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HomeMy WebLinkAboutMINUTES - 10082002 - C.67 TO: BOARD OF SUPERVISORS '�Wr-ontra FROM: Jahn Sweeten, CAO ` r Costa DATE: October 8, 2002 - County SUBJECT: TAX EXCHANGE AGREEMENT FOR THE, PROPOSED PICNC (NORTH CONCORD) ANNEXATION TO THE CITY OF CONCORD (LAFC-02-18) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT the attached resolution that authorizes the inclusion of the PICNC (North Concord) Annexation Area in the North Concord Annexation Area Master Property Tax Transfer Agreement between the City of Concord and Contra Costa County. (LAFC 02-18). FINANCIAL IMPLICATIONS: This tax sharing proposal utilizes the previous agreement negotiated between the County and the City of Concord regarding the North Concord Annexation Area Master Property Tax Transfer Agreement negotiated in March 2000. Under the terms of the agreement, the County will transfer a portion of its base property tax revenue and its increment revenues from the area to be annexed to the City of Concord. However, the sales tax generated in the affected area will be allocated between the City and County as to maintain an overall tax allocation (sales and property tax) of 51%to the City and 49%to the County. BACKGROUND: The proposed PICNC Annexation to the City of Concord requests the annexation of +/-95 acres generally located north of State 4, south of Mason Circle, west of Industrial Way and east of and including Laura Alice Way in the North Concord area. The City is requesting annexation in order to facilitate office space development of the area. The Concord City Council passed a similar resolution on their September.24 ag"al. CONTINUED ON ATTACHMENT: YES SIGNATURE ✓ ' " `," —_R–___--.....-------- ------------.�_-� .,..__._......_....._.. �R COMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD i ITTEE APPROVE OTHER SIGNATURE(S).' I , ----------------- ACTION OF BO/{R ON ,°,{ �.*. i `�5 v ,. ..0.PP#7OVE AS RECOMMENDED WyOTHER ~�----A- Ji I r VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT ''`^ '' ) AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: { ATTESTED i'i CONTACT: JOHN SWEETEN,CL.. K OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: County Administrator Auditor-Controller County Counsel LAFCO City of Concord r f fr � BY �k f tJ�' DEPUTY THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adapted this Resolution on October 8,20 02, by the following vote: AYES: RTMUSORS UMMA, MM, DeSMMM, =M AND GIOIA NOES: NM ABSENT: PONS ABSTAIN: Resolution No. 2002tas9 Subject: A Resolution Authorizing the Inclusion Of the PICNC (North Concord) Annexation Area in the Faster Property Transfer Agreement Subject to Additional Terms And Conditions Between the City of Concord and Contra Costa County to Allow A Division of Property Tax and Sales Tax Revenues Upon the Annexation of the PICNC Annexation Area to the City of Concord (LAFC —2-18) WHEREAS, Section 99 of the Revenue and Taxation Code provides that a city and county shall agree by Resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the PICNC Area Annexation to the City of Concord (LAFC 02-18) involving annexation of territory to the City of Concord is excluded from the application of the Master Property Tax Transfer Agreement between the City and County because the assessed value of the affected territory exceeds ten million dollars; and WHEREAS, the City of Concord and Contra Costa County have agreed that, notwithstanding the amount of the assessed value of the territory the subject annexation, the Master Property Tax Transfer Agreement, subject to additional terms and conditions regarding the exchange of sales tax revenues as set forth herein, shall apply to the annexation. NOW, THEREFORE, THE BOARD OF SUPERVISORS DOES RESOLVE AS FOLLOWS: Section 1. This agreement applies to all territory included in the PICNC annexation to the City of Concord (LAFC 02-18), as approved by the Local Agency Formation Commission. Section 2. This resolution does not change the property tax revenues accruing to other agencies serving the subject territory or the affected districts' right to collect taxes for existing bonded indebtedness. Section 3. Notwithstanding Revenue and Taxation Code Sections 95 through 100, or any other law, the City and County hereby agree to an exchange of both property tax and sales tax revenues as set forth below: A. Subject to subparagraphs b.through e. below,the Master Property Tax Transfer Agreement (Exhibit"A") shall be used to allocate property taxes between the City and County. B. Sales tax generated in the affected area will be allocated between the City and County as to maintain an overall tax allocation (sales and property) of fifty-one percent (51%) to the City and forty-nine percent (49%) to the County. If there is insufficient sales tax to bring the overall tax allocation to the City to fifty-one percent(51%)of the total,the City will retain all of the sales tax. C. The percentage of sales tax to be received by the County and City will be evaluated on an annual basis to maintain the 49/51 percent split of overall tax revenues. D. The property tax shall be allocated by the County Auditor. The City will remit to the County its share of sales tax as set forth above. County shall forward property tax information to City as soon as it is available, and City shall pay to County any sales tax required to be paid to County by the later of December 31 of the current fiscal year, or within thirty (30) days of receipt of property tax information. The County Auditor-Controller shall have the right to audit the City's books to verify sales tax amount. E. Definitions; For purposes of the foregoing calculation, "sales tax"shall mean the sales tax revenue received by the City during the preceding tax year from the area annexed; and "property tax"shall mean the current year base tax amounts for the County and City in the area annexed. Section 4, The Clerk is hereby directed to forward a certified copy of this resolution to the Auditor/Controller of Contra Costa County and to the Executive Officer of the Local Agency Formation Commission. Section 5t5. This resolution shall become effective immediately upon its passage and adoption. 