the Premises affecting the Premises or the use
thereof on the date this Lease is executed by Lessee.
1.4 Term. The "Term" of this Lease shall be ten (10) years, commencing on the date (the
"Term Commencement Date") that this Lease has been executed by both parties.
1.5 Date of Lease and Legal Effect. The terms, covenants and conditions of this lease shall
become legally binding on the Term Commencement Date.
ARTICLE U. OWNERSHIP OF IMPROVEMENTS
2.1 Ownership of Improvements and Furnishings Fixtures Equipment and Personal
Property. During the entire Term of this Lease, the improvements and all fixtures that are
made in or on the Premises by Lessee, and all changes, alterations, improvements and addition
thereto, shall be owned by and considered as the property of Lessor. Furniture and Equipment
that is purchased by the Lessee that is not affixed to the improvements or property shall be
owned by and considered as property of Lessee.
ARTICLE III. RENT
3.1 Rent. During the Term of this Lease, Lessee shall pay to Lessor for each year from the
Term Commencement Date One Dollar ($1.00) (the "Rent"). The Rent owing for the full Term
of the Lease shall be payable in advance of the Term Commencement Date.
3.2 Additional Payments. Except as otherwise provided in this Lease, all sums of money or
charges whatsoever required to be paid by Lessee to Lessor under this Lease other than Rent
shall be due and payable fifteen (15) days after demand, presented in writing by certified mail,
overnight mail, or personal delivery without any deductions or offsets whatsover.
3.3 Place of Payment. Lessee agrees to pay the rental and other charges herein required to
Lessor at 78-495 Calls Tampico, La Quinta, California 92253, to the attention of the Finance
Director.. All payments shall be made by check for an account in lawful money of the United
States. All payments requiring proration shall be prorated on the basis of a thirty (30) day
month.
ARTICLE IV. USE OF PREMISES AND COMPLIANCE WITH LAW
4.1 Permitted Uses. Lessor's primary purpose for entering into this Lease is to provide for
the operation of the Premises which shall be used to provide child care services and a center
for the youth oriented activities of other community organizations. Lessee shall use the
Premises for these purposes. Lessee shall not use the Premises for any other purposes
without prior written consent of Lessor.
Lessee, at Lessee's expense, shall promptly comply with all present and future laws,
ordinances, orders, rules, regulations and requirements of all governmental authorities having
jurisdiction affecting the Premises or the cleanliness, safety, occupancy and use of the same,
whether or not any such law, ordinance, order, rule, regulation or requirement is substantial, or
foreseen or unforeseen, or ordinary or extraordinary or shall necessitate structural changes of
the improvements on the Premises or interfere with the use and enjoyment of the Premises. If
any governmental license or permit shall be required for the proper and lawful conduct of the
Premises as a child care center, Lessee shall procure and thereafter maintain such license or
permit at its sole cost and expense and shall submit the same for inspection by Lessor.
4.2 Use of Premises by Community Organizations. Lessor and Lessee agree that the
Premises shall be available for use by community organizations other than Lessee. Lessee
shall be responsible for scheduling use of the Premises by community organizations which
shall be available to these organizations after 6:30 P.M. Monday through Friday and all day
Sunday. Lessor shall be responsible for scheduling use of the Premises by community
organizations which shall be available all day Saturday. Lessee and Lessor shall incorporate a
security deposit system when scheduling the Premises to cover any damages to furniture,
equipment or property.
4.3 Nondiscrimination. Lessee covenants for itself, its heirs, executors, administrators, and
assigns, and all persons claiming under or through it, that this Lease is made and accepted
upon and subject to the condition that there shall be no discrimination against or segregtion of
any person or group of persons on account of race, color, creed, religion, sex, age, national
origin, ancestry, political affiliation or physical handicap associated with the construction,
operation and maintenance of the Premises.
4.4 City Resident Incentives. Lessee is hereby required to develop an incentive program
(the "Program") for residents of the City of La Quinta in the form of priority placement on
waiting lists, if any. The Program shall provide preference for admission in the following order:
(i) children of La Quints residents; 00 children of persons who work in La Quinta; and (iii) all
other applicants. Failure to provide a Program shall constitute a "default" as such term is used
in Section 12.1 hereof.
ARTICLE V. PAYMENT OF EXPENSES
5.1 Lessee shall pay all of the costs and expenses in the operation, management, and
maintenance of the Premises except as otherwise provided in this Lease. Lessee's expenses
shall include, without limitation, the following: W expenses incurred by Lessee in connection
with the Premises for general maintenance, painting, lighting, cleaning, trash removal,
security, fire protection; (ii) all charges, surcharges and other levies imposed by, and all costs
(whether or not capital in nature) of compliance with the requirements of any federal, state or
local governmental agency regulating use of the Premises as a child care center; and (iii) the
actual cost of repairs to the Premises, excluding major repairs. Lessee shall pay all charges for
gas, water, sewer, electricity, telephone and other utility services used on or in the Premises.
If any such charges are not paid when due, Lessor may pay the same after giving Lessee
fifteen (15) days prior written notice, and any amount so paid by Lessor shall thereupon
become due to Lessor from Lessee as additional Rent. Lessor shall pay the costs of major
repairs to the Premises, which shall include repairing and replacing the roof, plumbing, heating,
air conditioning and electrical systems. Prior to authorization of any major repairs, Lessee shall
obtain written authorization by Lessor indicating approval of contractor and amount of
contractor's estimate.
