HomeMy WebLinkAboutMINUTES - 06242014 - C.34RECOMMENDATION(S):
APPROVE the Lease with Jane L. Bisio, Pamela Bisio Depres, and Earl D. Dunivan, Jr., for a two-year term
beginning July 1, 2014 and ending June 30, 2016, for continued use of approximately 6,525 square feet of office
space located at 627 Ferry Street, Martinez, by the Public Defender, under the terms and conditions set forth in the
Lease. (WLP719)
AUTHORIZE the Public Works Director, or designee, to execute the Lease on behalf of the County, and to exercise
any options to extend the Lease term.
FISCAL IMPACT:
100% General Fund
BACKGROUND:
The Lease will provide for the continued use of this office space for the Public Defender’s Alternate Defender Office
as requested by the Public Defender. The approval of this Lease will save the County approximately $65,240 over the
two-year term of the Lease by reducing the current monthly rent.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 06/24/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYES 5 NOES ____
ABSENT ____ ABSTAIN ____
RECUSE ____
Contact: Steven B. Van Horn (925)
313-2131
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: June 24, 2014
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc:
C. 34
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director/Chief Engineer
Date:June 24, 2014
Contra
Costa
County
Subject:627 Ferry Street, Martinez – Lease for the Public Defender
CONSEQUENCE OF NEGATIVE ACTION:
Not authorizing the Lease for the continued use of this office space by the Public Defender would require the
County to find another suitable location likely at an increase in rent, together with the associated expenses for
moving and tenant improvements.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Lease, 627 Ferry Street, Martinez
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LEASE
Contra Costa County Public Defender s Office
Alternate Defender s Division
627 Ferry Street
Martinez, California
This lease is dated _____________ , and is between Jane L. Bisio and Pamela Bisio
Despres, Trustees of the Amended and Restated Bart A. Bisio and Jane L. Bisio Revocable Trust
dated November 8, 2000, and Earl D. Dunivan, Jr. (together, the Lessor ) and the County of
Contra Costa, a political subdivision of the State of California (the County ).
Recitals
A. Lessor is the owner of that certain real property commonly known as 627 Ferry Street,
Martinez, County of Contra Costa, State of California that is more particularly described
in Exhibit A (APN 373-161-012) (the Property ). The Property has been improved
with a two-story office building of approximately 6,525 square feet.
B. Lessor desires to lease to County and County desires to lease from Lessor the Property.
The parties therefore agree as follows:
Agreement
1.Lease of Property. 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 Property.
2.Term. The Term of this lease is comprised of an Initial Term and, at County s
election, a Renewal Term, each as defined below.
a. Initial Term. The Initial Term is two years, commencing on July 1, 2014 (the
Commencement Date ) and ending June 30, 2016.
b. Renewal Term. County has one option to renew this lease for a two-year term (the
Renewal Term ) upon all the terms and conditions set forth herein.
i. County will provide Lessor with written notice of its election to renew the
Lease one hundred twenty days prior to the end of the Term. However, if
County fails to provide such notice, its right to renew the Lease will not expire
until fifteen working days after County s receipt of Lessor s written demand
that County exercise or forfeit the option to renew.
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ii. Upon the commencement of the Renewal Term, all references to the Term of
this lease will be deemed to mean the Term as extended pursuant to this
Section.
3.Rent. County shall pay rent ( Rent ) to Lessor monthly in advance beginning on the
Commencement Date. Rent is payable on the tenth day of each month during the Initial
Term and, if applicable, the Renewal Term, in the amounts set forth below:
a. Initial Term.
Time Period Monthly Rent
July 1, 2014 through June 30, 2015 $6,525
July 1, 2015 through June 30, 2016 $6,655
b. Renewal Term.
Time Period Monthly Rent
July 1, 2016 through June 30, 2017 $6,790
July 1, 2017 through June 30, 2018 $6,925
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. Payments are to be mailed
to: Dunivan/Bisio, P. O. Box 747, Martinez, CA 94553.
4.Use. County may use the Property for the purpose of conducting various functions of
County and any other purpose permitted by law.
5.Obligation to Pay Utilities. County shall pay for all gas, electricity, water, telephone,
janitorial and garbage services provided to the Property.
6.Maintenance and Repairs.
a. Roof and Exterior of Building. Lessor shall maintain the structural integrity of the
building. County shall keep the roof and exterior of the building in good order,
condition and repair, and shall maintain all interior and exterior doors and their
fixtures, closers and hinges, exterior windows, glass and glazing, and all locks and
key systems used in the building.
b. Interior of Building. County shall keep and maintain the interior of the building in
good order, condition, and repair, and 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 or exterior wall leaks. The County may install and
maintain an alarm system, if deemed necessary by County.
c. Utilities. County shall repair and maintain the electrical, lighting, water and
plumbing systems in good order, condition and repair.