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: (date) 0 4" ��- JOHN SWEETEN, Clerk of the Board of Supervisors and County Administrator By ; Deputy Contact:: cc: County Administrator Auditor-Controller County Counsel l_AFCC City of Concord RESOLUTION NO. 2002/439.. a THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on October 8,2002, by the following vote: AYES: SUPMMM UnKft, GMIM, DesAtm3m, MMM AND G101A NOES., ABSENT: ABSTAIN: Resolution No. 200209 Subject: A Resolution Authorizing the Inclusion Of the PICNC (North Concord)Annexation Area In the Master Property Transfer Agreement Subject to Additional Terms And Conditions Between the City of Concord and Contra Costa County to Allow A Division of Property Tax and Sales Tax Revenues Upon the Annexation of the PICNC Annexation Area to the City of Concord (LAFC —2-18) WHEREAS, Section 99 of the Revenue and Taxation Code provides that a city and county shall agree by Resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the PICNC Area Annexation to the City of Concord (LAFC 02-18) involving annexation of territory to the City of Concord is excluded from the application of the Master Property Tax Transfer Agreement between the City and County because the assessed value of the affected territory exceeds ten million dollars; and WHEREAS, the City of Concord and Contra Costa County have agreed that, notwithstanding the amount of the assessed value of the territory the subject annexation, the Master Property Tax Transfer Agreement, subject to additional terms and conditions regarding the exchange of sales tax revenues as set forth herein, shall apply to the annexation. NOW, THEREFORE, THE BOARD OF SUPERVISORS DOES RESOLVE AS FOLLOWS: ection 1. This agreement applies to all territory included in the PICNC annexation to the City of Concord (LAFC 02-18), as approved by the Local Agency Formation Commission. Section 2. This resolution does not change the property tax revenues accruing to other agencies serving the subject territory or the affected districts' right to collect taxes for existing bonded indebtedness. Section 3. Notwithstanding Revenue and Taxation Code Sections 95 through 100, or any other law, the City and County hereby agree to an exchange of both property tax and sales tax revenues as set forth below: A. Subject to subparagraphs b. through e. below,the Master Property Tax Transfer Agreement (Exhibit"X) shall be used to allocate property taxes between the City and County. B. Sales tax generated in the affected area will be allocated between the City and County as to maintain an overall tax allocation (sales and property) of fifty-one percent(51%) to the City and forty-nine percent (49%) to the County. If there is insufficient sales tax to bring the overall tax allocation to the City to fifty-one percent(51%)of the total,the City will retain all of the sales tax. C. The percentage of sales tax to be received by the County and City will be evaluated on an annual basis to maintain the 49151 percent split of overall tax revenues. D. The property tax shall be allocated by the County Auditor. The City will remit to the County its share of sales tax as set forth above. County shall forward property tax information to City as soon as it is available, and City shall pay to County any sales tax required to be paid to County by the later of December 31 of the current fiscal year, or within thirty (30) days of receipt of property tax information. The County Auditor-Controller shall have the right to audit the City's boobs to verify sales tax amount. E. definitions: For purposes of the foregoing calculation, "sales tax"shall mean the sales tax revenue received by the City during the preceding tax year from the area annexed; and „property tax"shall mean the current year base tax amounts for the County and City in the area annexed. §_e+,�t'on +4. The Cleric is hereby directed to forward a certified copy of this resolution to the Auditor/Controller of Contra Costa County and to the Executive Officer of the Local Agency Formation Commission. Witton 5. This resolution shall become effective immediately upon its passage and adoption. I hereby cwrtify 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: {date} tt ,L JOHN SWEETEN, Clerk of the Board of Supervis and County Administrator t By Deputy Contact:. cc: County Administrator Auditor-Controller County Counsel LAFCO City of Concord RESOLUTION NO. 200216.14. IN THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, STATE OF CALIFORNIA r- In the hatter of ) Adopting a Master Property Tax Transfer ) Agreement for the Allocation of Property } RESOLUTION NO. 80/1369 Taxes Between the County of Contra Costa ) and the City of Concord ) IT IS BY THE BOARD OF SUPERVISORS RESOLVED that: 1 . Under the authority of Revenue and Taxation Code Section 99(d) , it hereby adopts a Master Property Tax Transfer Agreement for the allocation of property taxes between the County of Contra Costa and the City of Concord upon jurisdictional changes which is incorporated herein as Exhibit "A", and 2. The Chair of the Board of Supervisors is authorized to execute the above referred agreement on behalf of- the County. PASSED by the Board on December 2, 1980. CERTIFIED COPY 1 certify that this is a full, true & correct copy of the original document which is on file in my office, and that it was passed & adopted by the Board of Supervisors of Contra Costa County, California, on the date shown. AT'T'EST: J. R. OLSSON, County Cldrk &ex-officio Clerk of said Board of Supervisors, by Deputy Clerk. OrL C 19 0 Helen H. Ken{ Orig: bounty Administrator cc: City of Concord Auditor-Controller County Counsel Local Agency Formation Commission RESOLUTION NO. 80/1369 C 0 Py AGREEMENT 2 THIS AGREEMENT IS ENTERED INTO this 23rd day of February, 1981, between Contra Costa County, hereinafter referred to as "COUNTY" , and the City of Concord, a municipal corporation, hereinafter referred to as "CITY". 5 1. This agreement is n master prororty tax transfer agreement, under 6 authority of Revenue and Taxation Cade §99(d) (Section 11, Chapter 801 of 7 the Statutes of 1980), between the County and the City for the purpose of 8 specifying the allocation of property tax revenues upon a jurisdictional 9 change in which the City is an affected City and the County is an affected 10 County, 11 2. Except for the exclusions specified herein, the jurisdictional 12 changes governed by this Agreement are those local agency boundary changes 13 defined in R.