ARTICLE VI. MAINTENANCE OF LEASED PREMISES
6.1 Lessee's Obligations for Maintenance.
(a) Lessee's Obligations. Lessee, at Lessee's expense without cost to Lessor, shall
maintain in good order, condition, quality, and repair, the building located on Premises
and every part thereof and any and all appurtenances thereto wherever located, and
Lessee shall be responsible for all other repairs (except for major repairs specified in
Section 5.1), replacements, renewals and restorations, ordinary and extraordinary,
foreseen and unforeseen.
If Lessee wishes to make any repairs to the Premises which would result in a change to
Premises or adversely affect the value of the Premises, Premises, Lessee shall submit
to Lessor for its approval documentation which describes the desired repairs, including
floor plans, building sections, building materials and components, samples of proposed
exterior building materials, and the like, to the extent relevant to the particular repair.
Lessor's response shall be given within a reasonable period of time not to exceed sixty
(60) days after receipt by Lessor from lessee of all necessary documents and
information relating to such repairs (which sixty (60) day period does not include the
Lessor's normal development review requirements). The Lessor's approval shall not be
unreasonably withheld provided that the proposed repair shall not, in Lessor's
reasonable judgment, impair or diminish the value or structural integrity of the
Premises, or not be in harmony with neighboring buildings.
(b) Standard of Maintenance. Lessee shall keep and maintain the Premises in a
clean, sanitary and safe condition in accordance with the laws of the State of California
and in accordance with all directions, rules and regulations of the health officer, Fire
Marshall, building inspector or other proper officials of the governmental agencies
having jurisdiction, and Lessee shall comply with all requirements of laws and
ordinances affecting the Premises, all at the sole cost and expense of Lessee. At the
time of the expiration of the tenancy created herein, Lessee shall surrender the
Premises and the improvements thereon in good order, condition and repair.
(c) Liens. Lessee shall keep the Premises free from any and all liens arising out of
any work performed, materials furnished or obligations incurred by or for Lessee, and
agrees to cause to be discharged of record any mechanic's or materialmen's lien within
twenty (20) days after the lien has been filed or within ten 00) days after receipt of
written request from Lessor, whichever shall be the sooner. Lessee shall give Lessor at
least fifteen 115) days written notice prior to commencing or causing to be commenced
any work on the Premises (whether prior or subsequent to the commencement of the
Term), so that Lessor shall have reasonable opportunity to file and post notices of non -
responsibility for Lessee's work. Lessor may condition its consent to work upon
Lessee posting lien and material and/or completion bonds in amounts as may be
necessary to cover the anticipated cost of such work and potential overruns. Lessee
shall reimburse Lessor for any and all costs and expenses which maybe incurred by
Lessor by reason of the filing of any such liens and/or removal of same, such
reimbursement to be made within ten 00) days after receipt by Lessee from Lessor of
a statement setting forth the amount of the costs and expenses.
(d) Lessor's Substitute Performance. In the event Lessee fails, refuses or neglects
to commence and complete promptly and adequately any of the required repairs or
maintenance, to remove any lien, to pay any cost or expense relating to such matters,
or to otherwise perform any act or fulfill any obligation required of Lessee pursuant to
this Section 6.1, Lessor may, but shall not be required to, make or complete any such
repairs or maintenance, remove such lien, or pay such cost and expense, and Lessee
shall reimburse Lessor for all costs and expenses of Lessor thereby incurred within
fifteen (15) days after receipt by Lessee from Lessor of a statement setting forth the
amount of such costs and expenses which shall be deemed to be additional Rent and
subject to the same consequences as herein provided for failure to pay Rent. If
reasonably possible under the circumstances, Lessor shall give Lessee written notice
fifteen (15) days prior to commencement of any substitute performance. Any failure
by Lessor to give such notice, however, shall not prejudice Lessor's rights hereunder.
Lessor's rights and remedies pursuant to this subsection (d) shall be in addition to any
and all other rights and remedies provided under this Lease or at law.
6.2 Lessor's Obligations For Maintenance
(a) Grounds and Playground. Lessor shall maintain the grounds surrounding the
building on Premises including all landscaping areas, playgrounds, and equipment
excluding trash enclosure areas which shall be the responsibility of Lessee. Lessor
shall also maintain, repair and replace the parking areas located on the Premises.
(b) Trash Removal. Lessor shall be responsible for removing all trash on the
Premises which is generated by Lessor's maintenance of the grounds.
ARTICLE VII. INSURANCE
7.1 Lessee'sinsurance.
(a) Types. Lessee, at no cost and expense to Lessor, shall procure and keep in full
force and effect during the Term or cause to be procured and kept in full force and
effect for the mutual benefit of Lessor and Lessee, insurance policies meeting the
minimum requirements set forth below or such greater requirements that are generally
obtained from time to time for properties, improvements, activities, and operations
similar to those on the Premises in the Southern California area:
W comprehensive general liability insurance with respect to the Premises
and the operations of or on behalf of Lessee or its agents, officers, directors,
and employees in, on or about the Premises in an amount not less than Two
Million Dollars 02,000,000)-per. occurrence combined single limit bodily injury,
personal injury, death and property damage liability per occurrence, subject to
such increases in amount as Lessor may reasonably require from time to time.
