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HomeMy WebLinkAbout25B - AGMT REGIONAL TRANSPORTATION LEASEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: APPROVE A 43-MONTH LEASE AGREEMENT WITH SENATE, CALIFORNIA LEGISLATURE, FOR OFFICE SPACE AT THE SANTA ANA REGIONAL TRANSPORTATION CENTER TOTAL REVENUE: $275,200 (STRATEGIC PLAN NO. 3, 2C) CITY MANOtR RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1n Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a site lease agreement with Senate, California Legislature, to compensate the City $6,400 per month, with any partial month prorated at $206 per day, for the lease of 3,200 square feet of office space located at the Santa Ana Regional Transportation Center, for the 43-month term beginning on August 1, 2019, and ending February 28, 2023, for a total of $275,200 in lease revenue for the entire term of the agreement, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that brings together Amtrak, Metrolink, Orange County Transportation Authority, and interstate bus services. In addition, when completed, the OC 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 State Senate's 34th District expressed interest in leasing approximately 3,200 square feet of office space at SARTC. The 34th District includes the cities of Anaheim, Fountain Valley, Garden Grove, Huntington Beach, Los Alamitos, Midway City, Orange, Rossmoor, Santa Ana, Seal Beach and Westminster in Orange County, as well as part of the City of Long Beach in Los Angeles County. Santa Ana is the Orange County seat, and is centrally located within Senate District 34. There are currently 3,200 square feet of available office space at SARTC. By leasing available office space to the Senate, lease revenue will be generated for the SARTC day-to-day operations. 25B-1 Approve Lease Agreement with Senate, CA Legislature for Office Space at the SARTC June 18, 2019 Page 2 The City will complete tenant improvements to provide a safe and efficient use of space for 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 OC Streetcar 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 Senate, California Legislature, to compensate the City $76,800 annually for the lease of interior office space at the SARTC. The 43-month agreement term begins August 1, 2019, and ends February 28, 2023. The total anticipated revenue from this agreement is as follows: Agreement 43-Month Term FISCAL YEAR REVENUE 2019-20 $70,400 2020-21 $76,800 2021-22 $76,800 2022-23 $51,200 TOTAL $275,200 The proposed FY19-20 budget includes lease revenue in the amount of $70,400 into the PWA — SARTC Operations, Rental -Senate revenue account (No. 06717002-53827) and an appropriation of the same amount for expenditure as follows: Fiscal Accounting Unit Fund Accounting Unit -Account Year - Account No. Description No. Description Amount FY 2019-20 Jul -June y 06717650-62300 Regional Transportation PWA SARTC Operations — $70,400 Center Contract Services -Professional Total $70,400 25B-2 Approve Lease Agreement with Senate, CA Legislature for Office Space at the SARTC June 18, 2019 Page 3 APPROVED AS TO FUNDS AND ACCOUNTS: V /�ti�;64_, Fuad S. weiss, PE, PLS Kathryn Dowrfs, CPA Executiv Director Executive Director Public W rks Agency Finance and Management Services Agency FSSITC/MO/GL Exhibit: 1. Lease Agreement —Senate, CA Legislature 25B-3 25B-4 EXHIBIT I Senator Lease # SENATE, CALIFORNIA LEGISLATURE LEASE ALL INFORMATION REQUESTED IN THIS LEASE MUST BE COMPLETED PRIOR TO SIGNATURE OF THE SENATE RULES COMMITTEE: PREAMBLE - THIS LEASE, made and entered into this June 18, 2019, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing the Constitution and laws of the State of California, hereinafter called Lessor, and the Senate Rules Committee, California Legislature, hereinafter called State. WITNESSETH: The parties hereto mutually agree as follows: 1. DESCRIPTION - Lessor hereby leases unto State and State hereby hires from Lessor those certain premises situated in the City of Santa Ana, County of Orange, State of California, and more particularly described as follows: a portion of the premises located at the Santa Ana Regional Transportation Center (SARTC), 1000 East Santa Ana Boulevard, consisting of 3,200 square feet of office space, as more particularly described on Exhibit A. State agrees to take possession of the leased premises in an AS -IS condition and further agrees that, except as specified in Paragraph 23, Lessor shall have no responsibility for any repairs or improvements to the leased premises, prior to, or as a condition of, State's occupation of the leased premises. 2. TERM - TO HAVE AND HOLD said leased premises, together with the appurtenance, rights, privileges, and easements thereunto belonging or appertaining unto State, for a term commencing August 1, 2019,.and ending on February 28, 2023, with such rights of termination as are hereinafter set forth. 3. RENT — The total amount to be paid is as follows: $2.00 PER SQUARE FOOT for 3,200 SQUARE FEET. TOTAL MONTHLY RENTAL:.