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d. HVAC. County shall maintain and repair the heating, ventilating, and air-
conditioning (HVAC) systems. County may request that Lessor obtain a quarterly
maintenance contract for the HVAC systems. Said quarterly maintenance shall
include maintenance on the HVAC units and components, including motor, belts,
damper and drainage system and changing of air filters. County will reimburse
Lessor one hundred percent (100%) of the cost of said quarterly maintenance contract
plus fifteen percent (15%) for management, supervision and administrative costs.
e. Services by Lessor. If County determines that the building is in need of maintenance,
construction, remodeling or similar service that is beyond Lessor s responsibilities
under this lease, at County s request, Lessor shall perform such service at County s
expense. In performing the service, Lessor shall consult with County and use either
licensed insured contractors or employees of Lessor. Lessor shall obtain County s
prior written approval of the scope, terms, and cost of any contracts. County may, by
giving Lessor thirty (30) days prior written notice, change the level of service,
terminate any or all service, or require that a service be performed by a different
contractor. County shall pay to Lessor, as additional rental, one hundred percent
(100%) of the costs of the service plus fifteen percent (15%) for management,
supervision and administration expenses. County is aware that Lessor has contracted
with Earl D. Dunivan and Associates to provide the services it is obligated to perform
under this Section 6. Reimbursement for such services shall be payable to either the
Lessor or Earl D. Dunivan and Associates, P. O. Box 747, Martinez, CA 94553.
7.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 Property during the Term.
8.Subordination, Non-Disturbance and Attornment. If at any time Lessor has a loan that is
secured by a lien of a mortgage or deed of trust encumbering the Property, Lessor shall
cause the lender(s) holding such lien to execute and deliver to County a Subordination,
Non-Disturbance and Attornment Agreement that is in substantial conformity with
Exhibit B hereto.
9.Assignment and Sublease. County shall not have the right to assign this lease or
sublease the Property or any part thereof at any time during the Term without the written
consent of Lessor, which shall not be unreasonably withheld.
10.Alterations; Fixtures and Signs.County may (i) make any lawful and proper minor
alterations to the building and (ii) attach fixtures and signs ( County Fixtures ) to the
building. Any County Fixtures will remain the property of County and may be removed
from the building by County at any time during the Term. County is responsible for the
cost of all alterations and County Fixtures. All alterations and County Fixtures are
subject to Lessor s approval and must comply with existing code requirements.
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11.Property Taxes. County shall pay to Lessor within thirty days after being requested to
do so by Lessor, as additional rent, a sum equal to Real Property Taxes levied against
the Property upon which the building is located in any year during the Term of the lease.
Real Property Taxes means and includes all taxes, assessments levied or assessed
upon the building and the real property upon which it is situated, any state or local
business taxes or fees measured by or assessed by gross rentals or receipts, and other
governmental charges, general and special, including, without limitation, assessments
for public improvements or benefits, that are assessed, levied, and imposed by any
governmental authority on the building during the Term. Real Property Taxes do not
include any late fees or penalties, any municipal, County, or state or federal net income,
estate, succession, inheritance, sales, use or franchise taxes of Lessor or documentary
transfer taxes, or tax increases of any kind in connection with the transfer, sale or change
in ownership of all or part of the building.
Real Property Taxes are to be prorated between Lessor and County according to
the number of months during the tax year the County has possession of the Property.
12.Insurance.
a. Lessee 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, and shall name Lessor as an additional
insured.
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.
c. Lessor Liability and Property Insurance. Lessor may obtain and may keep in force
during the term of this lease a policy or policies of insurance for the benefit of Lessor
covering both Lessor liability and loss or damage to the building, and the Property but
excluding coverage of merchandise, fixtures, equipment and leasehold improvements
of County, which are not considered part of the real estate for insurance purposes, in
the amount of the full replacement value thereof, providing protection against all
perils included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk), boiler and machinery coverage
(if applicable) and an inflation endorsement. In addition, Lessor may obtain and keep
in force, during the term of the lease, a policy of rental loss covering a period of one
year, commencing on the date of loss, with proceeds payable to Lessor, which
insurance may also cover all Real Property Taxes, operating expenses, and other sums
payable by County to Lessor hereunder for said period. The insurance coverage may
include sprinkler leakage insurance if the building contains fire sprinklers. All
proceeds under such policies of insurance shall be payable to Lessor, and County
shall have no interest in or right to such proceeds. However, any portion of a claim
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that Lessor makes against its insurance carrier that would be considered a
reimbursable expense by the County to the Lessor shall be credited to the County.
d. Payment. County shall pay to Lessor during the Term all premiums for any insurance
obtained by Lessor pursuant to subsection 12.c. Lessor Liability and Property
Insurance upon a written request for reimbursement from Lessor. Lessor and County
expressly agree that County is not obligated to reimburse Lessor for any premium for
earthquake coverage and is obligated to reimburse Lessor for flood insurance only if
such coverage is required by a lender in conjunction with any loan secured by all or
any part of the Property. Any uninsured or excluded perils and all deductibles shall
be borne entirely by the Lessor.
13.Waiver of Subrogation. County and Lessor each hereby waives any and all rights of
recovery against the other, and against the officers, employees, agents and
representatives of the other, for loss of or damage to the property of the waiving party or
the property of others under its control, to the extent such loss or damage is covered by
proceeds received under any insurance policy carried by Lessor or County and in force
at the time of such loss or damage. County and Lessor, shall, upon obtaining the
policies of insurance required hereunder, give notice to the insurance carrier or carriers
that the foregoing mutual waiver of subrogation is contained in this lease.