Coverage shall include, but not be limited to personal injury liability, premises
and operation, blanket contractual, cross liability, severability of interest, broad
form property damage, and independent contractors. The policy or policies
shall include an endorsement naming Lessor, its officers, employees, and agents
as additional insureds under such policy or policies;
(W worker's compensation coverage as required by the laws of the State of
California together with employer's liability coverage; and
(iii) with respect to the improvements, fixtures, furnishings, equipment and
other items of personal property located on or in the Premises, insurance
against fire, peril of flood, extended coverage, vandalism and malicious
mischief, and such other additional perils, hazards and risk as now are or may
be included in standard "all risk" forms in general use in Riverside County,
California, for an amount equal to not less than the full current actual
replacement cost thereof. Lessor shall be an additional insured under such
policy or policies and such insurance shall contain a replacement cost
endorsement.
(b) Standard. All policies of insurance required to be carried by Lessee under this
Lease shall be written by responsible and solvent insurance companies authorized to do
business in the State of California. Any such insurance required of Lessee hereunder
may be furnished by Lessee under any blanket policy carried by it or under a separate
policy therefor. A copy of each paid -up policy evidencing such insurance (appropriately
authenticated by the insurer) or a certificate of the insurer, including copies of all
applicable endorsements, certifying that such policy has been issued, providing the
coverage required by this Section and containing provisions specified herein, shall be
delivered to Lessor prior to the date Lessee is given the right of possession of the
Premises or as Lessor may otherwise require, and upon renewals, not less than thirty
(30) days prior to the expiration of such coverage. Lessor may, at any time, and from
time to time, inspect and/or copy any and all insurance policies required to be procured
by Lessee hereunder. In no event shall the limits of any policy be considered as
limiting the liability of Lessee under this Lease.
(c) Specific Provisions in Policy. Each policy evidencing insurance required to be
carried by Lessee pursuant to this Article shall contain the following endorsements,
provisions or clauses:
W an endorsement stating that the insurer will not cancel or materially
change the coverage provided by such policy except after giving Lessor thirty
(30) days' prior written notice (10 days for non-payment); and
(ii) a waiver by the Lessee's insurer of any right to subrogation against
Lessor, its agents, employees or representatives which arises or might arise by
reason of any payment under such policy or policies or by reason of any act or
omission of Lessor, its agents, employees or representatives.
(iii) Lessee's coverage shall be primary insurance as respects Lessor, its
officers, employees and agents. Any insurance or self-insurance maintained by
Lessor, its officers, employees, or agents shall be excess of the Lessee's
insurance and shall not contribute with it.
(iv) Any deductibles or self -insured retentions must be declared to and
approved by the Lessor. At the option of Lessor, either: the Lessee shall obtain
coverage to reduce or eliminate such deductibles or self -insured retentions as
respects Lessor, its officers, employees and agents; or the Lessee shall provide
a financial guarantee satisfactory to the Lessor guaranteeing payment of losses
and related investigations, claim administration, and defense expenses.
(d) Lessor's Substitute Performance. In the event that Lessee fails to procure,
maintain and/or pay for at the times and for the durations specified in this Section 7.1,
any insurance required by this Section, or fails to carry insurance required by law or
governmental regulation, Lessor may (but without obligation to do so) at any time or
from time to time, after thirty (30) days written notice to Lessee, procure such
insurance and pay the premiums therefor, in which event Lessee shall repay Lessor all
sums so paid by Lessor together with interest thereon as provided elsewhere herein,
within fifteen 0 5) days following Lessor's written demand to Lessee for such payment.
ARTICLE Vill. INDEMNITY
8.1 Covenant to Indemnify and Hold Harmless. Lessee covenants to defend and indemnify
Lessor, its officers, directors, partners, representatives, agents and employees, and save them
from and against any and all claims, actions, losses, damages, liability, and expenses,
including attorneys' fees, in connection with the loss of life, bodily injury and/or damage to
property arising from or out of or in connection with any occurrence in, upon or at the
Premises, or the occupancy or use by Lessee of the Premises or any part thereof, or arising
from or out of Lessee's failure to comply with any provision of this Lease or otherwise
occasioned wholly or in part by any act or omission of Lessee, its agents, directors,
representatives, contractors, employees, servants, invitees or licensees, excepting that the
foregoing indemnification and hold harmless provision shall not apply in the event of any
uninsured willful or actively negligent misconduct on behalf of Lessor or any of its agents,
representatives, or employees, or in the event any such claims, actions, losses, damages,
liability, costs, or expenses arise out of a breach by Lessor of its obligations under this lease.
If Lessor is made a party to any litigation involving a claim covered by the previous paragraph,
then Lessee shall protect, defend and hold Lessor harmless and shall pay all costs, expenses
and reasonable attorneys' fees incurred or paid by Lessor in connection with such litigation.
Lessor may, at its option, require Lessee to assume Lessor's defense in any action covered by
this Section 8.1 through counsel selected by Lessor and reasonably satisfactory to Lessee.
Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to
property or injury to persons in, upon or about the Premises and the improvements thereon
from any cause whatsoever, and Lessee hereby waives all its claims in respect thereof against
Lessor excepting only damage or injury arising out of (i) the uninsured willful or actively
negligent misconduct or Lessor or any of its agents, representatives, or employees, or (ii) a
breach by Lessor of its obligations under this Lease.
