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HomeMy WebLinkAbout25C - LEASE AGMTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 2, 2008 TITLE: LEASE AGREEMENT WITH MEXICAN AMERICAN OPPORTUNITY FOUNDATION l1/ CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~ Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached lease agreement with the Mexican American Opportunity Foundation in the amount of $4,884 for a one-year term, subject to non- substantive changes approved by the City Manager and City Attorney. DISCUSSION For the past eight years, the City of Santa Ana through the Santa Ana W/0/R/K Center has leased office space from the Mexican American Opportunity Foundation (MAO F) for the operation of a W/0/R/K Center satellite office. This office provides job employment services such as computer usage, Internet access for job search, job search workshops, resume preparation assistance and referrals to community service, training, and education resources for Empowerment Zone residents. The continued leasing of this space from MAOF will ensure that these necessary resources will remain available to the community. The office space, located at 502 S. Ross, Santa Ana, is 323 square feet with a monthly lease rate of $1.26 per square foot for an amount not to exceed $4,884 during the one-year term of the lease which will be effective July 1, 2008. 25C-1 Lease Agreement with MAOF June 2, 2008 Page 2 FISCAL IMPACT Funds for this contract are available in the Empowerment Zone Service Navigator SAWC account (account no. 129-035-6294). ~~ Nancy T. Edwards Assista Director Community Development Agency NTE/LM/mlr 060208 Lease AgreeMAOF APPROVED AS TO FUNDS AND ACCOUNTS: l~(y<`c~'i~ ~ n a. Francisco Gutierrez Executive Director G~ Finance & Management Services Agency 25C-2 LEASE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE MEXICAN AMERICAN OPPORTUNITY FOUNDATION 1. PARTIES This Lease, dated July 1, 2008, is made and entered by and between the Mexican American Opportunity Foundation, anon-profit organization ("Landlord") and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the state of California ("Tenant"). Both parties understand and agree that Landlord is lawfully subletting the Premises described herein, and the Owner of the Premises and Property is fully aware of this Agreement and will be receiving a copy hereof (see Letter dated May 14, 2008, attached hereto and incorporated herein as Exhibit A). 2. PREMISES Landlord does hereby lease to Tenant, and Tenant hereby leases from Landlord that certain office space ("Premises") indicated on Exhibit B, attached hereto and incorporated herein, said Premises being agreed, for purpose of this Lease, to have an area of approximately Three Hundred Twenty-Three (323) square feet, being situated within that certain building known as 502 South Ross Street in the city of Santa Ana 92701 ("Property"). 3. TERM OF LEASE The term of this Lease shall commence on the first (1st) day of July 2008, and end on the thirtieth (30th) day of June 2009. 4. RENT Tenant agrees to pay to Landlord as rental, the sum of Four Hundred Seven Dollars ($407.00), on or before the fifth day of the first full calendar month of the term hereof and like sum on or before the first day of each and every successive calendar month thereafter during the term hereof. Rent for any period during the rental term which is less than one (1) month shall be a prorated portion of the monthly installment herein, based upon a thirty (30) day month. 5. USE Tenant shall use the Premises for general office purposes, and shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord. Tenant shall be entitled to access and use of all facilities located on and within the Property. Tenant shall not do or permit anything to be done in or about the Premises, nor bring or keep anything therein which will in any way increase the existing rate of, or affect any fire or other insurance upon the building or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or 25C-3 interfere with the rights of other tenants or occupants of the Property, or injure or annoy them, or use or allow the Premises to be used for any improper, immoral un 1 awful, or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on, or about the Premises. 6. COMPLIANCE WITH LAW Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance, or governmental rule or regulation now in force, or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances, and governmental rules, regulations, or requirements now in force or relating to, or affecting the condition, use, or occupancy of the Premises, excluding structural changes not related to or affected by Tenant's improvements or acts. 7. REPAIRS Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part thereof in good condition and repair, damage thereto from causes beyond the reasonable control of Tenant and ordinary wear and tear excepted. Tenant shal l upon the expiration or sooner termination of this Lease, surrender the Premises to the Landlord in good condition, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Not withstanding the provisions contained herein, Landlord shall repair and maintain the structural portions of the Property, including the basic plumbing, air conditioning, heating and electrical systems, installed or furnished by Landlord, unless such maintenance and repairs are caused in whole or in part by the act, neglect, fault or omission of any duty by the Tenant, its agents, employees or invitees, in which case Tenant shall pay to Landlord the reasonable cost of such maintenance and repairs. Landlord shall not be in breach of its obligations under this article unless Landlord fails to make repairs or perform maintenance which Landlord is obligated to perform hereunder, and such failure persists for an unreasonable time after written notice of the need for such repairs or maintenance is given to Landlord by Tenant. 