HomeMy WebLinkAboutMINUTES - 08111998 - C98 C- " '79
TO: BOARD OF SUPERVISORS
Contra
FROM: Barton J. Gilbert, Director of General Services '; -
Costa
County
DATE: August 11, 1998
SUBJECT: LEASE OF 1420 WILLOW PASS ROAD (1420 DANZIG PLAZA), CONCORD, CA. FOR
HEALTH SERVICES DEPARTMENT
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
1. RECOMMENDATION
APPROVE a Lease, commencing September 1, 1998, with Duffel Enterprises for the premises at
1420 Willow Pass Road (1420 Danzig Plaza), Concord, CA, under the terms and conditions more
particularly set forth in said Lease, for occupancy by the Health Services Department and related
programs and AUTHORIZE the Director of General Services to EXECUTE said Lease on behalf
of the County.
DETERMINE that the above project is a Class 1 (a) Categorical Exemption under the Calfiornia
Enviornmental Quality Act.
DIRECT the Community Development Department to FILE a Notice of Exemption with the County
Clerk.
11. FINANCIAL IMPACT
Rent and occupancy costs are budgeted within the Health Services Department budget,
III. REASONS FOR RECOMMENDATIONIBACKGROUND
The Health Services Department Adult Mental Health Division currently located in leased space at
1026 Oak Grove Road, Concord, will be relocating to the 1420 Willow Pass Road (1420 Danzig
Plaza) faciity in order to provide for expansion space required by Children's Mental Health at the
Oak Grove location. In addition, Adult Mental Health staffing levels will be increasing. It is also
planned that community mental health programs will be co-located at the 1420 Willow Pass
Road (1420 Danzig Plaza) facility to provide coordinated mental health,job training, and housing
services.
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON August 11, 1998 APPROVED AS RECOMMENDED_ _- OTHER
VOTE OF SUPERVISORS
X UNANIMOUS(ABSENT None
AYES: NOES:
ABSENT: ABSTAIN: I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
MEDIA CONTACT: BARTON J.GILBERT(313-7100) AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator(via UM) ATTESTED August 11,-1998
Lessee(via UM) PHIL BATCHELOR,CLERK OF THE BOARD OF
Health Services Department(via UM) SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel(via UM)
Risk Management(via UM)
Orig:General Services Department-UM
Buildings and Grounds(via UM) BY ,���z.. JL -' _.DEPUTY
15OB0.197 PB:dp M382 (10/88)
LEASE
TABLE OF CONTENTS
TO
CONTRA COSTA COUNTY
FOR
1420 DANZIG PLAZA
CONCORD, CALIFORNIA
SECTION A: BASIC TERMS AND CONDITIONS
A.I. PARTIES:........................................................................................................
A.2. LEASE OF PREMISES: .................................................................................
A.3. TERM:.............................................................................................................2
A.4. RENT: .............................................................................................................2
A.5. EXTENSION: .................................................................................................2
A.6. UTILITIES: .....................................................................................................5
A.7. MAINTENANCE AND REPAIRS: ...............................................................5
A.8. NOTICES:............. ............................................................ ....................... 7
A.9. ATTACHMENTS: ..........................................................................................7
A.10. WRITTEN AGREEMENT: ............................................................................7
A.11. RECORDING..................................................................................................7
A.12. TIME IS OF THE ESSENCE .........................................................................8
A.13. SIGNATURE BLOCK....................................................................................8
SECTION B: STANDARD PROVISIONS
B.1. HOLDING OVER:..........................................................................................9
B.2. USE OF PREMISES: ......................................................................................9
B.3. HOLD HARMLESS: ......................................................................................9
B.4. ALTERATIONS, FIXTURES, AND SIGNS:................................................9
B.5. DESTRUCTION: ..........................................................................................10
B.6. QUIET ENJOYMENT:.................................................................................10
B.7. DEFAULTS: ................................................................................................ 10
B.8. EMINENT DOMAIN: ..................................................................................I1
B.9. RIGHT OF FIRST REFUSAL......................................................................12
B.10. SUCCESSORS AND ASSIGNS: ........................................ ........................12
B.11. SEVERABILITY: .........................................................................................12
B.12. WASTE; NUISANCE:..................................................................................12
B.13. SURRENDER OF PREMISES.....................................................................12
SECTION C: SPECIAL PROVISIONS
C.1. SERVICES BY LESSOR:.............................................................................13
C.2. PROPERTY TAXES:....................................................................................13
C.3. ASSIGNMENT OR SUBLEASE: ............................................................ ...13
CA. LIABILITY INSURANCE ...........................................................................14
C.5. FIRE AND EXTENDED COVERAGE INSURANCE................................14
C.6. RENTAL INTERRUPTION INSURANCE.................................................15
C.7. HAZARDOUS MATERIALS ......................................................................15
C.8. ATTORNEYS' FEES....................................................................................16
C.9. ARBITRATION............................................................................................16
C.10. ACCOMPLISHMENT OF IMPROVEMENTS ...........................................17
C-11. COMPLETION AND OCCUPANCY..........................................................18
EXHIBITS
EXHIBIT A: PREMISES
EXHIBIT B: PARKING LOT
EXHIBIT C: BUILDING REPAIRS
EXHIBIT D: LESSOR AND COUNTY IMPROVEMENTS
_
LEAS
1420 Danzig Plaza
Concord, California
for
Health Services Department
SECTION A: BASIC TERMS AND CONDITIONS
A.I. .PARTIES: Effective on September 1, 1998, William R. Duffel and Lynnette S.
Duffel hereinafter called "LESSOR," and the COUNTY OF CONTRA COSTA, a political
subdivision of the State of California, hereinafter called "COUNTY," mutually agree and
promise as follows:
A.2. LEASE OF PREMISES: LESSOR, for and in consideration of the rents, hereby
leases to COUNTY, and COUNTY leases from LESSOR those certain premises
("Premises") described as follows: A two-story office building containing approximately
14,484 square feet, commonly known as 1420 Danzig Plaza, Concord, California, more
particularly described in"Exhibit A" attached hereto and made a part hereof, together with
exclusive use of the building parking lot , more particularly described in "Exhibit B"
attached hereto and made a part hereof. LESSOR and COUNTY also agree that"Exhibit B"
represents available parking spaces prior to lot restriping and provision of disabled parking
spaces. Restriping of the parking lot and provision of disabled parking spaces will result in
a different configuration than shown in "Exhibit B". LESSOR guarantees a minimum of
fifty-one (5 1) parking spaces (48 standard 9' wide spaces and 3 disabled parking spaces).
