HomeMy WebLinkAbout25G - OFFICE SPACE AT DEPOT
CITY COUNCIL MEETING DATE:
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REQUEST FOR
COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
OCTOBER 3, 2005
TITLE:
APPROVED
LEASE AGREEMENT WITH STATE
CALIFORNIA EMPLOYMENT
DEVELOPMENT DEPARTMENT -
THE DEPOT AT SANTA ANA
OF
o As Recommended
o As Amended
o Ordinance on 15t Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
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CI Y MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute a lease agreement with the State of
California Employment Development Department (EDD) for office space at
The Depot at Santa Ana.
DISCUSSION
In 1998, the Workforce Investment Act (WIA) enacted changes to the way
that workforce programs were delivered at the local level. WIA
consolidated delivery of all workforce programs into one-stop centers.
To meet this requirement, Santa Ana developed the Santa Ana W/O/R/K
Center. The main partner in the implementation of the W!O!R!K Center was
the California Employment Development Department. For the past five
years EDD has leased space at The Depot from the City. In order to
continue this partnership, the EDD office has requested a new five-year
lease with the City.
The lease agreement (Exhibit 1) would be for Suite 103 and portions of
Suite 220 on the second floor. The total office space leased by EDD will
be 5,246 square feet. The starting monthly lease rate for the lease will
be six Thousand Six Hundred Ten Dollars ($6,610) with annual rental
increases as follows: (Year Two = $6,820; Year Three = $7,030; Year Four
= $7,240; Year Five = $7,449).
The continued lease with the State of California EDD at The Depot will
result in revenues of at least $79,320 annually and would continue the
streamlined access, which the clientele and patrons now receive at the
Santa Ana W!O/R/K Center.
25G-1
Lease Agreement with State of
California EDD - The Depot at S.A.
October 3, 2005
Page 2
FISCAL IMPACT
The City will receive the initial amount of $79,320 annually, with rental
amounts increasing to an annual amount of $89,388 or up to $421,788 over
the full term of the Lease Agreement. Funds received will be deposited
into Rental-State of California EDD Revenue Account (account no. 067-01-
5506) .
APPROVED AS TO FUNDS AND ACCOUNTS:
IIJ . /) /1)
~~~ ~ C-ttljL/~
~rancisco Gutierrez f~
Executive Director
Finance & Management Services Agen~r-
Patricia C. Whitaker
Executive Director
Community Development Agency
PCW!CF/LS!mlr
H:\ACTIONS\2005 CC\LeaseAgreewithStateofCaliforniaEDD-DePOT lO-3-05.doc
25G-2
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STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
REAL ESTATE SERVICES DIVISION
STANDARD LEASE FORM
LEASE COVERING PREMISES LOCATED AT
1000 E. Santa Ana Boulevard
Santa Ana, CA
LESSOR'S FED. TAX. I.D. NO. OR SOCIAL SECURITY NO.
N/A
File No.: 4811-001
Project No.: 113840
TENANT AGENCY
Employment Development Department
Preamble
Description
Term
Early
Termination
THIS LEASE, made and entered into this 8th day of Au gust, by and between
hereinafter called the Lessor, without distinction as to numb~~ 0;' gender, and the State of California, acting by and
through the Director of the, D~partment of Gerieral Services, hereinafter caIle4 the State;
, -~-,~
1. The Lessor hereby leases unto the State and the State hereby hires from the Lessor thos~ certain premises with
appurtenances situated in' the City. of Santa Ana:. County of Ora..,ge: State of California, and more particularly
described as follows: . .
Approximately 5.45 I aet-asa9l&-square feet of leased office space including 2.135 square feet of space for the
exclusive use of the State and 3,3 16 square feet of space which is shared between the State and Sublessor all on the
first and second f1oor~ of the building Iocateg at 1000 E. Santa AmlBoulevard, Suites 130 and 220. Santa Ana.
California. as outlined in red ('exclusive") and green ("shared") on the attached Exhibit "N' plan, together with
specifications marked Exhibit "B"and lessor compliance procedures marked Exhibit "C", said Exhibits "An and "BI<
flfld--!!G.!!, Project No. 113840 dated May 18. 2005. hereby being incorporated into this lease,and including twenty-two
(22) nonexclusive unobstructed parking spaces contiguous to the subj~ct building, and unlimited ~se of the building's
common facilities. '
. -' '. - -
2.Thetermpfthi~ I~liSe~~~I'CO~e~Ge~~nA~r!ust 1 :2005"and;sl1~Il e~d;()~.Julv31, 20 I 0, with such rights of
terri\:in~tionas,~ay be he~<tinafterexpiessIYsetforth>
5;~ fd(-l-'1 . ..... .... ....... ....... ". ..........,;. !i'!
_~~: gtatil.ft1ayt.e....r.minlit~th. .i~......leas.e...at.. a'n..Ytimee.ffestiVe?...n....cira.tt~r.JUly 31. 2007. by giving written notl.'ce to _
the . ~ast thirty (30) days prior to the date when such termination shall become effective. If the State fails to
complete its move out withiri the notice periodand remains in the premises, additional rent shall be paid and prorated
on a thirty (30) day month, based on the actual number of days the State occupies the premises following the effective
date of termination.
EXHIBIT 1
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25G-3
Page-I
"
Rent
" .
