HomeMy WebLinkAbout20B - AGMT LEASE SARTC PGH WONGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
18, 2018
CLERK OF COUNCIL USE ONLY:
TITLE: APPROVED
EXECUTE LEASE AGREEMENT WITH ❑ As Recommended
As
PGH WONG ENGINEERING, INC. FOR El Or Amendeddinanceon 1 a
OFFICE SPACE AT THE SANTA ANA ❑ orReading
❑ Ordinance on 2ntl Reading
REGIONAL TRANSPORTATION CENTER ❑ Implementing Resolution
{STRATEGIC PLAN NO. 3,2C) ❑ Set Public Hearing For
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CI ` ANAGER
RECOMMENDED ACTION
Authorize the City Manager and Clerk of the Council to execute a site lease agreement with
PGH Wong Engineering, Inc., to compensate the City $5,000 per month, with the first month
prorated at $165 per day, for the lease of 2,507 square feet of office space located at the Santa
Ana Regional Transportation Center, for the three-year term beginning on December 19, 2018,
and ending December 18, 2021, with an option for two one-year extensions, for a total of
$300,230 in lease revenue for the entire term of the agreement, including optional extensions,
subject to nonsubstantive changes approved by the City Manager and City Attorney.
Approve an appropriation adjustment recognizing Fiscal Year 2018-19 lease income in the
amount of $32,145 into the SARTC Operations Rental -PGH Wong Engineering Revenue
Account and appropriating the same amounts to the SARTC Operations Contractual Services
expenditure account.
DISCUSSION
The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that
brings together Amtrak, Metrolink, Orange County Transportation Authority (OCTA), and interstate
bus services. In addition, when completed, the O.C. Streetcar will have a platform stop at SARTC.
The facility is open to the public seven days a week from 5:00 a.m. to midnight and contains
approximately 35,000 square feet of total rental space, including ten bus bays.
The OC Streetcar is the first modern streetcar project to be built in Orange County and will service
Santa Ana's historic downtown, which includes federal, state, and local courthouses; government
offices; colleges; an artists' village; and a thriving restaurant scene. The OC Streetcar will operate
along a 4.15 -mile route that connects the SARTC and a new transit hub at Harbor Boulevard and
Westminster Avenue in Garden Grove. With construction scheduled to begin shortly, it is expected
to begin carrying passengers in 2021.
20B-1
Execute Lease Agreement with PGH Wong
Engineering, Inc. for Office Space at the SARTC
December 18, 2018
Page 2
OCTA is the lead agency for the OC Streetcar Project. OCTA selected PGH Wong Engineering,
Inc., as the Construction Manager Consultant for the project. PGH Wong Engineering, Inc.,
approached the City to lease office space at SARTC. Wash Construction, the Contractor selected
for the project, has also approached the City to lease office space. The proximity of SARTC to the
OC Streetcar Project, along with the availability of office space, created for an efficient partnership
that will allow both PGH Wong Engineering, Inc. and Walsh Construction, via a separate lease
agreement, to be in close vicinity of each other.
Suites 200 and 220 were vacated earlier this year, creating an annual lease revenue loss of
approximately $235,944 and 12,500 sq. ft. of vacant space. PGH Wong Engineering, Inc., is
interested in leasing 2,507 sq. ft. of office space in Suite 200, generating $300,230 in lease revenue
for the entire term of the agreement.
The OC Streetcar will provide a great service to the residents of the City. By leasing available
office space to PGH Wong Engineering, Inc., lease revenue will be generated for the SARTC day-
to-day operations.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #2 (create new opportunities for business/job growth and encourage private
development through new General Plan and Zoning Ordinance policies), Strategy C (support
business development and job growth along transit corridors through the completion of critical
transit plans/projects including: The Fixed Guideway Project, Santa Ana Regional Transportation
Center Master Plan, Complete Streets and General Plan Circulation Element update).
FISCAL IMPACT
Approval of the site lease agreement obligates PGH Wong Engineering, Inc., to compensate the
City $60,000 annually for the lease of interior office space at the SARTC. The three-year
agreement term begins December 19, 2018, and ends December 18, 2021. There is also an option
for two one-year extensions. The total anticipated revenue from this agreement is as follows:
FISCAL YEAR
REVENUE
Agreement 3 -year Term
2018/19
$32,145
2019/20
$60,000
2020/21
$60,000
2021/22
$27,970
Optional Extensions
2021/22
$32,145
2022/23
$60,000
2023/24
$27,970
TOTAL
$300,230
20B-2
Execute Lease Agreement with PGH Wong
Engineering, Inc. for Office Space at the SARTC
December 18, 2018
Page 3
FY 18/19 Lease revenue from this agreement will be received into the PWA — SARTC Operations
Rental — PGH Wong Engineering, Inc., revenue account (No. 06717002-53824) and budgeted for
expenditure in the PWA SARTC Enterprise Contract Services -Professional expenditure account
(No. 06717650-62300).
FSS/MLM/GL
APPROVED AS TO FUNDS AND ACCOUNTS:
&Gwn�o
Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
Exhibit: 1. Lease Agreement — PGH Engineering, Inc.
