HomeMy WebLinkAboutMINUTES - 04242001 - C.162 TO: BOARD OF SUPERVIS,.AS
FROM: Barton J. Gilbert, Director of General Services — Contra
i�► �� ► eon . �; Costa
DATE: April 24, 2001 -
�t: County
SUBJECT. LEASE FOR THE EMPLOYMENT AND HUM � RVICE.S__D_E_PARTMENT
1275 HALL AVENUE, RICHMOND (CP#01-08) (T00614)
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION
APPROVE a Lease upon the successful negotiations, with DVK Realty Ventures, Inc. for the
premises at 1275 Hall Avenue, Richmond, for occupancy by the Employment and Human
Services, under the terms and conditions more particularly set forth in said Lease, and
AUTHORIZE the Director of General Services to EXECUTE said Lease on behalf of the County.
DETERMINE that the above project is not subject to the California Environmental Quality Act
(CEQA) pursuant to Class 27, Section 15327 of the CEQA guidelines.
DIRECT the Community Development Department to FILE a Notice of Exemption with the
County Clerk.
DIRECT the Director of General Services to arrange for,the payment of the handling fees to the
County Clerk and the Community Development Department for filing the Notice of Exemption.
II. FINANCIAL IMPAC
Lease payments and repayment of tenant improvement costs will be included in the occupancy
costs for the Employment and Human Services Department in future budget years beginning in
FY 2001/02. The project will be eighty percent (80%) funded by the Federal and State
governments and twenty percent (20%) funded by the County. Lease costs will be allocated
across all EHS program areas as part of the Department's general and administrative costs.
In addition to the lease costs, it is anticipated that the County will fund approximately
$5,000,000 in building and tenant improvements. The Lessor is contributing an additional
$1,200,000 towards the estimated construction costs.
III. REASONS FOR RECOMMENDATION / BACKGROUND
On February 24 1998, and again in September of 1998, the Board of Supervisors directed Staff
to seek office space in Richmond for the Employment and Human Services Department to
replace inadequate leased facilities. Also in 1998, a comprehensive survey of available sites
along Macdonald Avenue in Richmond was completed. Over a period of many years, the
County has pursued the purchase of several sites in central Richmond without success. One
option that was seriously considered was constructing a new building on County owned land
adjacent to the EHS Hercules facility located at 151 Linus Pauling Dr. However, this location is
remote from the Richmond service population. The proposed lease is more centrally located
than Linus Pauling Dr., it solves a long standing facility problem for the County and the
Department, and will relieve overcrowding at the two remaining West County EHS facilities, 151
Linus Pauling Dr.,Hercules and 1305 Macdonald Ave, Richmond.
600IT-INkIfirl WJ ATTACHMENT: ✓ YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTSO
_APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED _OTHER
—
VOTE OF SUPERVISORS � I hereby certify that this is a true and correct
2�7—
/V UNANIMOUS(ABSENT copy of an action taken and entered on the
AYES: NOES: minutes of the B0 d of Supervisors on the
ABSENTS: ABSTAIN: date Shown.
ATTESTED: �aD/
MEDIA CONTACT: BARTON J.GILBERT(313-7100) �O TEN, Clerk o the Board
of rvisors a Coun Administrator
PV Deputy
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LEASE
TABLE OF CONTENTS
1275 HALL AVENUE, BUILDING A
RICHMOND, CALIFORNIA
CONTRA COSTA COUNTY
EMPLOYMENT AND HUMAN SERVICES DEPARTMENT
SECTION A: BASIC TERMS AND CONDITIONS
A.I. PARTIES ..................................................................................................... l
A.2. LEASE OF PREMISES.............................................................................. 1
A.3. PARKING.................................................................................................... 1
A.4. TERM........................................................................................................... 2
A.5. RENT............................................................................................................ 2
A.6. COMMON AREA MAINTENANCE EXPENSE.................................... 3
A.7. EXTENSION....................................................:.......................................... 7
A.8 USE OF PREMISES................................................................................... 7
A.9. UTILITIES.................................................................................................. 7
A.10. MAINTENANCE AND R.EPAIRS............................................................ 7
A.1.1. NOTICES..................................................................................................... 8
A.12. EXHIBITS AND ATTACHMENTS ......................................................... 8
A.1.3. WRITTEN AGREEMENT........................................................................ 9
A.1.4. TIME IS OF THE ESSENCE.................................................................. 10
A.15. SIGNATURE BLOCK ............................................................................. 10
SECTION B: STANDARD PROVISIONS
B.I. HOLDING OVER..................................................................................... 11
B.2. HOLD HARMLESS ................................................................................. 11.
B.3. ALTERATI.ONS, FIXTURES, AND SIGNS.......................................... 11.
B.4. DESTRUCTION ....................................................................................... 12
B.5. QUIETENJOYMEN7'............................................................................. 12
B.6. DEFAULTS 13
B.7. SURRENDER OF PREMI.SES................................................................ 14
B.8. SUCCESSORS AND ASSIGNS............................................................... 14
B.9. SEVERABILITY ...................................................................................... 15
B.10. WASTE. NUISANCE ............................................................................... l5
B.l 1. INSPECTION............................................................................................ 15
B.1.2. REMEDIES CUMULATIVE................................................................... 15
B.13. ATTORNEYS' FEES ............................................................................... 15
B.14. NO WAIVER............................................................................................. 15
B.15. LATE CHARGES..................................................................................... 16
B.16. LIABILITY INSURANCE....................................................................... 16
B.17. EMINENT DOMAIN ............................................................................... 16
SECTION C: SPECIAL PROVISIONS
C.I. ASSIGNMENT OR SUBLEASE............................................................. 18
C.2. SUBORINDATION .................................................................................. 18
C.3. ESTOPPEL CERTI.FICATE................................................................... 19
CA. AMERICANS WITH DISABILTIES ACT(ADA) ................................ .19
C.5. ENVIRONMENTAL REPRESENTATIONS........................................ 19
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C.6. SATELLITE DISH................................................................................... 2.1
C.7. ACCOMPLISHMENT OF IMPROVEMENTS.................................... 21
C.8. COMPLETION AND ACCEPTANCE OF IMPROVEMENTS ......... 26
C.9 CONSTRUCTION MANAGEMENT SERVICERS............................. 29
C.10. CONSTRUCTION MANAGEMENT SUBSTITUTION...................... 29
C.11. PRIOR POSSESSION.............................................................................. 30
EXHIBITS
EXHIBIT A: PREMISES
EXHIBIT B: PARKING
EXHIBIT C: CONSTRUCTION DOCUMENTS (NOT ATTACHED)
EXHIBIT D: SIX-STAGE CONSTRUCTION AND PAYMENT SCHEDULE
EXHIBIT E: MEMORANDUM OF LEASE
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FOR
CONTRA COSTA COUNTY
EMPLOYMENT AND .HUMAN SERVICES DEPARTMENT
1275 HALL AVENUE, BUILDING A
.RICHMOND, CALIFORNIA
SECTION A: BASIC TERMS AND CONDITIONS
A.I. PARTIES: Effective on April 24, 2001, DVK REALTY VENTURES, INC., a
California corporation, 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 PRENIISES: LESSOR, for and in consideration of the rents, hereby
leases to COUNTY, and COUNTY leases from LESSOR those certain Premises
described as follows: 1.2/5 Hall Avenue, Building A, Richmond, California, consisting of
approximately 60,000 square feet ("Premises") of a 93,000 square foot Building, as
shown outlined on Exhibit "A" which is attached hereto and made a part hereof. The
Premises are located within the Marina Center ("the Center") which when developed will
consist of approximately 300,000 square feet. The COUNTY'S proportionate share of
the Building is based on the area of the Premises divided by the rentable square footage of
the Building in which the Premises are located, as follows:
Building: 93,000
Premises: 60,000 = 64.52%
A.3. PARKING: COUNTY shall receive under this Lease two hundred forty (240)
surface parking stalls, of which twenty (20) stalls will be designated as exclusive for
COUNTY use and these twenty (20) stalls are located next to the Building in the north
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parking lot. The remaining two hundred twenty (220) stalls shall be non-excILISive as
designated on Exhibit "Q" which is attached hereto and incorporated herein by reference.