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4. Rental shall be paid by the State in arrears on the last day of each month during said term as follows:
!!o/-r
Sl~ T~
SIX THOUSAND ffi6tt'f'HUNDRED SfK'rV -12TG.J.HO AND NOll 00 DOLLARS
( 1/ r;, ~ I 0 ~) +$~68.e8) from August L 2005 through Julv 3 L 2006. then:
Six &i!;!;,Nv/)drt,I ~&vt'1
~THOUSAND PJo..TTY FOU ANlJ"NOIlOO DOLLARS
(i 6 82-0 f1J ~':l.Q71.,ee)fr....o..m A..U.....g..u... st.I.....2....0.. O.~....~liI"o.u.. ~h.J.U.lV.......3....1....2......0...0.'7... ..th..... e.......~..:...
....... '~;..~<>........... .......... .
SEVEN THOUSAND RT.'O 1m D EiGHTY ,)IxANnN~;l()b DOLLARS
(# ~ 030 .~~~~~'~~~>~;,A~~" lj2q~:!~O,"~~tl:~I~~OO:: th'f~,'rrt
SEVEN THOUSANDi~~HUNDREn~~ANDNO/IOO DcmLARS .~"
(fJ *..2-. .~O.?i($...7...... jQ1.Q...9)fro..rnAUgUst 1,2008 through {~lv 3 L 2?09. the;; ...... . ".>'<..> .'
. .' . . .... h.Ur . r:07%f;/'J~. ,.' .j'
, .' SEVEN THOUSAND ~ HUNDRED TIll _ _ AND NOll 00 DOLLARS>
(f1-i.."-ICj~)$'7:1)8.80) from August L 2009 through Jul~ 31. 201O./}j'jj'i>\
. .
. ..,;':::: . ,'. . . .....;::-_---i:::~.:;:::-;': _ _ _ ----:.:::::."' i .':':}::-:-:.->' -'.- ". ..--:
Rental payable hereunder for any period of time less than one mtmth shall be determined by prorating the
monthly rental herein specified based on the actual number of days in the month. . Rental shall be paid to Lessor at the
address specified in Paragraph 5 or to such other address as the Lessor may designate by a notice in, writing. If the
premises are not complete pursuant to Paragraph 6 by the date shown iIi Paragraph 2, it IS understood and agreed by
and betweenth6 parties that, at the State's sole option, the dates shown in Paragraphs 2 and 3 and the. dates. and dollar'
amounts shown in Paragraph 4 may be adjusted to the first of the month following the State's acceptance of the
completed premises, such acceptance shall not unreasonably be withheld., If the State exercises this option, it is agreed
the State wjl1 complete unilaterally an amendpent to the. lease to revise the herein above sta.ted dates. . Any accrued
rents for the period of time prior to the unilaterally adjusted commencement date will be paid in accordance with
Paragraph 8. Additionally, it is understood and agreed between the parties that, atthe State's option, the dates shown
in the "CPI Escalator Operating Expenses" paragraph, if incorporated herein, shaH be adjusted to reflect the time delay
between lease commencement and the first of the month following the actual acceptance date. In the event this lease
agreement contains a provision granting the State an Option to Purchase the premises, it is further agreed herein by the
parties that, notwithstanding the provision of the Option' to Purchase par\igraph herein, the effective dates and
corresponding purchase option prices of said Option to Purchase shaH be adjusted consistent with any adjustment to
the lease commencement date, as stated above, which initial purchase option date shall in no event be less than
twenty-four (24) months nor more than thirty-six (36) months from the "adjusted" corhmencement date. Said
"adjusted" purchase option dates shaH be established consistent herewith and incorporated into said lease with a
unilateral amendment by the State.
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25G-4
Page-2
". ,
Notices
and to the State:
Completiorrand ,
Compliance with
Plans and
Specifications
Notice of
Completion and
Access to Premises
during
Construction
" .
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5. All notices and correspondence herein provided to be given, or which may be given by either party to the
other, shaII be deemed to have been fulIy given when made in writing and deposited in the United States Mail,
certified and postage prepaid and addressed as follows:
To the Lessor
City of Santa Ana
Downtown Development Division
116 A Wesf4thStreet: Suite 6
Santa Ana. CA92701
Phone No. (714) 647-6556
FAX No. (714) 647-6939
DEP~ll.TMtN:Y?fGENiRAL.SERVICES,
REAL~ST A.1'ESERVIC]J:S DIVISJ9N
~]J:A.SEl\1ANA.GEMENT!! ..4811-001
707 TIlIRDSTREET, SUITE 5-305
WEST SACRAMENTO, CA 95605
PHONENm\ (916) 375-4172
(91Q) 375-4173
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ALL NOTICES AND CORRESPONDENCE MUST REFERENCE
TENANT AGENCY AND PREMISES ADDRESS'
Rental warrants shaH be made payable to:
. Citv of~antaAna'
Citv of Santa Ana
. Downtown Development Division
:l:16 A W~ 4~h Street, Suite 6
Santa An:a,CA 92701
Nothing herein contained shall preolude the giving of any such written notice.by personal service. The address to
which notices and correspondence shall be mailed to either party maybe changed by giving. written notice to the other
party.