Both LESSOR and COUNTY acknowledge that this Lease is subordinate to an existing
underlying ground lease dated June 30, 1967, made by and between Elena Canzani, et al, as
lessor ("Ground Lessor") and the Duffel-Smoot companies, a California corporation as
lessee, ("Vestees") recorded July 27, 1967, Book 5415 OR, Page 752, amended August 1,
1967. The Vestees' interest was assigned to William R. Duffel and Lynnette S. Duffel, his
wife as joint tenants, by assignment recorded April 1, 1969, Book 5843, OR, Page 839.
LESSOR warrants that this Lease does not conflict with any provisions of the ground lease.
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A.3, Imo: The term of this Lease shall be seven (7) years, commencing September 1,
1998 and ending August 31, 2005.
A.4. BY : Although the effective date of this Lease is September 1, 1998, the obligation
of the COUNTY to pay rent shall not commence until COUNTY has accepted the building
in accordance with the completion and acceptance of improvements as specified in Section
C.11: COMPLETION AND OCCUEANCY OCCUPANCYof this Lease. If COUNTY acceptance of
building occurs after the first day of the month,rent shall be prorated for the month. Subject
to the foregoing, COUNTY shall pay to LESSOR as rent for the use of said premises a
monthly rental as follows,payable in advance on the first day of each month during the term
of this Lease.
Terme period Monthly Rental
September 1, 1998 through August 31, 1999 $ 11,225.00
September 1, 1999 through August 31, 2000 $ 11,225.00
September 1, 2000 through August 31, 2001 $ 11,450.00
September 1, 2001 through August 31, 2002 $ 11,675.00
September 1, 2002 through August 31, 2003 $ 11,900.00
September 1, 2003 through August 31, 2004 $ 12,125.00
September 1, 2004 through August 31, 2005 $ 12,350.00
Payments shall be made to: William R. Duffel or Lynnette S. Duffel and mailed to:
William R. Duffel & Lynnette S. Duffel
461 Gaylord Court
Sacramento, CA 95864
A.S. EXTENSION: This Lease may, at the option of the COUNTY, be extended , as
described below, upon the same terms and conditions, except that subject to Subsection D
hereof, the rental shall be adjusted as follows:
A. First Option: For a six(6) year term, commencing September 1, 2005 and ending
August 31, 2011, at the following rental:
Time Period Monthly Rental
September 1, 2005 through August 31, 2006 $ 12,720.00
September 1, 2006 through August 31, 2007 $ 13,100.00
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September 1, 2007 through August 31, 2008 $ 13,480.00
September 1, 2008 through August 31, 2009 $ 13,860.00
September 1, 2009 through August 31, 2010 $ 141245.00
September 1, 2010 through August 31, 2011 $ 14,625.00
B. Second Option: For a six (6) year term, commencing September 1, 2011 and
ending August 31, 2017, at the following rental:
Monthly Rental
September 1, 2011 through August 31, 2012 $15,010-00
September 1, 2012 through August 31, 2013 $15,390.00
September 1, 2013 through August 31, 2014 SI5,770.00
September 1, 2014 through August 31, 2015 $16,150.00
September 1, 2015 through August 31, 2016 $16,535.00
September 1, 2016 through August 31, 2017 $16,915.00
C. Third Option: For a four(4) year ten (10) month term, commencing September 1,
2017 and ending June 30, 2022, at the following rental:
e Period MonUy RoW
September 1, 2017 through August 31, 2018 $17,295.00
September 1, 2018 through August 31, 2019 $17,680.00
September 1, 2019 through August 31, 2020 $18,060.00
September 1, 2020 through August 31, 2021 $18,440.00
September 1, 2021 through June 30, 2022 $18,825.00
D. At the end of the initial seven year term and end of each extension period, the
monthly rent as shown herein above for the succeeding extension period may be
adjusted, either upward or downward, in accordance with this section. LESSOR
warrants to COUNTY that he has a commitment from American River Bank
("Bank") for a new mortgage loan for the Premises in the principal amount of
$1,000,000.00 at an initial interest rate of 8.35% amortized over a period of 25
years. ("1998 Loan"). The 1998 Loan is commensurate with the terms of the
lease, including all extension periods. The terms of the 1998 Loan include interest
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rate adjustments which coincide with the initial term and each extension term of
this Lease. The first interest rate adjustment will occur in seven years, at the end
of the initial Lease term. Subsequent interest rate adjustments will occur at the
end of each lease extension period. Bank has warranted that the interest rate for
the life of the 1998 Loan will not be increased beyond 11.35°x'0. LESSOR shall
provide to COUNTY full documentation of the 1998 Loan and interest rate
adjustment terms.
The parties agree that at the time of any interest rate adjustment required by Bank
or its successor in interest, monthly rent for the applicable extension term may be
adjusted either upward or downward by the difference in the LESSOR's monthly
1998 Loan payment, up to,but not to exceed, an interest rate increase of 3%. For
example, at the end of the initial seven year term of this Lease, the remaining
balance of the 1998 Loan will be approximately $887,183.00. If at that time the
adjusted interest rate should increase to 10%, calculation of the monthly rental
payment adjustment would be as follows:
Adjusted Rate: $ 887,183 x 10%over remaining 18 years=$ 8,870 per month
Original Rate:$1,000,000 x 8.35% amortized over 25 years — $7,951 per month
Difference : $ 919 per month
COUNTY's monthly rent as shown herein above for the first extension period
would increase by $919.00 per month; for example rental amount for the period
from September 1, 2005 through August 31, 2006 would be $12,720.00 + $919.00
or $13,639.00 per month; OR
If the adjusted interest rate should decrease to 7%, calculation of the monthly
rental payment adjustment would be as follows:
Original Rate:$ ,000,000 x 8.35% amortized over 25 years= $7,951 per month
Adjusted Rate: $ 887,183 x 7% over remaining 18 years = $7,235 per month
Difference: $716 per month
COUNTY's monthly rent as shown herein above for the first extension period
would decrease by $716.00 per month, for example rental amount for the period
from September 1, 2005 through August 31, 2006 would be $12,720 - $716.00 or
$12,004.00 per month.