$6,400- with rental payable by State in arrears on the last day of the month, unless sufficient funds have not been made available in the annual budget act for the purpose of funding Senate Rules Committee Lease agreements. Rental payments will be made as soon as funds are made available under the annual budget act. 4. PREPAYMENT DISCOUNT - State shall have the right during the term of this lease to prepay rent to Lessor in a lump sum payment for any portion of the lease term. If this lease is terminated for any reason authorized herein prior to the end of the period for which the State had made prepayment of rent, the Lessor shall refund to the State that portion of the State's prepaid rent which is attributable to that period which commences on the effective date of the earlier termination and ends on the expiration date of the period covered by the prepaid rent. Rental payable hereunder for any period of time less than that for which periodic rental is paid shall be determined by prorating the rental herein specified for the applicable period by 30 days. 25B-5 5. NOTICES TO STATE -State agrees to pay the aforesaid rental to Lessor at the address specified in Paragraph 6, or to such other address as the Lessor may designate by a notice in writing to: Senator Senate Rules Committee - Facilities, Cheryl N. Watts 1020 N Street, Room 255 Sacramento, CA 95814 Tel. 916/651-1505 fax 916/414-3690 6. NOTICES TO LESSOR - All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: NAME: City of Santa Ana CONTACT: Executive Director, Public Works Agency ADDRESS: 20 Civic Center Plaza Santa Ana, CA 92702 With copy to Clerk of the Council (at same address) and to State at the address indicated in Paragraph 5. Nothing herein contained shall preclude the giving of any such written notice by personal service. 7. EARLY TERMINATION - The State may terminate this lease by giving notice to the Lessor at least thirty (30) days prior to the date when such termination shall become effective. At the option of the State, this lease shall terminate within thirty (30) days immediately following the death, resignation, or other removal from office of Thomas J. Umberg as a Member of the Senate. 8. JANITORIAL AND UTILITIES - Lessor shall furnish to State, during the lease term, at Lessor's sole cost, the following services and utilities: A. Janitorial services, including but not limited to, regular cleaning of office areas and restrooms, toilet supplies and waste disposal. B. All utilities except telephone and data/internet services/cable. 9. COMPLIANCE WITH LAW; REPAIR AND MAINTENANCE - During the lease term, Lessor shall maintain the leased premises together with appurtenances, rights, privileges, and easements belonging or appertaining thereto, in good repair and tenantable condition, except in the case of damage arising from negligence of State's agent, invitees, or employees. Lessor shall be liable for any damages sustained by State from the failure of the Lessor to maintain the leased premises in good repair and tenantable condition pursuant to this paragraph. 10. INSPECTION - Lessor reserves the right to enter and inspect the leased premises, at reasonable times, and to make any necessary repairs to the leased premises. 11. QUIET POSSESSION - Lessor agrees that State, keeping and performing the covenants and agreements herein contained on the part of State to be kept and performed, shall at all times during the existence of this lease peaceably and quietly, have hold and enjoy the leased premises, without suit, trouble, or hindrance from Lessor or any person claiming under Lessor. 12. DESTRUCTION - In the event the leased premises or any essential part thereof shall be destroyed by fire or other casualty, this lease, shall, in the case of total destruction of the leased premises, immediately terminate and, in case of partial destruction or damage, shall terminate at the option of State upon giving notice in .writing to the Lessor within fifteen (15) days after such fire or casualty, and no rent shall accrue or be payable to the Lessor after such termination. hm the event of any such destruction where the State remains in possession of said premises, the rental as herein r provided shall be reduced by the same ratio as the floor space State is thus precluded from occupying bears to the total space of the leased premises. 13. FAIR EMPLOYMENT PRACTICES - This lease is subject to the provisions of the California Fair Employment and Housing Act (Section 12900 et seq., Goverment Code) and in its performance the Lessor will not discriminate against any employee or applicant for employment because of race religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age. The Lessor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age. This action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection of training, including apprenticeship. The Lessor will permit access to his or her records of employment, employment advertisements, application forms, and other pertinent data and records by the Fair Employment and Housing Commission, and any other agency of the State of California designated by the Joint Rules Committee, for the purposes of investigation to ascertain compliance with this paragraph. The State may determine a willful violation of the Fair Employment Practices provisions to have occurred upon receipt of a final judgment having that effect from a court in action to which the Lessor was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that the Lessor has violated the Fair Employment and Housing Act and has issued an order, under Section 12970 of the Government Code which has become final. In the event of willful violation of the foregoing provision in the performance of this lease, and if the Lessor, within thirty (30) days after receipt of a written notice thereof from the State, fails to cure the breach, the State shall have the right immediately to terminate this lease and any necessary additional expense incurred by the State in securing space equivalent to the leased premises, including the additional rental, if any, shall be bome by the Lessor. 