HomeMy WebLinkAbout25K - OFFICE SPACE @ THE 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
NO\} 2 1 2005
NOV 0 7 2005
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Mi'("~ V .
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.
25K-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:
patricia C. Whitaker
Executive Director
Community Development Agency
;/ ';J /1)
(!j~~ rJ L-/tULJW~J
~ranci~co G~tierrez f0
Executlve Dlrector
Finance & Management Services Agen~~
PCW/CF/LS/mlr
H:\ACTIONS\200S CC\LeaseAgreewithStateofCaliforniaEDD-DePOT lO-3-0S.doc
25K-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
Preamble
THIS LEASE, made and entered into th.is8th. day of August, by and between
File No.: 4811-001
Project No.: 113840
LESSOR'S FED. TAX. 1.0. NO. OR SOCIAL SECURITY NO.
NIA
TENANT AGENCY
Employment Development Department
CITY OF SANTA ANA .. .
A MUNICIPAL CORPORATION OF THES1'.A.TE OF CALIFORNIA
..- -', , ,
hereinafter. called the Lessor, without distinction' as to number 0; gender, and the State of California, acting by and
through the Director of the Department pf General Services; hereinafter called the State;
Description
1. The Lessor hereby leases unto the State and the State hereby hires from the Lessor those certain premises with
appurtenances situated in the City of Santa' Ana: County of Om.l.lge. . State ofCaliforiJia, and more particularly
described as follows:
Approximately 5.451 oot-asabffi-square feetof leased office space including 2.135 square feet of space for the
exclusive use of the State and 3 J 16 square feet of space which is shared. between the State and Sublessor all OIl the
first and second floor~ of the building located at 1000 E. Santa Ana Boulevard. Suites 130 and 220. Santa AnI!,.
California as outlined in red ('exclusive") and green ("shared") qn the attached Exhibit "A" plan, together with
specifications marked Exhibit "B"and lessor compliance procedures marked EJchibit "C", said Exhibits "A" ap.d "B"
~, 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 subject building, and unlimited use of the building's
common facilities.
Term
2. .' The term of thisle~e~hail~6:hiireiice:brt:A~gust 1 ;20()5::~d;,shall end 011 Julv3i 2010. with such rights of
_i ';" ,," -", :" ;: ":,,, ,';".'~':_'_\"_,' _,,"/_,"_ "_' _, _,.,' ;--- , ", -- _',' :, ":":;';':-'i __ '-- '--'_;'_ - ,
termin~tion \is~ay be her~inafte{ex~ressly:set forth. . .'
8i~f.~ ........( ...... '" ......... ........ .... ...<' , fi'!
~e Stat8:nray t...e~~inate..tl1i...S Ie.. ase at.. ahy.t.imee..ffeytiVe?..IIOfa.ft~rJUlY 3 L 2007. by giving written notl.' ce to _
the . ~ast thirty (30) days prior tothedate when such termination shall become effective. If the State fails to
complete its move out within the notice period andremains 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.
