HomeMy WebLinkAboutMINUTES - 09232003 - C.83 TO: BOARD OF SUPERVISORS �. CONTRA
FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES j COSTA
DATE: SEPTEMBER 23, 2003 COUNTY
SUBJECT: LEASE AMENDMENT FOR THE PREMISES AT 3755 e .93
ALHAMBRA AVENUE, SUITE 9 FOR THE EMPLOYMENT AND
HUMAN SERVICES DEPARTMENT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
APPROVE a Lease Amendment, commencing October 1, 2003, with Earl D. Dunivan and Joanne
Dunivan for the premises at 3755 Alhambra Avenue, Suite 9, Martinez to an additional 1,020 square
feet to use for forensic examinations as requested by the Employment and Human Services
Department, under the terms and conditions more particularly set forth in the Lease Amendment, and
AUTHORIZE the Director of General Services, or designee, to execute the Lease Amendment on
behalf of the County.
FINANCIAL IMPACT
The Employment and Human Services Department has obtained donations of $115,000 with an
additional $5,000 forthcoming to pay for the tenant improvements required to convert the space to a
forensic examination office to facilitate the medical process associated with the Children's Interview
Center. Design, overhead and the monthly rent of $1,110 for 1,020 feet of space will come from the
Employment and Human Services Department's budget.
BACKGROUND
Approval of the Lease Amendment will provide an additional 1,020 square feet of space to be used
for forensic examinations as requested by the Employment and Human Services Department. The
initial lease for the Children's Interview Center commenced September 1, 2000.
CONTINUED ON ATTACHMENT: YES SIGNATURE: !! 1
rf£EGOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITT
—,,:I-OPROVE —OTHER
SIGNATURES:.
! ,ice'
ACTION OF BARD N /'.' tri t '7. r � j APPROVED AS RECOMMENDED OTHER_
VOTE OF SUPERVISORS
UNANIMOUS ABSENT_ 6 fi
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:BARTON J.GILBERT(313-7900)
Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
ca: Gen Services Department AND CORRECT COPY OF AN ACTION TAKEN
Lease
se Management Division AND ENTERED ON THE MINUTES OF THE BOARD
Accounting OF SUPERVISO S ON THE DATE SHOWN.
Auditor-Controller(via LIM) �
Risk Management(via UM) ATTESTED
EHS(via UM) J HN SPVEETMCLERK OF THE D OF SUPERVISORS
Earl D.Dunivan(via UM) F AND COUNTY ADMINISTRATOR
DEPUTY
I:\LeaseMgttSTEVEl37556DO2.DOC SBV: Page 1 of 1 M382(10198)
FIRST AMENDMENT TO LEASE
3755 ALHAMBRA AVENUE, SUITE 9
MARTINEZ, CALIFORNIA
FOR THE
EMPLOYMENT ANIS HUMAN SERVICES DEPARTMENT
1. PARTIES: Effective on Sp I a 2003 EARL D. DUNIVAN and
JOANNE DUNIVAN, hereinafter called "LESSOR", and COUNTY OF CONTRA
COSTA, a political subdivision of the State of California, hereinafter called "COUNTY",
mutually agree and promise as follows:
2. PURPOSE: The parties desire to amend that Lease dated August 15, 2000, entered
into between LESSOR and COUNTY for approximately 2,780 rentable square feet of
second floor office which includes Suite 9 comprised of 2,380 square feet and 400 square
feet of second floor common area (the "Premises") at Dorval Plaza, 3755 Alhambra
Avenue, (the "Building"), Martinez, California, to add Suite 10 and amend the pertinent
paragraphs in the Lease that require modification with the addition of suite 10.