A.4. TERM: The term of this Lease sliall be ten (10) years, subject to Paragraph A.7.
LESSOR-and COUNTY agree to execute a Memorandum of Lease letter as shown as
Exhibit "E", and otherwise satisfactory in form and substance to COUNTY, to be
recorded in the office of the County Recorder of Contra Costa County. This is in lieu of
recording the entire Lease document. Upon expiration or termination of this Lease,
COUNTY shall execute a Quitclaim Deed to LESSOR to clear the Lease from Lessor's
title.
A.S. RENT: Rent shall commence ("Commencement Date") on the earliest of the
following dates when: (a) an appropriate certificate of occupancy is issued by the City of
Richmond which permits lawful occupancy and use of the Premises; or (b) construction
and installation of COUNTY'S improvements is sufficiently complete so that COUNTY
may occupy the PREMISES in accordance with Paragraph C.8 herein; or (c) COUNTY
actually occupies the Premises; (d) December 1, 2001, provided LESSOR has complied
with all the requirements outlined in Paragraph C.B. COUNTY shall pay to LESSOR as
rent for the use of the Premises a monthly rental payable in advance on the first day of
each month during the term of this Lease as follows:
Calendar Period Monthly Rental
Months 1-12 $90,000.00
Months 13-24 $93,600.00
Months 25-36 $97,200.00
Months 37-48 $100,800.00
Months 49-60 $104,400.00
Months 61-72 $108,000.00
Months 73-84 $111,600.00
Months 85-96 $115,200.00
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Months 97-108 $118,800.00
Months 109-120 $122,400.00
Payments shall be. mailed to: Cameron Realty Management, Inc., c/o DVK Realty
Ventures, Inc., at 915 Piner Road, Suite E, Santa Rosa, CA 95403 or such other location
designated by LESSOR.
A.6. COMMON AREA MAINTENANCE EXPENSE:COUNTY shall pay to
LESSOR as Additional Rent, an amount equal to COUNTY'S proportionate share
(64.52%) of Common Area Maintenance Expenses described below and incurred by
LESSOR.
A. Common Area Expenses shall include all costs of the following:
(1) Routine maintenance and repair of Building common exterior entrances, fire
sprinklers, safety system and monitoring minor repairs;
(2) Janitorial, third party property management, maintenance and repair, painting,
restriping, cleaning, sweeping and lighting of parking lot, driveways, perimeter
pest control and exterior walkways;
(3) Cultivating, irrigating, maintaining and fertilizing landscaped areas, maintenance
and minor repair of landscaping sprinkler system.;
(4) Maintenance, repair and replacement of signs identifying location of the Building,
parking lot directional and safety signs, exterior lights, and light standards;
(5) Tools and supplies, depreciation on owned maintenance equipment and rental
paid for rented maintenance equipment;
(6) Insurance premiums and property taxes as outlined in Paragraph A.6.C;
(7) Costs of separately metered common area utilities, water, sewer and refuse
collection services
(8) Costs of any Capital improvements (amortized over the useful life of those
improvements in accordance with generally accepted accounting principals made
to Premises for the following reasons: (a.) to reduce operating costs or (b.) to
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comply with any governmental laws or regulations in that was not in force on the
effective date of this lease;
(9) Fire suppression system monitoring and maintenance;
B. Items Excluded from Common Area Expenses:
(1) Costs associated with the initial construction of the Building or any improvement
located thereon, including costs of correcting any defects in initial design or
construction;
(2) Charges for depreciation, interest, amortization or penalties with the respect to the
Building, the Common Area or any improvements located thereon;
(3) Expenses which in accordance with generally accepted accounting principals,
would be capitalized, except as provided in Paragraph A.6.(8) above;
(4) Expenses resulting from negligent acts or errors of LESSOR;
(5) Expenses associated with the operation of the business of LESSOR such as
personnel costs of employees not directly involved in management and of the
Common Area, legal and accounting fees involving relations or disputes with
employees, tenants or others, tax return preparation and administration, leasing
commissions, advertising expenses and other costs of leasing and releasing, bad
debts and other business losses;
(6) Reserves for future expenses;
(7) Amounts for which recovery is obtained under warranties, insurance coverage,
from a tenant or otherwise;
(8) The costs of providing improvements for any other tenants in the Building at any
time;
(9) Changes in property taxes associated with a change in ownership, which results
in increased taxes. Penalties assessed in the late payment of property taxes by
LESSOR.
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C. Property Taxes: COUNTY's proportionate share (64.52%) of City and/or County
taxes levied against Assessor's Parcel 560-260-035 in any year during the term of this
Lease or extension thereof shall be included in County's monthly CAM expense
payments. However, COUNTY shall not pay a prorata share of any increase resulting
fi-om a change in ownership of the property. It is understood that during the first and last
years of COUNTY occupancy, the taxes shall be prorated according to the number of
days the COUNTY shall have possession of the Premises.
D. Payment of Common Area Maintenance (CAM) Expenses: Although the effective
date of this Lease is April 24, 2001, the obligation of the COUNTY to pay its 64.52%
pro-rata share of CAM expenses shall not commence until the Commencement Date. If
the Commencement Date occurs after the first day of the month, CAM. expenses shall be
prorated for the month. Subject to the foregoing, COUNTY shall initially pay to
LESSOR monthly estimated CAM payments of Twenty Five Thousand Two Hundred
Dollars ($25,200.00) or Forty-Two Cents ($.42) per square foot due and payable on the
first day of each month. LESSOR shall provide COUNTY a written annual estimate of
CAM expenses for the Building and the Center. Within a reasonable time after January 1
of each successive lease year, LESSOR shall compute the total annual CAM expenses for
the prior year (January 1-December 31). These expenses and the associated supporting
documentation shall be submitted to COUNTY and any adjustment will be made
retroactive to January 1 of each lease year. COUNTY shall pay to or receive a credit from
LESSOR for the difference between COUNTY's share of the actual CAM expenses for
the proceeding twelve (12) month period and the amounts already paid by COUNTY for
the estimated CAM expenses for the same twelve (12) month period. (Established
Expenses). All payments or refunds shall be made within ninety (90) days. However, if
the actual CAM expenses exceed the Established Expenses by fifteen percent (15%) or
more, subsequent CAM payments will reflect the new adjusted rate for the balance of the
CAM year (January—December).
