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Home My WebLink AboutMINUTES - 06262001 - C.122 C. 1ZZ. TO: BOARD OF SUPERVISORS FROM: Barton J. Gilbert, Director of General Services Contra Costa DATE: June 26, 2001 County SUBJECT: LEASE FOR THE EMPLOYMENT AND HUMAN SERVICES 1650 CAVALLO ROAD, ANTIOCH (CP # 01-20) SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. RECOMMENDATION APPROVE a Lease with a purchase option upon successful negotiations, commencing November 1, 2001, with Contra Costa Newspapers, Inc. for the premises at 1650 Cavallo Road, Antioch, 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 1 a, Section 15301 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 Payments required are to come from the fiscal year (2001-2002) budget of the Employment and Human Services Department. 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 $2,840,000 in building and tenant improvements and finance the purchase price. III. REASONS FOR RECOMMENDATION / BACKGROUND The 1650 Cavallo Road building will allow for consolidation of EHS staff currently located at 201 E. 18th Street and 4545 Delta Fair in Antioch. The Probation Department will then occupy 201 E. 18th Street as their East County office. EONTINUED ON ATTACHMENT:1K YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTE _,APPROVE OTHER SIGNATURE(S)'. ACTION OF BOARD ON APPROVED AS RECOMMENDED_ZC_OTHER VOTE OF SUPERVISORS L �� UNANIMOUS(ABSENT 2110[JCS 1 AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT: BARTON J.GILBERT(313-7100) CC: County Administrator(via UM) I HEREBY CERTIFY THAT THIS IS A TRUE County Auditor-Controller(via UM) AND AND CORRECT COPY OF AN ACTION TAKEN Lessor(via UM) OF SUPERVISORS S RS ON THE DATE ED ON THE MINUTES SHOWN. F THE BORD Health Services(via UM) County Counsel(via UM) ATTESTED Risk Management(via UM) JOHN SWEETEN,CLERK THE BOARD OF Orig:General Services Department-UMSUPERVISORS A D COUNTY ADMINISTRATOR DLS BY DEPUTY G:\I_caseMgt\Dave\Employment&Human Svcs\Antioch\1650 Cavallo Rd\revised B.O.&memo.doc GENERAL SERVICES DEPARTMENT ` Lease Management Division 1220 Morello Avenue, Suite 100 Martinez, California Extension 3-7250 FAX 3-7299 DATE: June 14, 2001 TO: John Sweeten, County Administrator FROM: Barton J. Gilbert, Director of General Services "y: Mickey Davis, Administative Services Of ' e SUBJECT: Agenda: Agenda: Lease Authorization, 1650 Cavallo Road, Antioch Employment and Human Services Department(CP #01-20) (June 26, 2001) (TRO(-13) A lease has been negotiated as follows: OCCUPANT: Employment and Human Services Department TERM: 10 years COMMENCING: November 1, 2001 OPTION: Purchase option, not to exceed $3,800,000 plus escrow costs. RENTAL: Monthly Annual Months 1-10 $-0- Months 11-12 $30,670.00 $214,690.00 Months 13-24 $31,895.00 $382,740.00 Months 25-36 $33,170.00 $398,040.00 Months 37-48 $34,497.00 $413,964.00 Months 49-60 $35,877.00 $430,524.00 Months 61-72 $37,312.00 $447,744.00 Months 73-84 $38,805.00 $465,660.00 Months 85-96 $40,357.00 $484,284.00 Months 97-108 $41,971.00 $503,652.00 Months 109-120 $43,650.00 $523,800.00 G:\LeaseMgt\Dave\Employment&Human Svcs\Antioch\1650 Cavallo Rd\revised B.O.&memo.doc SQUARE FEET: 24,534 COUNTY RESPONSIBILITY:Interior/exterior maintenance CODE 25351 NOTICE: Notice given to the City of Antioch on October 16, 2000. BUILD / WORK AUTH.: WWO078 cc: C.Chan,GSD D. Silva,GSD G:\1-easeMgt\Davc\Enmloyment&Human Svcs\Antioch\1650 Cavallo Rd\revised B.O.&memo.doc LEASE TABLE OF CONTENTS 1650 CAVALLO ROAD ANTIOCH, CALIFORNIA CONTRA COSTA COUNTY EMPLOYMENT AND HUMAN SERVICES SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTIES ...................................................................................................... 2 A.2. LEASE OF PREMISES............................................................................... 2 A.3. PARKING.....................................................................................................2 A.4. TERM............................................................................................................ 2 A.5. RENT.............................................................................................................3 A.A. USE OF PREMISES.................................................................................... 4 A.7. UTILITIES & CUST'ODIAL...................................... ................................ 