3. AMENDMENT:
A. Paragraph A.2. LEASE OF PREMISES shall be deleted in its entirety and
replaced with the following:
A.2. LEASE OF PREMISES: Commencing September 1, 2000,
LESSOR, for and in consideration of the rents, hereby leases to
COUNTY, and COUNTY leases from LESSOR, including rights of
ingress and egress, those certain premises described as follows:
Approximately 2,780 rentable square feet of second floor office space
which includes Suite 9 comprised of 2,380 square feet and 400 square
feet of second floor common area (the "Premises") at Dorval Plaza, 3755
Alhambra Avenue (the "Building"), Martinez, California, as shown in
Exhibit "A-I and A-2", attached hereto and made a part hereof.
Commencing October 1, 2003, the Premises shall be expanded to
include Suite 10 containing approximately 871 square feet of office space
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and 149 square feet of common area shown on Exhibit "A-3", attached
hereto and made a part hereof.
The Premises, as amended, shall total approximately 3,800 square
feet of second floor office space and common area.
COUNTY shall have non-exclusive use of the parking area adjacent
to the Building, as shown in Exhibit "A-2". During the hours of 7a.m. to
7p.m. COUNTY staff shall use, on a non-exclusive basis, 15 designated
parking spaces for the Building which are located in the parking lot of the
Regency Plaza Apartments, 600 "J" Street, Martinez, California, as
shown in Exhibit "B", attached hereto and made a part hereof.
B. Paragraph A.4. BASE RENT shall be deleted in its entirety and replaced
with the following:
A.4. BASE RENT: Although the term of the Lease commences
September 1, 2000, the obligation of the COUNTY to pay base rent for
Suite 9 shall not commence until the first working day after the LESSOR
delivers and COUNTY accepts Premises in accordance with Paragraph
C.5. COMPLETION AND OCCUPANCY of this Lease. If COUNTY
acceptance of the Premises occurs after the first day of the month, base
rent shall be prorated for that month.
Effective October 1, 2003, COUNTY'S term for Suite 10 shall
commence, however, COUNTY'S obligation to pay rent shall not
commence until the first working day after the LESSOR delivers and
COUNTY accepts Suite 10 in accordance with Paragraph C.5.1.
COMPLETION AND OCCUPANCY OF SUITE 10 of this Lease
Amendment. If COUNTY acceptance of the Premises occurs after the
first day of the month, base rent shall be prorated for that month.
Notwithstanding the foregoing, COUNTY shall pay to LESSOR as
rent for the use of the Premises a monthly rent payable on the tenth day of
each month during the term of this Lease the following base rent:
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Suite 9
Year Beginning Ending Rent
I September 1, 2000 August 31, 2001 $2,780.00
2 September 1, 2001 August 31, 2002 $2,780.00
3 September 1, 2002 August 31, 2003 $2,890.00
4 September 1, 2003 August 31, 2004 $3,005.00
5 September 1, 2004 August 31, 2005 $3,125.00
Suite 10
Year Beginning En din Rent
I October 1, 2003 August 31, 2004 $1,110.00
2 October 1, 2004 August 31, 2005 $1,145.00
On September 1, 2005, COUNTY shall revise the base rent then in
effect for both suite 9 and 10 based on the "CPI Factor" (as defined
herein). Any adjustment in the base rent based on the CPI Factor shall be
limited to a minimum of four percent (4%) and a maximum of six percent
(6%) per annum and rounded to the nearest five dollars. The CPI Factor
shall be applied to adjust the then existing base rent for both suites
($3,125.00 and $1,145.00, respectively), and the base rent for each
subsequent lease year will be adjusted by applying this same CPI Factor
each year through the final lease year beginning September 1, 2009.
For example, if the CPI Factor is 6.8% for this twelve month period,
the revised monthly base rent increase for Suite 9 commencing
September 1, 2005 shall be computed at 6% increase over the existing
base rent (the CPI Factor is limited to a maximum increase of 6%) of
$3,125, or $187.50. Thus, the new base rent for Suite 9 effective
September 1, 2005 through August 31, 2006 would be $3,3315.00
($3,125.00 + $187.50 = $3,312.50 rounded off to the nearest five dollars).
Thereafter, the CPI Factor of 6% increase will be used to determine the
annual rent for each Lease year for the remaining period from September
1, 2006 through August 31, 2010. The base rent for Suite 10 shall be
adjusted using the same method as described for Suite 9 hereinabove.