14. HOLD OVER - In the event State remains in possession of the leased premises after the expiration date of this lease, the State's continued possession shall create a tenancy from month to month with rental payable by State in arrears on the last day of each month in the amount specified in Paragraph 3. The tenancy created herein shall be subject to all other terms and conditions of this lease. 15. ACCESSIBILITY — A. AMERICANS WITH DISABILITIES ACT (ADA) — Lessor warrants that the leased premises to be used by the State in the performance of this lease are readily accessible to and usable by individuals with disabilities with respect to services, programs, and activities conducted by the State on the leased premised. In the event that Lessor makes alterations to any part of the leased premises used by the State, the alterations shall comply with the accessibility standards of the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.). In the event of violation of the foregoing provision in the performance of this lease, and if the Lessor, within thirty (30) days after receipt of a written notice thereof from the State, fails to cure the breach, the State shall have the right immediately to terminate this lease and any necessary additional expense incurred by the State in securing space equivalent to the leased premises, including the additional rental, if any shall be by the Lessor. B. CERTIFIED ACCESS SPECIALIST DISCLOSURE — Pursuant to Section 1938 of the Civil Code, the Lessor states that the leased premises: (check one) X have not undergone an inspection by a Certified Access Specialist (CASp). ❑ have undergone an inspection by a Certified Access Specialist (CASp), it was determined that the leased premises met all applicable construction -related accessibility standards pursuant to Section 55.51 et seq. of the Civil Code, and Lessor provided the State with a copy of all reports prepared by the CASp. 16. INSURANCE — The State represents that, as an entity of the State of California, it is self -insured against damages, injury and other forms of liability. Lessor or other parties shall not be named as an additional insured therein. 25B-7 17. ASBESTOS - Lessor hereby warrants and guarantees that the Premises leased to the State will be operated and maintained free of hazard from Asbestos -Containing Construction materials (ACCM), as that term is defined in Labor Code Section 6501.8. 18. SUBROGATION WAIVER AND INDEMNITY - A. SUBROGATION WAIVER — To the extent authorized by any fire and extended coverage insurance issued to Lessor on the herein damaged premises, Lessor releases State from liability for loss or damage covered by said insurance and waives subrogation rights of the insurer. B. INDEMNITY — (1) To the extent that Paragraph 18.A is not applicable, State agrees to indemnify, hold harmless and defend Lessor, its officers, employees, representatives and agents from any and all liability, claims, demands, actions, damages, costs and financial loss, including all costs and expenses and fees of litigation or arbitration, that arise directly or indirectly from any acts or omissions related to this Lease performed by the State or its agents, employees, or other persons acting on the State's behalf. This agreement to indemnify, hold harmless and defend shall apply whether such acts or omissions are the product of active negligence, passive negligence, willfulness or acts for which State or its agents, employees, or other persons acting on the State's behalf would be held strictly liable. (2) Lessor agrees to indemnify, hold harmless and defend the State, its officers, employees, representatives and agents from any and all liability, claims, demands, actions, damages, costs and financial loss, including all costs and expenses and fees of litigation or arbitration, that arise directly or indirectly from any acts or omissions related to this Lease performed by Lessor or its agents, employees, or others persons acting on Lessor's behalf. This agreement to indemnify, hold harmless and defend shall apply whether such acts or omissions are the product of active negligence, passive negligence, willfulness or acts for which Lessor or its agents, employees, or other persons acting on Lessor's behalf would be held strictly liable. 19. PARKING — State shall have the nonexclusive use of the parking area owned by Lessor at and around the leased premises; provided, however, State's agents, employees, customers and invitees for parking may not park in an area designated, identified, and/or reserved for parking by any other tenant or tenants, if any. State acknowledges that Lessor has entered into an agreement with the Orange Comity Transportation Authority for the construction of the OC Streetcar at SARTC, which has begun and is anticipated to continue through 2021. Such construction 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. 20. USE — For the purposes of this lease, State's intended use of the leased premises is strictly for office space. No other use of the leased premises shall be permitted without written consent of Lessor. 21. ASSIGNMENT AND SUBLETTING — State may not assign this lease or sublet the subject premises or any part thereof without the prior written consent of Lessor, which may be withheld at Lessor's sole discretion. Any assignment or subletting not in compliance with the provisions of this paragraph shall be a material breach of the lease, voidable and, at Lessor's option, shall terminate this lease. State assigning use of the office to a Senator other than Senator Umberg shall not constitute assignment or subletting under this paragraph. 