HomeMy WebLinkAboutItem 18 - Site Lease Agreement Amendments with Aldridge Electric, Inc. Public Works Agency
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Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 15, 2022
TOPIC: Site Lease Agreement Amendments with Aldridge Electric, Inc.
AGENDA TITLE
Approve Lease Amendment with Aldridge Electric, Inc. to Extend the Term Two Years to
February 19, 2024 with a One-Year Renewal Option, for a Total Amount of $370,527
(Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a third amendment to the site lease agreement
with Aldridge Electric, Inc. for the rental of office space to extend the lease for a two-year
period from February 20, 2022 to February 19, 2024, with a one-year renewal option, and
increase the monthly rate to $10,361, for a total amount of $370,527, subject to non-
substantive changes approved by the City Manager and City Attorney.
DISCUSSION
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 Santa
Ana Regional Transportation Center (SARTC) and a new transit hub at Harbor Boulevard
and Westminster Avenue in Garden Grove. The Orange County Transportation Authority
(OCTA) is the lead agency for the OC Streetcar project.
Aldridge Electric, Inc. is one of the contractors working on the OC Streetcar Project and
is currently leasing 4,934 square feet on the third floor of the Santa Ana Regional
Transportation Center. The lease agreement is due to expire on February 19, 2022 and
Aldridge Electric, Inc. has requested to extend their lease for two years with a one-year
renewal option (Exhibit 1). With the proposed extension, the monthly rental rate will
increase to $10,361.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
Site Lease Agreement Amendments with Aldridge Electric, Inc.
February 15, 2022
Page 2
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4
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7
FISCAL IMPACT
Lease Income in the amount of $370,527 will be deposited into the SARTC Operations
Rental – Aldridge Electric, Inc. revenue account (No. 06717002-53826) for future
appropriations.
Lease and License Agreement Term (February 20, 2022, through February 19, 2024)
Fiscal
Year
Accounting Unit
– Account No.
Fund
Description
Accounting Unit,
Account Description Amount
2021-22
(Feb-June)06717002-53826
Regional
Transportation
Center
PWA- SARTC Operations,
Rental – Aldridge Electric $44,510
2022-23
(July-June)06717002-53826
Regional
Transportation
Center
PWA- SARTC Operations,
Rental – Aldridge Electric $123,509
2023-24
(July-Feb)06717002-53826
Regional
Transportation
Center
PWA- SARTC Operations,
Rental – Aldridge Electric $78,999
Lease and License Agreement 1-year Renewal Option
(February 20, 2024, through February 19, 2025)
2023-24
(Feb-June)06717002-53826
Regional
Transportation
Center
PWA- SARTC Operations,
Rental – Aldridge Electric $44,510
2024-25
(July-Feb)06717002-53826
Regional
Transportation
Center
PWA- SARTC Operations,
Rental – Aldridge Electric $78,999
Total:$370,527
EXHIBIT(S)
1. Third Amendment to Site Lease Agreement with Aldridge Electric, Inc.
Submitted By: Nabil Saba, Executive Dir Public Works
Approved By: Kristine Ridge, City Manager
1
THIRD AMENDMENT TO LEASE AGREEMENT WITH
ALDRIDGE ELECTRIC, INC.
THIS THIRD AMENDMENT to the above-referenced agreement is entered into on February 15,
2022, by and between Aldridge Electric, Inc. (“Tenant”) and 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”).
RECITALS
A.The parties entered into Agreement No. A-2019-029, dated February 19, 2019 (“Lease
Agreement”), by which City leased to Tenant certain office space at the Santa Ana Regional
Transportation Center for Tenant’s business operations (“Premises”).
B. On June 18, 2019, the parties entered into First Amendment No. A-2019-029-01, by which the
City amended the Lease Agreement to expand the square footage of the Premises being leased
by Tenant and to provide for Tenant’s correct entity name.
C.On April 7, 2020, the parties entered into Second Amendment No. A- 2019- 029- 02 to expand
the square footage of the Premises, extend the Term through February 19, 2022, provide
additional extension periods of up to twenty-four (24) months on a month-to-month basis, and
increase the monthly rent to Eight Thousand Three Hundred Dollars ($8,300), with any partial
month prorated at $273 per day.
D.The parties now wish to further amend the Lease Agreement to extend the term of the Lease
for two years from February 20, 2022 with a one-year renewal option, update insurance
requirements and increase the monthly rent.
The Parties therefore agree:
1.Section 3, Commencement of Term, is amended to extend the Term of the Lease Agreement
from February 20, 2022 to February 19, 2024
2.Section 5, Extension Periods, is amended such that the Term of the Lease Agreement may be
extended by mutual agreement of the Parties for up to one (1) one (1) year renewal period. All
other terms of Section 5, as applicable, shall remain in effect.