The "CPI Factor" as used herein is that percentage of change to the
nearest one-tenth of one percent established during the twelve month
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period immediately preceding the date the revised rent is to commence as
stated in the United States Department of Labor, Bureau of Labor
Statistics, Consumer Price Index, All Urban Consumers, U. S. City
Average, All Items (1982-84 = 100), or successor of such index.
Payments shall be mailed to: Earl D. Dunivan and Joanne Dunivan,
P. O. Box 747, Martinez, CA 94553.
C. Paragraph A.7. UTILITIES AND JANITORIAL shall be deleted in its
entirely and replaced with the following:
A.7. UTILI'T'IES AND JANITORIAL. COUNTY shall pay for all
separately metered gas, electric, telephone services and janitorial services
for the Premises. COUNTY will pay water according to its proportionate
share of the Building. Commencing September 1, 2000, the COUNTY'S
proportionate share is the area of the Premises divided by the area of the
Building as follows:
Premises 2,780 sq. ft. = 27.8% rounded off to 28%
Building 10,025 sq. ft.
Commencing October 1, 2003, the COUNTY'S proportionate share will
be the area of the Premises divided by the area of the Building as follows:
Premises 3,800 sq. ft. = 37.9% rounded off to 38%
Building 10,025 sq. ft.
D. The first paragraph in paragraph A.9. COMMON AREA EXPENSES
shall be deleted in its entirety and replaced with the following:
Both COUNTY and LESSOR have reviewed LESSOR'S estimated
annual Common Area Expenses and agree that COUNTY shall pay to
LESSOR as additional rent for suite 9 a flat monthly amount which
represents COUNTY'S twenty eight percent (28%) pro-rata share of
Common Area Expenses, COUNTY'S 59.8% of Building Second Floor
Common Area Expenses and LESSOR'S Building management expenses
attributable to COUNTY'S occupancy as described in this Paragraph.
Both parties agree that for the term commencing September 1, 2000 and
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ending August 31, 2002, COUNTY shall pay to LESSOR as additional
rent FIVE HUNDRED AND NO/100 DOLLARS ($500.00) per month.
Effective October 1, 2003, as a result of the additional rented space,
COUNTY'S pro-rata share of Common Area Expenses shall increase to
38%, COUNTY'S share of Building Second Floor Common Area
Expenses and LESSOR'S Building management expenses attributable to
COUNTY'S occupancy shall increase to 81.8%. The Additional Rent
Schedule for Common Area Expenses for the remainder of the Lease term
is specified in C. below.
E. The following paragraph shall be added to the Lease in paragraph A.9.
COMMON AREA EXPENSES, subparagraph C. at the end of the first
paragraph and shall become the second paragraph of the subparagraph as
follows:
C.1. Additional Rent Payments for Suite 10. The obligation of the
COUNTY to pay Additional Rent for suites 10 shall not commence until
the first working day after the LESSOR. delivers and COUNTY accepts the
respective Premises' in accordance with Paragraph C.5.L COMPLETION
AND OCCUPANCY OF SUITE 10 of this Lease. If COUNTY acceptance
of suite 10 occurs after the first day of the month, additional rent shall be
prorated for that month. Subject to the foregoing, on the Additional Rent
commencement date and monthly thereafter, COUNTY shall pay to
LESSOR on the tenth day of each month during the term of this Lease the
following Additional Rent for Common Area Expenses:
Suite 10
October 1, 2003 August 31, 2004 $200.00
September 1, 2004 August 31, 2005 $205.00
F. The last paragraph in Paragraph A.9. COMMON AREA EXPENSES,
subparagraph D. Building and Common Area Insurance shall be deleted
and replaced with the following:
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LESSOR shall provide COUNTY with evidence of insurance
coverage upon commencement of this Lease. At the time the annual
insurance premium. payment is due, LESSOR shall provide COUNTY with
documentation of payment. For suite 9, COUNTY shall pay to LESSOR,
as additional rent, COUNTY'S proportionate share of twenty eight percent
(28%) of the annual insurance premium expense, within thirty (30) days
after being requested to do so by LESSOR.. Upon the acceptance of suite
10, COUNTY'S proportionate share shall increase to thirty eight percent
(38%) of the annual insurance premium expense.