8. ASSIGNMENT AND SUBLETTING Tenant shall not, either voluntarily or by operation of law, assign, transfer, mortgage, pledge, or encumber this lease or any interest therein, and shall not sublet said Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the employees, agents, servants, and invitees of Tenant excepted) to occupy or use said Premises, or any portion thereof, without the prior written consent of the Landlord. 9. HOLD HARMLESS Tenant shall indemnify Landlord against all claims, damages, losses, costs, liabilities and expenses, arising from Tenant's use of the Premises for the conduct of its business, or from any activity, work, or other thing done, permitted, or suffered by the Tenant in or 25C-4 about the building, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance or any obligation on Tenant's part to be performed under the terms of this lease, or arising from any act or negligence of the Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from and against all costs, attorney's fees, expenses and liabilities incurred by any such claim or any action or proceeding brought thereon and, in any case, action, or proceeding brought against Landlord by reason of any such claim. Landlord or its agents shall not be liable for any damage to property entrusted to employees of the building, nor for loss or damage to any property by theft or otherwise, nor for any injury to or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, or rain which may leak from any part of the building or from the pipes, appliances, or plumbing works therein or from the roof of any structure on the Property, or from any other place resulting from dampness or any other cause whatsoever, unless caused by or due to negligence of Landlord, its agents, servants or employees for failing to repair such condition(s) within a reasonable time after written notice of the need for such repair is given to Landlord by Tenant. Tenant shall give prompt notice to Landlord with respect to any defects, fire or accidents observed by Tenant on the Premises, or on the Property, or of defects therein, or in the fixtures or equipment. 10. SUBROGATION As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with the aforementioned waiver. 11. SERVICES AND UTILITIES Landlord agrees to furnish to the Premises, on all days that the Property is open to the public, subject to the rules and regulations of the Property, water and electricity suitable for the intended use of the Premises, heat, ventilation and air conditioning required for the comfortable use and occupation of the Premises, including janitorial services. The Owner of the Property shall also maintain the plumbing, air conditioning and electrical systems on the Property, as well as the common areas of the Property . 12. RULES AND REGULATIONS Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate. Landlord reserves the right from time to time to make all reasonable modifications to said rules. The additions and modifications to those rules shall be binding upon Tenant upon delivery of a copy of them to Tenant. 13. ENTRY BY LANDLORD Landlord reserves and shall at any and all times have the right to enter the Premises, with reasonable notice to Tenant, for the purposes of inspection, supplying janitorial service 25C-5 and any other service to be provided by Landlord to Tenant hereunder, and to alter, improve, or repair the Premises, providing that the business of the Tenant shall not be interfered with unreasonably. 14. RECONSTRUCTION In the event that the Premises or the building of which the Premises are a part are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to forthwith repair the same; and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction, to be based upon the extent to which the making of such repair shall materially interfere with the business carried on by the Tenant in the Premises. In the event that the Premises or the building of which the Premises are a part are damaged as a result of any cause other than the perils covered by fire and extended coverage insurance, then Landlord shall repair the same, provided the extent of the destruction be less than ten percent (10%) of the then full replacement cost of the Premises or the building of which the Premises are a part. In the event the destruction of the Premises or the building is greater than ten percent (10%) of the full replacement cost, then Landlord shall have the option: (1) to repair or restore such damage, this Lease continuing in full force and effect, but the rent to be proportionately reduced as hereinabove in this article provided; or (2) give notice to Tenant within sixty days (60) of the damage, at which time this Lease shall expire and all interests of the Tenant in the Premises shall terminate on the date so specified in such notice and the rent, reduced by a proportionate amount based upon the extent, if any, to which such damage materially interfered with the business carried on by the Tenant in the Premises, shall be paid up to the date of such termination. The Tenant shall not be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises, Tenant's personal property, or any inconvenience or annoyance occasioned by such damage, repair, reconstruction, or restoration. 