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For example if in January, 2003, LESSOR provides COUNTY with January 1, 2002-
December 31, 2002 CAM expenses of$480,000, the adjustment would occur as follows:
2002-2003 CAM Expenses $ 480,000.00
County's Share (64.52%) 309,696.00
Less Payments (Established Expenses) 302,400.00
Balance Due to LESSOR $ 7,296.00
A one time only payment. of$7,296.00 is due to LESSOR since actual CAM expenses are
less than 15% of the Established Expenses. However, if the actual CAM expenses were
to exceed the Established Expenses by more than 15%, using the example from above, the
adjustment would occur as follows:
2002-2003 CAM. Expenses $ 540,000.00
County's Share (64.52%) 348,408.00
Less .Payments (Established Expenses) 302,400.00
Balance Due to LESSOR $ 46,008.00.
In this instance, a one time payment of$ 46,008.00 is due to LESSOR and the monthly
Established Expenses would be recalculated to $29,000.00 ($ 348,408/ 12 =$29,034.00
rounded to nearest $100.00) for the period of January 1, 2003-December 31, 2003.
E. Records: For a period of ninety (90) days after receipt of the notice from LESSOR to
pay any of the foregoing amount, COUNTY shall have the right to examine and to copy
at any reasonable time (but only once in any year) all receipts, invoices, and records
relating to the charges made. This audit shall be conducted at LESSOR'S main
accounting office and at COUNTY's sole expense and shall not interfere with the
obligation of COUNTY to pay the Common Area Expense (not yet adjusted) amount
when due. In the event COUNTY fails to object to the accuracy of any such adjustments
within the ninety (90) day period, then such facts shall be deemed accurate and correct for
all purposes thereafter. If inaccuracies are found, the amount payable will be corrected.
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A.7. EXTENSION: This Lease may, at the option of the COUNTY, be extended upon
the same terms and conditions for two ten (10) year periods, except the rental shall be
negotiated between both parties of this Lease
It is understood and agreed COUNTY shall give LESSOR twelve (12) months
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 ten-nination 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.8 USE OF PREMISES: The Premises shall be used during the term or extension
thereof for purposes of conducting various office use functions of COUNTY.
A.9. UTILITIES: COUNTY shall pay directly to a utility company or municipality for
all gas, electric, water and sewer services provided to the Premises.
A.10. MAINTENANCE AND REPAIRS:
a. LESSOR shall keep the roof and exterior of the Building in good order,
condition, and repair and shall maintain the structural integrity of the
Building, including the exterior doors and their fixtures, closers and hinges,
glass and glazing used in and on 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
caused by failure to maintain the exterior in good repair, including damage
to the interior caused by roof leaks and/or interior and exterior wall and
glass leaks.
C. COUNTY shall repair and maintain the interior electrical, lighting, water,
and plumbing systems in good order, condition, and repair.
d. COUNTY shall maintain and repair the heating, ventilating, and air-
conditioning systems of the Premises.
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e. LESSOR shall maintain the parking lot, refuge collection, landscaping,
sprinkler systern, exterior window cleaning and exterior lighting systern 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. COUNTY
shall maintain, repair, and replace the extinguishers when necessary.
�.
g. COUNTY shall not suffer any waste on or to the Premises.
h. COUNTY shall provide its own janitorial service to the Premises.
i. 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 COUNT'Y'S occupancy or use of the Premises.
A.11. 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 LESSOR: Cameron Realty Management, Inc.
C/o DVK Realty Ventures, Inc.
915 Piner Road, Suite E
Santa Rosa, CA 95403
To COUNTY: Contra Costa County
General Services Department
Lease Management Division
1220 Morello Avenue, Suite 100
Martinez, CA 94553-4711
A.12. EXHIBITS AND ATTACHMENTS: Section B, Standard Provisions, Section C,
Special Provisions, and Exhibit A — Premises, Exhibit B- Parking, Exhibit C-
Construction .Documents (not attached), Exhibit D- Six Stage Construction and Payment
Schedule and Exhibit E- Memorandum of Lease.
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A.13. 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.
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A.M. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this
Lease.
A.15. SIGNATURE BLOCK
COUNTY LESSOR
COUNTY OF CONTRA COSTA, a DVK REA Y ENTURES, a California
Political subdivision of the State of co
California
_ By
By � �-�-dl
Director of General Services
By
RECOMMENDED FOR APPROVAL:
13,4WL4 71)
it ctor of CapitaYFLilities and
D t Management
By G
Department Representative
Representative
EMPLOYMENT AND HUMAN
SERVICES DEPAR'rMENT
By (�2d
Acting Lease Manager
APPROVED AS TO FORM:
SILVANO MARCHES], County Counsel
By 0
U,
Deputy C j6
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LEASE
FOR
CON'T'RA COS'T'A COUNTY
EMPLOYMENT AND HUMAN SERVICES DEPARTMENT
1275 .HALL AVENUE, BUILDING A
RICHMOND, 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. The monthly rental due for the first ninety
days (90) during the holding over period shall be the previous rental at the end of the
Initial term and thereafter the monthly rental shall be 115% of the previous rental.
B.2. 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 of Building owned and maintained by the LESSOR or for other
liability which is attributable, in whole or in part, to the sole negligence, willful
misconduct, or other intentional act, error or omission of LESSOR, which results in
darnage 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 which do not exceed Twenty Five Thousand Dollars
($25,000.00), attach fixtures and signs in or upon the Premises, which shall remain
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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 rneet with existing code requirements and LESSOR'S prior
written approval, which shall not be unreasonably withheld.
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 covered by
insurance actually obtained by LESSOR, 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, but only to the extent insurance proceeds exist to cover- such
costs, 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 as mutually agreed to by both parties.
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 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 Building in which the Premises
are located shall terminate this Lease.
6.5. QUIET ENJOYMENT: LESSOR covenants that COUNTY shall at all times
during the term or extension thereof peaceably and quietly have, hold, and enjoy the
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Premises without suit, trouble or hindrance from or on account of LESSOR as long as
COUNTY fully performs hereunder.
13.6. DEFAUL'T'S: 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 (i.e., any monetary sums due hereunder
including, without limitation, rent and CAM charges) 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
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.
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b. Event of Default by LESSOR.
1. 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
c0171plete 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 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 quit the Premises without further cost or obligation or may proceed to repair or-
correct the failure and either deduct the cost thereof frorn 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: Oil 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, subject to the provisions of Paragraph C.I hereof.
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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 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 Building and the Center 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.
B.11.INSPECI'ION: 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.REMEDIES CUMULATIVE: All rights and remedies of LESSOR and COUNTY
under this Lease shall be nonexclusive of and in addition to any other remedies available
to either party at law or in equity.
B.13.A'n,0RNEYS' FEES: If LESSOR or COUNTY brings any legal action in older to
enforce or interpret this Lease, the prevailing party shall be entitled to receive fi-om the
other party, its reasonable attorneys' fees, costs and disbursements in addition to other
relief to which such party is entitled.