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6. L~ssor agrees that, prior to August L 2005. and:t~essoi'ss~f5>c~~t and expense, alIJeq~ifed construction,
improvem~~ts and/or alterations; if.any, shaH be 90mpleted apd the leas~,q, ~fe~ises made rsa~)i f9r. State's occupancy
in fuII complia,nce wit~E~i~it:"An\, consisting; of two (2) sheets titlSdir9.ffice Quarters,rrojsst No. 113840" dated
Mav ,18. 2005. andinacco~ganc~'1ithE){hibiFnB'" SOl'l~isting or fo~r~4) pages, titled,Sh?rt Form Specifications,
Project No. 113840'! dated May 18. 2005. which Exhibits nA",.and.. "B" are by this referen.ce incorporated herein.
7~Les~ors~aH notif)iJI1~StateillwritillgbY certifisdIl1~il.oqhe datetile\eased premises wiII be completed and
ready for 9fcuPancr at lea$t thirty (30) dars PfiorJher~to; Sl.!chn~~ise ~haHbe. ,~ condition precedent to the accrual of
rental hereunder,:xceptpowever, that if the Stlite occ~pie~.~efrSIIlises.Brior to the receipt of such notice or prior to
the expiration of the notice period.ofsuch notice, rental $ha,ILcommence to accrue as of the date of occupancy.
Following execution of this lease, and riot more than sixty days (60) prior to completion of construction and
occupancy under this lease, State or its contractors or other representatives shaII have the right to enter the premises for
the purpose of instalIing certain equipment such as, but not limited to, modular system furniture, and electrical and
telecommunications cabling and equipment.
State agrees to indemnify and hold Lessor harmless from and against any claims, damages, or other injury
suffered by Lessor as a result of the work to be performed pursuant to this right to enter the premises prior to State's
acceptance and occupancy of the premises. Lessor agrees to indemnify and hold State and its agents, contractors or
other representatives harmless from and against any claims, damages, injury or other harm suffered by reason of the
negligence or other wrongful act of Lessor or any of Lessor's agents, contractors, or other representatives.
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25G-5
Page-3
Early <}ccupancy
Time limit and
Prior Tenancy
" .
{'.
In no event shall the exercise of this right of entry be construed so as to cause an acceleration of the occupancy
date of this lease or the obligation of the State to pay rent.
Lessor and State shall each make all reasonable efforts to ensure that the respective construction and installation work
is scheduled in such a manner so as to not interfere with or delay the other.
In the event that one or the other party causes a delay in the other party's work, such injured party shall be
compensated in the followingmarinel":
Delavs cau~~d bvthe~essor:/ .,..., .. " ii" '<i "., ", "','..
Credit !p-e Sta.!e acomp~nsa.ting4liY of delay in the occupancy date li"d correspoIldiIlg day of delay in payment of rent.
Dela.yscaused by the~t~t~:/ ..' ," ,i>i '..'" ,Z"
Cr~dit the ~~ssor a c?mpensatin~dayofpayment of;ent from the actua.l qat~,of OCCUpanCy.
Compellsation will be in one day increments.
Tliepafties agree that this shall be the sole remedy for delay~ in th~!Q1et~9.ulatiOIi 6fdamagdinany,other manner is
too uncertain and not susceptible of accurate determination.
, . .' . '.,'.' . . '. .."
8. Lessor agrees that if the leased premises are ready for occupancy prior to tlie completion date specified above
in Paragraph 6, State may elect to occupy the premises on the earliest date practical after its receipt of the herein
required completion notice. The rent payable for any such early occupancy by the State shall be at the rate of
SIX THOUSAND EIGHT HUNDRED SIXTY-EIGHT AND NOlI 00 ($6.868.00) per month, and shall be prorated on
a daily basis for any partial month.
9. No rental shall accrue under this lease,. nor ~hall the State have any obligation to perform the covenants or
observe the conditions herein contained until the leased premises have been made ready for occupancy in accordance
with the provisions hereof. It is specifically agreed that in the event the leased premises are not completed and ready
for occupancy by the State on or before AUgust L 2005, then and in that event the State may, at its option and in
addition to any other remedies it may have, terminate this lease and be relieved of any further obligations hereunder,
providing that a fair and reasonable allowance for the following delays shalf be added to said time for completion:
A. Acts of the State, its agents or employees, or those claiming under agreement with or grant from the State;
. orby ,
B. The acts of God which Lessor could not reasonably have foreseen or guarded against; or by
C. Any strikes, boycotts, or like obstructive actions by employees or .!abororganizations and which are
beyond control of Lessor, and which cannot be reasonably overcome; or by
Restrictive regulations by the Federal Government which are enforced in connection with a National
Emergency. '
In the event that the Sta.t~electsto?~~up?, prel11ise~befoiethe\\l9~k on the premises specified in Exhibit A and B is
fully completed, the State will providethe Lessor ""ith li punch list of work remaining to be completed (referenced as
the State's "Punch List"). Lessor agrees that Lessor shall complete the remaining work no later than 14 calendar days
from the date of receipt of said Punch List. If said Punch List is not completed within the specified 14-day period,
Lessor agrees that, beginning on the first day after said 14-day period following occupancy of premises by the State,
rent may at the State's sole option be reduced to FOUR THOUSAND EIGHT HUNDRED SEVEN AND NOIIOO
($4,807.00) which is Seventy Percent nO%} of the base rent specified in paragraph 4 herein (excluding any
amortization payments) until such time that the Punch List work is completed in full and that such completion of work
is inspected and accepted by the State. The portion of the rent specified for amortization of tenant improvements, if
any shall continue to be paid in full without interruption.
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25G-6
Page-4
Conformity to
Exhibits
Asbestos
and
....
