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HomeMy WebLinkAboutMINUTES - 01142003 - C41 TO: BOARD OF SUPERVISORS .j ; , � . CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA DATE: JANUARY 14, 2003 COUNTY SUBJECT: REVENUE LEASE RENEWAL WITH BI-BETT CORPORATION FOR THE COUNTY-OWNED PREMISES AT 500 SCHOOL STREET, PITTSBURG (T00326) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION 1. APPROVE a one-year Revenue Lease renewal commencing January 1, 2003 with Bi-Bett Corporation, a private non-profit corporation for the County-owned premises at 500 School Street, 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. FINANCIAL IMPACT This Revenue Lease will generate $21,600.00 in revenue to the County over the one year term of the lease commencing January 1, 2003 through December 31, 2003 with a 60-day cancellation provision. Revenues are credited to the Health Services Department which also pays the operating expenses associated with the premises. BACKGROUND The County owns properties at 500 and 550 School Street in Pittsburg. The County is in the early stages of developing an agreement with the City of Pittsburg and the Pittsburg Unified School District to convert these properties to uses that better meet the needs of the Pittsburg community. In the interim period, the County will continue to lease premises at 500 School Street to the Bi-Bett Corporation, which is a long-standing tenant. The County can terminate the proposed lease with 60 days notice at the point where the County reaches an agreement with the City and the School District regarding the future use of this site. Any agreement regarding the future use of this site would take into account the relocation of Bi-Bett to an alternate site. Bi-Bett has operated a detoxification program at this site since March 1984. The tenant pays for all utilities and for most maintenance, excluding major roof repairs, structural integrity and main line sewer repairs 7 feet beyond the perimeter of the building. The premises consist of a freestanding building containing approximately 6,300 square feet. CONTINUED ON ATTACHMENT: YES SIGNATURE: l _RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMI APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON JANUARY 14, 2003 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS(ABSENT AYES: OES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE cc: Genera!Services Department AND CORRECT COPY OF AN ACTION TAKEN Lease Management Division AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. Auditor-Controller(via UM) Risk Management(via UM) ATTESTED. JANUARY 14, 2003 Bi-Belt Corporation(via L/M) JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY f/ ✓ �� 1 w n.iE, _ DEPUTY 1:\LeaseMgt\CBEAR\_Lease Files\Pittsburg\500 School Street\Board Order Rev Agr.doc CGB:cb Page 1 of t M382(10188) r LEASE TABLE OF CONTENTS 500 School Street Pittsburg, California BI-SETT CORPORATION EAST COUNTY COMMUNITY DETOXIFICATION CENTER SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTIES............................................................................................................ I A.2. LEASE OF PREMISES..................................................................................... 1 A.3. TERM................................................................................................................. 1 A.4. RENT ................................................................................................................. 1 A.5. USE OF PREMISES.......................................................................................... 2 A.6. UTILITIES AND JANITORIAL SERVICE.....................................................2 A.7. MAINTENANCE AND REPAIRS ................................................................... 2 A.8. NOTICES........................................................................................................... 3 A.9. EXHIBITS AND ATTACHMENTS................................................................. 3 A.10. 'WRITTEN AGREEMENT................................................................................4 A.11. TIME IS OF THE ESSENCE............................................................................4 A.12. SIGNATURE BLOCK ......................................................................................4 SECTION B: STANDARD PROVISIONS B.1. HOLDING OVER.............................................................................................. 5 B.2. HOLD HARMLESS .......................................................................................... 5 B.3. ALTERATIONS, FIXTURES, AND SIGNS.................................................... 5 B.4 DESTRUCTION................................................................................................ 