B.14.NO WAIVER: Failure of LESSOR or COUN'T'Y to declare any default
immediately upon occurrence thereof, or delay in taking any action in connection
therewith, shall not waive such default, but LESSOR or COUNTY as the case may be,
shall have the right to declare any such default within a reasonable time.
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13.15.I.ATE CHARGES: COUNTY hereby acknowledges that late payment by
COUNTY to LESSOR of Rent will cause LESSOR to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, personnel costs, and
late charges which may be imposed on LESSOR by the terms of ally mortgage or trust
decd covering the Premises. Accordingly, if Rent due from COUNTY is not be received
by LESSOR by the tenth day of the month, COUNTY shall pay to LESSOR a late charge
equal to five percent (5%) of such overdue amount.
13.16.LIABILITY INSURANCE: It is understood and agreed that the COUNTY, a
political subdivision of the State of California, is self-insured for its Public Liability
exposure, which includes claims made by the public against the COUNTY for bodily
injuries and property damage, to the extent such would be insured by a standard
commercial insurance company for an amount of not less than Two Million Dollars
($2,000,000). LESSOR shall be included as additional insured under the COUNTY'S
Public Liability self-insurance plan in the same manner as would otherwise be provided
by a standard commercial general Public Liability insurance policy. At this time, if the
current coverage is considered inadequate by the COUNTY, the value of the coverage
will be adjusted to adequate valuation by the COUNTY.
13.17. EMINENT DOMAIN:
A. If any part of the Premises shall be taken as a result of the exercise of the
power of eminent domain or be conveyed to any entity having such power under threat of
exercise thereof (both of such actions being hereinafter referred to as "condemnation")
tills lease shall automatically terminate as to the portion of the Premises which is
condemned as of the date physical possession of such portion is taken by condernnor.
Any damages to the remainder of the Premises sustained by the COUNTY and/or
LESSOR as a result of said condemnation action shall be decided in court or by
negotiation and agreement with the condemnor.
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B. If the remaining part of the Premises will not be reasonably suitable for the
COUNTY's use at the time of said taking, this Lease may be terminated by
either LESSOR or COUNTY, at any time by written notice within thirty (30)
days after the date possession of the condemned portion is taken by
condemnor. If the remaining part of the Premises will be reasonably suitable
for the use in effect at time of said taking, this Lease shall continue in firll force
and effect as to such remaining part. If this Lease is not so terminated, as of
the date of such taking, the rent shall continue at a reduced amount based on
the remaining square footage usable by COUNTY.
The LESSOR shall be entitled to the condemnation award attributed to his interest in
the real property and the COUNTY for the taking of its leasehold interest, fixtures and
equipment, leasehold improvements, relocation expenses, and other award not related to
the value of the real property. Nothing herein contained shall prevent LESSOR and
COUNTY i:rom prosecuting claims in any condemnation proceedings for the value of
their prospective interests.
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LEASE
FOR
CONTRA COSTA COUNTY
EMPLOYMENT AND HUMAN SERVICES DEPARTMENT
1275 HALL AVENUE, BUILDING A
RICHMOND, CALIFORNIA
SECTION C: SPECIAL PROVISIONS
C.I. ASSIGNMENT OR SUBLEASE: COUNTY shall have the right to assign this
Lease or sublease the Premises or any part thereof at any time during the terns of this
Lease or extension thereof with LESSOR'S prior consent which shall not be unreasonably
withheld or delayed.
C.2. SUBORDINATION: COUNTY'S Director of General Services or his designee
shall, upon request of LESSOR to subordinate this Lease and COUNTY'S rights
hereunder to the lien of any mortgage, deed of trust or other voluntary hypothecation
arising out of any security instrument duly executed by LESSOR charged against the
Premises or any land, Building or improvement included therein or of which the Premises
are a part, or any portion or portions thereof, and to execute from time to time such
documents as may be required to effectuate such subordination; provided such documents
do not materially amend the Lease terms and provisions or the obligations of LESSOR or
COUNTY hereunder; and further provided, that COUNTY shall not be required to
clfectuate any such subordination or other document hypothecating any interest in the
Premises unless the mortgagee or beneficiary named in such mortgage or deed of trust
shall first agree in writing that so long as COUNTY is not in material default of any of the
terms, covenants, or conditions, of this Lease, beyond the expiration of any applicable
grace period, neither this Lease nor any of the rights of COUNTY hereunder shall be
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terminated or modified or be subject to termination or modification by any trustee's sale,
any action, proceeding of sale in foreclosure, or any sale in lieu of the forgoing.
C.3. ESTOPPEL CERTIFICIATE: Within twenty (20) days after written request from
LESSOR, COUNTY'S Director- of General Services or his designee shall execute and
deliver to LESSOR a written statement certifying: (a) that this Lease is unmodified and in
full force and effect, or is full force and effect as modified and stating the modifications;
(b) the amount of rent acid the date to which rent and additional rent, if any, have been
paid in advance; and (c) that LESSOR is not in default hereunder or, if LESSOR is
claimed to be in default, stating the nature of any claimed default. Any such statement
may be relied upon by a purchaser, assignee or lender.
CA. AMERICANS WITH DISABILITIES ACT(ADA): LESSOR covenants and
agrees that it shall be obligated at its sole cost and expense to comply with the provisions
of the ADA with respect to the Building including, without limitation, the parking area,
and the public areas of!the Building, all washrooms, elevators and drinking fountains,
except for the interior portion of the Premises which COUNTY has agreed to be
responsible.
LESSOR shall indemnify COUNTY against any and all damages, claims, judgments,
fines, penalties, costs and liabilities, including reasonable attorneys' fees, resulting Froin
any claims brought by any third parties that the Building and the Center is not in
compliance with the ADA, excluding therefrom any claims brought as the result of
COUNTY'S failure to comply with its obligations under ADA as provided herein.
C.5. ENVIRONMENTAL REPRESENTATIONS: LESSOR represents and warrants
that to the best of its' knowledge, as of the Commencement Date of the Lease, the
Building does not contain any asbestos, polychlorinated biphenyl's ("PCB's") or urea
formaldehyde. To the best of LESSOR'S knowledge, the LESSOR has complied and is
in compliance with the provisions of all Environmental Legal Requirements, as defined
below, applicable to the Building, the land, and the Premises. The LESSOR, to the best
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of its knowledge, is not a responsible party with respect to the Building under CERCLA,
as defined below, or any statutes providing for financial responsibility for cleanup or
other actions with respect to the release or threatened release of hazardous substances.
LESSOR and COUNTY covenant that they shall use, occupy and/or operate the Building
at all times during the Term hereof, under and in compliance with the laws of the State of
California and in compliance with all applicable Environmental Legal Requirements.