It is understood and agreed that the rent reduction specified above does not relieve Lessor of its obligation to
complete said work and the State shall maintain all other remedies specified in the Lease.
It is understood by all parties hereto that it shall be the Lessor's responsibility to remove any prior tenant.
10. Occupancy of the leased premises by the State shall not relieve Lessor in any respect from full compliance at
all times with aforesaid Exhibits "~"illld"~n.~t is further understood and agreed that any installation not in
conformity with said E~il)its"A"illld "B',' ,shall be iIllmediat~lr corrected by the Lessor at Lessor's sole cost and
expense. In the event Le~~or sh~ll, after noticejI) wri~in,g from, theSta~: requiring the Lessor to comply with the
requiremen~~ofthisP<l.I"ll.graph ip reg<l.I"d to a sp~cif\ed qOIldition, f(iil~refiJseor.~eglect to remedy such conaition, State
may tegninate thisleas~~itho~tfurtht:robligatiQn, or as to suc~>specifi~9Tqeditioe' at its option and in addition to
any.other remedY!l1~ St(iteITIay, h~ve,withb:old .l'entd~t: ilIld Qring!l1~ leas~dpremi~es into conformity with said
~xhibit~atits own costincl1.ldingState's Administrative costs, i{an,Y',and dedllqtthe anlOmlt thereof from the rent that
m<iY then b~ or thereafter becomedue her~under.
":",.:.. .....:. ....,
I L(Lessorhereby warrants and guarantees that the space leasedtqthe Stat~~in;be ope:ated>ilIld maintained free
.o(hlJ,Zarefn.Jm Asbestos Containing Materials (ACM) and agrees;~?ftlET?pdi~ionsfor.~uf\'eY1 te~tiI:!g, and abatement
o:ACM described in Exhibit "B" as applicable. L~ssor specificall?,.~~rE9s!l1at, in the~ve~t~e Stll.~e elects to exercise
its .l'ights under the provisions of Paragraph 16 of~is lease'ill1t'.Tostsir~!ll.ted toabatt:meIltor hazard from asbestos
shall be the Lessor's responsibility as described inthe,afqreIl1e,ntioIl~Cigxhi1:)it"B."
. 12. Lessor, at Lessor's sole cost and expense, shall clearly marIc provide the parking spaces described hereinabove
as assigned provided to the State of California.. Said parking spaces will be arranged and maintained so as to provide
unobstructed access to each parking space at any time. In aaditioR to any .assigned parking spaces, State and its
invitees shall have equal access to common spaces provided to all tenants on a first-come; first-served basis.
..............,....'::......::..:.....,:.. .....'...:..".;..::...::;..,.::.:.:.\....:..:....
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,'13. Lessor, at Lessor's sole cost and expense, during the.term of this lease shaH furhish the following services,
utilities, and supplies to the area leased by the State, and also to the "common" building areas (if any) such as lobbies,
elevators, stairways, corridors, etc., which State shares with other tenants, if any:
A Sewer, trash disposal, and water service, including both hot and cold water to the lavatories except
lavatories in Employment Development Department public toilet rooms in lobby areas which need only
cold water.' . .' . ,
B. Elevator (if any) service. ' . .
C. Electricity and/or gas as necessary to provide power for heating, ventilating, and air conditioning, and
electrical or gas service as needed for State's operations. ..,. ,
D. Janitorial services sufficient to maintain the interior in a clean well-maintained condition; that is, to
eliminate all visible dust, dirt, litter, grime, stains, smears, finger marks, etc., to the greatest practical
degree possible, by performing at least the following:
Daily:
(1) Empty illld cleahaIltql:~cQ?t<iiners'iUld disp(js~ pt all trash and rubbish.
(2) Clean and maintain)na, sanitary and odor-free condition all floors, wash mirrors, basins, toilet bowls,
and urinals.
(3) Furnish and replenish all toilet room supplies (including soap, towels, seat covers, toilet tissue, and
sanitary napkins). Furnish and replenish paper towel supply in all areas oftbe leased space.
(4) Sweep or dust mop all hard surface floors, and carpet sweep all carpeted areas, including stairways
and halls. Offices with hard surface floors in the public lobby area shall be damp-mopped daily.
(5) Remove finger marks and smudges from all glass entrance doors.
(6) Specifically check, and ifaction is needed, then:
a. Dust the tops of all furniture, counters, cabinets, and window sills, (which are free of interfering
objects).
b. Remove spots and/or spills from the carpets, floors, and stairways.
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25G-7
Page- 5
. I ~ .
As needed, but not less frequently than:
Twice Weekly: Vacuum all carpets.
Weekly:
(1) Damp mop all hard surface floors.
(2) Dust all windowblinds.
(3) Treat stainless steelfountains and sirtks.to eliIIlinatestains and mineral deposits.
(4) Spot clean the \Valls.
Quarterly:
(1) Strip all hard surface floors and apply a new coat of flool" finish; buff as necessary to produce a
uniformly shining appearance.
(2) Treat carpets for static electricity control (if not integrated in tne fabric).
Semi-antlually: Wash all windows, window blinds, lighff~tures, walls, and painted surfaces.