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Calculation of the interest rate adjustment shall be based solely on the
remaining balance and the remaining years of the 25 year amortization term of the
1998 loan. Prior to any monthly rental adjustment, LESSOR shall provide written
notice and full documentation of the new loan interest rate to the COUNTY. Said
adjusted rate shall be approved by the COUNTY and shall be the best commercial
rate available at the time the loan must be renegotiated.
E. Any claim or dispute arising out of or relation to this Section A.5. Extensian
shall be settled by neutral binding arbitration in accordance with SectionC.9.
Arbitration hereof.
F. It is understood and agreed COUNTY shall give LESSOR thirty (30) days prior
written notice of its intention to exercise any option to extend this Lease. Howev-
er, in the event COUNTY does not give such written notice, its right to exercise
any option before termination of the Lease shall not expire until fifteen (15)
working days after receipt of LESSOR's written demand to exercise or forfeit said
option.
A.6. UTILITIES : COUNTY shall pay for all gas, electric, water, sewer and refuse
collection services provided to the demised premises. In the event that an enclosure for
refuse is required, LESSOR, at its sole expense, shall provide the enclosure.
A.7. MAINTENANCE AND REPAIRS: As part of the consideration for this lease,
LESSOR has agreed to complete certain repairs and improvements listed in "Exhibit C11
attached hereto and made a part hereof. The responsibilities of the COUNTY, under the
terms of this lease, for maintenance and repair shall become effective only after LESSOR's
repairs listed in "Exhibit C" are completed and are accepted in writing by the COUNTY.
A. LESSOR shall keep the roof and exterior of the building in good order, condition,
and repair and shall maintain the structural integrity of the building, including the
exterior doors and their fixtures, closers and hinges.
B. COUNTY shall keep and maintain the interior of the premises in good order,
condition, and repair, but LESSOR shall repair damage to the interior caused by
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failure to maintain the exterior in good repair, including damage to the interior
caused by roof leaks and/or interior and exterior wall leaks.
C. COUNTY shall repair and maintain the electrical, lighting, water, and plumbing
systems in good order, condition, and repair. LESSOR shall deliver the electrical,
lighting, water, and plumbing in good condition at time of occupancy.
D. COUNTY shall maintain a quarterly maintenance contract for the heating,
ventilating, and air-conditioning systems. LESSOR shall be responsible for repairs
and replacement of the heating ventilating, and air conditioning systems in excess
of$500.00 per occurrence.
E. COUNTY shall provide routine maintenance of the parking lot, landscaping, sprin-
kler system, and exterior lighting system. COUNTY shall be responsible for minor
repairs such as replacement of sprinkler heads, shrubberies, and repair of minor
potholes in the parking lot. LESSOR shall be responsible for repair of alligatoring,
cracking, and deterioration of the parking lot pavement. LESSOR shall be
responsible for resurfacing, sealing and restriping of the parking lot.
F. LESSOR shall be responsible for major repairs, code compliance, and replacement
of the elevator system. COUNTY shall maintain a routine maintenance contract
for the elevator system and be responsible for replacement of incidental items such
as the light bulbs in the elevator.
G. LESSOR shall provide and install, at the direction of the Fire Marshal, the
necessary number of A-B-C fire extinguishers for the premises. COUNTY shall
thereafter maintain, repair, and replace said extinguishers.
H. LESSOR shall be responsible for the correction of any code violations which may
exist in the premises, provided LESSOR shall not be liable for correction of code
violations which arise out of and are directly related to a change in COUNTY's
occupancy or use of said premises.
A.B. NOTICES: All notices given hereunder shall be in writing and shall be deemed to
have been given if personally delivered or deposited in the United States mail postage
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prepaid, certified or registered, return receipt requested, and addressed to the other party as
follows or as otherwise designated by written notice hereunder from time to time:
To Lessor: William R. Duffel and Lynnette S. Duffel
461 Gaylord Court
Sacramento, CA 95864
To County: Contra Costa County
General Services Department
Lease Management Division
1220 Morello Avenue, Suite 100
Martinez, CA 94553
A.9. ATTACHMENTS: Section B, Standard Provisions; Section C, Special Provisions;
Exhibit A: Premises; Exhibit B: Parking Lot; Exhibit C: Building Repairs; Exhibit D:
LESSOR and COUNTY Improvements are attached to this Lease and are made a part hereof.
A.10. WRITTEN AGR EMEN : Neither party has relied on any promise or
representation not contained in this Lease. All previous conversations, negotiations, and
understandings are of no further force or effect. This Lease may be modified only by a
writing signed by both parties. The headings of the paragraphs are for convenience only and
are not a part of this Lease,nor shall they be considered in construing the intent of this Lease.
A.11. $„CORDING: A Memorandum of Lease shall be executed and recorded by the
parties hereto. This will be in lieu of recording the entire instrument. Upon termination of
this Lease, COUNTY shall execute a Quitclaim Deed to LESSOR to clear Lease from
LESSOR's title.
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i
A.12. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this
lease.
A.I3. SIGNATURE BLOCK
COUNTY
COUNTY OF CONTRA COSTA, a
political subdivision of the State of
California
y
gy
Director of General Services illiam R. Duffel
By
RECOMMENDED FOR APPROVAL: L nette S. Duffel
By f �
Director, Ca tal Facilities and Debt
Management
By
Deputy G eral Servic66 Director
By
Direct r of Planning & Evaluation,
Health Services Department
By 0101
Lease Manager
APPROVED AS TO FORM:
VICTOR.J. WESTMA.N, County Counsel
Deputy
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LEASE
1424 Danzig Plaza
Concord, California
for
Health Services Department
SECTION B. STANDARD PROVISIONS
B.I. HOLDING OYEZ . Any holding over after the term or extension of this Lease as
provided hereinabove shall be construed to be a tenancy from month to month, subject to the
terms of this Lease so far as applicable.
B.2. USE 0 P'REMIISES: The premises shall be used during the term for purposes of
conducting various functions of COUNTY and COUNTY related services.
