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HomeMy WebLinkAboutMINUTES - 09112012 - C.49RECOMMENDATION(S): 1. APPROVE a Lease with The Housing Authority of the County of Contra Costa for five (5) year period beginning July 1, 2012, and ending June 30, 2017, for approximately 3,950 square feet of classroom space at 135 W. Grove Street, Richmond, at a rental rate of $300.00 per month plus estimated miscellaneous occupancy charges of $34,000.00 per year, for continued occupancy by the Employment and Human Services Department - Community Services Bureau, under the terms and conditions set forth in the Lease. (WLP700) 2. AUTHORIZE the Director of Public Works, or designee, to EXECUTE the Lease on behalf of the County and to EXERCISE any options to extend the Lease. FISCAL IMPACT: This new Lease will obligate the County to pay a total rental of $18,000.00 during the five (5) year Lease term. In addition, the County will pay approximately $34,000.00 for estimated miscellaneous charges used on the APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/11/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Dave Silva (925) 313-2132 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 11, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: STACEY M. BOYD, Deputy cc: C. 49 To:Board of Supervisors From:Julia R. Bueren, Public Works Date:September 11, 2012 Contra Costa County Subject:135 W. Grove Street, Richmond – Lease for Employment and Human Services Department FISCAL IMPACT: (CONT'D) Premises in the first year, and similar annual payments throughout the term. The Lease was anticipated and budgeted in the Employment and Human Services Department – Community Services Bureau’s approved FY 2012/2013 budget. (Funding source: Org. #1528.) BACKGROUND: The County has leased the premises as a Head Start facility operated by the Community Services Bureau (CSB) for classroom and child care programs since 1993. This Lease will provide for the continued use by the CSB for that purpose. CONSEQUENCE OF NEGATIVE ACTION: Failure to approve this Lease may result in a significantly higher cost to the County and unknown capital costs and expenses to relocate this Head Start facility to another location in the Richmond area. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Lease Agreement C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC1 LEASE AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA AND COUNTY OF CONTRA COSTA FOR 135 WEST GROVE STREET RICHMOND, CALIFORNIA This lease is dated _____________, 2012, and is between the Housing Authority of the County of Contra Costa, a public agency (“Lessor”) and the County of Contra Costa, a political subdivision of the State of California (“County”). Recitals A. Lessor is the owner of the property located at 135 West Grove Street, Richmond, which includes a building with approximately 3,950 square feet of floor space (the “Building”). B. Lessor desires to lease to County and County desires to lease from Lessor, the Building, together with the fenced land, the play area and exclusive use of two (2) parking spaces, as shown on Exhibit A (altogether, the “Premises”). The parties therefore agree as follows: Agreement 1.Lease of Premises. In consideration of the rents and subject to the terms herein set forth, Lessor hereby leases to County and County hereby leases from Lessor, the Premises. 2.Term. The “Term” of this lease is five (5) years, commencing on July 1, 2012 (the “Commencement Date”) and ending June 30, 2017. 3.Rent. County shall pay rent (“Rent”) to Lessor in the amount of $300 per month beginning on the Commencement Date. Rent is payable on the tenth (10 th) day of each month during the Term. Rent for any fractional month will be prorated and computed on a daily basis with each day’s rent equal to one-thirtieth (1/30) of the monthly Rent. 4.Non-Federal Matching Funds. In accordance with federal regulations for the Head Start Childcare Program, at any time during this lease or any extension, a study of the fair market rental value of the premises may be required. The study shall be conducted by a licensed real estate professional by comparing the current rent to the fair market rent. The difference between the two can be considered as an in-kind contribution. LESSOR C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC 2 agrees to complete the necessary forms, information, documentation and records that will provide evidence to verify the in-kind contribution of non-federal matching funds to assist the COUNTY to conform to federal regulations for in-kind matching share. 5.Use. County may use the Premises for the purpose of conducting various functions of County and any other purpose permitted by law. 6.Obligation to Pay Utilities. County shall pay for all gas, electric, and refuse collection services provided to the Premises. Lessor shall pay for all water and sewer services provided to the Premises. 7.Maintenance and Repairs. a. Roof and Exterior of Premises. County shall keep the roof and exterior of the Premises 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, glass and glazing, and all locks and key systems used in the Premises. b. Interior of Premises. County shall keep and maintain the interior of the Premises in good order, condition and repair. County shall repair damage to the interior caused by its 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. Utilities. County shall repair and maintain the electrical, lighting, water and plumbing systems in good order, condition and repair. County shall correct routine plumbing stoppages. d. HVAC. County shall maintain and repair the heating, ventilating, and air- conditioning (HVAC) systems. e. Parking; Exterior Lighting; Landscaping. County shall maintain the parking lot and exterior lighting system in good order, condition and repair. County shall maintain the landscaping and the sprinkler systems. f. Fire Extinguishers. County shall provide and install, at the direction of the Fire Marshall, the necessary number of A-B-C fire extinguishers for the Premises. County shall maintain, repair, and replace the fire extinguishers in accordance with applicable County, City, State, and Federal laws. g. Building Code. County shall correct any code violations that may exist in the Premises. 