Annually:
In the event of failure by the Lessor to furnish any of the above services or supplies in a satisfactory manner, the
State may furnish the same at its own cost; and, in. addition, to any other remedy the State may have, may deduct the
amount' thereof, including State's administrative costs, from the rent that may then be, pr thereafter become due
hereunder. ". . . ,
Repair and
Mainttlnance
14., A., During the lease term, the Lessorshallmaintai~. thelel:lSedpremises in .", good repair and tenantable
condition, so as to minimize breakdowns and loss ofthe State's useofthepreirlises caused by deferre,d or. inadequate
maintenance, i~cluding, but not limited to:
(IJ Generally maintaining the leased premises in good; v~rmin-free, operating condition and appearance.
(2) Furnishing prompt; good quality repair of the building, equipment, and appurtenances.
(3) Furnishing preventative maintenance, including, but not limited to, manufacturer's recommended
servicing of equipment such as elevator (if any), heating; ventilating and air conditioning equipment,
and fixtures.
(4) Furnishing ongoing maintenance and prompt repair of any and all special equipment and systems
referenced in Exhibits A and B including but not limited to, security and access control systems, fire
suppression systems, special HVAC systemsfor computer rooms, and UPS systems.
(5) Furnishing andpromptIyreplacirig any inoperative light bulbs, fluorescent tubes, ballast, starters, and
filters for the heating, ventilating and air conditioningeqtlipment as required.
(6) Furnishing remedial painting as necessarY~ tomaintairi the premises iH a neat, cleaH and orderly
condition.
(7) Annual testing and maintenance of all fire extinguishers in or adjacent to the leased premises.
(8) Repairin); and replaein); as necessary iutrabuildiH); Het'Nork 6Gble and inside '.'lire cable used for voice
and data transmission.
(9) Repairing and replacing parking lot bumpers and paving as necessary. Repaint directional arrows,
striping, etc., as necessary.
(10) On a weekly basis, sweeping parking areas and sidewalks, maintaining landscaped areas, including
sprinklers, drainage, etc., in a growing, litter-free, weed free, and neatly mowed and/or trimmed
condition.
(ll)Repairing and replacing floor covering as necessary. Lessor, at Lessor's sole cost, shall arrange for
moving of furniture and equipment prior and subsequent to the repairing or replacement of floor
covering.
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25G-8
Page-6
Painting
.)f- Each-
'CJ(t>l\fi b~ .
{o ~ d-/.krdio~
k /{.d>e-J P('t/Y\I!>O.
c!JtilJ / -
--
Assignment and
Subletting
I'.
(12) Keeping all walkways, parking lots, entrances, and auxiliary areas free of snow, water, oil spills,
debris, or other materials which may be hazardous to users ofthe building.
B. Lessor shall provide prompt repair or correction for any damage except damage arising from a willful or
negligent act of the State's agents, employees or invitees.
C. Except in emergency situations, the Lessor shall give not less than 48 hour prior notice to State tenants,
when any pest control, remodeling, renovation, or repair work affecting the State occupied space may
result in employee health concerns in the work environment.
D. In case Lessor, after notice in ~ritin~fromthe State requiring the Lessor to comply with the requirements
of this paragraph inregardto a specified COlldi~io~,~h~llfail,~;fuse or neglect to comply with such notice,
tl1e, t:\,~nt of ~ em~rgency ~onstituting a hazard t.o .the he?it~ or safety of the State's employees,
pr.operty, ori~xitees,t?e State may terminate this lealiewithoutfurtHerpbligation or at its option, perform
such m~i~tenfll1ce or make sucH repair at itS?'7n cost and it ill addi~iol1 to any other remedy the State may
have, ma~ withhold rent due and deduct the amoulltJhereof, j~c!pding l1ece~sary costs incurred by the
~tate required for th~ admini~trationofsuch maintenance and repairs, from the[ent that may then be or
thereafter become due hereunder.
. 15. In addition to any painting completed prior to the commencement of this lease, and touch-up painting required
after initial occupancy upon receipt of written request from the State, Lessor'agrees at Lessor's sole co~t and expense to
repaint all painted surfaces ([X] interior and [ ] exterior) of the leased premises in accordance with the attached
Exhibits "A" and "B". In no event shall Lessor be required to repaint more than once during the first sixty (60) month
period of this lease after the painting compil::ted prior to the commencem~nt, date,and once during any succeeding
sixty (60) month period. Lessor shall, within forty-five (45) days from the g~ving Of any such notice, arrange for and
complet~ the painting. Colors are to be approved by the State.. Lessor,' at Lessor's sole cost, shall arrange for moving
of furniture and equipment prior and subsequenUo the repainting, and provide drop cloths, and covers as necessary.
16. The, With the Lessor's prior approval. which shaH not be unreasonablv withheld. State shaH have the right
during the existence of this lease to make change orders and alterations; attach fixtures; and erect additions, structures,
or signs in or upon the leased premises. Such fixtures, additions, structures, or signs so placed in or upon or attached
to the premises under this lease or any extension hereof shall be arid remain the property of the State and may be
'-':":''''''..,-,'->:, ,".-,', - --"-'-'?' -;,,?-.':,',':"',---
removed therefrom by the State prior to the termination or expiration of this lease or any renewal or extension hereof,
or within a reasonable time thereafter. .
*' I~ t~ ~v~t ~te"rtion'. [",I..". "~it\oo,. <tructu,,,. "0' ,ign, '" Pi p~~~,"~ Ie"','; p"mi"L~~ "1:;i"*t;s~ ~/
and State elects not to perform the work, any such work, when authorized in~~Y the State shall be performed by-/-
the Lessor in accordance with plans and specifications provided by State. I . a~ to obtain competitive bids
from at least three licensed contractors and to contract with the lowest bidder. Lessor further agrees that the overhead
and profit for the work shall not exceed fifteen percent (15%) total for Lessor and any general contractor combined.