8.2 Waiver of Subrogation. Each party hereto does hereby waive, remise, release and
discharge the other party hereto and any officer, director, shareholder, beneficiary, partner,
agent, employees or representative of such other party, of and from any liability whatsoever
hereafter arising from loss or damage for which insurance containing a waiver of subrogation
is carried by the injured party under such insurance. Lessee shall, upon obtaining the policies
of insurance. required hereunder, give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease.
ARTICLE IX. ALTERATIONS AND ADDITIONS
9.1 Without Lessor's prior written consent, which consent may be withheld or granted in
Lessor's sole discretion, Lessee shall not have the right to make changes or alterations to the
Premises. All such changes, alterations, rebuilding, replacements, additions, improvements
and repairs to the Premises made by Lessee shall be deemed to have attached to the realty
and to have become the property of Lessor upon the expiration of the Term or upon sooner
termination of this Lease.
ARTICLE X. CASUALTY LOSS AND RESTORATION
10.1 Non -Termination. Except as provided herein, no destruction or damage to the Premises
or the improvements thereto by fire, windstorm or other casualty whether insured or uninsured
shall entitle Lessee to terminate this Lease.
10.2 Repair of Damage
la) Obligation to Repair Damage Due to Casualty Covered by Insurance. If the
Premises shall be totally or partially destroyed or rendered wholly untenantable by fire
or other casualty required to be insured by Lessee, Lessor shall promptly proceed to
obtain insurance proceeds and take all reasonable steps necessary to begin
reconstruction and, immediately upon receipt of insurance proceeds, promptly and
diligently commence the repair or replacement of the improvements to the Premises to
substantially the same condition as they are required to be maintained in under this
Lease, so long as the insurance proceeds are sufficient to cover the actual cost of
restoration, and shall complete the same as soon as possible so that Lessee may
continue in occupancy. If, however, the insurance proceeds are insufficient or the
then -existing laws of any other governmental agencies with jurisdiction over the
Premises do not permit the restoration, Lessor may elect to terminate this Lease by
giving notice to Lessee. If the insurance proceeds are insufficient to allow the
restoration of the Premises, and Lessor elects to terminate the Lease, the proceeds will
be the property of the Lessor.
10.3 Continued Operations. During any period of repair, Lessee shall continue, or cause the
continuation of, the operations of its programs on the Premises and use of the Premises by
community groups to the extent reasonably practicable. However, irrespective of the
continued operation during such period for repair, the Rent payable hereunder shall not be
deferred and shall not be abated. Upon completion of such repair and restoration, Lessee shall
promptly refixture and restock the improvements on the Premises, if necessary, substantially
to the condition prior to the casualty, or as otherwise required by this Lease, whichever is
greater, and shall reopen if closed by the casualty.
ARTICLE XI. ASSIGNMENTS AND SUBLETTING
11.1 Agency's Consent Required. Notwithstanding any provision herein to the contrary,
Lessee agrees and covenants (which covenants shall be binding upon the heirs, executors, and
administrators of Lessee) that Lessee shall not, either; voluntarily or by operation of law,
assign, sell, encumber, pledge, sublet or otherwise transfer all or any part of Lessees's
leasehold estate hereunder, without Lessor's prior written consent. No assignment, whether
voluntary or involuntary, by operation of law, under legal process or proceedings, by
receivership, in bankruptcy, or otherwise, and no subletting shall be valid or effective without
such prior written consent of Lessor, and at Lessor's election, shall constitute a default.
11.2 Lessee Remains Obligated. No subletting or assignment, even with the consent of
Lessor, shall relieve Lessee of its obligation to pay Rent and all of its other obligations
hereunder. The acceptance by Lessor of any payment due hereunder from any person or
entity other than Lessee shall not be construed as a waiver by Lessor of any provision of this
Lease or as a consent to any assignment or subletting. Consent by Lessor to an assignment
of the Lease or to a subletting of the Premises shall not operate as a waiver or estoppel to the
future enforcement by Lessor of its rights pursuant to this Lease.
ARTICLE XII. DEFAULT
12.1 Event of Default. The word "default", as used in this Section 12.1, shall mean and
include any one or more of the following events or occurrences:
(a) The failure by Lessee to make any payment of Rent, or other payment required
to by made by Lessee hereunder, when due and the continuance of such failure for a
period of fifteen (15) days after Lessor has given Lessee written notice specifying the
same;
(b) The failure of Lessee to perform any term, condition, covenant or agreement of
this Lease, excluding the payment of Rent, and the continuation of such failure for a
period of thirty (30) days after Lessor shall have given Lessee written notice specifying
the same, or in the case of a situation in which the default cannot reasonably be cured
within thirty 130) days, if Lessee shall not promptly, within thirty (30) days after receipt
of such notice, commence to remedy the situation by a means that can reasonably, be
expected to remedy the situation within a reasonable period of time, and diligently
pursue the same to completion;
(c) The abandonment by Lessee of the Premise or a substantial portion thereof;
(d) Lessee's (i) application for, consent to, or suffering of, the appointment of a
receiver, trustee, or liquidator for all or for a substantial portion of its assets; (ii) making
a general assignment for the benefit of creditors; (iii) being adjudged a bankruptcy; (iv)
filing a voluntary petition or suffering an involuntary petition under any bankruptcy,
arrangement, reorganizations or insolvency law (unless in the case of an involuntary
petition, the same is dismissed with thirty (30) days of such filing); or (v) fifteen (15)
consecutive days any attachment, levy, execution or seizure of all or a substantial
portion of the Lessee's assets or of Lessee's interest in this Lease;
12.2 Remedies.
(a) General. In the event of any default by Lessee, including the expiration of any
applicable cure period, Lessor may:
(i) Terminate Lessee's right to possession of the Premises by any lawful
means, in which care this Lease shall terminate and Lessee shall immediately
surrender possession of the Premises to Lessor.