22. DELIVERY OF LEASED PREMISES UPON TERMINATION OR EXPIRATION OF TERM — State agrees to deliver to Lessor physical possession of the leased premises upon the termination or expiration of this lease in the same condition as upon commencement of the lease, except for ordinary wear and tear. Any alterations, additions, or improvements affixed to the leased premises, except furnishings, equipment, and trade fixtures, shall, at Lessor's option, become part of the real property and belong to Lessor on expiration or termination of the term and any extension thereof. r 23. TENANT IMPROVEMENTS AND EARLY OCCUPANCY — A. TENANT IMPROVEMENTS - Prior to the commencement of the term of this lease, Lessor, at its sole cost, shall make all of the tenant improvements to the leased premises described in Exhibit B. The parties anticipate that the tenant improvements will be completed in July of 2019. B. EARLY OCCUPANCY - If the tenant improvements are completed before the commencement of the lease on August 1, 2019, the State may take possession of the leased premises upon completion of the tenant improvement. This early occupancy shall be subject to all of the terms and conditions of this lease, except that the State shall have no obligation to pay rent during this early occupancy period. 24. MISCELLANEOUS — A. AMENDMENT OF LEASE — This lease may be amended by mutual consent of the State and Lessor. An alteration of or variation from the terns of this lease is not valid unless made in writing and signed by the parties to this lease. B. WAIVER — No term or provision of this lase may be deemed waived and no breach excused, unless that waiver or consent is in writing and signed by an individual authorized to so waive or consent. Any consent by either party to, or waiver of, a breach by the other, whether express or implied, does not constitute a consent to, waiver of, or excuse for, any other breach or subsequent breach, except as may be provided expressly in the waiver or consent. C. FORCE MAJEURE — Except for defaults of subcontractors, Lessor and the State are not responsible for delays or failures to perform resulting from acts beyond the control of the nonperforming party. Those acts include, but are not limited to, acts of God, strikes, lockouts, riots, acts of war, epidemics, earthquakes, other disasters, governmental statutes or regulations imposed after the fact, and ancillary functions or utilities that are provided by a person or entity not a party to this lease. If a delay or failure in performance by Lessor arises out of a default of its subcontractor, and the default arises out of causes beyond the control of either Lessor or the subcontractor, without the fault or negligence of either of them, Lessor is not liable for damages for that delay or failure, unless the supplies or services to be furnished by the subcontractor were available from other sources in sufficient time to permit Lessor to meet the required performance schedule. D. TIME OF PERFORMANCE — Time is of the essence of this lease for purposes including the performance of services under any schedule established under this lease. E. ENTIRE AGREEMENT — This lease represents the complete and exclusive statement of the agreements between the State and Lessor with respect to the subject matter of this lease, and supersedes all prior agreements, proposals, representations, and other communications, written or oral, between the State and Lessor regarding this subject matter. The State and Lessor agree that there are no oral or written covenants, conditions, or agreements with respect to the subject matter of this lease except as set forth in this lease, F. GOVERNING LAW — This lease, and any amendments to this lease, shall be governed by and construed in accordance with the laws of the State of California. G. CONFLICT WITH EXISTING LAW — Lessor and the State agree that, if any provision of this lease is found to be illegal or unenforceable, that provision shall be deemed stricken and the remainder of this lease shall remain in full force and effect. Either party having knowledge of any such provision promptly shall inform the other of the presumed inapplicability of the provision. If the deletion of the illegal or unenforceable provision would substantially frustrate the purposes of this lease, the lease thereupon shall be terminated in a manner that is commensurate, to the maximum extent feasible, with the interests of both parties. 25B-9 IN WITNESS WHEREOF, this lease has been executed by the parties hereto as of the date first above written. LESSOR: SENATOR Member of the Senate LESSEE: SENATE RULES COMMITTEE of CALIFORNIA Erika Contreras Title: Secretary of the Senate Date: Date: ATTEST Norma Mitre Acting Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho, City Attorney AV Ig" -f., L JMn M. Funk Assistant City Attorney FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency 25B-10 EXHIBIT A 7 25B-11 EXHIBIT B Tenant Improvements Prior to the commencement of the term of this lease, Lessor, at its sole cost, shall make all of the following tenant improvements to the leased premises, which are shown in Exhibit A: 1. Remove the existing carpet and install new carpet throughout the leased premises (3,200 sq. ft.). 2. Repair damage to and paint the walls in the leased premises (5,000 sq. ft.). 3. Remove and replace ceiling tiles in the leased premises (3,200 sq. ft.). 4. Install new walls in the leased premises, as shown in red in Exhibit A (115 In. ft.). 5. Install new doors and frames for new offices and conference room (5 each). 25B-12