6 B.5. OUIET ENJOYMENT....................................................................................... 6 B.6. DEFAULTS ....................................................................................................... 6 B.7. SURRENDER OF PREMISES.......................................................................... 7 B.8. SUCCESSORS AND ASSIGNS ....................................................................... 7 B.9. SEVERABILITY............................................................................................... 7 B.10. _WASTE, NUISANCE........................................................................................ 7 B.11. INSPECTION .................................................................................................... 8 B.12. ABANDONMENT ............................................................................................ 8 SECTION C: SPECIAL PROVISIONS C.I. ASSIGNMENT OR SUBLEASE...................................................................... 9 C.2. POSSESSORY INTEREST TAX......................................................................9 C.3. INSURANCE..................................................................................................... 9 C.4. HAZARDOUS MATERIALS ......................................................................... 11 C.5. TERMINATION.............................................................................................. 11 C.6. CANCELLATION........................................................................................... 12 C.7. TERMINATION OF PRESENT LEASE........................................................ 12 EXHIBITS EXHIBIT A: PREMISES EXHIBIT B: ASBESTOS REPORT LEASE FOR BI-SETT CORPORATION EAST COUNTY COMMUNITY DETOXIFICATION CENTER 500 SCHOOL STREET PITTSBURG, CALIFORNIA SECTION A: BASIC TERMS AND CONDITIONS A.1. PARTIES: Effective on January 14, 2003, the COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter called "COUNTY", and 13I- SETT CORPORATION, a private non-profit corporation, hereinafter called "CONTRACTOR", mutually agree and promise as follows: A.2. LEASE OF PREMISES: COUNTY, for and in consideration of the rents, hereby leases to CONTRACTOR, and CONTRACTOR leases from COUNTY those certain premises described as follows: a one-story building containing approximately 6,300 square feet commonly known as 500 School Street, Pittsburg, California, labeled "DETOX" on Exhibit "A" attached hereto and made a part hereof("Premises"), along with nonexclusive use of the parking lot. A.3. TERM: The term of this Lease shall be one (1) year, commencing January 1, 2003 and ending December 31, 2003. A.4. RENT: CONTRACTOR shall pay to COUNTY as rent for the use of the Premises a monthly rental of ONE THOUSAND EIGHT HUNDRED AND NO/100 DOLLARS ($1,800.00), payable in advance on the tenth day of each month during the term of this Lease. Payments shall be mailed to: COUNTY at 1220 Morello Avenue, Suite 100, Martinez, CA 94553 or to any other location designated by COUNTY in writing from time to time. If any rental is not paid to the COUNTY within ten (10) days after due date, CONTRACTOR shall pay to COUNTY interest on said unpaid balance at a rate of one and one-half percent (1 t/z %) per month, from the date said payment was due and payable until paid. _ 1 _ A.5. USE OF PREMISES: The Premises shall be used during the term and extension thereof for the sole purpose of operating a detoxification facility. A.6. UTILITIES AND JANITORIAL SERVICE: COUNTY shall provide and pay for all gas, electric, water, sewer, and refuse collection services. CONTRACTOR shall provide its own janitorial service and shall provide and pay for telephone service. A.7. MAINTENANCE AND REPAIRS: a. CONTRACTOR, at its sole cost and expense, shall keep and maintain the Premises and every part thereof in good order, condition, and repair, including, but not limited to, the interior, carpeting replacement, exterior walls, landscaping, exterior lighting system, glass and glazing, doors and their fixtures, closers and hinges, locks and key systems, and alarm systems. CONTRACTOR shall select either licensed, insured contractors or employees of CONTRACTOR to make all repairs which are CONTRACTOR'S responsibility under this paragraph A.7, and all repairs shall be made in a craftsmanlike manner, matching existing materials as closely as possible in appearance and quality. b. CONTRACTOR shall maintain, at its sole cost and expense, all electrical, lighting, water, plumbing, sewer, heating, ventilating, and air-conditioning systems. COUNTY shall be responsible for the maintenance of the main sewer line five (5) feet from the building. CONTRACTOR shall obtain and keep in effect, at its sole cost and expense, a