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LEASE AGREEMENT
THIS LEASE (the "Lease") is made as of December 19, 2018, by and between The City
of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California ("City" or "Landlord") and PGH Wong
Engineering, Inc. ("Tenant')
1. EXHIBITS: The following exhibits are attached hereto and incorporated herein by
reference:
Exhibit "A" The Premises
Exhibit "B" Additional Lease Conditions
Exhibit "C" Janitorial Specifications
2. PREMISES: Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, upon the terms, covenants and subject to the conditions set forth herein, a portion of
the property located at 1000 East Santa Ana Boulevard in the City of Santa Ana, commonly
known as the Santa Ana Regional Transportation Center (SARTC). Specifically, Tenant will be
leasing the portion identified as Suite 220, consisting of approximately 2,507 square feet of
interior office space (hereinafter referred to as the "PREMISES"). Tenant shall be solely
responsible at its own expense for all improvements made to the Premises and obtain all
necessary permits. The Premises are more particularly described in Exhibit A.
3. COMMENCEMENT OF TERM: The term of this Lease (tire "Term") shall be for a
period of three (3) years, which shall commence on December 19, 2018 (the "Commencement
Date"), unless sooner terminated or extended as provided herein.
4. ADDITIONAL LEASE CONDITIONS: Tenant acknowledges that this lease is subject
to compliance with the additional lease conditions attached hereto as Exhibit B. These additional
lease conditions are a material part of this lease agreement and any default of these conditions
will be deemed a major breach and will subject this lease to immediate termination.
5. EXTENSION PERIODS: Landlord shall have the right, but not the obligation, to
provide Tenant the option to extend the Term for two (2) separate consecutive additional periods
of one (1) year each on the same tennis and conditions as set forth in this Lease. Each option
shall be agreed to in writing by the Landlord and Tenant prior to the expiration of the Tenn or
any Extension Period then in effect. If Tenant does not exercise its option to extend as provided
herein, Tenant will be deemed a holdover Tenant and subject to paragraph 7 of this lease. The
lease is subject to a Consumer Price Index (CPI) increase for any extension period.
6. RENT: (a) Tenant shall pay to Landlord, as rent ("Rent'), throughout the Tenn, the
monthly sum of Five Thousand Dollars ($5,000) in advance, on the 1 st day of each calendar
month and continuing through the life of the Tenn. However, payment for the first partial month
shall be prorated at $165 per day. All payments of Rent and other sums due to Landlord
Exhibit 1
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hereunder sball be made payable to 'The City of Santa Ana" and remitted to: City of Santa Ana
M-13,20 Civic Center Plaza, PO Box 1988, Santa Ana, CA 92702. A LATE CHARGE OFTEN
PERCENT (10%) SHALL BE APPLIED TO ANY PAYMENT HEREUNDER DUE BUT
UNPAID AFTER THE 10TH. (b) Landlord and Tenant hereby agree that Rent for any
Extension Period, if the option for such is exercised, shall be subject to a CPI adjustment
annually on the anniversary of the commencement date of the term hereof.
7. HOLDOVER: Tenant has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this Lease. In the event that Tenant holds over,
then the Rent shall be increased to 150% of the Rent applicable immediately preceding the
expiration or termination. Nothing contained herein shall be construed as consent by Landlord to
any holding over by Tenant. Any holding over by Tenant of the Premises after the expiration or
termination of this Lease shall operate and be construed as a tenancy from month to month on all
terms of this Lease, terminable by either party upon thirty (30) days prior written notice to the
other.
8. LANDLORD'S TITLE: (a) Landlord hereby covenants, represents and warrants to
Tenant that Landlord has fee simple title to the Premises and has the full right and lawful
authority to make this Lease. Notwithstanding anything contained herein to the contrary, if there
are any liens, security interests, restrictions, ]eases, encumbrances, encroachments, laws,
ordinances, governmental rules or regulations, title restrictions, zoning, endangered species or
any other matters which in fact interfere with Tenant's use of the Premises, then Tenant may
terminate this Lease without owing any liability to Landlord. Landlord covenants that so long as
Tenant is not in monetary default hereunder, Tenant shall have quiet and peaceful possession and
enjoyment of the Premises, all improvements located thereon and of all easements, rights and
appurtenances thereunto belonging.
9. DELIVERY OF POSSESSION UPON TERMINATION OR EXPIRATION OF
TERM: Tenant agrees to deliver to Landlord physical possession of the Premises upon the
termination or expiration of this Lease in good condition excepting, however, ordinary wear and
tear, damage by fire or any other casualty, or damage from any other cause unless such other
cause is attributable to the negligence of Tenant.
10. ASSIGNMENT AND SUBLETTING: Tenant may not assign this Lease or sublet the
Premises or any part thereof without the prior written consent of Landlord.