Within forty-five (45) days after receiving Lessor's notice of completion of the requested work and an invoice
requesting payment therefor, together with a complete detailed accounting of all costs for each trade, State agrees to
either reimburse Lessor by a single total payment for the cost of such work; or, with Lessor's prior written approval,
State will amortize the cost of the requested work over the remaining term of this lease by increasing the monthly rent
by an amount to include principal and interest on the unpaid balance. The interest rate may not exceed the prime rate
(the base rate on corporate loans posted by at least seventy five percent (75%) of the nation's 30 largest banks) plus 2
percent (2%) as of the date of the State's written authorization to proceed.
In the event State terminates this lease on or after the end of the firm term, but before the expiration date of the
lease, State agrees to pay to Lessor the portion of the principal balance which is unamortized as of the effective date of
termination. Said payment shall be a single payment to be made within forty-five (45) days after the effective date of
the termination.
17. The State shall not assign or sublet this lease without prior written consent of the Lessor, which shall not be
unreasonably withheld, but shall in any e'lent have the right to sublet the leased premises.
~
25G-9
Page-7
Quiet Possession
Inspection
Destruction
Subrogation
Waived
Prevailing Wage
Provision
18. The Lessor agrees that the State, while keeping and performing the covenants herein contained, 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 the Lessor or any person claiming under Lessor.
19. The Lessor reserves the right to enter and inspect the leased premises at reasonable times, and to render
services and make any necessary repairs to the premises.
20. If the leased p~~ITlises ar~t()ta.llydestroyed b~~reor other c~sualty, this lease shall terminate. If such casualty
shall render 10 >Rsrcent(l?%) ?r:lss~>of the floor space, of the leaseqpr~mises unusable for the purpose intended,
Lessor shalleffect.restqration of the premises as q~icklyas is reasonably possible, but in any event within thirty (30)
days.
;' " -"':.-' '
I~ ~e e)'ent suchca~ualtyshall render more than ten ~etce:Ilt (19~)~fS~th>fl~orspacegnusable but not constitute
t()tajdestruction, ~e~~()r shall f00lJ.with givs n?tice t? St~te of the~pecifIcnl1inber of q~y~.reCl~ired to repair the same.
IfLes.~orunder;such circumstances shall not give s~6h notice within fi~ee~p5) ca~~!'l>~~ ~a,ys~fter such destruction,
0: if such ..notice shall specify that such repairs will require m?rei~a~>~in~ty{?O)payst()>p()~p!.ete from date such
!'l?fitS i~giyen, State, in either such event, at itsioption mayte,~i!'l~}S\thi~.le~~~ o:~\upon.j?ticR to Lessor, may
m" a, in"t.a, in occupancy and elect to undertake the re,p,airs its, e,l.f""", d, e"d..."u.,.pt"l,.ng,.".."."t"..,h"e cost tll.eieof from tl1erental due or to
'..becoine due.under this lease and any other lease betWeen Lessl)t .(lJ}d St~t~. .,'.' .,.' .
......,_.,i ,....,:...."
In the event of any such destruction other than total, where the' State. has not. terminated the lease as herein
provided, or pursuant to the terms hereof has not elected to make the repairs itself, Lessor shall diligently prosecute the
repair of said premises and, in any event, if said repairs are not completed withiri the period o(thirty (30) days for
destruction aggregating ten percent (10%) or less of the floor space, or within the period specified in Lessor's notice in
connection with partial destruction aggregating more than ten percent (10%), the State shall. have the option to
. terminate' this lease or complete the repairs itself: deducting the cost thereof from the rental due or to become due
, imder thiS"leaseiuid any other lease between Lessor aHd State.
"':':""':,,:-:',-. .<:,
.......:::...-;.i,.'.'...-.. -'''''''' ."_"'._' :",-', ,'.
,',,' .,.:...-....,.:.'. ':" ...... ".... -" ,': ",
',',' ',' """',. -
In the event the State remains in possession of said premises though partially damaged, the rental as herein
provided shall be reduced by the same ratio as the net square feet the State is thus precluded from occupying bears to
the total net square feet in the leased premises. "Net square feet" shall mean actual inside dimensions and shall not
include public corridors; stairwells, elevators, and restrooms.' .
, .-:.- --",--,-,':--",.:<,'- "'-""""--'" :',-, , ".:
"" ""'<"":"'-','::' "'",',,"";,""""""',,"""""':""'"'::";,..,;.:,:",:.:,:'::,,
" ",,' , ,,'::' ,,:, , ,"':" ".",::, ":c';"::::":':":,':"'::"
It is uhderstood and agreed that the State or its agent has the right to enter its destroyed or partially destroyed leased
facilities no matter what the condition. At the State's request, the Lessor shall immediately identifY an appropriate
route through the building to access the State leased space. If the Lessor cannot identify an appropriate access route, it
is agreed that the State may use any and all means of access at its discretion in order to enter its leased space.
2L'fo ,the exterifallth~ri~edbYanYfireandextendedc?ysrilgeinsur~~e poJicyiss~~dto Lessor on the herein
leased premises, Lessorllerebywaives the subrogation right~ofthe insurer, llPdrele3;ses the State from liability for
any loss ordamagec()yered bysaid
22.