Early
Termination
EXHIBIT 1
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25K-3
Page-l
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Rent
4. Rental shall be paid by the State in arrears on the last day of each month during said term as follows:
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SIK Ten
SIX THOUSAND Et6H'f'HUNDRED ~tXTY-EIG~ AND NO/lOO DOLLARS
( Ij fO & I () gz) (~~6B.88) from August L 2005 through Julv 31. 2006. then;
~ THOUSANg~ijfrT~'fg&Mr:?NO/I00 DOLLARS
(; 6 8W") ::::::;~~:~~iN!~?~~:~;:~:~~OIiooDOLLARS
(4:; 030 ~j(~.2S6.0~rfrO~.A~~st 1.2007thrOUg~JUl~31..~008..the!~>:<\.\..'\
SEVEN THOUSAND"~ HUNDRED&U1? ~D NO/IOO DOLLARS'
l k :t2:~6:~:~~:::;I~~::~~Z:~::;~;:~~~/I06 D&tLMS\
('lq'-lc;~')$'):138.e5) from August L 2009 through Julv 31. 2010'.iLi<) ... <'
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Rental payable hereunder for any period of time less than one month shall be. determined by prorating the
monthly rental herein specified based on the actual number of days in the month. ~ent<l.l 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 in Paragraph 2, it is understood and agreed by
and between the parties that, at the State's sole option, the dates shown in Paragr(iphs 2 and3 and the. dates and dollar
amounts shown in Paragraph 4 may be adjusted to the first of the month following die 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 will complete unilaterally an amendpent to the. lease to revise the her~in above stated 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, at the State's option, the dates shown
in the "CPI Esealator Operating Expenses" paragraph, if incorporated herein, shall be adjustf<d to reflect the time delay
between lease commencement and the first of the month following the actual acceptanc;e 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 paragniph herein, the effective dates and
corresponding purchase option prices of said Option to Purchase shall 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 shall be established consistent herewith and incorporated into said lease with a
unilateral amendment by the State.
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25K-4
Page-2
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Notices
and to the State:
Completion and
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, 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:
To the Lessor
City of Santa Ana
Downtown Development Division
116,.\ West4lhStI'e~t, Suite 6
Santa Ana; CA 92701
Phone No. (714) 647-6556
FAX No. (714) 647-6939
".',.,...,'"
PEP~.~TMEl'NT9fGEl'NF:RAL SERVICES,
REAL. F:ST11'lj: SERVICF:S PIVI~IOl'N
~lj:A.SE:M:AN1GEMENT.!! .... 4811-001
707 TIIIRDSTREET, SUITE 5-305
WEST SACRAMENTO, CA 95605
PHONENO; (916) 375-4172
FAX NO.
(916) 375-4173
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ALL NOTICES AND CORRESPONDENCE MUST REFERENCE
TENANT AGENCY AND PREMISES ADDRESS
payable to:
i:--:'-"_, .....<,.,
'...........,........-,...-.:;.,..:.-..-::... ..,
Citv of Santa Ana
,:'--:.-:-.---,,:.:;-,'
City of Santa Ami
Downtown Development Division
. 116 A W~ 4!h Street, Suite 6
Santa Ana, 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 may be changed by giving written notice to the other
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6. Lessor agrees that, prior to August 1. 2005. and at Lessor's sole cost and expense, all required construction,
improvements and/or alterations, if any, shall be completed and the leased premises made ready for State's occupancy
in full compliance with Exhibit "A", consisting of two (2) sheets titled, "Office Quarters, Project No. 113840" dated
Mav 18. 2005. and in accordance with Exhibit "B", consisting of four (4) pages, titled, Short Form Specifications,
Project No. 113840" dated Mav 18. 2005. which Exhibits "A" and "B" are by this reference incorporated herein.
7. Lessor shall notify the State in writing by certified mail of the the leased premises will be completed and
ready for occupancy at least thirty (30) days prior thereto. Slich notice shall be it condition precedent to the accrual of
rental hereunder, except however, that if the State occupies the premises prior to the receipt of such notice or prior to
the expiration of the notice period of such notice, rental shall commence to accrue as of the date of occupancy.
Following execution of this lease, and not more than sixty days (60) prior to completion of construction and
occupancy under this lease, State or its contractors or other representatives shall have the right to enter the premises for
the purpose of installing 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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25K-5
Page- 3
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Early Qccupancy
Time limit and
Prior Temmey
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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 following mariner:
Delavs cau~~d bv theiLessor:
Credit the State acomp~nsating4ay of delay intl:1eoccupancy
Compepsation will be in one day increments.
day of delay in payment of rent.
Delavscaused bv the~t~te:... .
Credit the L~ssor a compensating day of P1lyment ofIent from the
Thepaiti~s agree that this shall be the sole remed):'for delay~ in tl1~f~hecI119ulatiortbfd~magesillany..other manner is
. too uIlcertain and not susceptible of accurate determinatiqn.
