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HomeMy WebLinkAboutMINUTES - 10072003 - C79 TO: BOARD OF SUPERVISORS }. *.; CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA DATE: OCTOBER 7, 2003 COUNTY suBJEGT: LEASE RENEWAL FOR THE PREMISES AT 355 E. LELAND ROAD, PITTSBURG, FOR THE PROBATION DEPARTMENT (Tf?t1622) SPECIFIC REQUEST(S)OR RECOMMENDATION($)&BACKGROUND AND JUSTIFICATION RECOMMENDATION APPROVE renewal of a Lease for a nineteen month term, commencing December 1, 2003 to June 30, 2005, with Centurian Enterprises for the premises at 355 E. Leland Read, Pittsburg, for continued occupancy by the Probation Department, under the terms and conditions more particularly .set forth in the Lease, and AUTHORIZE the Director of General Services, or designee, to execute.the Lease and to EXERCISE any options to extend the Lease. FINANCIAL IMPACT Renewal of this lease was anticipated and funds budgeted in the Probation Department's FY 2003/04 budget. The monthly rental during the first twelve months of the renewal term will remain the same as the previous rate, $7,500 per month. For the fast nine months of the renewal term, the rent will increase to $7,050 per month. BACKGROUNID The Probation Department has occupied approximately 5,380 square feet of office space at 355 E. Leland Road in Pittsburg since September 1, 2001. The extension term of the current Lease ends November 30, 2003. A lease renewal has been negotiated for a nineteen month term from December 1, 2003 through June 30, 2005. The lease term now coincides with the State funding cycle for the Probation Department's East County operations. Funding is approved through June 30, 2005. In addition, the lease provides the County with three one year extension options at specified rental amounts, giving the County the right to extend through June 30, 2008. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE ,_,,,OTHER SIGNATURES: ACTION OF BOARD ON OCrOM 7, ZQQ3 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS(ABSENTN (l`11 E } AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7300) Originating Dept.:General Services Department cc: General Services Department I HEREBY CERTIFY THAT THIS ISA TRUE Luse Mann t Division AND ENTERED COPY OF IN ACTION TAKEN n AND ENTERi:b ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE HATE SHOWN. Auditor-Controller(via UM) Risk Management(via LIM) ATTESTED Probation(via LIM) K OF THE BOARD OF SUPERVISORS Centurian Enterprises(Via LtM) D COUNTY ADMINISTRATOR By ;f " > DEPUTY I:1LesseMgtlCAROL\355ELelandleaserenewai.doc CC: M382(10188) LEASE TABLE OF CONTENTS CENTURIAN ENTERPRISES TO CONTRA COSTA COUNTY PROBATION DEPARTMENT FOR 355 E. LELAND ROAD, PITTSBURG, CA SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTIES....................................................................................................1 A.Z. LEASE OF PREMISES.............................................................................1 A.3. TERM ..........................................................................................................1 A.4. RENTF..........7;....(...............................................................................................I A.j5/{. USE .......................M.......................................................................I4�J( A.6 SE OF ..............................................................M...................2 A.7. UTILITIES AND CUSTODIAL...............................................................2 A./88y. MAINTENANCE AND REPAIRS...........................................................2{y A.9. NOTICES....................................................................................................✓ A.10. EXHIBITS AND AND AT{�TACHMENTS........................................................4 A.11. WRITTEN j Ej, AGREEMENT.....................................s.................................4 A.12. TIME IS OF THE ESSENCE...................................................................5 A.13. SIGNATURE BLOCK..............................................................................5 SECTION B: STANDARD PROVISIONS B.I. HOLDING OVER .. 6 ..................................................................................... B.Z. TIO D HAR Fi a HARMLESS............................................................................../...6 B.3. DESTRUCTION �Ay■L'yTERATI}OONSFIXTURES,AND SIGNS...........................................6 B.4. DESTRUC i IOL;y1 ........................................................................................7 B.5. QUIET ENJOYMENT..............................................................................J B.V. DEFAULTS V LTS.................................M.............................................................. ! B.7. SURRENDER OF PREMISES.................................................................9 B.8. SUCCESSORS AND ASSIGNS.......................................Y........................ 9 B.J.. SEVERABILITY ........................................................................................ ] B.10. WASTE, NUISANCE...............................................................................9 B.10. INSPECTION...........................................................................................10 B.11. PROPERTY ACCESS.............................................................................1V SECTION C. SPECIAL PROVISIONS C.I. ASSIGNMENT OR SUBLEASE............................................................11 C.Z. SERVICE BY LESSOR...........................................................................11 C.3. HAZARDOUS MATERIALS.................................................................11 CA. TERMINATION OF PRESENT LEASE..............................................12 EXHIBITS EXHIBIT A: PREMISES LEASE 355 E. LELAND ROAD, for CONTRA COSTA COUNTY PROBATION DEPARTMENT SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTIES: Effective on OCTOBER 7. 2003, CENTURIAN ENTERPRISES, a General Partnership, hereinafter called "LESSOR", and the COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter called "COUNTY", mutually agree and promise as follows: A.2. LEASE OF PREMISES: LESSOR, for and in consideration of the rents, hereby leases to COUNTY, and COUNTY leases from LESSOR those certain premises described as follows: Approximately 6,380 square feet of office space within the Centurian Plaza building complex ("Complex"), commonly known as 355 E. Leland Read, Pittsburg, CA, more particularly described in Exhibit "A"-Premises, attached hereto and incorporated herein, together with non exclusive use of the Complex parking lot ("Premises"). A.3. TERM: The term of this Lease shall be one (1) year and seven (7) months, commencing December 1, 2003 and.ending June 30, 2005. A.4. RENT: COUNTY shall pay to LESSOR as rent for the use of the Premises a monthly rental, as follows,payable in advance on the tenth day of each month during the term of this Lease: Time Period Monthly Rental December 1, 2003 _ November 30, 2004 $ 7,500.00 December 1, 2004- June 30, 2005 7,650.00 Payments shall be mailed to: Centurian Enterprises P.U. Box 2927 Antioch, CA 94513 or to any other address as designated by LESSOR to COUNTY from time to time. 1 G:\L.easeM gt\CAROL\355ELeleandlease.doc A.5. EXTENSION: This Lease may, at the option of the COUNTY, be extended upon the same terms and conditions, except the rental shall be adjusted as follows: a. First Option: For a one (1) year term, commencing July 1, 2005 and ending June 30, 2006, at a rental of SEVEN THOUSAND NINE HUNDRED FIFTY FIVE AND NO/100 DOLLARS ($ 7,955.00) per month. b. Second Option: For a one (1) year term, commencing July 1, 2006 and ending June 30, 2007, at a rental of EIGHT THOUSAND TWO HUNDRED SIXTY AND NO /100 DOLLARS ($ 8,260.00)per month. C. Third Option: For a one (1) year term, commencing July 1, 2007 and ending June 30, 2008, at a rental of EIGHT THOUSAND FIVE HUNDRED SEVENTY AND NO/100 DOLLARS ($ 8,570.00) per month. It is understood and agreed COUNTY shall give LESSOR thirty (30) days prior written notice of its intention to exercise any option to extend this Lease. However, in the event COUNTY does not give such written notice, its right to exercise any option before termination of the Lease shall not expire until fifteen (15) working days after receipt of LESSOR'S written demand to exercise or forfeit said option. A.6 USE OF PREMISES: The Premises shall be used during the term or extension thereof for purposes of conducting various functions of COUNTY. A.7. UTILITIES and CUS'T'ODIAL SERVICES: COUNTY shall pay for all gas, electric, water, sewer, refuse collection and custodial services provided to the Premises. A.8. MAINTENANCE AND REPAIRS: a. LESSOR shall keep the roof and exterior of the Premises in good order, condition, and repair and shall maintain the structural integrity of the Premises, including the exterior doors and their fixtures, closers and hinges, and glass and glazing in the Premises. COUNTY shall be responsible for all locks and key systems in the Premises. b. COUNTY shall keep and maintain the interior of the Premises in good order, condition, and repair, but LESSOR shall repair damage to the interior 2 G:1LeaseMgt\CAROL13551 Leleandlease.doe caused by failure to maintain the exterior in goad repair, including damage to the interior caused by roof leaks and/or interior and exterior wall leaks. C. COUNTY shall be responsible for the routine maintenance and repair of the electrical, lighting, water and plumbing systems and shall maintain said systems in good order, condition and repair. LESSOR shall be responsible for repairs and/or replacements of said systems that exceed FIVE HUNDRED AND NO/100 DOLLARS ($500.00)per occurrence. d. LESSOR shall be responsible for the maintenance and repair of the heating, ventilating, and air-conditioning system (HVAC). LESSOR shall maintain a quarterly HVAC maintenance contract. Said quarterly maintenance shall include quarterly maintenance of the HVAC units and components, including motor,belts, damper, drainage system and changing of filters on a quarterly basis. C. LESSOR shall maintain the Complex parking lot, landscaping, sprinkler system, and exterior lighting system in good order, condition, and repair. f. LESSOR shall provide and install, at the direction of the Fire Marshal, the necessary number of A-B-C fire extinguishers for the Premises at no cost to COUNTY. COUNTY shall thereafter maintain, repair, and replace the extinguishers. g, COUNTY shall not suffer any waste on or to the Premises. h. LESSOR shall be responsible for the correction of any code violations which may exist in the Premises, provided LESSOR shall not be liable for correction of code violations which arise out of and are directly related to a change in COUNTY'S occupancy or use of the Premises. A.9. 