Lessor may terminate .this Lease by express written notice to Lessee of its
election to do so. Such termination shall not relieve Lessee of any obligation
hereunder which has accrued prior to the date of such termination. In the event
of such termination, Lessor shall be entitled to recover from Lessee the amounts
all amounts due and owing under the Lease and the costs of restoring the
Premises to the condition it was in at the commencement of the Term.
(b) Reasonable Rental Value. In any action or proceeding commenced by Lessor
against Lessee by reason of any default hereunder, the reasonable rental value of the
Premises for the period of the unlawful occupation by Lessee shall be the fair market
value of the use of the Premises for that period. .
(c) Cumulative Remedies. Except as may be specifically provided herein, the rights
and remedies reserved to Lessor and Lessee herein, including those not specifically
described, shall be cumulative and, except as provided by California statutory or
decisional law in effect at the time, either Lessor or Lessee may pursue any or all of
such rights and remedies at the same time or otherwise.
(d) Lessor's Non -Waiver. No delay or omission of Lessor to exercise any right or
remedy shall be construed as a waiver of any right or remedy or of any default by
Lessee hereunder. The acceptance by Lessor of Rent or any additional rent hereunder
shall not be a waiver of any preceding breach or default by Lessee of any provision
hereof, other then the failure of Lessee to pay the particular Rent accepted, regardless
of Lessor's knowledge of such preceding breach or default at the time of acceptance of
such rent, or a waiver of Lessor's right to exercise any remedy available to Lessor by
virtue of such beach or default. The acceptance of any payment from a debtor in
possession, a trustee, a receiver or any other person acting on behalf of Lessee or
Lessee's estate shall not waive or cure a default under Section 12.1(d).
(a) Lessor's Reentry. Lessee hereby irrevocably consents to Lessor's peaceable
reentry, if Lessor so elects, to the Premises upon the occurrence of any of the events
of default specified in Section 12.2 (a) (ii) above, including the expiration of any
applicable cure period.
(f) Lessor's Advances. In the event of any default by Lessee in the payment of
money, other than Rent, or the performance of Lessee's obligations required under this
Lease, and the expiration of any period expressly provided for herein for Lessee to cure
said default after the delivery of notice by Lessor, in addition to the other remedies
herein granted to Lessor, Lessor may, but shall not be obligated to do so, and without
waiving or releasing Lessee from any obligations of this Lease, make any payment and
perform any other act on Lessee's part to be made or performed as provided in this
Lease. All sums paid by Lessor and all necessary incidental costs, together with
interest thereon at the rate of ten percent (10%) per annum from the date of the
payment by Lessor shall be payable by Lessee to Lessor on demand. The sums shall
be deemed to be additional Rent and subject to the same consequences as herein
provided for failure to pay Rent.
12.3 Default by Lessor. Lessor shall not be deemed to be in default in the performance of
any obligation required to be performed by it hereunder unless and until it has failed to perform
such obligation within thirty (30) days after written notice by Lessee to Lessor specifying in
reasonable detail the nature and extent of any such failure; provided, however, that if the
nature of Lessor's obligation is such that more than thirty (30) days are required for its
performance, then Lessor shall not be deemed to be in default if it shall commence such
performance within such thirty 130) day period and thereafter diligently prosecutes the same to
completion.
12.4 Legal Expenses and Collection Costs. If either party incurs any expense, including
actual costs of collection, reasonable attorneys' fees, expenses of discovery, preparation for
litigation, expert witness fees and litigation expenses and costs, in connection with any action
or proceeding instituted by either party by reason of any default or alleged default of the other
party hereunder, the party prevailing in such action or proceeding shall be entitled to recover
its reasonable expenses from the other party. For purposes of this provision, in any unlawful
detainer or other action or proceeding instituted by Lessor based upon any default or alleged
default by Lessee hereunder, Lessor shall be deemed the prevailing party if (a) judgment is
entered in favor of Lessor or (b) prior to trial or judgment Lessee shall pay the Rent and
charges claimed by Lessor, or eliminate the condition(s), cease the act(s) or otherwise cure the
omission(s) claimed by Lessor to constitute a default by Lessee hereunder.
ARTICLE XIII. HOLDING OVER
13.1 This Lease shall terminate and become null and void without further notice upon the
expiration of the Term herein specified, and any holding over by Lessee after such expiration
shall not constitute a renewal or extension hereof or give Lessee any rights under this Lease,
except when in writing signed by both parties hereto.