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. 8. Lessor agrees that if the leased premises are ready for occupancy prior to tlie c()mpletion 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 NO/I00 ($6.868.00) per month, and shall be prorated on
a daily basis for any partial month.
. 9. No reI}tal shall accrue under this lease, nor shall 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 1. 2005, then and in that event the State ma~:, at its option and in
addition to any other remedies it may have, terminate ibis lease and be reliev~d of any further obligations hereunder,
providing that a fair and reasonable allowance for the following delays shall 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;
, or by , :'. .
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 .labor organizations 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 theStat~electsto occuByprelI1ise~bef()reiliewor~ oIl. the premises specified in Exhibit A and B is
fully completed, the State will provide the Less?r',Vithil 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 I4-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 NOIlOO
($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 intenuption.
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25K-6
Page-4
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.
Conformity to
Exhibits
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 "A" and "B". It is further understood and agreed that any installation not in
conformity with said E~ibits"A" ~d "Bns~all be ill1rrlediat~lycorrected by the Lessor at Lessor's sole cost and
expense. In the eyentL~.~sorsh~l1, after notice in writing~om.theSJ~te requiring the Lessor to comply with the
requiremen;softhis p~il.graph inreg~d to a sp~.ci~ed s~lldition,flliI~refuseor~eglect to remedy such conaition, State
may terp1in~t.~;his lease~ithoutfi.Irtheroblig~iion, or. as to such specified Toediti<.)e, at its option and in addition to
anyoth~rremedyt~~ Stil.1e m~y h~ve;>\Vithholdx~ntcl~(; a.nd prin~Jtee leas~dpremi~es into conformity with said
5-xhibits atits own cost including State's Administrative costs, if anY,and degust the a~ount thereof from the rent that
may then be. or thereafter become due hereunder.
11,>Lessorhereby warrants and guarantees thatthe space lease,dtOthe Stllt(;~il1jHe opercateda.nd maintained free
of,h~ar~fr<.)m Asbestos Containing Materials (ACM) and agrees~0!~7S~rditionsfor~1ll."Vey, testir~' and abatement
ofA9Mdescribed in Exhibit "B" as applicable. L~s~or specifically~~r71sthat, in th~7vent te.e Stil.teelects to exercise
its ripts under the provisions of Paragraph 16 ofteis l(;ase'ja.ny.sostsrelil.ted to aba!emegt> or ha.zfITd from asbestos
shall be the Lessor's responsibility as describedintqellforeQlelltion~4.5-xhi1:lit)'B.'~
Asbestos
12. Lessor, at Lessor's sole cost and expense, shall clearly mark 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 addition 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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Elevator (if any) service. . . . .
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) Errlpty.a.nddeallallt;asl1containers'and dispb~~ <.){all trash and rubbish.
(2) Clean and maintaill.in a 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 of the 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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25K-7
Page-5
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Repair and
Maintenance
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As needed, but not less frequently than:
Twice Weekly: Vacuum all carpets.
Weekly:
(1) Damp mop all hard surface floors.,
(2) Dust all window blinds.
(3) Treat stainless steel fountains and sirlks to eliminate stains and mineral deposits.
(4) Spot clean the \Valls.
Quarterly:
(1) Strip all hard surface floors and apply a newcoatof floor finish; buff as necessary to produce a
uniformly shinirig appearance.
(2) Treat carpets for static electricity control (if not integrated in the fabric).
Semi-annually: Wash all windows, window blinds, lightfixrures, walls,)llld painted surfaces.
Annually:
(1) Steam clean carpets to remove all stains and spots.
(2) Clean drapes.
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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
aluount thereof, including State's administrative costs, from the rent that may then' be, or thereafter become due
hereunder.