11. TENANT'S REPAIRS, ALTERATIONS AND FIXTURES: Except for reasonable
wear and tear, Landlord agrees at Landlord's expense to (1) construct a wall to separate Suite
220 from the remainder of the Premises such that Suite 220 is a standalone suite, (2) provide
general building maintenance, and (3) maintain in good repair the foundation, retaining walls and
structural soundness of the Premises. Landlord agrees to keep the Premises in good repair,
including the plumbing, electrical wiring, air-conditioning and heating equipment. Subject to
Landlord approval, Tenant may make and pay for any renovations, alterations and improvements
to the Premises as Tenant deems desirable and Tenant agrees that all such alterations and
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improvements shall be made in a good and workmanlike manner and in such fashion as not to
diminish the value of the building, and that no such alterations shall compromise the structural
integrity of the Premises. All improvements, additions, alterations, and repairs shall be in
accordance with applicable laws and at Tenant's own expense. Tenant shall indemnify and
defend Landlord for all liens, claims, or damages caused by remodeling, improvements,
additions, alterations, and major repairs made by Tenant. It shall be Tenant's 's duty to keep the
Premises free and clear of all liens, claims, and demands for work performed, materials
furnished, or operations conducted on the Premises at the request of Tenant. On surrendering
possession of the Premises to Landlord at the expiration or sooner termination of this Lease or
any Extension Period, Tenant shall not be required to return the premises in the same condition
upon commencement of lease except for normal wear and tear.
Tenant may paint the interior of the Premises and may also paint, erect or authorize the installation
of "temporary signs" in accordance with a signage plan that is pre -approved by the Landlord.
Landlord shall not install or maintain, or permit anyone other than Tenant to install or maintain,
any signs on any part of the Premises or within the air space above the Premises during the Tenn
or any Extension Period of this Lease.
12. MAINTENANCE: Landlord shall provide at its own cost and expense janitorial
services for the Premises. Janitorial supplies and services shall be provided on a five -day -per -
week basis in accordance with Exhibit C (JANITORIAL SPECIFICATIONS).
13. COMPLIANCE WITH LAWS: Tenant shall make and pay for nonstructural
improvements and alterations to comply with all applicable laws, rules, regulations and
ordinances of any and all applicable governmental entities (the "Governmental Laws") applying
to the physical condition of the Premises and the building located thereon and arising from
Tenant's conduct of business.
14. UTILITIES: Landlord agrees to pay for all utilities furnished to the Premises and
which are consumed by Tenant, during the Tenn and any Extension Period, including charges or
assessments for water, sewer, gas, heat, electricity, garbage disposal and trash disposal.
15. ESTOPPEL CERTIFICATES: Landlord and Tenant shall, from time to time upon
thirty (30) days' request by the other (but not to exceed more than three (3) times in any given
calendar year), execute, acknowledge and deliver a statement, dated currently, certifying that this
Lease is umnodified and in full, force and effect (or, if there have been modifications, that this
Lease is in full effect as modified, and identifying such modifications) and the dates to which the
Rent have been paid, and that no default exists in the observance of this Lease and no event of
default has occurred and is continuing, or specifying each such default or event of default of
which Landlord or Tenant may have knowledge, it being intended that any such statement may
be relied upon by Landlord's or Tenant's Mortgagees, any prospective purchaser of the interest of
Landlord or Tenant in their respective premises described herein.
20B-7
16. INDEMNITY: Tenant shall indemnify, defend, and hold harmless Landlord from and
against any and all liability, loss, damage, expense, and costs (including attorney's fees) due to
bodily injury, including death, to any person, or loss or damage (including loss of use) to any
property, attributable to the negligence or misconduct of Tenant, its employees, representatives,
or agents in connection with this Lease.
17. INSURANCE: Throughout the Term or any Extension Period, Tenant shall maintain
insurance as described below:
a. Commercial General Liability Insurance: Commercial general liability
insurance for injury to person (including death) or damage to property occurring within the
building arising out of the use and occupancy thereof by Tenant, its licensees, employees,
invitees, agents and customers. The amounts of insurance shall be not less than the following:
single limit coverage applying to bodily and personal injury, including death resulting thereii-om,
and property damage, in the total amount of $2,000,000 per occurrence and $5,000,000 in the
aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers
and representatives as additional insured(s); (b) be primary and not contributory with respect to
insurance or self-insurance programs maintained by the City; and (c) contain standard separation
of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a
combined single limit of not less than $5,000,000 per occurrence. Such insurance shall include
coverage for owned, hired and non -owned automobiles.
C, Worker's Compensation Insurance. In accordance with the provisions of
Section 3300 of the Labor Code, Tenant, if Tenant has any employees, is required to be insured
against liability for worker's compensation or to undertake self-insurance. Prior to commencing
the performance of the work under this Agreement, Tenant agrees to obtain and maintain any
employer's liability insurance with limits not less than $1,000,000 per accident.
d. Properly Insurance. Tenant shall maintain not less than $1,000,000 Fire
Legal liability on all real property being leased, including improvements and betterments owned
by the Landlord, and shall name the Landlord as a loss payee. Tenant shall also provide fire
insurance on all personal property contained within or on the leased premises. The policy must
be written on an "all risks" basis, excluding earthquake and flood. The Tenant shall name the
Landlord as additional insured.
e. The following requirements apply to the insurance to be provided by
Tenant pursuant to this section:
i. Tenant shall maintain all insurance required above in full force and effect
for the entire period covered by this Agreement.
ii. Certificates of insurance shall be furnished to the Landlord upon execution
of this Agreement.
iii. Certificates and policies shall state that the policies shall not be cancelled
or reduced in coverage or changed in any other material aspect without
thirty (30) days prior written notice to the City, except for 10 days' notice
for non-payment of premium.
iv. If Tenant fails or refuses to produce or maintain the insurance required by
this section or fails or refuses to furnish the Landlord with required proof
that insurance has been procured and is in force and paid for, the Landlord
shall have the right, at the Landlord's election, to forthwith terminate this
Agreement.