G. The last paragraph in Paragraph A.9, COMMON AREA EXPENSES,
subparagraph E. Capital Improvements shall be deleted and replace with
the following:
Both COUNTY and LESSOR acknowledge that the agreed upon
additional flat monthly rent for Common Area expenses does not include
any amortization of capital improvements. If during the term of this
Lease and any extension, LESSOR completes an eligible capital
improvement, as defined above, LESSOR shall provide COUNTY with
written notification of the type of capital improvement and upon
COUNTY'S approval, which shall not be unreasonably withheld,
COUNTY'S proportionate share of twenty eight percent (28%) for suite 9
and ten percent (10%) for suite 10 of capital improvements, amortized
over its useful life, shall be added to the monthly Additional Rent for
Common Area expenses.
H. Paragraph A.10. ELEVATOR EXPENSE shall be deleted in its entirety
and replace with the following:
A.10. ELEVATOR EXPENSES: At the time of Lease commencement,
Suite 10, which represents 40.2 of the remaining space on the second
floor of the Building, was vacant. COUNTY agreed to pay for one
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hundred percent (100%) of the utilities and maintenance for the elevator
until Suite 10 is rented.
Upon the COUNTY'S occupancy of suite 10, COUNTY will remain
the sole occupant of the second floor and shall continue to pay 100% of
said expenses. Should LESSOR lease the remainder of the office space
on the second floor, COUNTY'S share of the utilities and maintenance
for the elevator shall decrease to eighty one and seven tenths percent
(81.7%) of said costs.
I. The following shall be added to Paragraph A.12. EXHIBITS AND
ATTACHMENTS:
Commencing October 1, 2003, Exhibit "G"-Plans and Specifications for
Suite 10 and EXHIBIT "H"-Suite 10 Improvements Budget are attached
to this Lease and made a part hereof.
J. The following paragraph shall be added to the Lease as follows:
CA.1. ACCOMPLISHMENT OF IMPROVEMENTS FOR SUITE 10:
a. LESSOR shall contract with Earl D. Dunivan and Associates to
construct improvements per plans and specifications prepared by
Aret8, Inc., Architects, dated July 17, 2002, labeled Exhibit "C"
— PLANS AND SPECIFICATIONS FOR SUITE 10, ("Suite 10
Improvements"), attached hereto and made a part hereof.
b. COUNTY shall reimburse LESSOR an amount not to exceed
ONE HUNDRED TWENTY THOUSAND ONE HUNDRED
THIRTY AND NO/100 DOLLARS ($120,130.00) for the cost to
complete the Suite 10 Improvements, including profit and
overhead as described in Exhibit "H" SUITE 10
IMPROVEMENTS BUDGET, approved by COUNTY and
attached hereto and made a part hereof. LESSOR shall complete
the Suite 10 Improvements in accordance with the plans and
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specifications cited in a. above, exclusive of the cost of
COUNTY approved change orders, as provided in c. below.
c. After approval by COUNTY, LESSOR shall not make or cause
to be made any changes in the plans or specifications without the
prior written consent of COUNTY, except as provided in b.
above. Upon receipt of written COUNTY requested Change
Orders, LESSOR shall make changes, additions or deletions and
such items shall be charged at a rate not to exceed direct cost plus
15% management fee. COUNTY shall receive full credit for any
deletions.
d. COUNTY hereby 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.
e. LESSOR shall apply for a building permit within FIFTEEN (15)
days of the effective date of this Lease Amendment.