3.Section 6, Rent, is amended such that, effective February 20, 2022, the Rent payable under
the Lease Agreement shall be the monthly sum of Ten Thousand Three Hundred Sixty-One
$10,361 per month, with any partial month prorated at $341 per day.
4.Section 17, Insurance, is hereby deleted in its entirety and replaced with the following:
Tenant shall procure and maintain for the duration of the contract insurance against
claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work hereunder and the results of that work by
the Tenant, his agents, representatives, employees or subcontractors.
EXHIBIT 1
2
A. MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01
covering CGL on an “occurrence” basis, including products and completed operations,
property damage, bodily injury and personal & advertising injury with limits no less
than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate
limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if
Tenant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with
limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: as required by the State of California, with Statutory Limits,
and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident
for bodily injury or disease.
If the Tenant maintains broader coverage and/or higher limits than the minimums shown above,
the City requires and shall be entitled to the broader coverage and/or the higher limits maintained
by the tenant. Any available insurance proceeds in excess of the specified minimum limits of
insurance and coverage shall be available to the City.
B. Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
1. Additional Insured Status: The City, its officers, officials, employees, and volunteers
are to be covered as additional insureds on the CGL policy with respect to liability
arising out of work or operations performed by or on behalf of the Tenant including
materials, parts, or equipment furnished in connection with such work or operations.
General liability coverage can be provided in the form of an endorsement to the
Tenant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available,
through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20
37 if a later edition is used).
2. Primary Coverage: For any claims related to this contract, the Tenant’s insurance
coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects
the City, its officers, officials, employees, and volunteers. Any insurance or self-
insurance maintained by the City, its officers, officials, employees, or volunteers shall
be excess of the Tenant’s insurance and shall not contribute with it.
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3. Notice of Cancellation: Each insurance policy required above shall provide that
coverage shall not be canceled, except with notice to the City.
4. Waiver of Subrogation: Tenant hereby grants to City a waiver of any right to
subrogation which any insurer of said Tenant may acquire against the City by virtue of
the payment of any loss under such insurance. Tenant agrees to obtain any endorsement
that may be necessary to affect this waiver of subrogation, but this provision applies
regardless of whether or not the City has received a waiver of subrogation endorsement
from the insurer.
5. Self-Insured Retentions: Self-insured retentions must be declared to and approved by
the City. The City may require the Tenant to purchase coverage with a lower retention
or provide proof of ability to pay losses and related investigations, claim
administration, and defense expenses within the retention. The policy language shall
provide, or be endorsed to provide, that the self-insured retention may be satisfied by
either the named insured or City.
6. Acceptability of Insurers: Insurance is to be placed with insurers authorized to
conduct business in the state with a current A.M. Best’s rating of no less than A:VII,
unless otherwise acceptable to the City.
7. Claims Made Policies (note – should be applicable only to professional liability,
see below) If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown, and must be before the date of the contract
or the beginning of contract work.
b. Insurance must be maintained and evidence of insurance must be provided for
at least five (5) years after completion of the contract of work.
c. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a Retroactive Date prior to the contract effective date,
the Tenant must purchase “extended reporting” coverage for a minimum of five
(5) years after completion of work.
8. Verification of Coverage: Tenant shall furnish the City with original Certificates of
Insurance including all required amendatory endorsements (or copies of the applicable
policy language effecting coverage required by this clause) and a copy of the
Declarations and Endorsement Page of the CGL policy listing all policy endorsements
to City before work begins. However, failure to obtain the required documents prior to
the work beginning shall not waive the Tenant’s obligation to provide them.
The City reserves the right to require complete, certified copies of all required insurance
policies, including endorsements required by these specifications, at any time.
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9.Special Risks or Circumstances: City reserves the right to modify these requirements,
including limits, based on the nature of the risk, prior experience, insurer, coverage, or
other special circumstances.
5. Except as modified by this Third Amendment, and the First and Second Amendments, all terms
and conditions of the Lease Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to Lease
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
_______________________________ ______________________________
Daisy Gomez Kristine Ridge
Clerk of the Council City Manager
APPROVED AS TO FORM ALDRIDGE ELECTRIC, INC.
SONIA R. CARVALHO, City Attorney
By:___________________________ _______________________________
Jose Montoya Gene Huebner
Assistant City Attorney Chief Financial Officer
RECOMMENDED FOR APPROVAL
________________________________
Nabil Saba
Executive Director
Public Works Agency