18. DAMAGE BY CASUALTY;
(a) In the event of a fire or other casualty in the Premises, Tenant shall
immediately give notice thereof to Landlord.
(b) If the Premises, through no fault of Tenant,. its agents, employees,
invitees, or visitors, shall be partially destroyed by fire or other casualty so as to render the
Premises rmtenantable as reasonably determined by Landlord, Rent shall abate in proportion to
the percentage of square footage of the Premises rendered unusable until such time as the
Premises are made tenantable as reasonably determined by Landlord.
(c) Except where Landlord is not obligated to repair or rebuild the Building
or the Premises, Landlord will use due diligence to repair the same (except that Landlord will
have no obligation to repair or replace any alteration, addition, or improvements to the Premises
other than the Tenant Improvements installed at Landlord's expense which will be repaired
only to the level of Building Standard Improvements).
(d) In the event of (i) the total destruction of the Premises, (ii) the partial
destruction of the Premises or the Building where the same is so damaged that it cannot, in
Landlord's reasonable opinion, be repaired within ninety (90) days of the occurrence of such
damage, or (iii) damage or destruction as a result of any casualty for which insurance proceeds
are not available to pay 100% of the cost of repair or rebuilding, Landlord will have no
obligation to repair or rebuild the Premises or the Building. Landlord will make its
determination whether to repair or rebuild within ninety (90) days of the occurrence of such
damage or destruction. Upon notification to Tenant of Landlord's decision not to repair or
rebuild, this Lease shall terminate.
19. EMINENT DOMAIrN': (a) If (i) all or part of the Premises, the building located
thereon, or (ii) so much of any rights in the Premises or the building located thereon shall be
taken or appropriated under any right of eminent domain or under any other legal right whereby
the taking authority is obligated to compensate Landlord therefor so that there does not remain
premises suitable hr the sole opinion of Tenant for the operation of its business, then Tenant may
terminate and cancel this Lease without owing any liability to Landlord as of the date on which
the condemning authority takes physical possession upon giving to Landlord written notice of
such election. Landlord agrees immediately within ten (10) days after any notice of intended or
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actual taking or appropriation to give Tenant written notice thereof, providing to Tenant full
details of such taking or appropriation, including, without limitation copies of all condemnation
plans or surveys submitted by the condemning authority, a statement of the nature of the project
to be conducted by the condemning authority, and such other information as might be necessary
to enable Tenant to determine its future course of conduct. TENANT ACKNOWLEDGE, S
THAT LANDLORD'S EXERCISE OF ITS RIGHT TO TERMINATE THIS LEASE
UNDER ANY OF THE PROVISIONS OF THIS LEASE SMALL NOT ENTITLE
TENANT TO ANY RIGHTS OR CLAIMS FOR RELOCATION BENEFITS OR ANY
OTHER CLAIMS RELATED TO CONDEMNATION OR INVERSE CONDEMNATION.
(b) If this Lease shall be terminated and canceled as a result of any taking or
appropriation, Tenant shall be released from any further liability and Rent and other sums for the
last month of Tenant's occupancy shall be prorated and Landlord shall immediately refund to
Tenant any sums paid in advance.
(c) Tenant reserves unto itself the right to prosecute Tenant's claim for an
award for damages for the termination of this Lease caused by such appropriation or taking,
together with damages based on the value of Tenant's improvements and Tenant's fixtures and
other personal property erected or installed on the Premises and damages Tenant may sustain to
the interest in the business operated by Tenant on the Premises, including, but not limited to,
goodwill, patronage, and the removal, relocation, and replacement costs and expenses caused by
such appropriation or taking, and Tenant may file such claims as are permitted by law for the
loss of its leasehold interest, business dislocation damages, moving expense, or other damages
caused by such taking or appropriation. Tenant's right to receive compensation or damages for
its fixtures or its personal property shall not be affected in any manner by this Lease.
20. LIENS: Tenant shall promptly remove and discharge, at its cost and expense, all
mechanic's liens, or other liens, for labor performed or materials furnished with respect to the
Premises by or for Tenant.
21. PARKING AREA: All those portions of the SARTC which are not presently occupied
by buildings and which are designated parking spaces shall be available for use by Tenant and
Tenant's agents, employees, customers and invitees for parking and access to the public streets
and highways (the "Parking Area"). Tenant further acknowledges that Landlord has entered into
an agreement with the Orange County Transportation Authority for the operations of the OC
Streetcar at SARTC, which is anticipated to begin construction in 2021. Such operations may
affect the number of parking spaces available at any one time, though it is not possible to
determine the precise effect at the time of this Lease. Surface Parking Lots 1 and 2 allow up to
72 -hour parking. Landlord will provide parking passes to identify all Tenant vehicles parked at
SARTC at no cost to Tenant. If the parking structure at SARTC is full, Tenant and Tenant's
agents, employees, customers and invitees must use the surface lots at SARTC.