"Environmental Legal Requirements" shall mean all applicable laws relating to public
health, safety or the environment, including, without limitation, relating to releases,
discharges or emissions to air, water, land or groundwater, to the withdrawal or use of
groundwater, to the use and handling of polychlorinated biphenyl's ("PCB's") or
asbestos, or asbestos containing products, to the disposal, treatment, storage or
management of solid or other hazardous wastes or to exposure to toxic or hazardous
materials, to the handling, transportation, discharge or release of gaseous or liquid
substance and any regulation, or final order or directive issued pursuant to such statue or
ordinance, in each case applicable to the Land or to the Building or both or to the
Building's operation, construction or modification, including without limitation the
following: the Clean Ail- Act, the Federal Water Pollution Control Act ("FWPCA"), the
Safe Drinking Water Act, the Toxic Substances Control Act, the Comprehensive
Environmental Response Compensation and Liability Act as amended by the Superfund
Amendments and Re-authorization Act of 1986 ("CERCLA"), the Resource Conservation
and Recovery Act as an by the Solid and Hazardous Waste Amendments of 1984
("RCRA"), the Occupational Safety and Health Act, the Emergency Planning and
Community Right-to-Know Act of 1986, The Solid Waste Disposal Act, and any state
statutes addressing similar matters, and any state statue providing for financial
responsibility for cleanup or other actions with respect to the release or threatened release
of hazardous substances and any state nuisance statue. The parties to this Lease
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acknowledge that the provisions of this paragraph shall survive beyond the expiration or
termination date of the Lease.
C.6. SATELLITE RISK: COUNTY.shall be allowed to install a satellite dish on the
Building, at COUNTY'S own expense, during the Lease term. The location and size of
the satellite dish shall be subject to the approval of LESSOR and the City of Richmond.
COUNTY'S satellite dish shall not interfere with the communication equipment of any
other tenant in the Building. if after installation, COUNTY'S satellite dish does create
interference with other Building operations or other tenants' communications, COUNTY
shall make such repairs, at its sole expense, as may be necessary to eliminate such
interference or shall terminate its use of the satellite dish. Any penetration of the roof by
COUNTY'S satellite dish must be approved by LESSOR and performed by a contractor
approved by LESSOR. Upon termination of the Lease, the effected portion of the
Building roof shall be restored to its original condition by a roofing contractor, approved
by LESSOR, at COUNTY'S sole cost and expense. LESSOR shall not have any
obligations with respect to the satellite dish nor shall LESSOR. be responsible for any
damage that may be caused to COUNTY or the satellite dish by any other tenant in the
Building.
C.7. ACCOMPLISHMENT OF IMPROVEMENTS: COUNTY will provide Design
Development and Construction Documents, as described in this paragraph below to
LESSOR. LESSOR, at its sole cost and in addition to the LESSOR'S leasehold
allowance, shall ready the Premises by patching and smoothing the bare concrete floors,
insulate, shect rock, and .fire tape the perimeter walls, electricity, plumbing and sprinkler
systems shall be stubbed, capped and ready for distribution based on Construction
Documents. LESSOR shall construct improvements, consistent with such Construction
Documents, to convert the existing one-story Building to an office Building with
approximately 60,000 square feet of office space, along with site improvements,
including landscaping, frontage improvements, and approximately 240 on-site parking
spaces, all as required to suit the needs of the Contra Costa County Employment and
Fluman Services Department, subject to the limitations specified herein. COUNTY
acknowledges that (1) it has inspected the Building and site in its present condition; (2)
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has obtained a copy of the plans stamped by the City of Richmond dated May 25, 2000
and under the Building Permit # 500-01079 dated July 6, 2000 indicating that the existing
structure is adaptable to the intended use; and (3) COUNTY has obtained the following
,reports from LESSOR: Phase I Environmental Site Assessment and Phase ll. Subsurface
dated June 10, 1998, Preliminary Lead Base Paint dated February 11, 1999, Geotechnical
Engineering Study date August 3, 1998, and Asbestos Investigation dated February 18,
1999; and the construction project shall proceed with the Building in its "AS 1S"
condition ready for construction of improvements.
A. Architectural Services: The scope of improvements shall be as shown or
described in the Design Development .Drawings and specifications prepared by
COUNTY'S consulting architect, Artech Design Group, for COUNTY and
LESSOR review and approval.
B. Exhibits "A" and " C": COUNTY shall take all reasonable steps to see that the
Construction Documents are prepared within budget noted in E.1 below and
submitted to LESSOR as soon as possible to allow LESSOR to apply for
issuance of a Building Permit. The Construction Documents shall be consistent
with Exhibit "A"..'('he Construction Documents, drawings and specifications,
shall hereto be referred to as Exhibit "C" and made a part of this Lease at a
future date agreed to and by LESSOR and COUNTY.
C. Design Development Documents:
1. As of the execution of this Lease, COUNTY has submitted Design
Development .Documents for LESSOR approval. The Design
Development Documents consist of drawings, project budget and a cost
estimate of construction and describe the scope, size and character of the
entire project, including architectural, structural, mechanical and electrical
systems, and such other elements as may be appropriate. Upon approval
of Design Development Documents by both parties, COUNTY shall
proceed Avith development of Construction Documents. LESSOR and his
architect will submit an itemized report of all project costs to be incurred
by the LESSOR, including consultants, permits, estimated construction,
and contingencies.
D. Construction Documents:
1. Construction Documents shall consist of drawings and specifications
acceptable to COUNTY and LESSOR, which are adequate and accurate
for the purpose intended and which set forth in detail the requirements for
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the construction of the project. COUNTY acknowledges that its
professional staff has reviewed and approved of all the design
development plans, specifications and design work attached as exhibits to
this Lease. The LESSOR agrees that approval of any plans and
specifications by the COUNTY shall not relieve the LESSOR of
responsibility for the adequacy, fitness and correctness of Such plans and
specifications and for design work which has been produced in
accordance with sound and accepted architectural and engineering
principles.
2. "file COUNTY shall retain consultants for all design work who are
professionally competent and who hold current registration III the State of
California to practice the profession involved.
3. Work shown or specified shall meet requirements of the State Building
Code and authorities having jurisdiction.
4. After the Construction Documents are approved by the COUNTY and
LESSOR and attached to Lease as Exhibit "C", if changes in the project
scope are ordered in writing by the COUNTY, the City of Richmond or
any other authority, architectural services required to revise the
Construction .Documents shall be paid for by the COUNTY.
5. Upon IOU percent completion of the Construction Documents, COUNTY
shall submit two sets to the LESSOR for review and approval. "file
Construction Documents shall incorporate any annotations on the
Construction Documents attached as Exhibit "C" to the Lease and any
changes in the Building electrical and mechanical systems requested by
COUNTY.
G. Since a Fixed Limit of Construction Cost has been established as a
condition of this Lease, the LESSOR shall be permitted, subject to
reasonable approval by the COUNTY, (a) to make reasonable adjustments
in the scope of the project and (b) to include in the Construction
.Documents alternate bids approved by the COUNTY so that the design,
development and construction costs can be adjusted if necessary to meet
the Fixed Limit.
7. After final approval of Construction Documents by COUNTY, LESSOR
shall not make or cause to be made any changes in plans or specifications
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without the prior written consent of COUNTY. LESSOR shall make
changes, additions or deletions upon written Change Order fi•om
COUN'T'Y and such items shall be charged to COUNTY at direct cost.