services contract, acceptable to the COUNTY, for the maintenance and repair of the heating, ventilating, and air-conditioning systems. Said contract shall provide for filters to be changed a minimum of four (4) times per year. C. CONTRACTOR shall perform routine maintenance and minor repair of the roof as needed. COUNTY shall be responsible for major roof repairs only and for the structural integrity of the building. - 2 - d. COUNTY shall be responsible for routine maintenance and cleaning of the parking area, and shall maintain the cinder block wall located along the property line between the Premises and Harbor Way, as shown in heavy black lines on Exhibit A—Premises. e. CONTRACTOR shall be responsible for the correction of any code violations in the Premises. f. CONTRACTOR shall provide and maintain, at the direction of the fire marshal, the necessary number of ABC fire extinguishers for the Premises at no cost to COUNTY. g. CONTRACTOR shall not suffer any waste on or to the Premises. AX NOTICES: All notices given hereunder shall be in writing and shall be deemed to have been given if personally delivered or deposited in the United States mail postage 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 CONTRACTOR: Bi-Bett Corporation P.O. Box 5487 Concord, CA 94524 To COUNTY: Contra.Costa County General Services Department Lease Management Division 1220 Morello Avenue, Suite 100 Martinez, CA 94553-4711 A.9. EXHIBITS AND ATTACHMENTS: Section B, Standard Provisions, Section C, Special Provisions, Exhibit A — Premises and Exhibit B -- Asbestos Report are attached to this Lease and are made a part hereof Note: Remainder ofRage intentionally left blank. - 3 - A.10. WRITTEN 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 paragraphs and pages are for convenience only and are not a part of this Lease, nor shall they be considered in construing the intent of this Lease. A.11. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this Lease. A.12. SIGNATURE BLOCK COUNTY CONTRACTOR. COUNTY OF CONTRA COSTA, a Bi-Bett Corporation, a private non-profit political subdivision of the State of corporation California BY Secretary Director of General Services By �-- RECOMMENDED FOR APPROVAL: Vice President By & L422� Director of Capital Facilities and Debt Management By f ,t Lease Manager By - (��AA h , L kZ Health Se ices Department APPROVED AS TO FORM: SILVANO B. MARCHESI, County Counsel By. - Deputy - 4 - LEASE FOR BI-BETT CORPORATION EAST COUNTY COMMUNITY DETOXIFICATION CENTER 500 SCHOOL STREET PITTSBURG, CALIFORNIA SECTION B. STANDARD PROVISIONS B.I. HOLDING OVER: Any holding over after the term or extension of this Lease as provided hereinabove shall be construed to be a tenancy from month to month, subject to the terms of this Lease so far as applicable. B.2. HOLD HARMLESS. CONTRACTOR shall indemnify, 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, CONTRACTOR'S operations, or CONTRACTOR'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 CONTRACTOR. B.3. ALTERATIONS, FIXTURES, AND SIGNS: With prior written approval of COUNTY'S Lease Manager, CONTRACTOR may make any lawful and proper minor alterations, attach fixtures and signs in or upon the Premises, which shall remain CONTRACTOR'S property and may be removed therefrom by CONTRACTOR prior to the termination of this Lease. Any such alterations, signs or fixtures shall be at CONTRACTOR'S sole cost and expense, and all signs shall meet with existing code requirements. - 5 - B.4. DESTRUCTION: a. In the event of damage causing a partial destruction of the Premises during the term of this Lease from any cause, COUNTY may, at its option, make repairs within a reasonable time and CONTRACTOR shall be entitled to a proportionate reduction of rent while such repairs are being made, such proportionate reduction to be based upon the remaining useable area of the Premises. In the event COUNTY does not so elect to make such repairs, this Lease may be terminated at the option of either party. b. A total destruction of the Premises shall terminate this Lease. B.S. QUIET ENJOYMENT: COUNTY covenants that CONTRACTOR 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 CONTRACTOR fully performs hereunder. B.6. DEFAULTS: The occurrence of any of the following shall constitute an Event of Default under this Agreement: a. Event of Default by CONTRACTOR: i. CONTRACTOR'S failure to pay any rent within ten (10) business days after due date. ii. CONTRACTOR'S failure to comply with any other material term or provision of this Lease if such failure continues thirty (30) days after written notice of failure from COUNTY to CONTRACTOR specifying in reasonably sufficient detail the nature of said breach. If the required cure of the noticed default cannot be completed within thirty (30) days, CONTRACTOR'S failure to perform shall constitute a default under the Lease unless CONTRACTOR has attempted to cure the default within said thirty (30) day period and has diligently and continuously attempted to complete the cure as soon as reasonably possible. On the occurrence of an Event of Default by CONTRACTOR, COUNTY may re- enter and repossess the Premises and remove all persons and property therefrom after - 6 - giving CONTRACTOR written notice of such default and in accordance with due process of law. b. Event of Default by COUNTY: COUNTY'S failure to perform any of its obligations under this Lease shall constitute a default by COUNTY if the failure continues for thirty (30) days after written notice of the failure from CONTRACTOR to COUNTY. If the required cure of the noticed default cannot be completed within thirty (30) days, COUNTY'S failure to perform shall constitute a default under the Lease unless COUNTY has attempted to cure the default within said thirty (30) day period and has diligently and continuously attempted to complete the cure as soon as reasonably possible. On the occurrence of an Event of Default by COUNTY, CONTRACTOR may terminate this Lease and quit the Premises without further cost or obligation. B.7. SURRENDER OF PREMISES: On the last day of the term, or sooner termination of this Lease, CONTRACTOR.will peaceably and quietly leave and surrender to COUNTY these Premises with their appurtenances and fixtures (except signs and fixtures referred to hereinabove) in good order, condition, and repair, reasonable use and wear thereof and damage by earthquake, fire, public calamity, by the elements, by Act of God, or by circumstances over which CONTRACTOR has no control excepted. B.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.9. SEVERABILITY: In the event that any provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of any such provision does not materially prejudice either the CONTRACTOR or COUNTY in its respective rights and obligations contained in the valid provisions of this Lease. B.10. WASTE, NUISANCE: CONTRACTOR 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 any occupant of the neighborhood in which the Premises are located. - 7 - B.11. INSPECTION. The COUNTY reserves the right to enter the Premises at any time 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. CONTRACTOR shall promptly make any repairs or do any maintenance identified by the inspection. B.12. ABANDONMENT: CONTRACTOR shall not vacate or abandon the Premises at any time during the term, and if CONTRACTOR shall abandon, vacate or surrender the Premises, or be dispossessed by process of law, or otherwise, any personal property belonging to CONTRACTOR and left on the Premises shall be deemed to be abandoned, at the option of COUNT'S. Note: Remainder of page intentionally left blank. _ g _ LEASE FOR BI-BETT CORPORATION EAST COUNTY COMMUNITY DETOXIFICATION CENTER. 500 SCHOOL STREET PITTSBURG, CALIFORNIA SECTION C: SPECIAL PROVISIONS C.l. ASSIGNMENT OR SUBLEASE: CONTRACTOR shall not have the right to assign this Lease or sublease the Premises or any part thereof at any time during the term of this Lease without written consent of COUNTY C.2. POSSESSORY INTEREST 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 law and is levied on the CONTRACTOR. 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 CONTRACTOR subsequently vacates the Premises. CONTRACTOR, therefore, must recognize and understand, in accepting this Agreement, that its 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 CONTRACTOR, 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 CONTRACTOR.when due. C.3. INSURANCE: CONTRACTOR, at its sole cost and expense, shall maintain the following insurance coverage in full force and effect throughout the term of this Lease: I. Insurance Required: a. Liability Insurance: CONTRACTOR. shall maintain Comprehensive General Liability or Commercial General Liability insurance covering bodily injury (including death), personal injury and property damage. - 9 - 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 CONTRACTOR, its officers, agents and employees, shall be excess only and not contributing with the insurance required under this paragraph. b. Worker's Compensation and Employer's Liability Insurance: CONTRACTOR shall maintain 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. C. Propegy Insurance: COUNTY shall maintain property coverage on real property. CONTRACTOR shall have no interest in the insurance proceeds upon COUNTY'S improvements, equipment and fixtures and will sign all documents necessary or proper in connection with the settlement of any claim or loss by COUNTY. CONTRACTOR. shall provide fire insurance on its own contents, improvements and betterments and its personal property contained within or on the Premises under a standard "all-risk" policy, excluding earthquake and flood. The coverage shall be for not less than ninety (90) percent of the actual cash value of the personal property. CONTRACTOR shall name COUNTY as an additional insured and loss payee as respects the improvements and betterments, and shall provide a Certificate of Insurance evidencing such coverage and providing not less than thirty (30) days notice of any cancellation or material change. _ 10 _ 2. Evidence of coverage: Within 30 days of execution of this Lease, CONTRACTOR shall provide on a form approved by COUNTY an original 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. 