14.A. During the lease term, the Le~sorshallmaintaintheleasedprernisesingood repair and tenantable
condition, so as to minimize breakdowns and loss ofthe State's use ofthepr~l.llisescaused by def~rred or. inadequate
maintenance, including, but riot limited, to:
(I Y Generally maintairiing the leased premises in good;vennin-free, operating condition and appearance.
(2) Furnishing prompt; good quality repair of the building, equipment, and appurtenances.
(3) Furnishing preventative maintenance, including,butnotHIl1ited to, man~facturer'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 kand B including but not limitedto, security and access control systems, fire
suppression systems, special HVAC systemsfqr computer rooms; and UPS systems.
(5) Furnishing and promptly replacing any inoperative light bulbs, fluorescent tubes, ballast, starters, and
filters for the heating, ventilating and air conditioning equipment as required.
(6) Furriishing remedial painting as necessarY" to maintain th6 premis6s in a neat, cl6an and orderly
condition.
(7) Annual testing and maintenance of all fire extinguishers in or adjacent to the leased premises.
(8) R6pairing and replaciRg as llecessill')' intrabuildillg n6twork cabl6 and inside wir6 cable l:Is6d fDr yoic6
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, weedfree, 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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25K-8
Page-6
Painting
,',
(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.. cOI1~~rns inthe work environment.
D. In case Lessor, after notice in \)'dtin&from the State~:quiring the Lessor to comply with the requirements
ofthispara~aph in r:&ard to a specified cOI1dition,~h~H fail'E~fuse or neglect to comply with such notice,
~~~\,ent of ~ em~rgency s.o,nstitutjpg a hazar~ t.o .the helll~~ or safety of the State's employees,
pro,p~rty, ori~yitee~,tl1e State may terminate this lealie wi~ou~ fu~hero,bligation or at its option, perform
such l1.1aiI1ten1lllce or make such repair. at it~~'f~ co~t an~eiIladdi~oI1 toa~y other remedy the State may
have, may. withhold Eent due and deduct the,. amount~her:of,i.~dudiIIg pece~;ary costs incurred by the
~tate required for th.: adm,ni~t\ation of such maintenanceandr:pairs, from the-rent that may then be or
thereafter become due hereunder.
15. In addition to any painting completed prior to the commencement of this lease, and tou~h-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 completed prior to the com'mencem~nt date, and once during any succeeding
sixty (60) month period. Lessor shaH, within forty-five (45) days from the giving of any' such notice, arrange for and
complete 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 subsequent to the repainting, and provide drop doths, and covers as necessary,
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16'+h6 Witht~~ ... ~~ssor' s prior approval.\)'~ich sh~l1.notbe u~reasoI1ab~v\)'i~~~~ld"$tat~./shall have the right
during the exist~n~e.~ft~isle1l5e to l11a~e.pI11l~geordt;:rs.~1~.~I~;r~ti9ns; ~tlac;l ~J<tures;.1lllderec~additi?ns,str!lctures,
orsi&"s in orup()n thelea,sed premises. SU(;l1.fixture~'a'dditions, structures,()r signs~9 plll(;ed in .orupon,or attached
tattle premises uneler. this lease or any extensio~hereof~l1allQe andremaifi..t~l:J5~9pe~ of the Sta~e1nd may be
rerno"ed therefrom by the State prior to the teITI)ination. or expirationpf thisl:ll~e ar any x.enewal orexteI1sion hereof,
or within a reasonable time thereafter.
. "i. ..... ...... '>iiii .' i/./ .... ..... .... /......... ..ii ..... ................ ........ .... ... ....... .... ....//./it . .............. ./.........> 61f...r
.)f- fuch- pdFk J.~... cl. U.k.... * Int.b~.ev.e..ntalterations, fixt..u.....res, ad~itIons; structures, or signs in.a.r........u....p....().~~he le.~ed prem.is. e,s..llr..e..... j!";red bY"~ ~/
'CJ~Ni p ~ ~r: ~Y- OW~) ::: ~:::~~I:t~c:~:~~:ce:f:: t:ia:o;'da~;e~~~~ll:~~; ;~:7d:~t~ii~~;tt~~~~ ~~t:~~~dl::~;:~~:e~i: -1-
{oirul. dJkrdio~ ~. . from at leastthree lic.e~sedcontr~ftorsa,I1~tofgI1tractwith the 10west?iM~r.\Lessor fu~h:r ag~ees that the overhead
'1...L kd>e-J PfUY\I5>e.>. llI1dprofit for the work sh~l~otexceedfifteenpercen.t{15~) tota,l for.l;.essor and an)'i~ene~al contractor combined.