E. Fixed Limit of Construction Cost:
1. The total fixed limit of construction cost for completion of the
improvements shall not exceed FIVE MILLION FIVE HUNDRED
THOUSAND DOLLARS ($5,500,000) (hereinafter called the "Fixed
Limit"). The LESSOR shall be responsible for completing the
construction within the Fixed Limit in a satisfactory manner pursuant to
the approved Construction Documents. COUNTY shall use its best and
good faith efforts to design the improvements such that they may be
constructed for a cost within the Fixed Limit.
2. Cost considerations shall not justify breaching principles of sound
architectural and engineering design. if the cost of the work is estimated
to increase by LESSOR beyond the Fixed Limit or beyond the latest
approved estimate by any changes involving quality or quantity, LESSOR
shall give written notice in a timely manner to COUNTY whether such
increase is initiated by COUNTY or LESSOR.
3. If changes in the project are ordered in writing by the COUNTY, the
Fixed Limit shall be adjusted upward or downward, if necessary, to reflect
any change in the estimated cost of design and construction due to the
ordered change in project scope. In accepting such written order,
LESSOR shall agree that the project scope and the Fixed Lit-nit are
consistent, and that, in its opinion, the project scope can be provided
within the adjusted Fixed Limit. If the Fixed Limit is adjusted upward,
COUNTY shall pay to LESSOR, that portion of the cost increase for
which construction is complete. If the project scope is reduced, the Fixed
Limit shall be adjusted downward and LESSOR shall credit COUNTY
with the savings.
4.
If the construction costs exceed the Fixed Limit and approved by
COUNTY, COUNTY shall reimburse LESSOR for the excess costs in
such increments as described in Exhibit "D" and as are required for
completion of the construction of improvements. LESSOR shall
contribute a leasehold allowance of ONE MILLION TWO HUNDRED
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THOUSAND AND NO/100 DOLLARS ($1,200,000.00) towards the
.Fixed Limit.
F. Bidding:
1. LESSOR shall obtain at least two competitive bids from licensed
contractors for any specialty trade if requested by COUNTY; and shall
submit such bids to COUNTY for approval.
2. Upon receipt of each bid, LESSOR shall analyze the impact of the bids on
the estimated cost of design and construction, submit the analysis to
COUNTY for approval, and COUNTY and LESSOR shall jointly
determine what, if any, adjustments in the design and construction are
required to keep the estimated cost within the Fixed Limit.
3. If the Fixed Limit of Construction is exceeded by any lowest bona fide
bid, the COUNTY at its option shall do one of the following: (a) approve
the Construction Contract if additional funds are available, (b) authorize
rebidding or renegotiating of the work within a reasonable time, or (c),
require the LESSOR to reasonably modify the Construction Documents
with COUNTY'S approval and at COUNTY'S expense as necessary to
comply with the Fixed Limit.
G. Construction:
1. LESSOR shall commence construction within fifteen (15) calendar days
of the issuance of all Building permits based upon the approved
Construction Documents, and the improvements shall be complete,
including final inspections and issuance of a Notice of Completion, within
eight (8) months from issuance of such permits. If actual construction has
not commenced within three (3) months of the effective date of this Lease
due to no fault of COUNTY, COUNTY may, upon fifteen (15) days prior
written notice to LESSOR, cancel this Lease without cost or obligation to
COUNTY unless LESSOR has commenced construction within said
fifteen (15) day period.
2. COUNTY hereby reserves the right to inspect during construction of
improvements as specified herein, but will not interfere with LESSOR'S
work and will notify LESSOR in writing of any requests or
recommendations. COUNTY shall retain the design consultants to review
customary construction contractor shop drawings and product data
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submittals. COUNTY shall furnish at least three sets of such shop
drawings and submittals to the LESSOR. COUNTY shall also retain the
design consultants to inspect the improvements during construction as
necessary to become familiar with the progress and quality of the work, to
determine; if the work is proceeding in accordance with the Construction
Documents, and to guard against defects and deficiencies in the work of
LESSOR'S construction contractor(s). LESSOR shall keep the COUNTY
informed of the progress and quality of the work.
3. in the event the improvements are not completed within eight (8) months
fi-0111 issuance of all required Building permits, COUNTY may, at its sole
discretion, terminate this Lease by giving LESSOR at least fifteen (15)
calendar days prior written notice with no cost or obligation on the part of
COUNTY subject to the terms and conditions of any Subordination,
Nondisturbance and Attornment Agreement between the parties hereto,
provided, however, COUNTY'S rights of termination in this regard shall
be ineffective if LESSOR completes the improvements within the fifteen
(15) day notice period.
4. Upon LESSOR'S written request, the dates in this Paragraph shall be
extended by the time lost as a result of work stoppages, strikes, shortages
of material, weather elements, Acts of God or other events; provided such
time lost is entirely beyond LESSOR'S control.
5. LESSOR shall comply with the California Labor Code Sections 1720-
1861 as they apply to the accomplishment of this improvement. in
addition, upon request of COUNTY, LESSOR shall disclose fully all
information concerning the construction and financing of the
improvements which comprise the Premises and shall make all records,
contracts, and subcontracts available for COUNTY inspection.
C.8. COMPLETION AND ACCEPTANCE OF IMPROVEMENTS:
The following procedure shall apply towards payment completion and acceptance of
the Premises, hereinafter called "County Improvements".
A. COUNTY shall reimburse LESSOR 100% of the excess costs for the County
improvements in accordance with the provisions described in paragraph C.7.E.4.
The Six-Stage Construction Schedule for completion of County Improvements
and Progress Payments is contained in Exhibit "D" attached hereto and made a
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part hereof. LESSOR and COUNTY agred to pay their proportionate share of the
Fixed Limit in accordance with Exhibit "D" as follows: LESSOR'S leasehold
allowance, as noted in Paragraph C.7.FA, represents twenty-two percent (22%)
and COUNTY'S costs will represent seventy-eight percent (78%) of the Fixed
Limit. In calculating each parties contribution within the Six Stage Construction
Schedule the following formula shall apply, i.e. Stage 2 is 30%, therefore
LESSOR will pay 7% (22% of 30%) and COUNTY will pay 23% (78% of 30%).
If the construction costs are in excess or less than the Fixed Limit and COUNTY
has accepted and agreed to pay any overage or less than the Fixed Limit, the
proportionate share noted above will change each patties contribution for each
payment; however it is understood that LESSOR'S leasehold allowance
contribution as •noted in Paragraph C.7.E.4 above will not change. Prior to
commencement of construction, the LESSOR's General Contractor will Submit
for approval, a Construction Schedule and a Scheduled Cost Summary in
conformance with the accepted construction bid approved by COUNTY for all of
the work contained in the construction contract documents. The Scheduled Cost
Summary will be in an accepted standard trade format. The format will show the
individual cost for each trade or line item. The total of all line items to match the
Total Contracted Amount. Any approved Change Orders by COUNTY will be
added to the Scheduled Cost Summary as they occur. Monthly progress billings
are to be submitted for payment in accordance with the Construction Documents
and Exhibit "D". The monthly progress billing applications, will be attached with
a copy of the Scheduled Cost Summary, showing the percentage of work
completed and approved for that billing period. The monthly progress billing
application, with each application will show: (1) the value of work completed
during that billing period; (2) retention for that billing period; (3) total value
complete for all billing periods to date and its percentage; (4) total retention to
date; (5) balance of cost to complete the project. Applications for progress billings
are to be paid monthly in accordance with the Construction Documents and
Exhibit "D". Upon completion and acceptance of each stage of construction by
COUNTY, the LESSOR's shall submit a properly documented progress payment
request on a form approved by COUNTY, together with conditional lien releases
from all contractor and suppliers.