B.3. HOLD 11A$MLESS: COUNTY agrees to indemnify and hold harmless the LESSOR
from the COUNTY's share of any and all claims, costs, and liability for any damage, injury
or death of or to any person or the property of any person, including attorneys' fees, arising
out of negligent acts, errors or omissions of the COUNTY, its officers or employees.
COUNTY shall not be liable in the case of any structural, mechanical or other failure of
equipment of building owned and maintained by the LESSOR. or for liability which is
attributable, in whole or in part, to the negligence or willful misconduct of LESSOR, which
results in damage to any person or property.
LESSOR agrees to indemnify and hold harmless the COUNTY from the LESSOR!s share
of any and all claims, costs, and liability for any damages, injury or death of any person or
the property of any person, including attorneys' fees, arising out of negligent acts, errors or
omissions of the LESSOR, its agents or employees.
B.4. A TERATIONSs FIXTURES,AND_SIGNS: COUNTY may make any lawful and
proper minor alterations, attach fixtures and signs in or upon the premises, which shall
remain COUNTY property and may be removed therefrom by COUNTY prior to the
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termination of this Lease, all signs to meet with existing code requirements and LESSOR's
approval. Any such alterations, signs or fixtures shall be at COUNTY's sole cost and
expense.
B.5. DESTRU-CTION:
A. In the event of damage causing a partial destruction of the premises during the term
of this Lease from any cause, and repairs can be made within sixty (60) days from
the date of the damage under the applicable laws and regulations of governmental
authorities, LESSOR shall repair said damage promptly and within a reasonable
time, but such partial destruction shall not void this Lease, except that COUNTY
shall be entitled to a proportionate reduction of rent while such repairs are being
made, such proportionate reduction to be based upon the extent to which the
portion of the premises unusable by COUNTY bears to the total area of the
premises.
B. If such repairs cannot be made in sixty (60) days, LESSOR may, at his option,
make the same within a reasonable time, the rent to be proportionately reduced as
provided in the previous subparagraph. In the event LESSOR does not so elect to
make such repairs (which cannot be made in sixty (60) days), or such repairs
cannot be made under such laws and regulations, this Lease may be terminated at
the option of either party.
C. A total destruction of the premises shall terminate this Lease.
B.6. QUIET ENJOYMENT: LESSOR covenants that COUNTY shall at all times during
the said term peaceably and quietly have, hold, and enjoy the demised premises without suit,
trouble or hindrance from or on account of LESSOR as long as COUNTY fully performs
hereunder.
B.7. DEFAULTS: In the event of COUNTY's material breach of any of the covenants or
conditions herein, LESSOR may re-enter and repossess the premises and remove all persons
and property therefrom after giving COUNTY written notice of such default and in
accordance with due process of law. In the event of such a breach by LESSOR, COUNTY
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may terminate the Lease and quit the premises without further cost or obligation or may
proceed to repair the building or correct the problem resulting from the breach and deduct
the cost thereof from rental payments due to LESSOR, provided that COUNTY has given
LESSOR written notice of said breach and provided that LESSOR has not made a
substantial effort to correct said breach.
B.8. EMINENT DOMAIN:
A. If any part of the premises shall be taken as a result of the exercise of the power
of eminent domain or be conveyed to any entity having such power under threat
of exercise thereof (both of such actions being hereinafter referred to as
"condemnation") this lease shall automatically terminate as to the portion of the
premises which is condemned as of the date physical possession of such portion
is taken be condemnor. Any damages to the remainder of the premises sustained
by the COUNTY and/or LESSOR as a result of said condemnation action shall be
decided in court or by negotiation and agreement with the condemnor.
B. If the remaining part of the premises will not be reasonably suitable for the
COUNTY's use at the time of said taking, this Lease may be terminated by either
LESSOR or COUNTY, at any time by written notice within thirty(30) days after
the date possession of the condemned portion is taken by condemnor. If the
remaining part of the premises will be reasonably suitable for the use in effect at
time of said taking, this Lease shall continue in full force and effect as to such
remaining part. If this Lease is not so terminated, as of the date of such taking, the
rent shall continue at a reduced amount based on the remaining square footage
usable by COUNTY.
The LESSOR shall be entitled to the condemnation award attributed to his interest in
the real property and the COUNTY for the taking of its leasehold interest, fixtures and
equipment, leasehold improvements, relocation expenses, and other award not related to the
value of the real property. Nothing herein contained shall prevent LESSOR and COUNTY
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from prosecuting claims in any condemnation proceedings for the value of their prospective
interests.
B.9. RIGHT OF FIRST REY-USAL: Should LESSOR or his successor in interest
during the lease term or any extension thereof, elect to sell the leased premises, LESSOR
shall give COUNTY prompt written notice of such intention and of any offer. COUNTY
shall have ninety (90) days in which to meet the terms and conditions of such offer. If
COUNTY does not act within said 90-day period, LESSOR shall be free to sell the premises
in accordance with the terms and conditions of said offer.
B.10. S CCESSORIS AND ASSIGNS: The terms and provisions of this Lease shall
extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns
of the respective parties hereto.
B.11. SEVERABILITY: In the event that any provision herein is held to be invalid by any
court of competent jurisdiction, the invalidity of any such provision shall not materially
prejudice either the COUNTY or LESSOR in its respective rights and obligations contained
in the valid provisions of this Lease.
B.12. WA TT; NUISANCE: COUNTY shall not commit, or suffer to be committed, any
waste upon the leased premises, or any nuisance or other act or thing which may disturb the
quiet enjoyment of any other Lessee or occupant of the complex in which the leased premises
are located.
B.13. SURRENDER OF PREMISES: On the last day of the said term, or sooner
termination of this Lease, COUNTY will peaceably and quietly leave and surrender to
LESSOR these premises with their appurtenances and fixtures (exceptsigns and fixtures
referred to hereinabove) in good order, condition, and repair, reasonable use and wear thereof
and damage by earthquake, fire, public calamity, by the elements, by Act of God, or by
circumstances over which COUNTY has no control excepted. COUNTY shall not be liable
for painting the interior of the demised premises upon termination of this Lease.