f. LESSOR shall commence construction within THIRTY (30)
days of the issuance of a building permit and the improvements
shall be complete, including final inspections and issuance of a
Certificate of Occupancy, within four (4) months of issuance of a
building permit. If actual construction has not commenced
within FORTY FIVE (45) days of the effective date of this Lease
Amendment, COUNTY may, upon written notice to LESSOR,
cancel this Lease Amendment without cost or obligation to
COUNTY.
g. If the improvements are not completed within four (4) months
from the date of the building permit issuance, COUNTY may, at
its sole discretion:
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• Terminate the Lease Amendment by giving LESSOR
written notice, with no further cost or obligation on the
part of COUNTY, or,
• Complete the improvements and deduct the cost from the
amount to be reimbursed to LESSOR.
h. Upon LESSOR'S written request, the dates in this paragraph
shall be extended by the time lost as a result of work stoppages,
change orders, strikes, shortages of material or Act of Cod;
provided such time lost is entirely beyond LESSOR'S control.
K. The following paragraph shall be added to the Lease as follows:
C.5.1. COMPLETION AND OCCUPANCY OF SUITE 10: The
following procedure shall apply for payment and acceptance for the Suite
10 Improvements:
a. COUNTY shall reimburse LESSOR 100% of the costs for the
Suite 10 Improvements in accordance with the provisions
described in C.4.1.a. and C.4.1.b. ACCOMPLISHMENT OF
IMPROVEMENTS FOR SUITE 10. The Six Stage Suite 10
Construction Schedule (the "Suite 10 Schedule") for completion of
Suite 10 Improvements and Progress Payments is contained in
Exhibit "I" attached hereto and made a part hereof. Upon
completion and acceptance of each stage of construction by
COUNTY, LESSOR shall submit a properly documented progress
payment request to COUNTY.
b. Upon LESSOR'S final completion of the Suite 10 Improvements
and written notice thereof to the County Lease Manager,
COUNTY shall inspect within THREE (3) workdays after
receiving the notice and shall accept or reject the improvements
within FOUR (4) workdays of receipt of such written notice.
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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.
d. Subject to subparagraphs (b) and (c) above, rental shall be prorated
as of the first workday following the acceptance. However,
acceptance of the improvements shall not constitute a waiver or
any warranty of any defect in regard to workmanship or material of
the improvements in Suite 10.
L. Paragraph C.7. PROPERTY TAXES shall be deleted in its entirety and
replaced with the following:
C.7. PROPERTY TAXES: COUNTY shall pay to LESSOR within
thirty (30) days after being requested to do so by LESSON., as
additional rental, a sum equal to its proportionate twenty eight
percent (28%) share for Suite 9 and an additional ten percent (10%)
(upon the COUNTY'S acceptance of Suite 10) share of the City
and/or County taxes and general assessment levied against
Assessor's Parcel 370-270-004 in any year during the term of this
Lease or extension thereof. However, COUNTY shall not pay a
prorate share of any increase resulting from a change in ownership
of the property, except this does not apply to an ownership transfer
within the immediate family. If the taxes decrease, COUNTY may
deduct the decrease from the rent due LESSOR.
COUNTY shall pay the initial tax increase, if any, due to the
added value of the improvements accomplished according to
paragraphs C.4, C.4.1, C.5 and C.5.1 above.
It is understood that during the first and last years of
occupancy, the taxes shall be prorated between LESSOR and
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COUNTY according to the number of days the COUNTY shall have
possession of the Premises.
4. EFFECT: Except for the Amendment agreed to herein, the Lease dated August 15,
2000, remains in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set
forth above.
COUNTY LESSOR
COUNTY OF CONTRA COSTA, a EARL D. DUNIVAN AND JOANNE
political subdivision of the State of DUNIVAN
California
BB ..w'
Direc r of General Services Earl D. Dunivan
RECOMMENDED FOR.APPROVAL: � -
13 Joanne Dunivan
y
Director of Capital Fa ' ' ies and
DebtManagement
By
Employment an Human Services
Department
B ---
Lease Manager
APPROVED AS TO FORM:
SILVANO MARCHESI, County Counsel
Geu
A.
Lon
Deputy 3755A}amend3.doe