22. TENANT'S DEFAULT: (a) If Tenant shall default in payment of Rent, when due,
Landlord shall forward written notice, pursuant to Section 24, of such default to Tenant, and the
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failure of Tenant to cure such default within three (3) days after the date of receipt of such notice
shall, at the sole option of Landlord, cause the termination of this Lease.
(b) If Tenant shall default in the performance of any other terms or provisions
of this Lease, and if Landlord shall give to Tenant written notice, pursuant to Section 24, of such
default, and if Tenant shall fail to cure such default within thirty (3 0) days after receipt of such
notice, Landlord at its sole option, shall cause the termination of this Lease immediately,
23. HAZARDOUS SUBSTANCES: (a) As used herein, the term "Hazardous
Substances" shall mean, without limitation, any substance that is biologically or chemically
active or any hazardous, toxic, or dangerous waste, substance (including, but not limited to, lead-
based paint, asbestos or petroleum derivative substances), or material defined as such in (or for
purposes of) (i) any state, federal or local environmental laws, interpretive letters, regulations,
decrees or ordinances, (ii) the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, (iii) the Resource Conservation and Recovery Act, (iv) any of the
state or local "Super Fund", "Super Lien" or "Cleanup Lien" laws or (v) any other federal, state
or local statute, law, ordinance, code, rule, interpretive letter, regulation, order or decree
regulating, relating to or imposing liability or standards of conduct concerning any such
substances or materials or any amendments or successor statutes with respect to any of the
foregoing.
(b) During the Term of this Lease, Tenant represents and warrants that no Hazardous
Substances will be stored on the Premises and no Hazardous Substances will be discharged on
the Premises by Tenant. Tenant agrees that such representations and warranties shall survive any
termination of this Lease, and Tenant agrees to indemnify and hold lrarnrless Landlord from any
and all costs,. expenses, claims and damages, including, but not limited to, attorneys' fees and
costs of remediation, arising from Tenant's breach of any of the representations and warranties
contained in this Section.
24. NOTICE: Any notice, tender, demand, delivery, or other communication pursuant to
Us Lease shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic
conmm nication in the maturer provided in this Section, to the following persons.
TO TENANT: TOC Y:
PGH Wong Engineering, Inc. Public Works Agency
Attn: Peter G. H. Wong City of Santa Ana
Chief Executive Officer 20 Civic Center Plaza (M-21)
182 — 2"d Street, Suite 500 Santa Ana, California 92701
San Francisco, CA 94105-3801 Attention: Executive Director of Public Works Agency
AND
Clerk of Council
City of Santa Ana
20 Civic Center Plaza (M29)
Santa Ana, California 92701
7
20B-11
A party may change its address by giving notice in writing to the other party. Thereafter, any
communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
25. USE: For the purposes of this Lease, Tenant's intended use of the Premises is strictly
for office space. No other use of the Premises shall be permitted without written consent of
Landlord.
26. GENERAL PROVISIONS:
(a) This Lease (and the documents referred to herein) constitutes the entire agreement
between the parties pertaining to the lease of Suite 220 contained herein and supersedes any and
all prior and contemporaneous agreements, representations and understandings, oral or
otherwise, between or among the parties with respect to the matters contained herein.
(b) This Lease shall be binding upon, and inure to the benefit of, the parties hereto
and their respective heirs, legatees, distributes, legal representatives, successors and assigns.
(c) This Lease shall not be modified, amended or supplemented, in whole or part,
without the prior written consent of all parties hereto. Each and every waiver of any covenant,
representation, warranty or any other provision hereof must be in writing and signed by each
party whose interests are adversely affected by such waiver. No waiver granted in any one
instance shall be construed as a continuing waiver applicable in any other instance.
(d) If any legal action or other proceeding is brought for the enforcement hereof, or
because of an alleged dispute, breach, default or misrepresentation in connection with any
provisions hereof, the successful or prevailing party or parties shall be entitled to recover
attorneys' fees, court costs and all expenses even if not taxable as corut costs (including, without
limitation, all such fees, costs and expenses incident to appeals), incurred in that action or
proceeding, in addition to any other relief to which such party or parties may be entitled.
(e) This Lease shall be governed by the internal laws of the State of California
without regard to and excluding its principles of conflicts of laws.
(f) The parties further agree that upon request, they shall do such further acts and
deeds, and shall execute, acknowledge, deliver and record such other documents and
instruments, as may be reasonably necessary from time to time to evidence, confirm or carry out
the intent and purposes of this Lease.
(g) Unless the context in which used clearly requires another construction, throughout
this Lease, the masculine gender shall be deemed to include the neuter of feminine or both, the
neuter gender shall include the masculine or both, and the singular of terns shall include the
20B-12
plural and vice versa. The section headings are for convenience only and shall not affect the
construction hereof.
(h) If any one or more of the provisions hereof shall for any reason be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect the validity or enforceability of any other provision hereof, which shall be construed as if
such invalid, illegal or unenforceable provision had never been contained herein. The parties
intend that if any provision hereof is capable of two constructions, one of which would render
the provision void and the other of which would render the provision valid, then the provision
shall have the meaning which renders it valid.