Lltf.,,/J / Within forty-five (45)dfys. afterrec;iving Lessor'~ noticeofcol1.1pletion of the,.reque~ted work and an invoice
J2!-- - requesting payment t~erefor, together with a complete ~e,t~ileel accou~tirl~ ofallc()stsfor each trade, State agrees to
eitheqeimburse .~essorb)' a single total payme~t fort~~ cost of s~ch' wo,*;.. ?r, wi~ Lessor's prior written approval,
State will ~ortize the cost of t~e reCJ.uest:d work over. the relllaininRter!I1 oft~i~ lease by increasing the monthly rent
by an amount to inc1udeprincipal ~d interest on the u~Pllid~alaI1Se.'I11~interest rate may not exceed the prime rate
(the base rate on corporat~ loans posted by ~t I~~t seyel1ty fiveR~rcent(75%) of the nation's 30 largest banks) plus 2
percent (2%) as of the date of the State's written authorization to proceed.
Change Orders
and Alten~tiol1s
Assignment and
Subletting
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 ofthe 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 event ha'le the right to sublet the leased premises.
~
25K-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 pr~~ises aretotll]lydestroye~byfireor oth~rc~ulllty, this lease shall terminate. If such casualty
shall render lOpsrcent(1e%)oIoIes~ofthe floor spaseof.the leasedp~~mises unusable for the purpose intended,
Lessor shall effectTestqration of the premises as ql1iC!qYJ.1S is reasonably possible, but in any event within thirty (30)
days.
In the ~'{ent su~hc:a?l1altysl1allre~der more than tenperceIlt (19~)(jf s~f.hfloqnpa2e.~nusable but not constitute
total. destrUc!ion, .~e~sor shall fOrtl1wit~ give n9ticet~ St~~e of the ?pecifjc nwnber of d~yS req~ired to repair the same.
If. Le~s9r..undt:r.. ~uch circumstances shall not give suo ch notice within fift.een...(....I.5) ca. I.e... qd.'.14"'. d...llY. s,~.....fter such destruction,
o~ if such notice shall specify that such repairs will require m?re;rhar>~in~tY((O).Mystqrq~j:llete from date such
nqtiSS is given, State, in either such event, at itsi option may tel"~i~~te,!hi? le<l.ll~ oS~.l.Ipon. ~?tic~ to Lessor, may
~ainrain occupancy and elect to undertake the r~pairs itself, dsfl~qtin?tl1e costtl1ereof frol11 tl1erental due or to
become due.underthis lease and any other lease between.Les~orand State,'
":,.... '(-.' ;::0, ;,
';,-,,':"".'.'-;," .,.',.. ," ...... .c.,':" '....
,__. .'.. ..__,__ .,...... - - - ',.:"_::_, .... ',0', ,." _.'."""_,._ ..c.... _,
In the event of any such destruction other than total; where the State has, not terminated the lea~e 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 within .the period of 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
. tinder thiS-lease' ana any other lease between Lessor aHa State.
. . .
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 insi,de dimensions ,and shall not
include public corridors, stairwells, elevators, and restrooms.
It is understood and agreed that the Stateor 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. Ifthe 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.
21. To the extent authorized by any fire and extended coverage insurance policy issued to Lessor on the herein
leased premises, Lessor hereby waives the subrogation rights of the insurer, and releases the State from liability for
any loss or damage covered by said
22.