For those project~defined as"jmbFcWorkstrPursua.nt toL~bor Code ~I 720.2, the following shall apply:
A. Lessor/contractor shallcoIIlply }Vith prevailing wage requirements and be subject to restrictions and
penalties in accordance with ~ 1770 et seq. of the Labor Code which requires prevailing wages be paid
to appropriate work classifications in all bid specifications and subcontracts.
B. The Lessor/contractor shall furnish all subcontractors/employees a copy of the Department ofIndustrial
Relations prevailing wage rates which Lessor will post at the job site. All prevailing wage rates shall be
obtained by the Lessor/contractor from:
Department ofIndustrial Relations
Division of Labor Statistics and Research
455 Golden Gate Avenue, 8th Floor
San Francisco, California 94102
C. Lessor/contractor shall comply with the payroll record keeping and availability requirement of ~ 1776 of
the Labor Code.
~
25G-10
Page-8
'. .
Fair Employment
Practices
DVBE
Participation
RequirelTIent
Service
Companies
Ser'iiee Credit
Holding Over
I'.
D. Lessor/contractor shall make travel and subsistence payments to workers needed for performance of
work in accordance with the Labor Code.
E. Prior to commencement of work, Lessor/contractor shall contact the Division of Apprenticeship
Standards and comply with ~I777.5, ~I777.6, and ~I777.7 of the Labor Code and Applicable
Regulations
23. During the performance of this lea.se,the ~ess?r shall not deny benefits to any person on the basis of religion,
color, ethnic group identificll,tion,sex.,a~e,physical ~r ~~ntaI4ir~~ility, nor shall they discriminate unlawfully against
any employee or,applicaIlt f?r>~ll1ploymentbecaus~?~nlCe, ,:digipQ,..color, national origin, ancestry, physical
handicap, ~~)1tal disa~ility, me<iical condition,maritaLsf<!.tus, age,pr.s~x.Le8s~r shall insure that the evaluation and
treatmeQt of employees and applicantsfor emploYiUent.are free of sllch discrimination.
Lesspr>ShallioIIlPl;>~ithithe .', provisionsoithe~~ir '.E;~lo~~e:t}~d ," ~o~~ing Act (Government Code,
S~stion I29pO etseq.); the regulations Brpmulgat5~ thereunder (Califo~ni~Administr~CiveCode, Title 2, Section
7285:p.:tseq.)"the provisions, of Article 9.5, Chapter Part 1, DivisiOQ 3, ,TitJ~ 2 pf th: Government Code
(9ove1"Qm~Il.t Code, Sections 11135-11139.5), and the regulatiom;qr standards iidopt~d by the awarding State agency
to implement such article.
"..........:.., ;.......... -:,,:, .:"-
24. Lessor hereby represents and certifies that ithas fully compliedwith all Disabled Veteran Business Enterprise
(DVBE) participation goals or has made good faith efforts, as the case may be, as required by Public Contract Code
~10115 et seq., and further agrees that the State or its designees will have the right to review, obtain, and copy all
records pertaining to the contract. Lessor agrees to provide .the State or its designee' with any requested relevant
information and shall permit the State or its designee access to its premises, upon reasonable notice, during normal
business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts,
and other material that may be relevant to a matter under investigation for the purpose of determining compliance with
this requirement. Lessor further agrees to maintain such records for a period of three (3) years after final payment
under the contract. '
:.-.'-::-.........,.' ................:.':....:..,',:...;-:",..:....-.::-..-:"::.
" ...... .....<..:-.-"...:..,...:. ":'," :.:',:.' ,':-' .,'
Upon completion of this lease, Lessor agrees to submit a final report identifying all DVBEs used in providing
services or supplies to this lease. Efforts to include DVBEs in this contract shall continue throughout the lease term
and any extensions or renewals hereof involving purchasf,s of materials' and supplies by the Lessor.
:.:\'.::" ,- ,':'-
---,_"::: ..":'_"" :," .... 'c."" ...........- .. ....,...........< .... .. -"",",' ',.,', ':,',,:'ii ."."" ,.<':"'" ',', ,'.'
25. Within fifteen (15) days after occupancy of the leased premises by the Stat~, Lessor shall provide the State
with the name, address, and telephone number of an agency or person convenient to the State as a local source of
service regarding the Lessor's responsibilities under this lease as to repairs, maintenance, and servicing of the premises
and any or all related equipment, fixtures, and appurtenances.
':.-'.,....' " . ,,'
26. Lessor llbree~tl1afthE!re!ltalproyidedu~dertB.e termsoff.lii"~raph 4 hereofisbasedin part upon the costs of
th~ se~Yices, utilities, .and suppli~sto be, furnished by Less8rin atJcord~iW~ ...{ithlar~raph '13 hereof. In the event the
State vacm~the premis~~ priorts the efl(1 Qfthe, term sf this lease, er, ifafte~Rotiee in, writing from the State, all or any
part sf suc~ serYic~s, utilities, ,or suppIi.T~ for an)' reii59~ are. n()t us~4bythe~t,me, then, in such event, the monthly
rental as to each month or portion thereof as towhioh sHtJh, S~ryices,~tilltie~,or supplies are not used by the S:tate shall
be reduced by an amo~n.t ~qual to, the average mo~thlyco.sts of~~cl1 unused services, utilities, or supplies during the
six month period immediately preceding the first month in)yhich such sen'ices, utilities, or supplies are not used.