&T.C. 995(e) as jurisdictional changes, occurring during the 14 applicable period of this Agroomrnt , wlioro Che County is the nff(-cted County 15 .and the City is an affected City. The following jurisdictional changes are 16 to be excluded from this Agreement: 17 a. Boundary changes involving city incorporations or formations 18 of districts (e.g. , reorganizations involving concurrent 19 formation of a special district and annexation to a city). 0 b, Jurisdictional changes which would result in a special district 21 providing one or more services to an area where such services 22 have not been previously provided by any local agency and to 23 which Section 99.1 of the Revenue and Taxation Code applies. 24 C. Jurisdictional changes in which the total of the full values 25 of all property in all ta)s rate areas comprising the affected 26 territory excced $10,000,000, ns sleown on the latest equalized +2' assessment rolls at the tl,t! application is filed with tile. 28Local Agency Formation Commission. a ; 1 d. Any jurisdictional change for which the sales tax revenue 2 from the affected territory exceeds $5,800 for one or more 3 of the three fiscal years preceding the date that the applica- 4 tion is filed with the Local Agency Formation Commission. 5 3. The allocations specified herein (Paragraph 7 , below) shall be 6 made for any jurisdictional change govi�rned by this Agreement as specified 7 in Paragraph 2, above, if proceedings for the jurisdictional change have 8 been or are gompleted after June 34, 1978; provided, however, that in the 9 case of any such jurisdictional change for which proceedings are completed 14 after December 31, 1982 this Agreement shall not apply if either of the 11 parties hereto notifies the other in writing of the non-applicability of 12 this Agreement and delivers such notification prior to the date that the 13 petition or resolution for Local Agency Formation Commission approval of 14 the jurisdictional change is accepted for filing by the Commission or its 15 Executive Officer. Notwithstanding, nny of thy• forogoin;,, nny property 16 tax revenue allocated prior to the dates this Agreement is signed by both 17 parties hereto shall not be subject to reallocation, but this Agreement shall 18 apply to all future allocations for the jurisdictional change. 19 4. For any property tax allocation to be made under this Agreement , 20 the Auditor-Controller of Contra Costa County shall first apply Paragraph 21 7 herein and first allocate the property tax revenues thereunder for the 22 fiscal year for which the State 'board of Equalization makes the tax rate area � change(s) for the jurisdictional change. Such fiscal year shall be known as 24 the "initial year" and all later fiscal years as "subsequent years". Such 25 allocation shall continue indefinitely thereafter unless changed by agree- . ment of both parties hereto or until changed under the terms of this 27 Agreement upon a subsequent jurisdictional change involving one or more 28 of the tax rate areas within the affected territory of the prior jurisdic- -2- I tional change. 2 5. The following definitions shall apply to this Agreement. The 3 references to code sections in thew definitions shall mean the code sections 4 in'effect on October 1, 1980: 5 a. "Base Tax" shall mean tl)ose property tax revenues specified as 6 being sut,ject to fllocition in R.&T.C. §§96(a) and 96(d) for 7 fiscal year 1979-80 and R.&T.C. 9§97(a) and (b) for fiscal year" 8 2980-81 and later' fiscal years . For the fiscal years after the . g initial year in which property taxes arr. allocated under this 10 Agreement for a jurisdictional change, the annual tax 11 increment for the prior fiscal year shall be included in the 12 base tax for the succeeding year. Notwithstanding the fore- 13 going, -base tax shall not include any property tax revenues 14 allocated to any County free library. 15 b. "Annual Tax Increment" shall mean those property tax revenues 16 specified as being siibject to 111ocation in R.&T.C. §96(c) for 17 fiscal year 1979-80 and R.&".►.'.C. §97(c) for fiscal year 1980.81 18 and latex' fiscal years. Annual tax increment shall include 19 revenues accruing due to the increase in assessed valuation for 20 the preceding fiscal year because of changes of ownership and 21 new construction and because of the inflation adjustment 22 authorized by Section 2(b) of Article RIIIA of the California 23 Constitution. 2 c. "Annual Tax Increment Allocation Factor" shall mean the numerical 25 factor, expressed as a percent, that is used to accomplish the 26 proportionate allocation of the annual tax increment, as 2 specified in R.&T.C. §98(c). 28 { 1 d. "Proceedings" means those actions taken pursuant to Gov.C. 2 335200-35315 or Gov.C. §956290-56443.1. 3 e. "Affected Territory" shall mean as specified in Gov.C, 4 9§35024 or 56023.5. 5 f. "Affected City" shall mean as specified ,in Gov.C. 93§35021 or 6 56021, 7 g "Affected Cnunty" shall menn as spccified in Gov.C. §93.5022 8 or 56022. 9 h. "Affected District" shall mean as specified in Cov.C. 9956023 10 or 35023. 11 6. Insofar as not inconsistent with the foregoing definitions or any 12 other provisions of this Agreement, the definitions of Sections 95 and 13 2215 of the Revenue and Taxation Code , as in effect on October 1, 1980, 14 shall apply to this Agreement. 15 7. For a jurisdicational change for which the allocation of taxes is 16 made under this Agreement , such allocation shall be made in accordance 17 with the following: 1$ a. Initial Year. 19 (1) Base Tax. Except as provided in Paragraph 7.a.{3) of this 20 Agreement, City shall be allocated 16.635% of the 21 County's base tax for the affected territory and the 22 County shall be allocated the balance. 23 (2) Annual Tax Increment. Except as provided in Paragraph 24 7.a.(3) of this Agreement, City shall have an annual tax. 25 increment allocation factor established for each tax rate 25 area in the affected territory equal to 33.27% of the 27 County's annual tax increment allocation factor for the tax 28 rate area. The County's new annual tax increment _4_ t �► 4 . e y y r. allocation factor shall be its former factor minus the 2 City's factor as derived in the preceding sentence. 