For those projec;!s ?Sfined as."publ!c""orks" pursuant tO~ll.bor Code g 1720.2, the following shall apply:
A. LessorJcontractor ShalL S9rnply;vi!hprevailing wage requirements and be subject to restrictions and
penalties in accordance with gI770 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 g 1776 of
the Labor Code.
~
25K-10
Page-8
" ,
Fair Employment
Practices
DVBE
Participation
Requirement.
Service
Companies
Ser'iice 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 ~1777.5, ~1777.6, and ~1777.7 of the Labor Code and Applicable
Regulations
23. During the performance ofthisle<l.'>e,th~ Lessorshall not deny benefits to any person on the basis of religion,
color, ethnic group identifiGcttion, s~J<.,a~e,physic~1 ~~~entalqi~~~ility, nor shall they discriminate unlawfully against
any employee or applicant for '~l11ploYmentbeGausp..?( race,.~~ligi(IP:>color, national origin, ancestry, physical
handicap, ~pntaI1i~aqility, meglcal Gondition,maritalrtatus, age,.orse.)(.Le~~~r shall insure that the evaluation and
treatment of pmployees applicants for employment are free of such discrimination.
." Lesspr>shall comply.yith the. provisions. of.. the Filir .E~~16Yl11en:.aIldliopsihg.. Act (Government Code,
Sp~tion 129RO et seq.);.the regulations ~rpmulgate.~ th~reunder (CCllif?~ni~.Admini~tra:iveCode, Title 2, Section
7285;.8e~seq.)~ilie provisions of Article 9.5, Chapter J, Part I, D~visio~ 3, Tit!e ??~ th.e Government Code
(yoveo}lnpnt Code, Sections 11135-11139.5), andthe regulation~.or~tandard~<t.d(jPled bYtheawarding State agency
to implement such article. .
. 24. Lessor hereby represents and certifies that it has fully complied.with 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 tp the contract Lessor agrees to provide the State or its designee' w.ith(iny 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 alj 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.
..:............:. -."'.":."\...-':".:"-:".:'.':.:'-.'-",.:.,:.,:': -", _:'."":.'::""'..". ::",",...:.,'....';
-::--'::""'_,-,; .::",.', -'-"'-":"" .:.:,',_:"--"',,,',,',', "'..'-:".":..'.."""" """":,""""""..:',,"",,'.""."',,,""'","".-<.-,'.-"-':':' """",."':,,,. "",,""',<, ,,:,:,:,',.'
25.\Vithi~fifteen (15) days after occupancy of the leas~dpreIllis5~9yithe State, Lessor s~~n provide the State
with thetl~l11e, address, andteIeph?ne number of an agency or pers~Picopvenient to the St~teasa local source of
service reg~rding the Lessor's responsibilities under this lease as to repairs, Illaintenance, andse.r;vicing of the premises
(lIjd any or all related equipment, fixtures; and appurtenance~.
26.. Lessor ~reestha{therentafpro\'ided~~derilie t~rms0fr.~ragrapfl 4 hereo~i~9asedin part upon the costs of
th~serYiees, utilities,andsuppli~sto be furnished by Less~rinaccord~ge wit~rlH'~ni~h13 hereof. In the event the
State....acatethe prernise~ prior to the emf of the. te~m ofthisI~ai'ie, or, ifafter~otic6 ipwriting from the State, all or any
part of su~~ sef'..ic~s,. utilities, or su~pIiTsforan)' re~ofl are. not Ilseg...?y the ~ta.t;e, then, in such event, the monthly
rental as to each~onth (jr portion thereof as tovihicflSIlCh s71)'i:Ts,utilities, .or supplies are not used by the State shaH
be reduced by an amouflt equaJ to the average monthlyposts of.s~ch. uRUsed services, utilities, or supplies during the
six month period immediately prtlceding the first month itl ..yhich such services, 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 shaH 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 fuHy
amortized, the holdover rent shall 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 foHowing the effective
date of termination.