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B. Upon LESSOR'S completion of County Improvements, including all site work,
landscaping, IIVAC balance report completed and approved by COUNTY,
LESSOR shall give written notice thereof to the COUNTY'S General Services
Director or his designee. COUNTY shall inspect within five (5) workdays after
receiving said notice and shall accept or reject said County improvements within
ten (10) workdays of receipt of such written notice.
C. in the event COUNTY conditionally accepts the County improvements,
COUNTY shall provide LESSOR with a list of items of work requiring correc-
tion, replacement, or completion (herein called the "punch list"). LESSOR shall
cause all of the undisputed items on the punch list to be completed, corrected, or
replaced as required within thirty (30) days of receipt of the punch list. if all such
items are not completed, corrected, or replaced as required within said period,
COUNTY shall have the right to specific performance of such obligations by
LESSOR and/or'the right to complete, correct, or replace such items and the right
to be reimbursed by LESSOR for the cost thereof or the right to deduct frorn
monies owed to LESSOR the cost thereof including expenses incurred by
COUNTY in enforcing such right of specific performance and/or reimbursement
D. Subject to completion of County Improvements by LESSOR as contained in
subparagraph B above, COtJNTY shall give written notice of acceptance to
LESSOR. The Lease Term shall commence on the first work day following said
acceptance and Dent shall be prorated as described above. However, acceptance
of said County Improvements shall not constitute a waiver of any warranty of any
defect in regard to workmanship or material of the County Improvements on said
Premises.
E. LESSOR shall warrant that all construction shall be performed in a good and
workmanlike manner and that the material, equipment and other Building
facilities furnished in connection with the County Improvements shall be free of
defects, latent or patent. LESSOR shall, at its expense, repair and replace any
poor workmanship or defective materials, equipment, or other Building facilities
within a reasonable time after written notice thereof provided said notice is
received within one (l) year of the acceptance of County Improvements.
LESSOR'S obligations under this paragraph are in addition to and not in
limitation. of any other obligation of LESSOR. Enforcement of Contractor's
express warranties and guarantees to repair contained in the Contract Documents
28
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'i
shall be in addition to and not in limitation of any other rights or remedies the
COUNTY may have under the Lease or law or in equity for defective work.
F. LESSOR shall provide the following items to COUNTY:
(1) Three (3) copies of Warranties. The date of acceptance of the County
Improvements will be the date of commencement of Warranties.
(2) Phase 1 soils report completed by Earth Systems Consultants, Northern
California and dated August -3, 1998. Delivered and Accepted by
COUNTY.
(3) Structural and energy calculations completed by a licensed company.
(4) HVAC balance report completed by a licensed company.
(5) Any other reports or calculations required by a governmental agency in
connection with approvals or permits for the improvements.
(6) Operation and maintenance data manuals meeting the criteria as
set forth in Exhibit "C".
G. COUNTY shall provide the following items to LESSOR:
(l) Final record drawings frorn field records. The drawings shall reflect all
changes to the approved Construction Documents. Deleted, changed and
added items shall be "clouded" and identified with a "delta" revision
symbol. Each revised sheet shall be labeled "Field Record". The original
drawings, not reprographics, shall be provided.
(2) Copy of final record specifications, annotated with changes made after
original approval.
(3) Copy of all approved shop drawings.
C.9. CONS7'RUCCION MANAGEMENT SERVICES: LESSOR has selected P.L.
1-11-AT1-IWOOD & COMPANY to provide construction management services for the
construction of the improvements required under the terms of this Lease.
LESSOR, at its sole cost and in addition to the LESSOR'S leasehold allowance, will pay
directly the costs incurred for such construction management services.
C.10. CONSTRUCTION MANAGEMENT SUBSTITUTION: In the event P.L.
1-IEAT'HWOOD & COMPANY for any reason or at any time, is unable to provide the
Construction management set-vices required to complete the improvements specified
under the terms of this Lease, COUNTY provided it has approved each disbursement of
monies under this project, shall assume responsibility to supervise the balance of
construction to completion. LESSOR, without exception, shall issue payment checks to
29
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the contractor(s) signed by LESSOR and approved by the COUNTY. Should the
provision of this paragraph be implemented, the cost of the Artech Design Group
services, or the direct costs of the COUNTY, shall be deducted from the remaining
balance existing at that time in the construction cost. LESSOR or LESSOR'S successor
or assigns shall promptly without exception execute and deliver or cause to be executed
and delivered all such further assurances, documents or instruments and promptly do or
cause to be done all such other and further things as may be necessary or reasonably
required in order to carry out, give effect to and comply with the terms and intent of this
Lease.
C.11. PRIOR POSSESSION:
Prior to occupancy and delivery of the Premises, the COUNTY shall have the right to
install fixtures, telephones, and other items required to prepare space for COUNTY'S
occupancy and to store furniture, supplies, and equipment where such work or storage can
be effected without unduly interfering with LESSOR'S completion of the County
Improvements. COUNTY shall be responsible for the repair of any damage or the cleanup
of any work to the Premises resulting from COUNTY'S activities as described in this
Section.
30
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EXHIBIT A
PREMISES
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HALL STREET FACILITY (MARINA CENTER)
CONTRA COSTA COUNTY EMPLOYMENT AND HUMAN SERVICES
w ` 1275 HALL AVENUE
s RICHMOND,CALIFORNIA
EXHIBIT B
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CONS'TRL)CTION DOCUMI NIS
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&I luman Svcs\Richmond\1275 Ila II AVC\F'INAI.Lcasc.doc
Draft Version 05/04/01 R:35 AAI
T-`XIIIBIT f)
SIX STAGE CONSTRUCTION ANL) PAYNII NT SC'IIEDULE,
Pavnlents for (lie SIagCS S11a11 hC IINRIC oil a nxlnthly basis aS outlined utulCr SCCtlOI1
C.8 A of the Lease.