3 (3) For a jurisdictional change which results in the City's providing a service that had been provided by a special 5 district , and if the City thoroby receives any property 6 tax revcr.ucs of the district as authorized by Revenue and 7 Taxation Code Section 99, the formula for transfer of 8 base tax arrd anntrnl tax incremo.nt allocation factors from 9 County to City shall be as follows: 10 (A) Base Tax. 11 A = Bx 1/2C 12 D = B - A 13 Where A = the amount of the County's base tax to be 14 transferred to the City. This amount 15 plus the base tax transferred from special 16 district(s) becomes the City's initial 17 base tax for the tax rate area. 18 Where B = the County's base tax before the transfer. 19 Where C = tho portion (expressed as a percent) of the 20 County's annual tax increment factor that 21 will be transferred to the City from the 22 County as determined by the formula express- 23 ed in Paragraph 7.a.(3) (B) below. 24 Where D the County's base tax after the transfer. 25 (B) Annual Tax Increment. 26 C = F' - li 27 F + G .. Ii 2 (if"B" is greater than "F", then C shall be zero W . ) t T 4 e t * _ X C) + 11 2 K = E - (Ex C) 3 Where C = the portion (expressed as a percent) of 4 the County's annual tax increment allocation 5 factor that will be transferred to the City from 6 the County . 7 E = the County's annxial tax increment allocation factor before the transfer. 9 F = 13.60'1' (this is the City's portion of the total 10 fiscal year 1979--80 property tax allocation within 11 City's boundaries , ) 12 C = 27 .2£6' (this is the County's portion of the total 13 fiscal year 1979-80 property tax allocations 14 within the City's boundaries.) 15 H the total of the annual tax increment allocation 16 factors whicl3 will be transferred to the City 27 from special districts in accordance with 18 Revenue and Taxation Code Section 99, 19 J = thr City's nnniial tlx incrrmnnt allocation factor 20 nftor thr tr.insfei- allorr,tion. 21 K = the County's annual tax increment allocation 22 factor after the transfer calculation. 23 b. Subsequent Years , 24 In each subsequent year City's and County's allocation of 25 property taxes from the affected territory will be made as set 26 forth in Revenue and Taxation Code Sections 97 and 98. Each 27 agency each year will be allocated its base tax (i.e. , the tax 28 allocated to the agency in the preceding year including the -6- .t i •J 1 previous year's annual tax increment) plus its share of the 2 current year's annual tax incremvnL for the affected territory, 3 such share being calculated by multiplying the tax resulting 4 from growth in assessed valuation in the affected territory 5 during the year times the agency's annual tax increment 6 allocation factor(s) for that territory as determined in 7 Paragraph 7.a. (2) or 7. a. (3) M above. The result (i.e. , base 8 plus increment) becomes the base tax for the next year's tax 9 allocation calculations. Each agency's base tax and annual tax 10 increment allocation factors may be subsequently modified only 11 through negotiate4 exchanges in accordance with Revenue and 12 Taxation Code Sections 99 and/or 99.1 for subsequent 13 jurisdictional changes, 14 15 Dated: DEC 21980 16 airman, Board of Supervisors 1? Dated: DEC 21980 OPT. 1 yor, City of--Concord 19sT: 20 21 ity Clerk, City of Co ord 22 Form Approved by County Counsel APPROVED AS TO FORM: 23 (11-25-80) 24 r'. A zstant Cxty ,Attorney, City of 25 Concord 2 27 28 -7- c CONTRA COSTA COUNTY GENERAL SERVICES DEPARTMENT Lease Management Division 1220 Morello Avenue,Suite 100 Martinez, CA 94553-4711 Extension 3-7250 RECEIVED Fax 3-7299 - NOV 15 2002 DATE: November 13, 2002 CLERK SUPERVISORS Cc HA COSTA CO, TO: Distribution List FROM: David L. Silva, Associate Real Property A.gen'4 4— S'UBJEC'T: Revenue Lease for 55 Castlewood Drive, Pittsburg(T00523) Attached for your files is a fully executed Revenue Lease between First Baptist Church Head Start and the County. Also attached is a copy of the Board Carder authorizing the approval of this Revenue Lease dated October 8, 2002. Distribution List: C. Chan, CSD A. Prince, CSD T. Mann, GSD J. A. Clark, First Baptist Church Head Start Clerk of the Board of Supervisors LEE TABLE OF CONTENTS 55 CASTLEWOOD DRIVE PITTSBURG, CALIFORNIA FIRST BAPTIST CHURCH HEAD START SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTM .....................................................................................................1 A.2. 1,E_A_,SE OF PREMISEfi A.3. TE . ...........................................................................................................1 A.4. REN .............................................................................................................1 A.S. USE OF PREMISES A.6. MAMENANCE AND REPAIRS...............................................................2 A.7. N0110E .......................... A.8. EXHIBITS-AND CHMENTS.............................................................4 A.9. I TEhj A R EFMENT.................. A.10. TIMEISQF TH { E; F.NCE........................................................................5 A.11. SiCINATURE BI,QC SECTION B: STANDARD PROVISIONS B.I. HOLDING OYER,................... ...........6 . ...................................... B.2. HOCA MI. ............ B.3. ALTERAIMNS. FINJURES, AND I N ...............................................6 B.4. D__MTRU TOT` ............................................................................................6 B.5. =EI ENJOYMENT...................................................................................7 B.S. DEFAULTS...................................................................................................7 B.7. SUEJl NUE OFMMS.............................................. ....9 .................... B.8. T E. O AND ASSIGNS...................................................................9 B9. SEVER AT3ILI.................................. 9 . .. .............................. B.10. WASTE, N111SANCE..................................................................................10 B.11. INSPECTIC3N..............................................................................................10 SECTION C: SPECIAL PROVISIONS C.1. ASSIGNMENT OR LEA E........................................................................1 I C.2. PROPERTY TAXES ...................................................................................11 C.3. POSSESSORY INTERESI`' TA ................................................................11 C.4. INSURANCE............................................................ ......... 11 .. ............ C.S. HAZARMIS MATERIALS ............... C.S. PRC} SRAMRV CINTRAC`' ..........................................................14 C.7. SERVICES BY I E E.............................................................................14 EXHIBITS A-PREMISES LEASE FOR FIRST BAPTIST CHURCH 55 CASTLEWOOD DRI'V'E PITTSBURG, CALIFORNIA SECTION A: BASIC TERMS AND CONDITIONS A.I. M S: Effective on October 8,2002,the COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter called "COUNTY", and FIRST BAPTIST CHURCH HEAD START, a non-profit corporation,hereinafter called"LESSEE", mutually agree and promise as follows: A.2. LEA: EMIS S: LESSEE, for and in consideration of the rents, hereby leases from COUNTY, and COUNTY leases to LESSEE those certain premises described as follows: Lot"A", as shown on the map of subdivision 4929, filed August 29, 1977,map book 201,page 38, Contra Costa County records, a plot of land approximately 36,590 square feet containing a child care facility with classrooms, offices, and a kitchen within a building of approximately 6,300 square feet, and outdoor playground space and a parking lot commonly known as 55 Castlewood Drive, Pittsburg, California, as shown on Exhibit "A"("Premises"), attached hereto and made a part hereof. A.3. ' M: The term of the Lease shall be five(5)years commencing;July 1,2002 and ending June 30, 2007. A.4. Jam:: LESSEE shall pay to COUNTY as rent for the use of the Premises a monthly rental of THREE HUNDRED DOLLARS ($300.00),payable in advance on the first day of each month during the term of this Lease. Payments shall be mailed to: COUNTY OF CONTRA COSTA GENERAL SERVICES DEPARTMENT 1220 MORELLO AVE. STE. 200 MARTINEZ, CA 94553 GALeaseMgt\Dave\Community Services\55 CASTLEWOODTIRST BAPTIMeastlewoodleaserev.doe - 1 - or to any other location as may be designated by COUNTY. If any rental fee is not paid to COUNTY within ten(10) business days after the due date,a late fee (the"Late Fee") of FIFTY DOLLARS ($50.00) shall be added to the payment and the total sum shall be immediately due and payable to COUNTY, plus interest on any unpaid balance, at a rate of one and one-half percent (1.5%) per month, to be prorated if necessary, from the date the unpaid balance was due and payable until paid in full. If any rental is not paid due to circumstances beyond the control of LESSEE as defined in Paragraph B.7.a. of this Lease, COUNTY, at its sole discretion, may waive the payment of the Late Fee. A.5. VM OF MEMISES. The Premises shall be used during the term or extension thereof exclusively for the purposes of conducting COUNTY's childcare programs, which will be operated by the LESSEE. A.6. MAINTENANCE AND REPAIRS: a. COUNTY shall keep the roof and exterior of Premises in good order, condition, and repair and shall maintain the structural integrity of the Premises, including the parking lot and fences. b. LESSEE shall maintain the doors and their fixtures, closers and hinges, glass and glazing, and all locks and key systems used in the Premises. C. LESSEE shall keep and maintain the interior of the Premises in good order, condition, and repair, including but not limited to repairs to interior damaged by residents and invitees, replacement of window coverings, and carpet replacement. COUNTY shall repair damage to the interior caused by failure to maintain the exterior in good repair, including damage to the interior caused by roof leaks and/or exterior wall leaks. d. LESSEE shall keep the electrical, lighting, water, and plumbing systems in good order, condition, and repair and shall be responsible for routine GALeaseMgt\Dave\Community Services\55 CASTLEWOOMFIRST BAPTIs'ustlewoodleaserev.doc - 2 - maintenance, minor repairs, plumbing stoppages and damage caused by abusive use or neglect. COUNTY shall be responsible for all major repairs to the electrical, exterior lighting and plumbing systems. For the purpose of this Lease,major repair shall be defined as an expense, which exceeds $1,500.00 per occurrence. e. COUNTY shall maintain and repair the heating, ventilating, and air-condi- tioning systems. f LESSEE shall maintain the parking lot, landscaping, and interior lighting system in goad order, condition, and repair. g. LESSEE shall be responsible for the maintenance and repair of the security system, fire alarm system, and fire suppression system. LESSEE shall comply with all regulatory monitoring and testing requirements for fire alarm and fire suppression systems and shall provide COUNTY with written verification of such compliance on COUNTY supplied inspection forms at regular reporting intervals specified by COUNTY. COUNTY shall be responsible for compliance with the NFPA FiveYear Sprinkler Certification. h. COUNTY shall provide, install, maintain,repair, and replace, at the direction of the Fire Marshal, the number of A-B-C fire extinguishers for the Premises. i. LESSEE shall be responsible for the correction of any code violations due to a change in use of the Premises by LESSEE. A.7. N,OMCES. 