27. In the event the State remains in possession of the premises after the expiration of the lease term, or any
extension or renewal thereof, this lease shall be automatically extended on a month to month basis, subject to thirty
(30) days termination by either party, and otherwise on the terms and conditions herein specified, so far as applicable.
If the last rental amount shown in Paragraph 4 included the amortization of a capital sum expended by Lessor for
certain alterations and improvements, as described in a separate paragraph herein, and the capital sum has been fully
amortized, the holdover rent shaH be reduced by the amount of the monthly amortization. If the State fails to vacate
the premises within the notice period and remains for an extended period, additional rent shall be paid and prorated on
a thirty (30) day month, based on the actual number of days the State occupies the premises following the effective
date of termination.
~
25G-11
Page-9
Surrender of
Possession
Time of Essence,
Binding upon
Successors
No Oral
Agreements
Service Contracts
Wages and
Benefits
"
28. Upon termination or expiration of this lease, the State will peacefully surrender to the Lessor the leased
premises in as good order and condition as when received, except for reasonable use and wear thereof and damage by
earthquake, fire, public calamity, the elements, acts of God, or circumstances over which State has no control or for
which Lessor is responsible pursuant to this lease. The State shall have no duty to remove any improvements or
fixtures placed by it on the premises or to restore any portion of the premises altered by it, save and except in the event
State elects to remove any such improvements or fixtures and such removal causes damages or injury to the leased
premises, and then only to the extent of any such damage or injury.
29. Time is oftl1.e esse.!lceo(thislease,andtl1.ytYn1l.s.~Il~ provisions ~fthis lease shall extend to and be binding
upon and i~l.lxe to the . b.en.efit 0\ the ~eirs, execl.ltors, administratQrs,~uccessQrs, and assigns to the respective parties
hereto. All of the partie~ hereto shall bejointly and severally liablel1.ereun.der,
.......... .. ....
.' 30. It i~. mutuallyullgerstoodan,d agreed that no altera.ti6qs. or ~ari~tio~~>Q\ the. te:ms ~f this lease shall be valid
~~l~s~m(ldein writing and signe9 by; tl1.e parties hereto, and that no oral, umlerstandingor agreement not incorporated
herein, shall be binding on any oHhe parties hereto.
,3 ~. ., NI janitorial and housekeeping services,
and.,sec;urity guards provided by Lessor pursuant
requiremerits of Government Code (GC) 19134
window cleaners
with the
a) wages and
wages and
health,
pay and
b) a
c) Lessdr~grees to
with GC 19134.
d) :r.,essor a~ree~, to
termination for
~
25G-12
Page-! 0
-Insurance
ADA Compliance
32. Lessor understands and agrees to the following:
The State of California has elected to be insured for its motor vehicle and general liability exposures through a
self-insurance program. The State Attornev General administers the general liability program through an annual
appropriation from the General Fund. The Office of Risk and Insurance Management administers the motor vehicle
liability program.
Under this form of insurance. the State and its employees (as defined in 810.92 Government Code) are insured for
any tort liability that may?evelop thfoU7hcarrVirii??utofficial ,activities. including State official operations on non-
State owned propSrtv, .,', Shoul?any cI~ims arise by reas?nof su~?Oper~ti?ns or under an official contract or license
agreement. they should be refe~:d to~e Atto~ey (}en:~~l. State ofSalif?rnia;..;ort Liability Section. 1300 "I" Street.
Il th Fl09fi Sacramento. Salifornia. 95814. Claims arising fro~oper~~ions of ~ State-owned vehicle should be
for~arde?~? the.?ffice.9f Risk and Insurance Management. Auto SelMnsurance, 1325 "J" Street. Suite 1800.
Sacramento. California 95814.
Tl1S ~tateofCaliforriia has entered into a Master Agreement wit?th:State S9~pe~sation Insurance Fund to
administer workers' compensation benefits for all State employees. as required by the Labor Code,
"<:..i'
.. - ;...,.:..'..".....- ..,.-,'- "-". :.,,' "- ....; ",.,-,
33. The Sublessor shaH ensure that any outstanding American Disability Act (ADA) Title 24 issues will be
corrected and that the proposed mitigation plan as submitted with a completion date of March I. 2006. by the City of
. .. Santa Ana shall be complied with. This mitigation plan completion will satisfy all ADA issues identified as a
deficiency in the survey report as contracted by the City of Santa Ana. Failure to comply with the Mitigation Plan by
March i. 2006. shall result in the termination ofthis lease agreement. This \Jaragrimh shail be used in reference to
Exhibit "B" S\Jecifications.
~
25G-13
Page-II
I'
IN WITNESS WHEREOF, this lease has been executed by the parties hereto as of the date first above written.
STATE OF CALIFORNIA
Approval Recommended
LESSOR
DEPARTMENT OF GENERAL SERVICES
REAL ESTATE SERVICES DIVISION
PROFESSIONAL SERVICES.BRANCH
CITY OF SANTA ANA, a Muncipal Corporation ofthe
State of California '
By
SCOTI MOO~; RellIE~t~te Officer
Real Estate Leasing and Management Section
Date
Approved
DIRECTOR OF
OF GENERAL
Date
EXHIBITS:
Exhibit A = Floor Plan; 2 pages
Exhibit B = Specifications; 4 pages
~
~
25G-14
Page-12