3. 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.4. HAZARDOUS MATERIALS: COUNTY has informed TENANT that there are asbestos containing building materials (ACBM) in certain portions of the pipe insulation, floor tiles and exterior siding material of the subject Premises as shown on the Asbestos Report labeled Exhibit "B" which is attached hereto and made a part hereof. In the event of any damage, repairs or alterations to surfaces containing asbestos, CONTRACTOR. shall, at its sole cost and expense, immediately hire a contractor qualified to handle ACBM to repair the damage or make alterations in accordance with federal Occupational Safety and Health Administration(OSHA) requirements and guidelines. CONTRACTOR,CTOR, its successors, assigns and guarantors, agree to indemnify, defend and hold harmless COUNTY, its officers and employees from and against any and all damages arising from the presence of asbestos or other hazardous materials upon or about the Premises, or arising in any manner whatsoever out of the violation of any law or regulation pertaining to the Premises and the activities thereon, unless such damages exist solely as a result of the negligence or willful misconduct of COUNTY. CONTRACTOR. agrees to defend, save, protect and hold harmless COUNTY from any loss arising out of the presence of any hazardous materials on the Premises which is a result of the CONTRACTOR'S use and occupancy of the Premises. The parties to this Lease acknowledge that the provisions of this paragraph shall survive beyond the expiration or termination date of the Lease. C.5. TERMINATION: In the event COUNTY'S contract with CONTRACTOR for operation of a detoxification facility is terminated, this Lease shall terminate on the same - 11 - date as the contract termination. CONTRACTOR. shall vacate the Premises within thirty (30) days. C.6. CANCELLATION: COUNTY shall have the right to cancel this Lease by giving CONTRACTOR sixty (60) days prior written notice. CONTRACTOR. waives the right to make any claim against COUNTY for relocation benefits in the event COUNTY elects to terminate this agreement for any reason. C.7. TERMINATION OF PRESENT LEASE. It is understood and agreed that CONTRACTOR now leases the Premises under the terms of a Lease dated January 12, 1993. Upon commencement of this Lease, that Lease dated January 12, 1993 shall terminate. GALeaseMgt\CBEAR\_Lease Files\Pittsburg\500 School Street\500 School St Lse.doc - 12 - a LF Ln c� CIj CL 0 to � rt � (o ro a, C+ C. CI) � O v O O W r +1 v s 5 a trs Ln n O 01:7 "a M --1 rr C) [C et Cinder Black Wall harbor way Luse Exhibit A — Premises 500 School Street, Pittsburg (j 00:3 (o 5o p b �- Kassia K.ossyta -6- March 15, 1984 DE-TO K. 326 HEALTH SERVICES - DETOX AREA Asbestos-containing materials were located on pipe insulation Capproximately 1800 linear feet) , and bailer related insulation in the boiler room and underneath the building (approximately 75 sq. ft. ) . The floor tiles inside the building and the exterior siding material also contain asbestos. CONDITION The pipe insulation under the building and in the boiler room has areas where the condition is fair to poor. The boiler, including the boiler stack, has areas that are in poor condition. ' As a result of damage and deterioration, debris from asbestos- containing insulation materials has contaminated areas of the floor underneath the building and the boiler room. In general, the floor tiles throughout the building are. in good condition. Water damage has caused the floor tiles in the meeting room to be loose. The exterior siding of the building is in goad` condition. CORRECTIVE ACTION (S) TO BE CONSIDERED t•JC`>� i-tY` ti�5v � �-'�fi+'i -� Ck,t v`P_ Remove deteriorated insulation. + y - Re-cover, rewrap or patch tarn areas. - Remove insulation debris and dust from the floor and ground. - Install barriers that will protect exposed and vulnerable areas. PRIORITY FOR CORRECTIVE ACTION Corrective action to prevent further deterioration from insulation on pipes, and boiler and related areas, should be given high priority.