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: 3 G:\LeaseMgt\CAROL\355FLeleandlease-doc To LESSOR: Centurian Enterprises P.O. Box 2927 Antioch, CA 94531-2927 To COL NTY: Contra Costa County General Services Department Lease Management Division 1224 Morello Avenue, Suite 104 Martinez, CA 94553-4711 A.10. EXHIBITS AND ATTACHMENTS: Section B, Standard Provisions, Section C, Special Provisions, and Exhibit A -- Premises are attached to this Lease and are made a part hereof. A.11. '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. This Lease will not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. .Both parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply to the interpretation of this Lease. ('Remainder of Page Intentionally Left Blank) 4 G:\LeaseMgt\CAROL\355ELeteandlease.dac A..12. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this Lease. A.13. SIGNATURE BLOCK COUNTY LESSO COUNTY OF CONTRA COSTA, a CENTURIAN ENTERPRISES, a general Political subdivision of the State of partnershipp --- California 7 1/75 ( r By Director of General Services RECOMMENDED FOR APP' OVAL: By A&.�� Director of Capital Facilities and Debt Management BY � } Lease Manager By Probation Department epresentative APPROVED AS TO FORM: SILVANO B. MAR:CHESI, County Counsel By Deputy S G:1LsaseMgt\CAROL1355ELeleandlease.doc LEASE 355 E. LELAND ROAD, for CONTRA COSTA COUNTY PROBATION DEPARTMENT SECTION B: STANDAR} PROVISIONS B.1. 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.Z. HOLD HARMLESS: COUNTY agrees to defend, indemnify, and hold harmless the LESSOR from the 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 arising out of negligent or intentional acts, errors or omissions of the COUNTY, its officers, agents or employees. COUNTY shall not be liable in the case of any structural, mechanical or other failure of equipment and/or building owned and maintained by the LESSOR or for other liability which is attributable, in whole or in part, to the negligence, willful misconduct, or other intentional act, error or omission of LESSOR., which results in damage to any person or property. LESSOR agrees to defend, indemnify and hold harmless the COUNTY from the LESSOR'S share of any and all claims, costs and liability for any damages, injury or death of any person or the property of any person arising out of the negligent or intentional acts, errors or omissions of the LESSOR.,its officers, agents or employees. B.3. ALTERATIONS, FIXTURES, AND SIGNS: COUNTY may make any lawful and proper minor alterations, attach fixtures and signs in or upon the Premises, which shall remain COUNTY property and may be removed therefrom by COUNTY prior to the termination of this Lease. Any such alterations, signs or fixtures shall be at COUNTY'S sole cost and expense, and all signs shall meet with existing code requirements and LESSOWS approval. 6 C:\LeaseMgtlCAROL1355EL.efeandlesse.doc B.4. DESTRUCTION: a. In the event of damage causing a partial destruction 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, LESSOR shall repair the damage promptly and within a reasonable time, but such partial destruction shall not void this Lease, except that COUNTY shall be entitled to a proportionate reduction of rent while such repairs are being made, such proportionate reduction to be based upon the extent to which the Premises are unusable by COUNTY. b. If such repairs cannot be made in sixty (60) days, LESSOR 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 LESSOR 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 or the Complex in which the Premises is located shall terminate this Lease. B.5. QUIET ENJOYMENT: LESSOR covenants that COUNTY shall at all times during the term or extension thereof peaceably and quietly have, hold, and enjoy the Premises without suit, trouble or hindrance from or on account of LESSOR as long as COUNTY 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 COUNTY 1. COUNTY'S failure to pay any Rental within ten (10) business days after written notice of failure from LESSOR to COUNTY. If, however, payment is not made within ten (10) business days of said written notice due to 7 G:\LeaseMgt\CAROL\355ELeieandiease.doc ......... ......... ......... .................111.1 _ ....... ..._.... ............... ._.._.... .....__._._...._........ .._...... _........ ......... ....... ......... _...... ..................... circumstances beyond the reasonable control of COUNTY, which circumstances may, without limitation hereby, include failure of COUNTY to adopt a budget, then COUNTY shall make such payment within such additional time [but not to exceed a total of seventy five (75) days from LESSOR'S notice to COUNTY] 2. COUNTY'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 LESSOR to COUNTY 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, 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, LESSOR may re- enter and repossess the Premises and remove all persons and property therefrom after giving COUNTY written notice of such default and in accordance with due process of law. b. Event of Default by LESSOR LESSOR'S failure to perform any of its obligations under this Lease shall constitute a default by LESSOR if the failure continues for thirty (30) days after written notice of the failure from COUNTY to LESSOR. If the required cure of the noticed default cannot be completed within thirty (30) days, LESSOR'S failure to perform shall constitute a default under the Lease unless LESSOR.