(i) Time is of the essence in the performance of each party's respective obligations
0) This Lease may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one in the
same instrument, and it shall not be necessary that any single counterpart bear the signatures of
all parties.
(k) Unless expressly stated to be exclusive, no remedy conferred herein shall be
deemed to be exclusive of any other remedy conferred herein or any other remedy now or
hereafter available at law or equity. All remedies conferred herein, and all remedies now or
hereafter available at law or equity, shall be deemed to be cumulative and not alternative, and
may be enforced concurrently or successively.
(1) All provisions of this Lease shall be construed as covenants and agreements
where used in each separate provision hereof and shall bind and inure to the benefit of the parties
hereto, their respective heirs, legal representatives, successors and assigns,
(m) All periods of time shall include Saturdays, Sundays and legal holidays; provided
that, if the last day to perform any act or give notice falls on a Saturday, Sunday or legal holiday,
then such act or notice shall be timely performed if given on the next succeeding business day.
(n) Any holding over by Tenant of the Premises after the expiration or termination of
this Lease shall operate and be construed as a tenancy from month to month on all terms of this
Lease, terminable by either party upon thirty (30) days prior written notice to the other.
(o) Nothing contained in this Lease shall be deemed or construed by the parties
hereto or by any third party to create the relationship of principal and agent or of partnership or
of joint venture or of any association between Landlord and Tenant, and no provision contained
in this Lease nor any acts of the parties hereto shall be deemed to create any relationship between
Landlord and Tenant other than the relationship of landlord and tenant.
27. LANDLORD'S REPRESENTATIONS: Landlord hereby covenants, warrants and
represents to Tenant that:
(a) Landlord has the sole right, legal power and authority to enter into this Lease.
20B-13
(b) All rewired actions have been taken and satisfied by Landlord to authorize the
execution and performance of this Lease. No other proceedings or actions on the part of
Landlord are necessary to authorize this Lease or to carry out the transactions contemplated
hereby. This Agreement constitutes the legal, valid and binding obligation of Landlord
enforceable against Landlord in accordance with its terms.
(c) The individual(s) executing this Lease, on behalf of Landlord, has (or have) the
fidl right, legal power and actual authority to bind Landlord to the terns and conditions hereof.
IN WITNESS WHEREOF, the patties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first written above.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney
By: r .I
John III.Funk
Assistant City Attorney
RECOMMENDED FOR APPROVAL
FUAD S. SWEISS, PE, PLS
Executive Director
Public Works Agency
CITY OF SANTA ANA
Raul Godinez
City Manager
PGH Wong Engineering, Inc.
By:
Title:
10
20B-14
Exhibit A
'J
.0
EXIIIBIT B
ADDITIONAL LEASE CONDITIONS
• SARTC business hours are seven days a week from 5AM to midnight. Tenant will be provided a
key to access the facility during non -business hours via a designated door. Tenant shall be
responsible to ensure that the after-hours designated entry doors remains secure and shall be solely
responsible for any harm or damage to the Premises arising from or attributable to a breach of this
obligation.
a Tenant must provide SARTC Property Management Office with a point of contact for regular
business hours and after hours.
20B-16
IMI MM
DAILY MAINTENANCE TASKS
General Cleaning
Remove all litter found and clean unsightly soil from building, fixtures, walls, door frames, doors and other surfaces.
Remove any spilled liquids or solids. Remove carpet stains. Pick up any towels from the floor or counters within locker
rooms and fitness center, placing towels In the proper receptacle.
Dusting Building Surfaces
Remove all dust, lint, cobwebs, debris, dry soil, etc, from the surface of ledges, window sills, locker lops and fire
extrigulshers. This shall include counter tops, walls, callings, door frames and sills, light switches, pictures, partitions,
rails and other types of fixtures and surfaces which are not considered as furniture surfaces. This includes atrium wood
ledges and specialty equipment such as test equipment, computers, typewriters, calculators, etc., which are located
anywhere between the floor surface and up to nine (9) feet in height. Dusting shall be accomplished by the removal of
loose soil from the area—not by moving It from one surface to another.
Spot Cleaning of Building Surfaces, Furniture and Fixtures
Clean to remove smudges, fingerprints, marks, streaks, tape, etc., from the surface of ledges, windows and sills, fire
extinguishers, counter tops, walls, light fixture holders, calling vents, doors, door frames and sills, pictures, partitions, rails
and other types of fixtures and surfaces. This would Include all items from the floor surface up to 11 feet In height
Speclal care is to be taken to not permanently mar scratch or discolor any surface.
Emptying of all Trash and Ash Receptacles
All wastebaskets, cigarette ash receptacles and other trash containers shall be emptied and returned to their initial
location. This shall Include those located in patio, balcony and parking areas, as well as any placed outside entry doors.
Receptacles are to be cleaned as need each fine. Boxes, cans, papers and other containers marked "trash" (or are
Obviously trash) shall be removed. Cardboard boxes and cartons are to be broken down flat. All collected waste from
such receptacles shall be removed from the area and deposited in a designated dumpster or other receptacle in such a
manner so as to prevent the adjacent area from becoming littered by said trash. Solled or tom trash receptacle liners
shall be replaced with a new liner. Liners shall be replaced in such a manner so as to present a neat and unllorm
appearance. Clean around the large. trash bins in the Ross Annex Parking Garage.