ARTICLE XIV. ACCESS BY LESSOR
14.1 In addition to the right of Lessor to reserve use of the Premises under Article IV,
Section 4.2, Lessor and those agents, contractors, servants and employees of Lessor who are
identified in writing to Lessee shall have the right, after reasonable notice to Lessee, to enter
the Premises during normal business hours (a) to examine the Premises, to perform any
obligations of Lessor or to exercise any right or remedy reserved to Lessor in this Lease; (b) to
exhibit the Premises to prospective purchasers, mortgagees or lessees of Lessor's interest
therein; (c) to make such repairs as Lessor may be entitled to make after a default by Lessee
under Article XII above; and (d) to take all materials into and upon the Premises that may be
required in connection with such repairs, provided that any such entry shall be performed in
such a manner that does not unreasonably interfere with Lessee's use of the Premises. If
Lessor exercises its rights of entry in compliance with this Article XIV, such entry shall not
constitute a constructive or actual eviction of Lessee, in whole or in part, and the Rent shall
not abate while any such repairs are being made. If, during the last month of the Term,
Lessee shall have removed all or substantially all of Lessee's property therefrom, Lessor may
immediately enter and alter, renovate and redecorate the Premises without elimination or
abatement of Rent and without other compensation and such action shall have no effect upon
this Lease. Nothing herein contained, however, shall be deemed or construed to impose upon
Lessor any obligation, responsibility or liability whatsoever for the care, supervision or repair of
the Premises.
ARTICLE XV. QUIET ENJOYMENT
15.1 Upon payment by Lessee of the Rents provided herein, and upon the observance and
performance of all of the covenants, terms and conditions on the part of Lessee to be
performed hereunder, Lessor covenants and warrants that Lessee may peaceably and quietly
hold and enjoy the Premises for the Term.
ARTICLE XVI. FURNITURE, FIXTURE, AND EQUIPMENT FINANCING
16.1 It is contemplated that during the Term of this Lease, Lessee shall place or cause the
placement from time to time of Furniture, Fixtures or Equipment (collectively "FF&E") on the
Premises which shall be subject to lease and/or purchase financing encumbrances (collectively
"FF&E" Financing). Prior to Lessee having the right to place any FF&E on the Premises subject
to FF& E Financing, Lessee shall be required to deliver to Lessor written notice of any such
proposed FF&E Financing at least sixty (60) days prior to the creation of such FF&E Financing,
together with documentation in reasonable detail so that Lessor may review and approve or
disapprove, in Lessor's reasonable discretion, the FF&E Financing. Such information shall
include, but not be limited to, the following: (i) a complete description of the FF&E; (ii) the
lease term, Rent payments and security deposits required in connection with any leasing of
FF&E; (iii) the purchase price, terms of payment and conditions of any purchase or loan in
connection with purchasing of FF&E; and (iv) copies of all relevant documents to be executed
between Lessee and the lender, seller or lessor of the particular FF&E in question. For a period
of thirty (30) days following receipt by Lessor of the notice from Lessee together with all of
the information required above, Lessor may approve or disapprove such FF&E Financing by
written notice to Lessee. Lessor's approval of any such FF&E Financing shall not be
unreasonably withheld. In the event Lessor reasonably object to all or a portion of such FF&E
Financing, Lessor shall within said thirty (30) day period give Lessee written notice of its
objection, detailing the reasons thereof. In such event, Lessee shall be prohibited from
entering into such FF&E Financing but Lessee may submit to Lessor such response to Lessor's
objections and/or revisions to the terms and conditions of the FF&E Financing in order to
satisfy Lessor's objections thereto. Any such newly submitted information shall again be
subject to Lessor's thirty (30) day right to review and reasonably object thereto. Lessor's
failure to timely object within said thirty (30) day period to any such proposed FF&E Financing
for which proper notice has been given by Lessee to Lessor shall constitute approval of the
particular FF&E Financing in question and no further approval by Lessor for such FF&E
Financing shall be required. Lessor's rights hereunder shall not be construed as requiring
Lessor to participate in any way in any such FF&E Financing nor shall approval by Lessor of
any such FF&E Financing obligate Lessor in any manner.
ARTICLE XVII. TAXES.
17.1 Lessee shall be responsible for, and agrees to pay, prior to delinquency, any and all
taxes, assessments, installments of taxes, levies, fees, and other governmental charges of
every kind or nature (hereinafter collectively called "Taxes") in the event such Taxes are levied
or assessed by municipal, county, state, federal, or other taxing or assessing authorities or
governmental agencies or entities upon, against, or with respect to (i) the Premises or any
portion thereof; (ii) all fixtures, equipment, and any other property of any kind owned by
Lessee or placed, installed, or located within, upon, or about the Premises for which Lessor
might be assessed or which might become a lien on the Premises if not paid by Lessee; (iii) all
alterations, addition, and improvements of whatsoever kind or nature, if any, made to the
Premises or the improvements thereon; (iv) rentals or other charges payable by Lessee to
Lessor; and (v) any other interest in the Premises (including the leasehold interest created by
this Lease), irrespective of whether any of the items described in clauses (i) through (v) above
are assessed as real or personal property, and irrespective of whether any of such items are
assessed to or against Lessor, Lessee or any other person.
ARTICLE XVIII. FORCE MAJEURE
18.1 In the event the performance by either party of any of its obligations hereunder is
delayed by reason of the act or neglect of the other party, act of God, stormy or inclement
weather, strike, labor dispute, boycott, lockout or other like defensive action by such party,
inability to obtain labor or materials, governmental restrictions, riot, insurrections, war,
catastrophe, casualty, act of the public enemy, or any other cause, whether similar or
dissimilar, beyond the reasonable control of the party from whom such performance is due
("unavoidable delays"), the period for the commencement or completion thereof shall be
extended for a period equal to the period during which performance is so delayed.