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 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 LESSEE: First Baptist Church Head Start 2240 Gladstone Drive, Suite 5 Pittsburg, CA 94565 To COUNTY: Contra Costa County General Services Department Lease Management Division 1220 Morello Avenue, Suite 100 C,:\LeaseMgt\:Dave\Community Services\55 CA.STLEWOOI7\1~IRST BAPTIST\castlewoodleaserev.doc 3 A.S. E` HERITS ANlD__A_T'TACHMEN1: Section B, Standard provisions, Section C, Special Provisions, Exhibit A-PREMISES, are attached to this Lease and are made a part hereof: A.9. WMITEN AGREEMENT: 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 pages and paragraphs are for convenience only and are not apart of this Lease nor shall they be considered in construing the intent of this Lease. ( Remainder of page intentionally left blank) G:\LeaseMgt\Dave\Community Services\55 CASTLEWOODTIRST BAPTIS neodewoodleaserev.doc -4 - A.10. TIME IS OF ME ESSENCE of each and all of'the terms and provisions of this Lease. A.11. S I.MM , LQ MUN TY LESSEE COUNTY OF CONTRA COSTA, a FIRST BAPTIST CHURCH, political subdivision of the State of California HEAD START, a non-profit corp ation n By By L� Director of General Services Jan t Anderson Clary. Ecutive Director ` Y 'Adf' RECOMMENDED XOR APP VAL: By .Director, Capital Facilities &Webt Management By______Z Community Services Department Representative Lease Manager APPROVED AS TO FORM: SILV NO B. MARCHESI, County Counsel I ; � I_ a Deputy G.ILeaseMgt\Dave\Community Services\55 CASTLEWOODTISST BAPTIST\casttewoodteaserev.doc - 5 - LEASE FOR FIRST BAPTIST CHURCH READ START 55 CASTLEWOOD DRIVE PITTSBURG, CALIFORNIA SECTION B: STANDARD PROVISIONS B.t. HOLDING OVE : Any holding over after the term 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. HO :DHARML : LESSEE shall indemnify, defend, save, protect and hold harmless the COUNTY,its officers,agents and employees from any and all claims,costs and liability, including reasonable attorneys fees, for any damage, injury or death, including without limitation all consequential damages from any cause whatsoever, to persons or property arising directly or indirectly from or connected with this Lease, LESSEE'S operations, or LESSEE'S use or possession of the Premises, save and except claims or litigation arising through the sole negligence or sole willful misconduct of COUNTY, its officers or employees, and if required, will defend any such actions at the sole cost and expense of LESSEE. B.3. L " E ATIONS F- TSS,AN . NS: LESSEE may make any lawful and proper minor alterations, attach fixtures and signs in or upon the Premises, which shall remain LESSEE'S property and shall be removed therefrom by LESSEE prior to the termination of this Lease. Any such alterations, signs or fixtures shall be at LESSEE'S sole cost and expense, and all signs shall meet with existing code requirements and COUNTY'S prior written approval. BA. DESTRUCTION: G:\LeaseMSt\Dave\Community Serviaes\55 CASTLIrWooMl+' ST BAPTIST\castlewoodleaserev.doc - 6 - a. In the event of damage causing a partial destruction of the of the Premises during the term of this Lease or extension thereof 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, COUNTY shall repair the damage promptly and within a reasonable time, but such partial destruction shall not void this Lease, except that LESSEE shall be entitled to a reduction of rent while such repairs are being made, such reduction to be based upon the extent to which the portion of the Premises unusable by LESSEE bears to the total area of the Premises. b. If such repairs cannot be made in sixty(60) days, COUNTY may, at its option, make the same within a reasonable time,the rent to be proportionately reduced as provided in the previous subparagraph. In the event COLiNTY 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.5. QUIET ENJOYMENT.: COUNTY covenants that LESSEE shall at all times during the term peaceably and quietly have, hold, and enjoy the Premises without suit, trouble or hindrance from or on account of COUNTY as long as LESSEE fully performs hereunder. B.6. DEFAULTS: The occurrence of any of the following shall constitute an Event of Default under this Lease: a. Event of Default byJ E.. 'EE: LESSEE's failure to pay any Rent within ten (10)business days after the rental due date. If,however,payment is not made within ten (10) business days of the rental due date due to circumstances beyond the reasonable control of LESSEE,which circumstances may, without limitation hereby, include failure of LESSEE to receive reimbursement for GALeaseMgt\Dave\Community Services\55 CASTLEWt7ODTIRST BAPTIS'ncastlewoodleaserev.doc - 7 - provision of services at Premises from the Community Services Department, then LESSEE shall make such payment within such additional time,but not to exceed a total of seventy five (75) days from the rental due date. LESSEE'S failure to comply with any other material term or provision of this Lease if such failure continues sixty (60) days after written notice of failure from COUNTY to LESSEE specifying in reasonably sufficient detail the nature of said breach. If the required cure of the noticed default cannot be completed within sixty(60) days, LESSEE'S failure to perform shall constitute a default under this Lease unless LESSEE has attempted to cure the default within sixty (60) days and has diligently and continuously attempted to complete the cure as soon as reasonably possible. On the occurrence of an Event of Default by LESSEE, COUNTY may re-enter and repossess the Premises and remove all persons and property therefrom after giving LESSEE written notice of such default and in accordance with due process of law. b. Event of Default by CQUNTY. COUNTY's failure to perform any of its obligations under this Lease shall constitute a default by COUNTY if the failure continues for sixty (60) days after written notice of the failure from LESSEE to COUNTY. If the required cure cannot be completed within sixty (60) days, COUN`IY's failure to perform shall constitute a default under the Lease unless COUNTY has attempted undertakes to cure the failure within sixty(60) days and diligently and continuously attempts to complete this cure as soon as reasonably possible. Notwithstanding the foregoing, in the event of a situation creating a perilous condition on the Premises which substantially and significantly threatens the health and safety of the LESSEE, clients, and invitees, which situation is not construed as a Default condition, COUNTY shall use G:\LeaseMgt\Dave\Community Services\55 CASTLEWOOMFIRST BAPTISTIcastlewoodleaserev.doc - 8 - reasonable efforts to immediately address the situation and shall use diligent efforts to correct the perilous condition. On the occurrence of an Event of Default by COUNTY,LESSEE may initiate an action against COUNTY to recover damage or losses suffered or incurred by LESSEE as a result of the COUNTY'S breach. On occurrence of an Event of Default by COUNTY,LESSEE shall not have