~
25K-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 ofJl1e esseIlce o(thislease, and tl1~ t~rrnsFd ~rovisions ~f this lease shall extend to and be binding
upon and inyre to, ~~' beIl,efit of the ~eirs, execytors, adlllinistratQ~~,~uF~essQ~s, and assigns to the respective parties
hereto. AJI o:(the parties hereto, shall bejointly anciseverally liabl~,hereunder.
" 3p. It i~ mutmilly un?erstoodarid agreed that no alteratiOIls; or v,ari~tio~~of th~ t~rilis~f this lease shall be valid
u~l~ssmfld~ in writing and signe~ b)'j, the ~,!lrtiesher~to, and that no (lral understanding Or agreement not incorporated
herein, shall be binding on any of the parties hereto.
, )l./Atl janitorial and housekeeping services, cu~todians, foodServiGes,.>>,or~e~s"jaun?fYWorkeis", window cleaners
andse9yri~ guards provided by Lessor pursuant tqthe provisions8fthis,lease, sllflllbe in full Fompliance with the
n:quirements of Government Code (GC) 19134 if applicable, including/l)utnot limitecito the;J(lllowing:
: . "i';:::' 'i~ ' -: ,/)'- ",\
a) Lessor agrees that service contract agreements for such services will provide employee wages and
benefits that are valued at 85% of the State Employer costpf providing comparable wages and
benefits to state employees performing similar duties. For these'purposes, benefits includes health,
and vision benefits and it also includes retirement benefits, holiday pay, sick pay and
pay.
b) ,Lessor shall ensure that each contractor and subcontractor
copy of the applicable regulation~ for GC 19134.
c) Lessor agrees to certify on 'a quarterly basis that all
with GC 19134.
such services ,is provided a
d)
~
25K-12
Page-lO
-Insurance
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 Attorney General administers the general liability program through an annual
arrropriation 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 mav develop through carrYirigbut official activities. including State official operations on non-
State owned ProP~rtv, . S!1ouldanvclaintsarise bvreasonofsuc~oper~ti?ns or under an official contract or license
agreement.~~eYshould b.e refer;~d to~he Attorney Gen~r~L State of Salif~mia,.:~ort Liability Section, 1300 "I" Street.
11th Flo?n ~ac:amento'.Salif~l11ia, 95814. Claims arising fro~ oper~~ionsof~ State-owned vehicle should be
fOf\varde~~~ the.?fficeof Risk and Insurance Management. Auto SelMnsurance, 1325 "J" Street. Suite 1800,
Sacramento. California 95814.
T~~i ~tate of Califorriia has entered irito a Master Agreement wit~:th~.. State ~o~pe~sati~n Insurance Fund to
administer workers' compensation benefits for all State emplovees. as required by theLaborCodei
33. The Sublessor shall ensure that anv 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 1. 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 1. 2006, shall result in the termination of this lease agreement. This paragfaph shall be used in reference to
Exhibit "B" Specifications.
~
25K-13
Page-II
"
IN WITNESS WHEREOF, this lease has been executed by the parties hereto as ofthe date first above written.
STATE OF CALIFORNIA
Approval Recommended
DEPARTMENT OF GENERAL SERVICES
REAL ESTATE SERVICES DIVISION
PROFESSIONAL SERVICES.BRANCH
By
SCOIT MOORJ3i; RealEst~te Officer
Real Estate Leasing and Management Section
Date
Approved
DIRECTOR OF THE DEPARTMENT
OF GENERAL SERVICES
By
MIC~L STUMP,(ttJaS!llg Mal1a~er
Real Estate Leasing and~,fllIlagelllent Section
Date
EXHIBITS:
Exhibit A = Floor Plan; 2 pages
Exhibit B = Specifications; 4 pages
LESSOR
CITY OF SANTA ANA, a Muncipal Corporation of the
~
~
25K-14
Page-12