14.Surrender of Property. On the last day of the Term, or sooner termination of this lease,
County shall peaceably and quietly leave and surrender to Lessor the Property, along
with appurtenances and fixtures at the building (except County Fixtures), all in good
condition, ordinary wear and tear, damage by casualty, condemnation, acts of God and
Lessor s failure to make repairs required of Lessor excepted. County is not responsible
for painting the interior of the building, or for replacing any floor coverings in the
building upon the expiration or earlier termination of this lease. The County is
responsible for the repair of any floorcoverings.
15.Waste. County may not commit, or suffer to be committed, any waste upon the
Property.
16.Inspection. Lessor, or its proper representative or contractor, may enter the building 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 building is being reasonably cared
for, (ii) no waste is being made and that all actions affecting the building are done in the
manner best calculated to preserve the building, and (iii) County is in compliance with
the terms and conditions of this lease.
17.Perilous Conditions. If the County s Public Works Director becomes aware of a
perilous condition on the Property that, in his or her reasonable opinion, substantially
and significantly threatens the health and safety of County employees and/or invitees (a
Perilous Condition ), the Public Works Director, or his or her designee, will
immediately notify Lessor of the Perilous Condition and Lessor shall use best efforts to
immediately eliminate the Perilous Condition.
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Lessor shall immediately address any condition reasonably constituting an emergency,
whether Lessor learns of the condition through County or otherwise.
If Lessor fails to address a Perilous Condition within twenty-four (24) hours after
County s notice or to immediately address an emergency situation, County may attempt
to resolve the Perilous Condition or emergency situation. Lessor shall reimburse County
for any costs incurred by County in addressing the Perilous Condition or emergency
situation promptly upon receipt of County s invoice.
18.Destruction. If damage occurs that causes a partial destruction of the building during the
Term from any cause and repairs can be made within one hundred twenty 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 building.
If repairs cannot be made in one hundred twenty 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.
19.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 Property 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 Property that was not brought to the Property 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 Property 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.
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20.Indemnification for Third Party Claims.
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
willful misconduct or the negligent acts, errors, or omissions of County, its officers,
agents or employees in using the Property 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 Property, or Lessor s performance under this
lease, or the Lessor s performance, delivery or supervision of services at the Property,
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.
21.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.
In the event that a failure to pay occurs that is due to circumstances beyond its
reasonable control, once the condition no longer exists, County shall pay all
rents in arrears as soon as reasonably possible.
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
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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
an aggregate of ninety days, provided Lessor commences curing such breach within
thirty days and thereafter diligently proceeds to cure such breach.
22.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 Property and remove all persons and property from the Property.
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 Property 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.
23.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:Jane L. Bisio and Pamela B. Depres, Trustees of the
Amended and Restated Bart A. Bisio and Jane L.
Bisio Revocable Trust, and Earl D. Dunivan, Jr.
c/o Earl D. Dunivan and Associates
P. O. Box 747
Martinez, CA 94553
Facsimile: (925) 228-3789
To County:Contra Costa County
Public Works Department - Real Estate Manager
255 Glacier Drive
Martinez, CA 94553
Facsimile: (925) 646-0288
Either party may upon five (5) days written notice to the other, at any time designate in
writing a substitute address for that set forth above and thereafter notices are to be
directed to such new substituted address. If sent in accordance with this Section, all
notices will be deemed effective (i) upon confirmed facsimile transmission, (ii) the next
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business day, if sent by overnight courier and (iii) three days after being deposited in the
United States Postal system.
24.Successors and Assigns. This lease binds and inures to the benefit of the heirs,
successors, and assigns of the parties hereto.
25.Holding Over. Any holding over after the Term of this lease is a tenancy from month to
month and is subject to the terms of this lease.
26.Time is of the Essence. In fulfilling all terms and conditions of this lease, time is of the
essence.
27.Governing Law. The laws of the State of California govern all matters arising out of
this lease.
28.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.
29.This lease may be executed in counterparts.
[Remainder of Page Intentionally Left Blank]
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30.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.
The parties are executing this lease on the date set forth in the introductory paragraph.
COUNTY LESSOR
COUNTY OF CONTRA COSTA, a JANE L. BISIO AND PAMELA BISIO
political subdivision of the State of DESPRES, TRUSTEES OF THE
California AMENDED AND RESTATED BART A.
BISIO AND JANE L. BISIO REVOCABLE
TRUST; and EARL D. DUNIVAN, JR.
By:_______________________By:_______________________
Julia R. Bueren Jane L. Bisio, Trustee
Public Works Director
By:_______________________
Pamela Bisio Depres, Trustee
RECOMMENDED FOR APPROVAL:
By:_______________________
Earl D. Dunivan, Jr.
By:_______________________
Karen Laws
Principal Real Property Agent
By:_______________________
Steven B. Van Horn
Senior Real Property Agent
APPROVED AS TO FORM:
SHARON L. ANDERSON, County
Counsel
By:_______________________
Kathleen M. Andrus
Deputy County Counsel