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LEAS
1420 Willow Pass Road
Concord, California
for
Health Services Department
SECTION C; SPECIAL PROVISIONS
C-1. SERYICES M LESSO t: It is understood and agreed LESSOR shall provide certain
janitorial, maintenance, construction, remodeling or like services as requested by COUNTY
in writing from time to time during the term of this Lease. COUNTY shall pay to LESSOR
one hundred percent (100%) of the costs of said services.
LESSOR shall consult with COUNTY and select either licensed, insured contractors
or employees of LESSOR to provide the service. LESSOR shall obtain COUNTY's prior
approval on the scope, term, and cost of the contracts. COUNTY shall have the right to
change the level of service from time to time by giving LESSOR thirty (30) days' prior
written notice, including the right to terminate any or all service, or to require different
contractors to provide said service.
C.2. PROPERIv`TAAXES: COUNTY shall pay to LESSOR within thirty (30) days after
being requested to do so by LESSOR, as additional rental, one hundred percent (100%) of
the City and/or County taxes levied against Assessor's Parcel 126-380-008, in any year
during the term of this Lease, except COUNTY shall not pay any increase resulting from a
change in ownership of the property. Said taxes shall be prorated for the first and last years
of the term hereof.
C,3, AliSI!GNMENT OR SUBLEASE: COUNTY shall have the right to assign this
Lease during the term of this Lease and extension terms with LESSOR's written approval.
Such approval shall not be unreasonably withheld. COUNTY shall have the right to
sublease the premises or any part thereof to County related programs during the term of this
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... .... . ....... ....... . . _ ... ... .....
Lease and extension terms without LESSOR's written approval. In event of such sublease,
COUNTY shall remain responsible for payment of rent and meeting the obligations and
conditions under the terms of this Lease.
C.4. LIABI TTS'' INSURANCE: It is understood and agreed that the COUNTY, a
political subdivision of the State of California, is self-insured for its Public Liability
exposure, which includes claims made by the public against the COUNTY for bodily injuries
and property damage, to the extent such would be insured by a standard commercial
insurance company. LESSOR and GROUND LESSOR. shall be included as additional
insured under the COUNTY's Public Liability self-insurance plan in the same manner as
would otherwise be provided by a standard commercial general Public Liability insurance
policy.
C.5. FIREAN EXTENDED COVERAIGE INSURANCE: COUNTY shall, at its sole
cost and expense during the term of this Lease or extension thereof, either purchase
commercial insurance or at its option maintain a program of self-insurance providing
protection against loss or damage to the premises against loss caused by the perils of fire,
lightning and those afford by the standard all risk Special Form endorsement. The demised
premises shall be insured for its replacement cost and protect the interests of the LESSOR
and any lender or mortgagee having a financial interest in the premises.
In the event of any damage to the premises covered by such insurance, the insurance
proceeds shall be utilized for the repair, reconstruction or replacement of the damaged
portion of the premises. However, in the event of complete or constructive total loss of the
premises, whether insured or not, the proceeds shall be made payable to the LESSOR and
any lender or mortgagee having a financial interest in the premises, as their interests may
appear and the lease shall terminate in accordance with Section B.5. DESTRUCTION.
It is understood and agreed that the COUNTY may elect to include the premises for
protection of loss or damage caused by the perils of earthquake and/or flood and that any loss
or damage to the premises caused by the perils of earthquake and/or flood shall only inure
14_
to the benefit of the COUNTY and not to the LESSOR or any lender or mortgagee having
a financial interest in the premises.
CA RENTAL INTERRUPTION INSURANCE: COUNTY, at its sole expense, shall
maintain throughout the term of this Lease, rental interruption or use and occupancy
insurance to cover loss, total or partial, of the rental income from or the use of the premises
as the result of any of the perils covered by the insurance required by this Lease in an amount
sufficient to pay the part of the total rent hereunder attributable to the portion of the premises
rendered unusable for a period of at least one(1) year. Any proceeds of such insurance shall
be applied to abated rental and to the prepayment of rental payments as provided in this
Lease.
C.7. HAZARDOUS MATERIALS: LESSOR. has informed COUNTY that there are
asbestos containing building materials(ACBM) in certain locations on the subject premises.
LESSOR warrants that the ACBM are in good condition and do not pose a health hazard at
this time or in the foreseeable future. COUNTY may inspect the premises from time to time
to monitor the condition of the ACBM. In the event COUNTY, in its sole opinion,
determines that all or any portion of the ACBM requires treatment, LESSOR shall, at its sole
cost and expense, immediately treat the ACBM in accordance with law. This in no way
relieves the LESSOR.of any responsibility he may have to inspect the premises or monitor
the condition of the ACBM.
LESSOR, its successors, assigns and guarantors, agree to indemnify, defend and hold
harmless COUNTY, its officers and employees from and against any and all damages
arising from the presence of asbestos or other Hazardous Materials' upon or about the
premises, or arising in any manner whatsoever out of violation of any law or regulation
pertaining to the premises and the activities thereon, unless such damages exist solely as a
result of negligence or willful misconduct of COUNTY.
"Hazardous Materials" is defined to mean any substance, material or waste, including
lead based paint, asbestos and petroleum(including crude oil or any fraction thereof), which
-15-
is or becomes designated, classified or regulated as being "toxic", "hazardous", a"pollutant"
or similar designation under any federal state or local law, regulation or ordinance.
C.S. ATTORNEYS' FEES: if LESSOR or COUNTY brings any legal action to interpret
or enforce this Lease, or for damages for any alleged breach hereof, the prevailing party in
any such action shall be entitled to reasonable attorneys' fees as awarded by the court or
arbitrator, in addition to all other recoverable damages and costs.
C.9. ARBITRATION: Any dispute arising from Section A.S. Extension , subsection
D shall be settled by neutral binding arbitration before a single arbitrator. Any demand for
arbitration must be made in writing to the other party. No demand for arbitration may be
made after the date on which the institution of legal proceedings based on the claim, dispute
or other matter is barred by applicable statue of limitations.