Spot Cleaning of Trash Receptacles
Remove non -permanent stains and soil from the interior and exterior surfaces of trash receptacles.
Outside Patios. Balconies and Building Entryways
Remove cobwebs from overhead surfaces and lights affixed to the building entryway areas. This would include cleaning
the exterior of glass and metal doors, door thresholds and hardware. Remove any litter, cigarette butts or bird droppings.
Entrance Glass. Mirrors and Workstation Glass
Thoroughly clean both sides of all surrounding building entry door glass and entry doors for a uniform appearance free of
all smudges, fingerprints, stains, streaks, lint, etc. Remove any paper and/or tape. Clean all mirrors In reslrooms, locker
rooms and fitness center In the same manner as noted above. Spot clean workstation and/or partition glass daily as
needed.
Drinking Fountains and Sinks
Remove all obvious soil, streaks, smudges, etc., from the hardware, including the spouts and drain. After cleaning and
disinfecting, the entire drinking fountain and/or sink (includes all sinks In coffee rooms and lounges) shall be free of
streaks, stains, spots, smudges, scale, and other removable soil. Oil is not to be used to polish metal fixtures. If needed,
lime -away or a similar product shall be used to eliminate hard water build-up.
20B-17
DAILY MAINTENANCE TASKS
Wash Basins, Toilets. Urinals and Showers
Apply a germicidal detergent solution to all surfaces of wash basin, toilets, toilet seal hinges, pipes, urinals, showers and
adjacent surfaces. Remove soil from all surfaces of these fixtures and adjacent surfaces. Dry all metal surfaces of
faucets, handles, valves, etc. Shower wall, floor and door soap scum, mold and mildew shall be removed daily and drain
screens cleaned of hair and lint. De -scale toilets and urinals to remove scum, mineral deposits, rust stains, etc. Oil is not
to be used to polish metal fixtures.
Refilling of Dispensers
Check and refill each toilet paper, soap, paper towel, toilet seat cover and feminine hygiene dispenser. The supplies shall
be placed In the dispensers in accordance with the supplies and dispenser manufacturer's directions. Soap dispensers
and adjacent surfaces shall be wiped to remove spillage. Care shall be taken so as not to damage, dent or bend
dispensers.
Floor Drains
Clean all floor drains and remove corrosion and tarnish.
Entrance Mats
Remove moisture, wet or dry soil, and any debris from carpeted, rubber and/or other material mats. Ensure mats are
properly positioned on the floor.
Vacuuming of Carpeted Floors
Remove visible and hidden soil and debris from the carpet surface and from within the carpel pile. Chairs, trash
receptacles, power cords, boxes and other such items shall be tilted or moved where necessary. Special attention shall
be paid to corners, along the walls and under/between furniture to ensure carpet Is thoroughly cleaned in all areas. The
carpet shall be free of all visible soil and litter.
Vacuuming of All Fabric Furniture Surfaces
Remove all dust, debris, lint, hair, litter and dry soil from all fabric surfaces of chairs, couches, work station partitions and
other furniture with fabric covering.
Stain Removal on Carpet, Upholstery, Partition Panels and Walls
Clean and/or remove all stains as quickly as they are discovered so as not to allow them to set into the fabric. If the stain
is a coffee spill, use a contractor -supplied product similar to Interface Coffee Breaker and follow the manufacturer's
recommended procedures. Spot clean as necessary to correct soiled area.
Mopping of Non -Carpeted Floors
Remove soil, hair, dust and debris from non -carpeted floors. Trash receptacles and other such small items shall be
moved as necessary and returned to their appropriate location. All accessible areas of the floor shall be damp mopped.
Care shall be taken to prevent splash and mop streaks from being visible on furniture legs, doors, etc. "Caution Wet
Floor" safety warning signs shall be placed so as to provide sufficient safety measures. After a floor has been damp
mopped it shall have no puddled water and be free of soil, stains, debris, streaks and swirl marks. All wet floor signs shall
be removed and put away when the floor is sufficiently dry to be safe for use.
Disinfecting of Restrooms Furniture, Fixtures. Walls and Partitions
Damp wipe and disinfect all non -wood hard surfaces of furniture, fixtures, walls, partitions, doors and lockers. Special
care shall be taken to ensure these surfaces are not scratched, damaged or stained. In Parks locations, remove all graffiti
from walls, doors, partitions, etc. Check for stoppages and plunge as needed. Immovable stoppages shall be
immediately reported to 714-647-6523 , or sreafleng0santa-ane ora or faciuilar0sania-ana.org.
r1-
DAILY MAINTENANCE TASKS
Cleaning of Wood Furniture and Surfaces
Thoroughly clean to remove smudges, fingerprints, marks and streaks from wood surfaces while ensuring to not scratch
or mar surfaces.
Cleaning of Lunch — Break Rooms
Included In this contract are all lunch and break rooms, Including the kitchen and cooking area, dishwashing area,
restrooms, eating areas, vending machines, hallways, glass and painted doors, unlocked storage closets, microwave
ovens and refrigerators. Wipe clean the Inside of all microwave ovens to remove any crumbs and/or spills. Areas shall be
cleaned so that grease, dirt, food particles, trash and other litter are thoroughly removed from surfaces. These areas are
to remain a healthy and clean environment for use by City employees on a daily basis.