a right to terminate this Lease or make repairs and deduct the cost of said repairs from the rental due under this Lease. B.7. JJMNDER OF PREMISE : On the last day of the term, or sooner termination of this Lease, LESSEE will peaceably and quietly leave and surrender to COUNTY these Premises with their appurtenances and fixtures (except signs and fixtures referred to herein above) in good order, condition, and repair,reasonable use and wear thereof and damage by earthquake, fire,public calamity,by the elements,by Act of Clod., or by circumstances over which LESSEE has no control excepted. LESSEE may remove any fixtures or signs installed by LESSEE. If LESSEE elects to remove any items,the removal shall be completed in a professional manner calculated to preserve the Premises. LESSEE'S repair after removal of fixtures, signs or items shall include but not be limited to patching, painting, carpeting and floor covering replacement required to return the Premises to its original state, notwithstanding normal wear and tear by LESSEE. Ownership of fixtures not removed by LESSEE within forty-five(45) days of the termination of this Lease shall revert to COUNTY for disposition. COUNTY, at its sole discretion, may elect to accept the fixtures or provide written notice to LESSEE to remove fixtures, which LESSEE shall promptly do. B.$. SUCCESSORS 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,g, SEYERABILIM In the event that any provision herein contained is held to be GALeaseMgt\Dave\Community Servsces\55 CASTLEWOOMFIRST HAPTIMcastlewoodleasemv.doc - 9 — invalid by any court of competent jurisdiction, the invalidity of any such provision does not materially prejudice either the LESSEE or COUNTY in its respective rights and obligations contained in the valid provisions of this Lease. B,10. W-AS`IE,NUSANCE: LESSEE shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of neighbors of the Premises. B.11. INSPECTION: COUNTY reserves the right to enter the Premises between the hours of 9:00 a.m. and 4:30 p.m., Monday through Friday,holidays excepted, and to employ the proper representative or contractor in order to see that the property is being reasonably cared for, that no waste is being made, and that all things are done in the manner best calculated for the preservation of the property, and in full compliance with the terms and conditions of this Lease. ( Remainder of page intentionally left blank) GALeaseMgt\DavelCommunity Services\55 CASTLEWOOD\PIRST BAPTIS'neastlewoodleaserev.doc - 10 - LEASE FOR FIRST BAPTIST CHURCH READ START 55 CASTLES OOD DRIVE PITTSBURG, CALIFORNIA SECTION C: SPECIAL PROVISIONS C.1. ASSIGNMNI OR SIMLEASF: LESSEE shall not assign this Lease or sublease the Premises or any part thereof at any time during the term or extension of this Lease. C.2. PROPERTY T XF t LESSEE shall pay for 100% of the City and/or County taxes levied against Assessor's Parcel 089-342-401, in any year during the term or any extension of this Lease. C.3. POSSESSORY INUREST TAX: The County Assessor of Contra Costa County has invoked a possessory interest tax on all rentals of COUNTY and other publicly-owned properties. This tax is mandatory by lave and is levied on the LESSEE and not the property. The occupant of the property on the lien date, March 1 of the current year, is liable for full payment, even if LESSEE subsequently vacates the premises. LESSEE, therefore,must recognize and understand, in accepting this Lease, that their interest therein may be subject to a possible possessory interest tax that the County Assessor may legally impose on such possessory interest held by the LESSEE, and that such tax payment shall not reduce any rent due the COUNTY hereunder and such tax shall be the liability of and be paid promptly by the LESSEE when due. C.4. INSURANCE: a. Pro ffiy Insurance: COUNTY shall, at its sole cost and expense during the term of this Lease, maintain fire, vandalism, malicious mischief, extended coverage insurance. COUNTY has self-insured retention at its own determination of amount. LESSEE shall have no interest in any insurance settlement to COUNTY and GALeaseMgt\Dave\Community Services155 CASTLEWOOD IRST SAATIS'Nastlewoodleaserev.doc - 11 - LESSEE will sign all documents necessary or proper waiving any interest in connection with the settlement of any claim or loss by COUNTY. COUNTY will not keep LESSEE'S personal property insured against fire, or any other insurable risk, and LESSEE waives the right to claim damages from the COUNTY for any damage resulting to said property in the event it is damaged or destroyed by fire or any other cause. Except as may be specifically provided for elsewhere in this Lease, COUNTY and LESSEE hereby each mutually waive any and all rights of recovery from the other in event of damage to the Premises or property of either party, caused by acts of God, perils of fire, lightning, and the extended coverage perils as defined in insurance policies and forms approved for use in the State of California. Each party shall obtain any special endorsements, if required by their insurer, to evidence compliance with the aforementioned waiver. b. Liahility Insurance: Throughout the term of this Lease, LESSEE shall, at its sole cost and expense, maintain in full force and effect, Comprehensive General Liability or Commercial General Liability insurance covering bodily injury (including death), personal injury and property damage. i. Limits shall be in an amount of not less than one million dollars ($1,000,000) per occurrence, and two million dollars ($2,000,000) aggregate, if applicable. ii. Such insurance shall name COUNTY, its officers, agents and employees, individually and collectively, as additional insureds. iii. Such insurance for additional insureds shall apply as primary insurance, and any other insurance maintained by COUNTY, its officers, agents and employees, shall be excess only and not contributing with the insurance required under this paragraph. iv. Said insurance shall provide for thirty (30) days written notice to G:\LeaseMgt\Clave\Community Services\55 CASTLEWOODWIRST BAPTiST\castlewoodleaserev.doc - 12 - COUNTY of cancellation or lapse in coverage. C. Worker's C=pensation nd Emplg='s Liability Insurance: Throughout the term of