Not later than thirty(30) days after delivery of written demand for arbitration, the parties
shall select an arbitrator. The arbitrator shall have substantial experience in leasing issues
in the geographical real estate market where the Leased Premises are located. The arbitrator
shall conduct an arbitration under the provisions of the commercial arbitration rules of the
American Arbitration Association. The arbitration shall be conducted in Contra Costa
County, California, unless the parties agree in writing to another location. If the parties
cannot agree on an arbitrator within the thirty (30) day period, the matter will be submitted
to the American Arbitration Association ("AAA") for the immediate selection of the
arbitrator. Costs and fees of the arbitrator shall be borne by the nonprevailing parties unless
the arbitrator for good cause determines otherwise. Each party shall pay its own attorneys
fees, expert and non expert witness expenses and other costs and expenses incurred in
connection with the arbitration.
The parties shall have the right to discovery in accordance with Code of Civil Procedure
sections 1283.05 and 1283.1 as long as the arbitrator's permission shall not be required to
take a discovery deposition and discovery by means of interrogatories and requests for
admission shall not be permitted. All discovery disputes shall be resolved by the arbitrator.
The arbitrator shall have no power to modify the provisions of this Lease. The arbitrator
-16-
shall render a final written decision on all matters subject to the arbitration, including factual
findings and the reasons that form the basis of the decision within thirty (30) days of the
arbitrator's appointment. The arbitrator's decision shall be binding on all parties. The
arbitrator's decision to challenge only(i) on the grounds set forth in California Code of Civil
Procedure section 1286.2, or (ii) based upon the arbitrator's incorrect application of the
substantive laws of California. The parties shall each have the right to file with a court of
competent jurisdiction an application for temporary or preliminary injunctive relief, writ of
attachment, writ of possession, temporary protective order, or appointment of a receiver if
the arbitrator award to which the applicant may be entitled may be rendered ineffectual in
the absence of such relief of if there is no other adequate remedy.
C.10.ACCOMPLISH ENI OF IMPRO—YEMIENTS.-
A. LESSOR and COUNTY agree that LESSOR shall construct improvements per
plans and specifications as prepared by Architectural Network inc.,plot date 6-25-
98, Addendum #1 dated 7122/98, labeled "Exhibit D" which are made a part
hereof. Copy of said plans and specifications are available at Contra Costa
County General Services Department, 1220 Morello Ave., Martinez, CA.
LESSOR and COUNTY mutually agree that LESSOR is responsible for payment
for completion of certain building improvements allocated to the LESSOR and
COUNTY is responsible for payment for completion of certain tenant
improvements allocated to the COUNTY in "Exhibit 1D," which are attached
hereto and made a part hereof.
B. LESSOR shall not make or cause any changes in said plans or specifications
allocated to the COUNTY without prior written consent of COUNTY. LESSOR
shall make changes, additions or deletions upon written Change Order from
COUNTY and such items shall be charged at a rate not to exceed direct cost plus
10%. COUNTY reserves the right to inspect during construction of improvements
as specified herein, but will not interfere with LESSOR's work and will notify
LESSOR of any requests,recommendations or discrepancies.
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C. If by October 1, 1998, LESSOR has completed the all repairs listed in Exhibit C:
BUILDING REPAIRS and all improvements allocated to both the LESSOR and
COUNTY listed in Exhibit D: LESSOR AND COUNTY IMPROVEMENT
and they are accepted in writing by the County Lease Manager, or designee, rent
shall commence effective October 1, 1998. In the event LESSOR cannot deliver
the premises by October 1, 1998, rent shall not commence until the first workday
after all the building repairs and LESSOR and COUNTY improvements are
completed and are accepted in writing by the County Lease Manager or designee.
If the improvements are not completed by December 1, 1998, COUNTY may, at
its sole discretion, terminate this Lease by giving LESSOR written notice, with no
cost or obligation on the part of the COUNTY.
D. Upon LESSOR's written request, the dates in this paragraph shall be extended by
the time lost as a result of work stoppages, strikes, shortages of material or Act of
God; provided such time is entirely beyond LESSOR's control.
C- 11. COMPLETION AND OCCUPANCY: The following procedure shall apply for
completion, acceptance, and payment for the remodeling of the building, hereafter called
improvements.
A. UPON LESSOR's completion of improvements and written notice thereof to the
County Lease Manager, COUNTY shall inspect within three (3) workdays after
receiving said notice and shall accept or reject said improvements within six (6)
workdays of receipt of such written notice.
B. The sole basis for rejection of the improvements shall be nonconformity with
plans and specifications or applicable laws or ordinances. In the event
COUNTY rejects the improvements, COUNTY shall provide LESSOR with a
reasonably detailed list of the deficient portions or details of the improvements.
C. LESSOR shall immediately commence to complete or correct the rejected
portion.
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D. COUNTY shall reimburse LESSOR for 100% of the costs of Tenant
Improvements allocated to COUNTY and approved by COUNTY in writing as
provided in Exhibit I?. LESSOR and COUNTY Improvements. Upon lease
execution, LESSOR may submit to the COUNTY a properly documented
progress payment request on the form provided by or approved by COUNTY for
up to 50% for expenses incurred by the LESSOR in completing the COUNTY's
improvements. LESSOR shall provide lien releases from all contractors and
suppliers, together with request for payment. Upon receipt of properly
documented request from LESSOR, COUNTY shall make the next progress
payment of 25%upon 75% of completion of COUNTY's tenant improvements
and a final 25% progress payment upon 100% completion and acceptance by
COUNTY of the COUNTY's tenant improvements. LESSOR shall provide lien
releases from all contractors and suppliers, together with request for payments.
E. Acceptance of said improvements shall not constitute a waiver of any warranty
of any defect in regard to workmanship or material of the improvements on said
premises.