8.Quiet Enjoyment. Provided County is in compliance with the material terms of this lease, Lessor shall warrant and defend County in the quiet enjoyment and possession of the Premises during the Term. C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC3 9.Assignment and Sublease. County has the right to assign this lease or sublease the Premises or any part thereof at any time during the Term, subject to the written approval of Lessor. 10.Alterations; Fixtures and Signs. County may (i) make any lawful and proper minor alterations to the Premises and (ii) attach fixtures and signs (“Attachments”) in or upon the Premises. Any Attachments will remain the property of County and may be removed from the Premises by County at any time during the Term. County is responsible for the cost of all alterations and Attachments. All alterations and Attachments are subject to Lessor’s approval and must comply with existing code requirements. 11.Insurance. a. Liability Insurance. Throughout the Term, County shall maintain in full force and effect, at its sole expense, a general self-insurance program covering bodily injury (including death), personal injury, and property damage, including loss of use. County shall provide Lessor with a letter of self-insurance affirming the existence of the aforementioned self-insurance program. b. Self-Insurance Exclusion. County’s self-insurance does not provide coverage for (i) areas to be maintained by Lessor under this lease, or (ii) negligence, willful misconduct, or other intentional act, error or omission of Lessor, its officers, agents, or employees. 12.Surrender of Premises. On the last day of the Term, or sooner termination of this lease, County shall peaceably and quietly leave and surrender to Lessor the Premises, along with their appurtenances and fixtures (except Attachments), all in good condition, ordinary wear and tear, damage by casualty, condemnation, act of God and Lessor’s failure to make repairs required of Lessor excepted. County is not responsible for painting the Premises upon the expiration or earlier termination of this lease. 13.Waste, Nuisance. County may not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing that may disturb the quiet enjoyment of any other occupant of the Building. 14.Inspection. Lessor, or its proper representative or contractor, may enter the Premises by prior appointment between the hours of 9:00 a.m. and 4:30 p.m., Monday through Friday, holidays excepted, to determine that (i) the Premises is being reasonably cared for, (ii) no waste is being made and that all actions affecting the Premises are done in the manner best calculated to preserve the Premises, and (iii) County is in compliance with the terms and conditions of this lease. 15.Perilous Conditions. If the County’s Director of Public Works becomes aware of a perilous condition on the Premises that, in his or her opinion, substantially and significantly threatens the health and safety of County employees and/or invitees (a “Perilous Condition”), the Director of Public Works, or his or her designee, will C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC 4 immediately notify Lessor of such Perilous Condition and Lessor shall use best efforts to immediately eliminate the Perilous Condition. Lessor shall immediately address any condition reasonably constituting an emergency, whether Lessor learns of the condition through County or otherwise. 16.Destruction. If damage occurs that causes a partial destruction of the Premises during the Term from any cause and repairs can be made within sixty days from the date of the damage under the applicable laws and regulations of governmental authorities, Lessor shall repair the damage promptly. Such partial destruction will not void this lease, except that County will be entitled to a proportionate reduction in Rent while such repairs are being made. The proportionate reduction in Rent will be calculated by multiplying Rent by a fraction, the numerator of which is the number of square feet that are unusable by County and the denominator of which is the total number of square feet in the Premises. If repairs cannot be made in sixty (60) days, County will have the option to terminate the lease or request that Lessor make the repairs within a reasonable time, in which case, Lessor will make the repairs and Rent will be proportionately reduced as provided in the previous paragraph. This lease will terminate in the event of a total destruction of the Building or the Premises. 17.Hazardous Material. Lessor warrants to County that Lessor does not have any knowledge of the presence of Hazardous Material (as defined below) or contamination of the Building or Premises in violation of environmental laws. Lessor shall defend, save, protect and hold County harmless from any loss arising out of the presence of any Hazardous Material on the Premises that was not brought to the Premises by or at the request of County, its agents, contractors, invitees or employees. Lessor acknowledges and agrees that County has no obligation to clean up or remediate, or contribute to the cost of clean up or remediation, of any Hazardous Material unless such Hazardous Material is released, discharged or spilled on or about the Premises by County or any of its agents, employees, contractors, invitees or other representatives. The obligations of this Section shall survive the expiration or earlier termination of this lease. “Hazardous Material”means any substance, material or waste, including lead based paint, asbestos and petroleum (including crude oil or any fraction thereof), that is or becomes designated as a hazardous substance, hazardous waste, hazardous material, toxic substance, or toxic material under any federal, state or local law, regulation, or ordinance. 