Fitness Center Exercise Equipment
Wipe down all metal to polish off shoo marks and sweat stains. Clean upholstery and wipe off shroud and side rails of the
treadmills, as well as the consoles on treadmills and other machines. Clean the elliptical trainers, ski machines, bikes and
stair stepper machines to remove sweat and stains. Clean out the tracks of the elliptical trainer with a dry towel only.
Clean tops of any rubber mats and under each treadmill by extra -vacuuming up the dust and black motor powder residue.
SPECIAL NOTICES
All furniture moved by the Contractor's or any Subcontractor's employees during the performance of any services shall be
returned to Its appropriate location. All Items such as trash receptacles or desk chairs that are moved to enable cleaning
underneath or around them shall be returned to their appropriate location.
Work areas shall be secured and equipment placed to prevent passage by the general public and City staff. All such work
areas shall be denoted as such. Work areas and equipment shall remain under this state/condition until all work is
complete, equipment is vacated and passage is safe for all. The proper quantity and type of safety warning signs, such
as "Caution — Wet Floor" shall be placed by the Contractor's employees each time such conditions exist that would
wanant placement of such signs. Signs are to be picked up and stored in the appropriate janitor room once the condition
no longer exists to warrant such signs.
20B-19
WEEKLY MAINTENANCE TASKS
Spray and Buffing of Hard Floors
Clean and restore a uniform glass and protective finish to restfient Vie or terrazzo floors that are finished with a floor finish.
All chairs, trash receptacles, etc., shall be tilted or moved where necessary to spray buff underneath. The entire floor
shall have a uniform coating of floor finish. All spray buff solution shall be removed from baseboards, furniture, trash
receptacles, etc.
Dusting of Blinds and Draperies
Clean all blinds, shades and draperies. Care shall be taken not to spread dust Into the air.
Dusting of Ceiling, Atrium Ledges. Lunchroom Drywall Ledges and HVAC Wall Vents
Clean all HAVAC vents and area immediately surrounding them. Dust all etrlum ledges at the glassAvood railing areas
and at the atrium stairs. Dust lunchroom drywall edges. Care shall be taken not to spread dust Into the air.
High Dusting
Remove dust, cobwebs, oily film, etc., from all Fixtures and surfaces above it feet from the floor surface. This would
Include lights, grills, light fixtures, pipes, sprinkler systems, cables, ledges, walls, atrium wood and ledges, ceilings, vents,
etc. Care shall be taken not to spread dust Into the alr.
Ross Annex Parking Garage
Inspect for and remove any gum from garage floor.
SPECIAL NOTICES
All furniture moved by the Contractor's or any Subcontractor's employees during the performance of any services shall be
returned to Its appropriate location. All Items such as trash receptacles or desk chairs that are moved to enable cleaning
underneath or around them shall be returned to their appropriate location.
Work areas shall be secured and equipment placed to prevent passage by the general public and City staff. All such work
areas shall be denoted as such. Work areas and equipment shall remain under this state/condition until all work is
complete, equipment is vacated and passage is safe for all. The proper quantity and type of safety warning signs, such
as "Caution — Wet Floor" shall be placed by the Contractor's employees each time such conditions exist that would
warrant placement of such signs. Signs are to be picked up and stored in the appropriate Janitor room once the condition
no longer exists to warrant such signs.
20B-20
MONTHLY MAINTENANCE TASKS
NOTE: Some Items In this section are noted(*) as being performed at Intervals other than monthly.
Respondents are Instructed to calculate those costs Into monthly figures for bidding purposes.
Carpeted Floors
Pile lift carpet floors In all areas.
Carpeted Floors — BI -Monthly
Spin bonnet all carpeted floors every two (2) months. `(calculate to monthly cost forbidding purposes)
January; March; May; July; September and November
Carpeted Floors — Semi-Amnllaliv'
Extract clean carpeted floors two (2) times per year. `(calculate to monthly cost for bidding purposes)
April and October
Tile Floors
Spray buff all file floors.
Tile Floors — Quarterly
Strip and wax all tile floors quarterly. '(calculate to monthly cost forbidding purposes)
Ross Annex Parking Garage—Annually
Clean the garage floor using West Extractor. Work to be performed after business hours at night or on weekend.
'(calculate to monthly cost for bidding purposes)
SPECIAL NOTICES
All furniture moved by the Contractor's or any Subcontractor's employees during the performance of any services shall be
returned to Its appropriate location. All Items such as trash receptacles or desk chairs that are moved to enable cleaning
underneath or around them shall be returned to their appropriate location.
Work areas shall be secured and equipment placed to prevent passage by the general public and City staff. All such work
areas shall be denoted as such. Work areas and equipment shall remain under this statelcondition until all work is
complete, equipment Is vacated and passage Is safe for all. The proper quantity and type of safety warning signs, such
as 'Caution — Wet Floor" shall be placed by the Contractor's employees each time such conditions exist that would
warrant placement of such signs. Signs are to be picked up and stored in the appropriate Janitor room once the condition
no longer exists to warrant such signs.
20B-21
20B-22