EXHIBITS
EXHIBIT A: PREMISES
EXHIBIT B: PARKING LOT
EXHIBIT C: BUILDING REPAIRS
EXHIBIT D: LESSOR AND COUNTY IMPROVEMENTS z�z
19
EXHIBIT A Pg. 1 of 3
Those parcels of land in the City of. Concord, County of
Contra Costa, State of California, describe.: as follows:
PARCEL ONE
Portion of the Rancho Monte Del Diablo, described as
follows :
Commencing at the southwest line of the parcel of land
described in the deed to Peter E. Canzani, recorded April 8, 1938,
Book 46.1% Official Records , page 69 at the northwest line of the
parcel of land described in the deed to V. Earl Mulkins, et ux,
recorded September 15, 1955 , Book 2614, Official Records, page 293;
thence from said point of commencement, north 570 17' 15i1 east , along
said northwest line, 217.91 feet to the northeast line of said Mulkins
parcel; thence north 320 421 45" west , along the direct extension
north 3212 421 45" west of said northeast line, 25 feet; thence north
570 171 1511 east, 61.09 feet ; thence northeasterly and northwesterly,
along the arc of a curve to the left with a radius of 75 feet , through
a central angle of 9l0 441 37", an arc distance of 120.09 feet to the
actual point of beginning of the herein described parcel of land;
thence from said point of beginning, continuing northwesterly, along
the are of said last mentioned curve to the left with a radius of 75
feet, through a central angle of 40 171 47" , an arc distance of 5. 63
feet ; thence north 380 45 ' 0941 west , tangent to the last curve , 96 .02
feet to a line drawn parallel with and distant 2 feet southeasterly,
measured at right angles from the south line of the strip of land
described as Parcel One in� the deed to Contra Costa County, recorded
May 23, 1956, Book 2772, Official Records, page 598; thence north 510
144 5"11 east, along said parallel line, 386.81 feet to the west
line of the parcel of land described as Parcel One in the deed to
the State of California, recorded September 17, 1959 , Book 3455 ,
Official Records, page 1.37; thence south 080 074 2911 west , along
said west line, 187.42 feet to a point which bears north 570 17'
1511 east, from the point of beginning; thence south 570 17' 1514 west ,
251.62 feet to the point of beginning.
EXCEPTING PROM PARCEL ONE:
A right of way (not to be exclusive) for use as a roadway for
vehicles of all kinds, pedestrians and animals, for water, gas ,
oil and sewer pipe lines , and for telephone, television service,
electric light and power lines, together with the necessary poles
or conduits, as an appurtenance to the remaining lands of the
grantor, or any portion thereof, over that portion thereof lying within
the parcel of land described in Parcel Two herein.
PARCEL TWO
A right of way (not to be exclusive) for use as a roadway for
vehicles of all kinds , pedestrians and animals, for water, gas ,
z
EXHIBIT A Pg. 2 Of 3
031 and sewer pipe lines , and for telephone, television service ,
electric 'light and power lines , together with the necessary poles
or conduits , as an appurtenance to Parcel One above, over a portion
of the Rancho Monte Del Diablo, described as follows .
Commencing at the southwest line of the parcel of land
described in the deed to Peter E. Canzani , recorded April 8, 1938,
Book 465, Official Records , page 69, at the northwest line of the
parcel of land described in the deed to V. Earl Mulkin , et ux „ record-
ed September 15, 1955 , Hook 2610, Official Records , page 293; thence
from said point of commencement , north 57° 17 ' 15" east , slang said.
northwest line, 12 feet to the actual point of beginning of the
herein described parcel of land; thence from said point of beginning,
north 320 42' 45" west , parallel with the southwest line of said
Canzani parcel, 70 feet ; thence southeasterly and easterly along the
arc of a curve to the left with a radius of 20 feet , through a
central angle of 900 , an arc distance of 31.42 feet; thence north
57° 17 ' 1511 east , tangent to the last curve, 247 feet ; thence north-
easterly and northwesterly , along the arc of a curve to the left with
a radius of 50 feet , through a central angle of 960 02' 24" , an arc
distance of 83 . 81 feet ; thence north 38° 45 ' 09" west , tangent to the
last curve, 61. 18 feet ; thence northwesterly and southwesterly , along
the are of a curve to the left with a radius of 20 feet , tangent to
the last course, an arc distance of 29450 feet ; thence south 561 44v
11" west, tangent to the last curve, 156 .11 feet to a line drawn
parallel with and distant 2 feet southeasterly, measured at right
angles , from the south line of the strip of land described as Parcel
One in the deed to Contra Costa County, recorded May 23 1956$ Book
2772 , Official Records , page 598; thence north 510 14 ' 51" east , along
said parallel line, 396 .96 feet ; thence south 450 45 ' 31" west , 156 . 11
feet ; thence southwesterly and southeasterly, along the 'arc of a
curve to the left with a radius of 20 feet , through a central angle
of 840 30 ' 4011 , an arc distance of 29 . 50 feet ; thence south 38° 45 '
09" east , tangent to the last curve;. 61 . 18 feet ; thence southeasterly
and southwesterly , along the arc of a curve to the right with a
radius of 104 feet , through a central angle of 96= 42 " 2411 , an arc
distance of 167.62 feet ; thence south 570 171 15" west , tangent to
the last curve , 267 feet to the point of beginning.
EXCEPTING FROM PARCEL TWO : That portion thereof lying
within Parcel One above.
PARCEL THREE
A right of way ( not to be exclusive) for use as a roadway for
vehicles of all kinds ,, pedestrians and animals , for water, gas ,
oil and sewer pipe lines , and for telephone, television service ,
-2-
EXHIBIT A Pg. 3 of 3
.antt"' ver "lines, tog Ther with the necessary poles
.or conduits, ad an appurtenance to Parcel One above, or any
portion thereof, over a portion of the Rancho Monte Del Diablo,
described as follows :
Beginning on the southeast line of Parcel One above, at
the west line of the parcel of land described as Parcel One in the
deed to the State of California, recorded September 17, 2959,
Book 3455, Official Records , page 137; thence from said point of
beginning, south 48° 07 ` 29t1 west , along said west line, 58. 16 Peet ;
thence south 57° 1V 15" west, 197.67 feet ; thence northwesterly,
along the are of a curve to the left with a radius of 100 feet ,
through a central angle of 15° 021 0011 , an arc distance of 26.24
feet ; thence north 57* 17' 15" east, 169.87 feet; thence north 320
42 ' 45" west, 19 feet to the southeast line of Parcel. One above;
thence north 57° 171 1511 east, along said southeast line , 58. 12
feet to the point of beginning.