ARTICLE IXX. MISCELLANEOUS
19.1 Waiver. The waiver by either Lessor or Lessee of any breach of any term, condition or
covenant contained herein shall not be deemed a waiver of such term, condition or covenant
or any subsequent breach of the same or any other term, condition or covenant contained
herein.
19.2 Notices. All notices, demands or other writing to be made, given or sent hereunder, or
which may be so given or made or sent by either Lessor or Lessee to the other shall be
deemed to have been given when in writing and personally delivered or if mailed on the third
IV) day after being deposited in the United States mail, certified or registered, postage
prepaid, and addressed to the respective parties at their addresses set forth below:
To Lessor: City of La Quinta
P.O. Box 1504
78-495 Calle Tampico
La Quinta, CA 92247-1504
To Lessee: Family YMCA of the Desert
43-930 San Pablo Avenue
Palm Desert, CA 92260
19.3 Relationship of Parties. Nothing contained herein shall be deemed or construed by the
parties hereto, nor by any third party, as creating the relationship of principal and agent or of
partnership or of joint venture between the parties hereto, it being understood and agreed that
neither the method of computation of rent, nor any other provision contained herein, nor any
acts of the parties herein, shall be deemed to create any relationship between the parties
hereto other than the relationship of Lessor and Lessee.
19.4 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a lesser
amount than the Rent or other charges herein stipulated shall be deemed to be other than on
account of the earliest due stipulated Rent or other charges, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as Rent or other
charges be deemed an accord and satisfaction, and Lessor shall accept such check or payment
without prejudice to Lessor's right to recover the balance of such Rent or other charges or
pursue any other remedy in this Lease provided.
19.5 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease
and of each and every term, covenant and condition hereof which relates to a date or period
of time.
19.6 Remedies Cumulative. The remedies herein given to Lessor and Lessee shall be
cumulative and are given without impairing any other rights or remedies given Lessor and
Lessee by statute or law now existing or hereafter enacted, and the exercise of any one(1)
remedy by Lessor or Lessee shall not exclude the exercise of any other remedy.
19.7 Effect of Invalidity. If any term or provision of this Lease or the application thereof to
any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of its terms and provisions to persons and circumstances other
than those that have been held invalid or unenforceable shall not be affected thereby, and
each term and provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law.
19.8 Successors and Assigns. This Lease and the covenants and conditions contained
herein shall be binding upon and inure to the benefit of and shall apply to the successors and
assigns of Lessor and to the permitted successors and assigns of Lessee, and all references in
this Lease to "Lessee" or "Lessor" shall be deemed to refer to and include all permitted
successors and assigns of such party.
19.9 Entire Agreement. This Lease and the exhibits hereto contain the entire agreement of
Lessor and Lessee with respect to the matters covered hereby, and no other agreement,
statement of promise made by either Lessor or Lessee which is not contained herein, shall be
valid or binding. No prior agreement, understanding or representation pertaining to any such
matter shall be effective for any purpose. No provision of this Lease may be amended or
added to except by an agreement in writing signed by Lessor and Lessee.
19.10 Interest on Past -Due Obligations. Any amount due from Lessee to Lessor hereunder
which is not paid when due (including, without limitation, amounts due as reimbursement to
Lessor for costs incurred by Lessor in performing obligations of Lessee hereunder upon
Lessee's failure to so perform) shall bear interest at the rate of ten (10%) percent from the
date due until paid, unless otherwise specifically provided herein, but the payment of the
interest shall not excuse or cure any default by Lessee under this Lease.
19.11 Execution of Lease: No Option. The submission of this Lease to Lessee shall be for
examination purposes only, and does not and shall not constitute a reservation of or option for
Lessee to lease, or otherwise create any interest by return to Lessor. The Lease shall not be
binding upon Lessor until Lessor has in fact executed and delivered this Lease to Lessee.
19.12 Corporate Authority. Each individual executing this Lease on behalf of a corporation,
nonprofit corporation, partnership or other entity or organizations, represents and warrants
that he or she is duly authorized to execute and deliver this Lease on behalf of said
corporation, partnership, entity or organization and that this Lease is binding upon same in
accordance with its terms. Lessee shall, at Lessor's request, deliver a certified copy of its
board of directors resolution or certificate authorizing or evidencing such execution.
19.13 Controlling Law. This Lease shall be governed by and construed in accordance with the
laws of the State of California.
19.14 Specific Performance. Nothing contained in this Lease shall be construed as or shall
.have the effect of abridging the right of either Lessor or Lessee to obtain specific performance
of any and all of the covenants or obligations of the other party under this Lease.
19.15 Survival of Indemnities and Warranties. The obligations of the indemnifying party under
each and every indemnification and hold harmless provision contained in this Lease shall
survive the expiration or earlier termination of this Lease to and until the last to occur of (a)
the last date permitted by law for the bringing of any claim or action with respect to which
indemnification may be claimed by the indemnified party against the indemnifying party under
such provision or (b) the date on which any claim or action for which indemnification may be
claimed under such provision is fully and finally resolved, and, if applicable, any compromise
thereof or judgment or award thereon is paid in full by the indemnifying party and the
indemnified party is reimbursed by the indemnifying party for any amounts paid by the
indemnified party in compromise thereof or upon judgment or award thereon and in defense of
such action or claim, including reasonable attorneys' fees incurred. The representations,
warranties, and covenants of the parties contained herein shall survive the termination of this
Lease without regard to any investigation made by the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year
above written.