S�JAOE DESMI'TION % CONTRACT
I C'OMPLFTION 017 DEMOLITION 5%
2 COMPLETION 017 l3(_IIL,DING FRAMING, 3()`%o
Wl'I'II I,[ I (''I"IZIC'AI.,, IIEATI NG, AIR-
CONl.ITIONIN6, AND PLUMBING SYSTEMS
1ZO1)(:;IIF.D 1N
3 C'ONll'L,I'."I"ION OF IN'I'f;IZ1OR I'I_,AS'I TItINCi 25 i(,
OR 1_)RYWAI.,I., INSTALLED ANL) TAPED
4 C OrVIIIl.,T TION C)T FINISH CARPENTRY 20%
CA131NF.TS INSTAI.LI?D, 13l)II..,[.)ING GLAZED
ANIN"I'I;RIOR ['It 117D AND PAINTED
5 ('0M1)1.,F'I'ION OF AI.,I., INTE It10It AND
IBX"I'I;RIOIZ IMPROVEMI:NT"S IN ACC'ORDANC'E
WITI1 PLANS AND SI'ECI11C'ATI0NS, NOTICE
OI; COMPIT, FION FILED
(, C"IIZ'I'll 1C:'A'I I OF OC'CUPANC'Y ISSUED I3Y 10%0
CITY OR COUNTY AND INDIC'AT'ING NO
UNPAID CLAIMS OR OTHER LIENS OF
RECORD
100%
GAI cascMgl\IT.rvcd:.ngiloymcnl Rc 11 :tan Sacs\Richmond\1275 Ilall Avc\I:INAI,Lcase.doc
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EXHIBIT r
A11 MORANDUMI_OF LEASE
1275 IIALLAVENUE,I3UILUING A. RICCUNIOND, CALIFORNIA
This Memorandum of Lease is made and entered into on ------ ---- - by
and between DVK REAL'I"Y VIWITURI S, INC.'., a California corporation, hCl'elnaflCl'
called "LESSOR", and the. C'OUNT'Y OF C'ONT'RA COSTA, a political subdivision of'
the Statc of C'allf'Orma, hereinafter called "COUNTY".
LI.;SSOR, fi)r valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and in consideration of the terms and conditions of that certain
L:casc dated April 24, 2001, docs hereby I-ease, Ict, and demise unto COUNTY the real
property hereinafter described as those certain premises, commonly known as 1275 Ball
Avenue, 13uiltTing A. Richmond, California.
The term of this Lease commenced _, 200— and shall end
201 , or upon cancellation as provided In said Lease. -- -- - --
'['his Memorandum of'Lease is made upon the terms, option rights, covenants, and
c0llditions of that certain [.,case dated April 24, 2001 . Said Lease, which is by refcrcncc
incorporated herein and made a part hereof, is on file with the Clerk of the Board of'
Supervisors, C..ontra Costa County, California.
The provisions hereof arc binding upon and shall inure to the benefit of the. parties
hereto and their respective heirs, executors, administrators, successors, and assigns.
IN NVITN ESS WIIF,REOF, the parties hereto have executed this
MLWORANDLIM OF LEASE as of the day and year first herein above written.
COUNTY LESSOR
C:.01-INTY Of, CONTRA COSTA, a DVK REALLY VENTURES, INC:.
Political subdivision of the State of ,a California corporation
Cali Iornia
13y - By-- -
Director of General Services
RECOMMENDI-D FOR APPROVAL-,:
APPROVED AS TO FORM:
SILVANO MARCI-IESI, County Counsel
I)cputy
(.i:\I.caseMgl\Dave\I?mplovment&I luman Svcs\Richmond\1275 Ila II Ave\rINAI.l.ease.doc
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.I
TO: BOARD OF SUPERVISORS
FROM: Barton J. Gilbert, Director of General Services _� Contra
Costa
DATE: April 24, 2001
�. County
SUBJECT LEASE FOR THE EMPLOYMENT AND HUMAN SERVICES DEPARTMENT
1275 HALL AVENUE, RICHMOND (CP#01-08) (T00614)
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION .
APPROVE a Lease upon the successful negotiations, with DVK Realty Ventures, Inc. for the
premises at 1275 Hall Avenue, Richmond, for occupancy by the Employment and Human
Services, under the terms and conditions more particularly set forth in said Lease, and
AUTHORIZE the Director of General Services to EXECUTE said Lease on behalf of the County.
DETERMINE that the above project is not subject to the California Environmental Quality Act
(CEQA) pursuant to Class 27, Section 15327 of the CEQA guidelines.
DIRECT the Community Development Department to FILE a Notice of Exemption with the
County Clerk.
DIRECT the Director of General Services to arrange for the payment of the handling fees to the
County Clerk and the Community Development Department for filing the Notice of Exemption.
II. FINANCIAL IMPACT
Lease payments and repayment of tenant improvement costs will be included in the occupancy
costs for the Employment and Human Services Department in future budget years beginning in
FY 2001/02. The project will be eighty percent (80%) funded by the Federal and State
governments and twenty percent (20%) funded by the County. Lease costs will be allocated
across all EHS program areas as part of the Department's general and administrative costs.
In addition to the lease costs, it is anticipated that the County will fund approximately
$5,000,000 in building and tenant improvements. The Lessor is contributing an additional
$1,200,000 towards the estimated construction costs.
III. REASONS FOR RECOMMENDATION / BACKGROUND
On February 24 1998, and again in September of 1998, the Board of Supervisors directed Staff
to seek office space in Richmond for the Employment and Human Services Department to
replace inadequate leased facilities. Also in 1998, a comprehensive survey of available sites
along Macdonald Avenue in Richmond was completed. Over a period of many years, the
County has pursued the purchase of several sites in central Richmond without success. One
option that was seriously considered was constructing a new building on County owned land
adjacent to the EHS Hercules facility located at 151 Linus Pauling Dr. However, this location is
remote from the Richmond service population. The proposed lease is more centrally located
than Linus Pauling Dr., it solves a long standing facility problem for the County and the
Department, and will relieve overcrowding at the two remaining West County EHS facilities, 151
Linus Pauling Dr.,Hercules and 1305 Macdonald Ave, Richmond.
60A✓•T�AI6GEGG►1 ATTACHMENT: ✓ YES SIGNATURE: :2L�e,2�ljx—
_—RECOMMENDATION
OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITT
_APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON I APPROVED AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS I hereby certify that this is a true and correct
V 27- copy of an action taken and entered on the
N UNANIMOUS(ABSENT minutes of the Bo d of Supervisors on the
AYES: NOES: p
ABSENTS: ABSTAIN: date shown.
ATTESTED: �QD/
MEDIA CONTACT: BARTON J.GILBERT(313-7100) J0 TEN, Clerk o the Board
of ryisors a Count Administrator
Rv Deputy
C:I I N DO W S\1 I-M 1'\Hal l Board.doc
GENERAL SERVICES DEPARTMENT
Lease Management Division
1220 Morello Avenue, Suite 100
Martinez, California
Extension 3-7250
FAX 3-7299
DATE: April 10, 2001
TO: John Sweeten, County Administrator
FROM: fLBarton .f. Gilbert, Director of General Services
SUBJECT: Agenda: Lease Authorization, 55 Castlewood Drive, Pittsburg, Community
Services Department-Head Start Program (CP#01-19) (B1dg.T00523)
(April 24, 2001)
A lease has been negotiated as follows:
OCCUPANT: Community Services Department-Head Start
TERM: six (6) months COMMENCING: May 1, 2001
OPTION: Purchase at $875,000 CANCELLATION: N/A
RENTAL: $6,862.50 per month plus real estate taxes
SQUARE FEET: 6,300
SPACE TYPE: classrooms and offices
COUNTY RESPONSIBILITY: exterior and interior maintenance and repairs
RENEWAL: N/A PREVIOUS RENT: $4,865.00
ADDRESS: 55 Castlewood Drive, Pittsburg
BUILD / WORK AUTH.: T00523
cc: General Services Department
Christie Beardsley
Community Services Department
GALeascMgt\Dave\Community Sef-VICC'S 55 CASTI.M00D.11oa d and memo.d0c