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EXHIBIT A Pg. 3 of 3
"anzt +wer `lines , together with the necessary�poles
.or conduits, ad an appurtenance to Parcel One above, or any
portion thereof, over a portion of the Rancho Monte :Del Diablo,
described as follows:
Beginning on the southeast line of Parcel. One above, at
the west line of the parcel of land described as Parcel. One in the
deed to the State of California, recorded September 17, 1959,
Book 3455, Official Records , page 137; thence frons; said paint of
beginning, south 08° OV 2911 went , along said went line, 58.16 feet ;
thence south 57° 171 15" west, 197.67 feet; thence northwesterly,
along the arc of a curve to the left with a radius of 100 feet ,
through a central angle of 15° 021 00t1, an arc distance of 26.24
feet ; thence north 570 171 15t1 east , 169.87 feet; thence north 320
421 45" west, 19 feet to the ;southeast line of Parcel One above ;
thence north 570 171 1511 east, along said southeast line, 58. 12
feet to the point of beginning.
-3-
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EXHIBIT C: BUILDING REPAIRS
ExteriorWork It=
Paint building exterior
Stripe and seal parking lot
Repair, level and replace as necessary uneven concrete walkway and rear patio.
Provide required handicapped parking spaces
Prune trees to prevent damage to roof and prevent danger to parking lot
Trim foliage clear of building and walkways
Repair sprinkler system
Roof-clear drains of debris, patch as required to provide watertight roof
Roof mounted HVAC equipment: Secure equipment on platform to prevent tearing of
roof
Repairs to specific HVAC units: Units #1 & #2-Replace the gas valves, Unit#3-Replace
compressor contactor; Unit#4-Replace the heating induced draft monitor
Windows-reglaze and caulk as required
Interior Work Items
Modifications to building entry door to comply with ADA requirements
Modifications to elevator to comply with ADA guidelines
Modifications to restrooms to comply with ADA guidelines
Paint entire interior of building
Replace stained ceiling tiles
Repair rusted window hardware
Repair broken window woodwork ledges
Replace filming on windows, as needed
Replace worn carpet or credit COUNTY $4,400.00 if COUNTY elects to totally replace
carpet
EXHIBIT D: LESSOR AND COUNTY IMPROVEMENTS
ITEM LESSOR COUNTY
L General Requirements
Permits & Licenses($1,525.) 380.00 1,145.00
Supervision-7 weeks ($12,000.) 3,000.00 9,000.00
General Labor-7 weeks ($6,000.) 1,500.00 4,500.00
Misc. Materials($1,000.) 250.00 750.00
Job Phone &Fax ($500.) 125.00 375.00
Final Cleaning _750.00
Subtotal $6,005.00 $15,770.00
2. Demolition
Debris Boxes &Hauling 850.00
Remove Walls, Doors Frames 2,250.00
&Hardware, Carpet& Suspended
Ceiling
Subtotal 3,100.00
3. Sitework
New Concrete Rear Walkway 3,750.00
Shrubbery Removal/ADA Parking 500.00
Irrigation Repair 350.00
Tree Removal at Building Rear 600.00
Subtotal 5,200.00
4. Metals
Handrail @ Stairs 1,980.00
Wall Stiffeners 480.00
Grill Above Windows 1,330.00
Subtotal 1,980.00 1,810.00
5. Wood&Plastics
Cabinets, Counters& Shelves 2,250.00
Counter(Reception area) 8160Q.0
Subtotal 10,850.00
(.Thermal &Moisture Protection
Wall Insulation 720.00
Roof patch at exhaust fan 800.00
(4 @$200.00 each)
Subtotal 1520.00
7. Doors & Windows
New Sidelights 3@$600. each 1,800.00
New Doorframe &Hardware
1@$2,000, 4 @$1,625 each 8,000.00
20 Minute Doorframe&Hardware 13,000.00
(13 @ $1,000. Each)
Reception Windows 3800.00
20 Minute Door with Glass Windows 6,000.00
(3 @ $2,000 each)
10" Kick Retrofits (6 @ $250.each) 1,500.00
Hardware/Double Door _ 400.0
Subtotal 1,500.00 33,000.00
EXHIBIT D: LESSOR AND COUNTY IMPROVEMENTS
ITEM LESSOR COUNTY
8. Finishes
CREDIT: Carpet Replacement (4,400.00)
Sheet Vinyl (5 @$660.00 each 2,640.00 660.00
Marlite Wainscoat 960.00
Paint: New Walls,Patches,New 1,700.00
Paint& Stain: Door, Cabinets & 3,750.00
Bases
Remove Baseboards 250.00
Partitions & Walls 11,600.00
Ceiling Tile Repair 750.00
Floor Tile Repair 800
New GWB/Restroom 800.,00
Subtotal 3,440.00 16,070.00
9. Specialties
Bath Fixtures
Grab bars-4' (5 @$80.00 each) 320.00 80.00
Grab bars-3' (5 @$65.00 each) 260.00 65.00
Toilet paper dispenser 40.00
Paper towel waste/dispenser 160.00
Seat cover dispenser 45.00
Vanity mirror(5 @$180.00 each 720.00 180.00
Interior HC signs (5 @ $40.00 each) 160.00 40.00
Urinal Screen 300.OQ
Toilet Partitions-HC 2,800.00
(4 @$700.00 each)
Toilet Partitions-HC 900 } 2
(2 @ $450.00 each)
Subtotal 5,160.00 910.00
10. Elevator HC Upgrade 10,400.00
11. Plumbing&Mechanical
Drinking Fountain 1,600.00
Lavatory-HC 700.00 5,800.00
HVAC Modifications 1,275.00 1,500.00
Exhaust fan 400.00
Fire Dampers 1,900-Q0
Subtotal 3,575.00 8,700.00
12. Electrical
Exit Signs
(7 @$120.00 each) 840.00
Dedicated outlets 530.00
Duplex receptacles 6,300.00
(63 @$100.00 each)
Light switches 2,400.00
(20 @ $120.00 each)
Phone data outlets 5,400.00
(61 @ $80.00 each)
Removal of Outlets, rewiring 7,150.00
Wire exhaust fan 150.00
Subtotal 840.00 21,930.00
SUBTOTAL 32,900.00 118,860.00
CONTRACTOR'S OVERHEAD 4,112.00 14,857.00
AND PROFIT 12.5%
CONTINGENCY 10% 3.29 11,886
$40,302.00 145,603.00
ROUND OFF TO: $41,000.00 $146,000.00