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. 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 COUNTY and/or its invitees, LESSOR shall use reasonable efforts to 8 G:\LeascMgtICAROL\355ELeleandlease.doc immediately address the situation and shall use diligent efforts to correct the perilous condition. On the occurrence of an Event of Default by LESSOR, COUNTY may terminate this Lease and quirt the Premises without further cost or obligation or may proceed to repair or correct the failure and either deduct the cost thereof from rental payments due to LESSOR, or at COUNTY'S option, invoice LESSOR for the cost of repair, which invoice LESSOR shall pay promptly upon receipt. B.7. SURRENDER OF PREMISES: On the last day of the term, or sooner termination of this Lease, COUNTY will peaceably and quietly leave and surrender to LESSOR these Premises with their appurtenances and fixtures {except signs and fixtures referred to hereinabove} in good order, condition, and repair, excepting for reasonable use and wear thereof and damage by earthquake, fire,public calamity,by the elements, by Act of God, or by circumstances over which. COUNTY has no control. COUNTY shall not be liable for painting the interior of the Premises upon termination of this Lease. B.8. 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. SEVERABICLITY: 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 COUNTY or LESSOR in its respective rights and obligations contained in the valid provisions of this Lease. B,10. WASTE, NUISANCE: COUNTY 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 other Lessee or occupant of the complex in which the Premises are located. COUNTY shall conform its use and occupancy of the Premises to the standards and modes of use applicable to a first-class office building. 9 G:%LeaseMgt\CAROL\355ELeleandlease.doc B.11. INSPECTION: The LESSOR reserves the right to enter the Premises by prior appointment only 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. B.12. PROPERTY ACCESS. Upon written notice by COUNTY to LESSOR of COUNTY'S intent to vacate the Premises, LESSOR shall have reasonable access to Premises to show prospective tenants with TWENTY FOUR (24) hour notice to COUNTY. (Remainder of Page Intentionally Left Blank) 10 G:lLeaseMgttCAROL1355ELeleandlease.doe LEASE 355 E. LELAND ROAD, for CONTRA COSTA.COUNTY PROBATION DEPARTMENT SECTION C: SPECIAL PROVISIONS C.I. ASSIGNMENT OR SUBLEASE: COUNTY 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 or extension thereof without the prior written approval of the LESSOR, which shall not be unreasonably withheld. C.2. SERVICE BY LESSOR: It is understood and agreed that COUNTY my request LESSOR. to provide certain maintenance, construction, remodeling or like services beyond those which are the LESSOR'S responsibilities as specified in Paragraph A.8. from time to time during the term of this Lease or any extension. COUNTY shall pay to LESSOR as additional rental one hundred percent (100%) of the costs of the service. LESSOR shall consult with COUNTY and select either licensed, insured contractors or employees of LESSOR. to provide the service. LESSOR shall obtain COUNTY'S prior approval on the scope, term, and cost of the contracts. COUNTY shall have the right to change the level of service from time to time by giving LESSOR. thirty (30) days' prior written notice, including the right to terminate any or all service, or to require different contractors to provide the service. C.3. HAZARDOUS MATERIALS: LESSOR warrants to COUNTY that LESSOR does not have any knowledge of the presence of hazardous materials or contamination of the Complex or Premises in violation of environmental laws. LESSOR 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 not a result of the COUNTY'S use and occupancy of the PREMISES. LESSOR acknowledges and agrees that COUNTY shall have no obligation to clean up or remediate, or to contribute towards the cost of clean up Il G:\LeaseMgt\CAR©L\355ELeleandlease.doe or remediation, of any hazardous materials that is not caused to be present, released, discharged or spilled on or about the Premises by COUNTY or any of its agents, employees, contractors, invitees or other representatives. The obligations of this paragraph shall survive the termination of this Lease. "Hazardous Materials" is defined to mean any substance, material or waste, including lead based paint, asbestos and petroleum (including crude oil or any fraction thereof), which is or becomes designated as a hazardous substance, hazardous waste, hazardous material, toxic substance or material under any federal, state or local law, regulation or ordinance. C.4. TERMINATION OF PRESENT LEASE: It is understood and agreed that the COUNTY occupies the :Premises under the terms of a Lease dated September 1, 2001, first amended October 1, 2002. Upon the commencement date of this Lease, said September 1, 2401 Lease, first amended 0)ctober 1, 20102 shall terminate. (Remainder of Page Intentionally Left Blank) 12 G:\LcaseMgt\CAROL\355EL,eleandlease.doe .zos A so s90 930 �, �nett.. t�-.-..i off,r+ •n �t �-r. i+�G/r '�dstar fits ►� ceed �t co y Zk is c, ' . d Y HARBOR STREET EXHIBIT A-PREMISES ..... ..............................