18.Indemnification. a. County. County shall defend, indemnify and hold Lessor harmless from 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, caused by the C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC5 willful misconduct or the negligent acts, errors, or omissions of County, its officers, agents or employees in using the Premises pursuant to this lease, or the County’s performance under this lease, except to the extent caused or contributed to by (i) the structural, mechanical, or other failure of buildings owned or maintained by Lessor, and/or (ii) the negligent acts, errors, or omissions of Lessor, its officers, agents, or employees. b. Lessor. Lessor shall defend, indemnify and hold County harmless from Lessor’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, caused by the willful misconduct or the negligent acts, errors or omissions of Lessor, its officers, agents, employees, with respect to the Premises, or Lessor’s performance under this lease, or the Lessor’s performance, delivery or supervision of services at the Premises, or by the structural, mechanical or other failure of buildings owned or maintained by Lessor, except to the extent caused or contributed to by the negligent acts, errors, or omissions of County, its officers, agents, or employees. 19.Default. The occurrence of any of the following events is a default under this lease: a. County. i. County’s failure to pay Rent within ten business days after receipt of a written notice of failure (a “Notice”) from Lessor to County; provided, however, that County will have additional time if its failure to pay Rent is due to circumstances beyond its reasonable control, including, without limitation, failure of the County’s Board of Supervisors to adopt a budget. In no event may such additional time exceed seventy-five days from receipt of a Notice. ii. County’s failure to comply with any other material term or provision of this lease if such failure is not remedied within thirty days after receipt of a Notice from Lessor to County specifying the nature of the breach in reasonably sufficient detail; provided, however, if such default cannot reasonably be remedied within such thirty day period, then a default will not be deemed to occur until the occurrence of County’s failure to comply within the period of time that may be reasonably required to remedy the default, up to an aggregate of ninety days, provided County commences curing such default within thirty days and thereafter diligently proceeds to cure such default. b. Lessor. Lessor’s failure to perform any obligation under this lease if such failure is not remedied within thirty days after receipt of a Notice from County to Lessor specifying the nature of the breach in reasonably sufficient detail; provided, however, if such breach cannot reasonably be remedied within such thirty day period, then a default will not be deemed to occur until the occurrence of Lessor’s failure to perform within the period of time that may be reasonably required to remedy the breach, up to C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC 6 an aggregate of ninety days, provided Lessor commences curing such breach within thirty days and thereafter diligently proceeds to cure such breach. 20.Remedies. a. Lessor. Upon the occurrence of a default by County, Lessor may, after giving County written notice of the default, and in accordance with due process of law, reenter and repossess the Premises and remove all persons and property from the Premises. b. County. Upon the occurrence of a default by Lessor, County may (i) terminate this lease by giving written notice to Lessor and quit the Premises without further cost or obligation to County or (ii) proceed to repair or correct the failure and, at County’s option, either deduct the cost thereof from Rent due to Lessor, or invoice Lessor for the cost of repair, which invoice Lessor shall pay promptly upon receipt. 21.Notices. Any notice required or permitted under this lease shall be in writing and sent by facsimile with written transmission confirmation, overnight delivery service or registered or certified mail, postage prepaid and directed as follows: To Lessor:The Housing Authority of the County of Contra Costa 3133 Estudillo Street Martinez, CA 94553 Facsimile: (925) 372-3678 To County:Real Estate Manager Contra Costa County Public Works Department 255 Glacier Drive Martinez, CA 94553 Facsimile: (925) 646-0288 Either party may at any time designate in writing a substitute address for that set forth above and thereafter notices are to be directed to such substituted address. If sent in accordance with this Section, all notices will be deemed effective (i) upon confirmed facsimile transmission, (ii) the next business day, if sent by overnight courier and (iii) three days after being deposited in the United States Postal system. 22.Successors and Assigns. This lease binds and inures to the benefit of the heirs, successors, and assigns of the parties hereto. 23.Holding Over. Any holding over after the Term of this lease is a tenancy from month to month that is subject to the terms of this lease. 24.Time is of the Essence. In fulfilling all terms and conditions of this lease, time is of the essence. C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC7 25.Governing Law. The laws of the State of California govern all matters arising out of this lease. 26.Severability. In the event that any provision herein contained is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining provisions of this lease will not in any way be affected or impaired. 27.Entire Agreement; Construction; Modification. 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 is not to be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. This lease may be modified only by a writing signed by both parties. [Remainder of Page Intentionally Left Blank] C:\WINDOWS\TEMP\BCL TECHNOLOGIES\EASYPDF 5\@BCL@BC186856\@BCL@BC186856.DOC 8 The parties are executing this lease on the date set forth in the introductory paragraph. COUNTY OF CONTRA COSTA, a THE HOUSING AUTHORITY OF THE political subdivision of the State of COUNTY OF CONTRA COSTA, a public California agency By:_______________________By:_______________________ Julia R. Bueren Joseph Villarreal Director of Public Works Executive Director RECOMMENDED FOR APPROVAL: By:_______________________ Karen Laws Principal Real Property Agent By:_______________________ Dave Silva Senior Real Property Agent APPROVED AS TO FORM SHARON L. ANDERSON, County Counsel By:_______________________ Kathleen M. Andrus Deputy County Counsel