`"LESSOR"
CITY OF LA QUINTA
BY �— Dated:
Thomas P. Genovese
City Manager
ATTEST:
By•Ile
Veronica J ontecino, CMC
City Clerk 15
APPROVED AS TO FORM AND
CONTEN
4 /Y
By:
M. KatWerine Jenson
City Attorney
"LESSEE"
FAMILY YMCA OF THE DE T
By:
Rob Ba ew
CEO/Executive Director
EXHIBIT A
Lessor owns the parcel of real property and improvements thereon located in
the City of La Quinta, legally described as follows:
4.79 ACRES M/L IN POR PAR B PM 133/017 PM 20862 AND POR PAR H
PM 140/095 PM 20469
The Premises is 49-955 Park Avenue, La Quinta, California.
, m, .
ms. Ir Iry . r 1 r- 11
A_CO �TM CERTIFICATE OF LIABILITY
INSURANCE
DATE 3/ o o )
PRODUCER
Desert Empire Insurance
Services, Inc. LIC # OF09643
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
- ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
77 "4 Country Club Drive
P:,, ,Desert, CA 92211
INSURERS AFFORDING COVERAGE
NAIC #
INSURED
INSURER A: Philadelphia Indemnity
18058
Family YMCA of the Desert
43-930 .San Pablo Ave.
Palm Desert, CA 92260
INSURER B: Star Insurance Company
18023
INSURER C:
INSURER D:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTR
INSIM
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
DATE(MWDDMV
POLICY EXPIRATION
DATE M
LIMITS
A
GENERALLUABILITY
PHPK593377
07/01/10
07/01/11
EACH OCCURRENCE
$1000000
X COMMERCIAL GENERAL LIABILITY
DAMAGE TO RENTED
$1 OO 000
CLAIMS MADE 51OCCUR
MED EXP(Any one person)
$$000
PERSONAL S ADV INJURY
$1 00O 000
GENERAL AGGREGATE
s3,000,000
GENT AGGREGATE LIMIT APPLIES PER:
PRODUCTS-COMP/OP AGG
$2000000
POLICY PEC0. LOC
A
AUTOMOBILE
LIABILITY
ANY AUTO
PHPK593377
07/01/10
07/01/11
COMBINED SINGLE LIMIT
(Ea accident)
'
$1,000,000
X
BODILY INJURY
(Per person)
$
ALLOWNEDAUTOS
SCHEDULED AUTOS
X
X
BODILY INJURY
(Per accident)
It
HIRED AUTOS
NON -OWNED AUTOS
PROPERTY DAMAGE
(Per accident)
$
GARAGE LIABILITY
AUTO ONLY -EA ACCIDENT
$
OTHER THAN EA ACC
$
ANY AUTO
-
It '
AUTO ONLY: AGG
A
E%CESS/UMBRELLALIABILITY
PHUB314107
07/01/10
07/01/11
EACH OCCURRENCE
$1000000
OCCUR CLAIMS MADE
X
AGGREGATE
$1 00O 000
$
$
DEDUCTIBLE
X
$
RETENTION $ 10000
1
B
WORKERS COMPENSATION AND
WCMSTR5010463
06/01/10
06/01/11
OTH-
X WCSTATU- JR
E.L. EACH ACCIDENT
$1000000
EMPLOYERS'LIABILTIY
ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICERlMEMBER EXCLUDED?
E.L. DISEASE -EA EMPLOYEE
$1 00O 000
If yes, describe under
SPECIAL PROVISIONS below
E.L. DISEASE -POLICY LIMIT
$1000000
A
OTHER Sexual/Phy
PHPK593377
07/01/10
07/01/11
1,000,000/1,000,000
Abuse
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS
RE: 49955 Park Ave., La Quinta, CA 92253
Certificate holder is included as additional insured per attached
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL '40_ DAYS WRITTEN
:E TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
iE NO OBLIGATION OR LIABILITY OF ANY IGNO UPON THE INSURER, ITS AGENTS OR
AUTHORIZED REPRESENTATIVE
ACORD 25 (2001108) 1 of 2 #S163829IM155436 ZUNIE V` MVVRY MVRruI 1IVIY lwoo
POLICYNUMBER: PHPK593377
COMMERCIAL GENERAL LIABILITY
CG 20 26 07 04
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED
PERSON OR ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Persons Or Organization(s)
City.of La Quinta
i
Information required to complete this Schedule if not shown above will be shown in the Declarations.
Section It — Wbo Is An Insured is amended to in-
clude as anadditionalinsured the person(s) or or-
ganization(s) shown in the Schedule, but only with
respell to liability for "bodily injury", "property dam-
age' or "personal and advertising injury" caused, in
whole :or In pad, by your acts or omissions or the acts
or; omissions. of those acting on your behalf:
A. in the performance of your ongoing operations; or
B. In_.connection, with your premises owned by or
rented to you.
CG 202697-04 0 ISO Properties, Inc., 2004 Page I of 4 ❑