this Lease,LESSEE, at its sole cost and expense, shall maintain in full force and effect, insurance coverage for: i. Statutory California.Worker's Compensation coverage including a broad form all-states endorsement. ii. Employer's Liability coverage for not less than one million dollars ($1,000,000)per occurrence for all employees engaged in services or operations under this Lease. d. Evidepce of coverage: Within fourteen (14) days of execution of this Lease, LESSEE shall provide on a form approved by COUNTY a copy of a Certificate of Insurance certifying that coverage as required has been obtained and remains in force for the period required by the Lease. e. Notice of Cancellation or Reduction of Coverage: All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the address shown on the Certificate of Insurance. C.5. HAZARDOUS-MATERIALS: 1. As used herein, "Hazardous Materials" is defined to mean any substance, material or waste,including asbestos and petroleum(including crude oil or any fraction thereof), which 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. 2. As part of the consideration of this Lease, LESSEE makes the following representations,warranties and agreements: LESSEE shall not cause or permit the placement,release or disposal of any Hazardous Materials on, in or from the Premises. GALeaseMgt\Dave\Community Services\55 CASTLBWOODWIRST BAPTIST\castlewoodleaserev.doc - 13 - 3. LESSEE shall indemnify, defend, save,protect and hold harmless, COUNTY and COUNTY'S successors and assigns, officers, directors and employees from LESSEE'S share of all liability, damages, penalties, expenses and costs, for any necessary or required remediation, repair, removal or cleanup of Hazardous Materials resulting from LESSEE'S failure to comply with requirements of this paragraph or LESSEE'S use, release or disposal of Hazardous Materials on or from the Premises. 4. The representations, warranties and agreements made in this paragraph shall survive the termination of this Lease. CA PROGRAM SERVICE CONTRACT: Both COUNTY and LESSEE acknowledge that the County Community Services Department has entered into a service program contract ("Program Contract") for operation of a Headstart Childcare Program on the Premises. In the event that the Program Contract with LESSEE is terminated for any reason, this Lease shall terminate on the same date as the Program Contract termination date. LESSEE shall vacate the Premises within thirty (30) days of the Program Contract termination date. C.7. SERVICE BY-COUNTY/LESSEE: It is understood and agreed that from time to time during the term of this Lease and any extension, either party may request that the other party provide certain landscaping, maintenance, construction, remodeling or like services above and beyond those listed for each party in Paragraph A.6. On such occasions, each party agrees to pay the other one hundred percent (100%) of the costs of the service. Each party shall consult with the other in the selection of licensed insured contractors or approval of employees of either party to provide the service. Each party shall obtain the prior approval of the other on the scope, term, and cost of the service or contracts. GALeaseMgt\Dave\Community Services\55 CASTLEWaODWIKST BAPTIMeastlewoodleaserev.doc - 14 - E X if I B I T 601x105' = 6,300 S.F. MAIN ENTRY 36,590 S.F. Lot 20 Parking Stalls incl ADA CDIIntE'r FFICE s torag 21S ROOM SCHOOL AGE sink sink nF lav �nr� Lu 6 01 lav O 12'- 11% OFFICE Inv ( i D / \ 105' OFFICE EATING AREA NORTH RM i3F KITC14EN 14'- 4�" STOR OFFICE J STORAGE O t-) 0 Inv ) 191-011 OFFICE WEST ROOM CONF'/ROOM 601 TO: BOARD OF SUPERVISORSCONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES Y COSTA DATE: OCTOBER 6, 2002 COUNTY SUBJECT. REVENUE LEASE WITH FIRST BAPTIST CHURCH HEAD START e''+' FOR TIME COUNTY-OWNED PREMISES AT 55 CASTLEVI OOD DRIVE, PITTSBURG (T00523) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION REC MD TA ION 1. APPROVE a Revenue Lease commencing July 1, 2002 with First Baptist Church Heed Start, for the County-owned premises at 55 Castlewood [give, Pittsburg, under the terms and conditions more particularly set forth in the Revenue Lease. 2. AUTHORIZE the Director of General Services, or designee, to execute the Revenue Lease on behalf of the County. 3. DETERMINE that compliance with the provisions of the California Environmental Quality Act (CEQA)were met on December 4, 2001, when the Board of Supervisors determined this project was Exempt under a general Rule of Applicability Section 15061(b) 3 and approved purchase of the premises for use as a child daycare center(CP #01-40). FINANCIAL IMPACT This Revenue Lease will generate $16,000.00 in revenue to the County over the five year term of the Lease, commencing July 1, 2402 through June 30, 2007. Revenues are credited to the Community Services Department which also pays the operating expenses associated with the premises. The County had leased ar•d the First Baptist Church has operated a Headstart Program at this facility since October 1996. On December 4, 2001 the Board of Supervisors approved exercise of the option to purchase the premises. The best use for the property at this time is for continuation of the Headstart program as requested by the Community Services Department and the generation of revenue to the County. CONTINUED ON ATTACHMENT: YES SIGNATURE &*AW : @ECOMMENDATION OF COUNTY ADMINISTRATOR _,.,__,..RECOMMENDATION OF BOARD COMMITTEE _.j "APPROVE OTHER F SIGNATURE(S): ACTION OF BO N r APPROVED AS RECOMMENDED OTHER_ VOTE OF SUPERVISORS A_ UNANIMOUS(ABSENT } AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(393-7100) Originating Dept:General Services Department i HEREBY CERTIFY THAT THIS i5 A TRUE cc: General services Department AND CORRECT COPY OF AN ACTION TAKEN Lease Management Division AND ENTERED ON THE MINUTES OF TIME HOARD Accounting OF SUPERVIS9RS ON THe DATE SHOWN. Auditor=Controlter(via LIM) " Risk Management(via LIM) ATTESTED Community Services Department(vis L/m) JOHN SWEETEN,CLERK OF TKe HOARD OF SUPERVISORS First Baptist Church Head Start(via LINT) AND COUNTY ADMINISTRATOR BY 0 t� i, L'L� DEPUTY I&easeM%ADavetC*mmuNty Servioa"S CASTLEWOODTIRST BAPTISr6oaM Order 55 Cs8ffewood.doc Pepe 1 of I kM2(90188)