15. DEFAULT, REMEDIES. A. Default. The occurrence of any one or more of the following events shall constitute a default under this Lease by Tenant: 1. Non-curable defaults: a) The vacating or abandonment of the Premises by Tenant. b) Any attempted or involuntary transfer of Tenant's interest in this Lease without Landlord's prior consent. c) If Tenant makes, or has made, or furnishes any warranty, representation or statement to Landlord in connection with the Lease which is or was false or misleading in any material respect when made or furnished. 2. Curable defaults: a) The failure by Tenant to make any payment of rent or any other payment required to 25C-6 be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof by Landlord to Tenant, this Lease shall be terminable at Owner's option. b) The failure by Tenant to observe or perform any of the covenants, conditions, or provisions of this Lease to be observed or performed by the Tenant, where such failure shall continue for a period of thirty (30) days after written notice thereof by Landlord to Tenant; provided; however, that if the nature of Tenant's default is such that more than thirty (30) days was reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period, and thereafter diligently prosecutes such cure to completion. B. Remedies. In the event of any non-curable default or breach by Tenant, Landlord shall have the right to terminate this Lease and Tenant's right to possession of the Premises, and Tenant shall immediately surrender possession of the Premises to Landlord. If Landlord terminates this Lease and Tenant's right to possession for the Premises, Landlord may recover the following from Tenant: a) The worth at the time of award of the unpaid rent which was due, owing and unpaid by Tenant to Owner at the time of termination; b) The worth at the time of the award of the amount by which the unpaid rent for the balance of the Lease term after the time of award exceeds the amount of rental loss which Tenant proves could be reasonably avoided; c) Pursuing any other remedies now or hereafter available to Landlord under the laws or any judicial decision of the state in which the Premises are located. 16. PARKING Tenant shall have the right to use the parking facilities of the building in common with other tenants or occupants of the Property. 17. GENERAL PROVISIONS Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition on any subsequent breach of the same or any other term, covenant, or condition herein contained. The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition of this lease, other than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding breach at the time of the acceptance of such rent. Time. Time is of the essence of this Lease, and each and all of its provisions in which performance is a factor. Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators, and assigns of the parties hereto. 25C-7 Quiet Possession. Upon Tenant paying the rent reserved hereunder, and observing and performing all of the covenants, conditions, and provisions on Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease. Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose; no provision of this lease maybe amended or added to except by an agreement in writing signed by the parties hereto or their respective successors-in-interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. Inability to Perform. This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is unable to fulfill any of its obligations hereunder, or is delayed on doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of the Landlord. Severability. Any provision of this lease which shal l prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof, and such other provision shall remain in full force and effect. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. Choice of Law. This Lease shall be governed by the laws of the state of California, with venue in the courts of Orange County. 18. Notices. All such notices and demands which may or are to be required or permitted to be given by either party to the other hereunder shall be in writing. All notices and demands sent by either party shall be sent by United States Postal Service, postage prepaid, addressed as follows: To Tenant-- To Landlord-- City of Santa Ana -WORK Center MAOF 1000 E. Santa Ana Blvd., Ste. 200 502 S. Ross Street Santa Ana, CA 92701 Santa Ana, CA 92701 ATTN: Lydia Morgan ATTN: Martin Castro 25C-8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Patricia E. Healy Clerk of the Council CITY OF SANTA ANA David N. Ream City Manager APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Lisa E. Storck Assistant City Attorney "LANDLORD" Mexican American Opportunity Foundation Martin Castro CEO/President 25C-9 25C-10