4 A.8. MAINTENANCE AND REPA.IRS.............................................................4 A.9. NOTICES................................................................ .................................. 6 A.10. EXHIBITS AND ATTACHMENTS .......................................................... 6 A.11. WRITTEN AGREEMENT.........................................................................6 A.12. TIME IS OF THE ESSENCE..................................................................... 6 A..13. SIGNATU.I.ZE BLOCK................................................................................ 7 SECTION B: STANDARD PROVISIONS B.I. HOLDING OVER........................................................................................ 8 B.2. HOLD HARMLESS .................................................................................... 8 B.3. ALTERATIONS, FIXTURES, AND SIGNS............................................. 8 B.4. D:ESTRUCTION .......................................................................................... 9 B.5. QUIET ENJOYMENT................................................................................9 B.6. DEFAULTS ...................................................................................................9 13.7. SURRENDER OF PREMISES................................................................. 11 B.8. SUCCESSORS AND ASSIGNS................................................................ 11 B.9. SEVERABILITY ....................................................................................... 11 B.10. WASTE, NUISANCE ..............................................................`.................. 11 B.I.I. INSPECTION............................................................................................. 12 SECTION C: SPECIAL PROVISIONS C.1. ASSIGNMENT OR SUBLEASE.............:................................................ 13 C.2. SIGNAGE................................................................................................... 1.3 C.3. PURCHASE OPTION............................................................................... 13 CA. SATELLITE DISH......................................... C.5. ENVIRONM.ENTAL CONDITIONS ...................................................... 16 C.6. COUNTY 'I,ENANT IMPROVEMENTS................................................ 1.6 C.7. PROPERTY TAXES ............................................:.................................... 17 .EXHIBITS EXHIBIT A: PREMISES . EXHIBIT .B: PARKING EXHIBIT C: MEMORANDUM OF LEASE C:\windows\'I'EIv1P\Lease-Purchase Environmental Conditions.doc Draft Version 8/27/01 3:55 1'M LEASE FOR CONTRA COSTA COUNTY EMPLOYMENT AND HUMAN SERVICES 1.650 CAVALLO ROAD ANTIOCH, CALIFORNIA SECTION A: BASIC TERMS AND CONDITIONS A.I. PARTIES: Effective on AOjU -J— 3 2001, CONTRA COSTA NEWSPAPERS 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 PREMISES: LESSOR, for and in consideration of the rents, hereby leases to COUNTY, and COUNTY leases from LESSOR those certain premises commonly known and designated as 1650 Cavallo Road, Antioch, California, and made a part hereof as Exhibit "A" and consisting of approximately 24,534 square feet of office space ("Premises"). A.3. PARKING: COUNTY shall receive under this Lease all the surrounding surface parking stalls next to the building and as designated on Exhibit "B" which is attached hereto and incorporated herein by reference. A.4. TERM: The tem-1 of this Lease shall be ten (10) years. The Lease Term shall cominence sixty (60) days following delivery of the Premises to COUNTY. LESSOR and COUNTY agree to execute a Memorandum of Lease letter as designated on Exhibit "C" which is attached hereto and incorporated herein by reference and will be recorded in the office of the County Recorder of Contra Costa County. This is in lieu of recording the 2 C:\windows\'rLiv11'\Lease-Purchase Environmental Conditions Am Dralt Version 3/27/01 3:55 PM 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 November 1, 2001 provided LESSOR has vacated the Premises by September 1., 2001. It is intended that the commencement of the Lease term and rent commencement are the same date. If the Premises are not delivered to COUNTY by September 1, 2001, the rent commencement date shall be extended sixty (60) days beyond the date of actual delivery and acceptance by COUNTY. As an example of this, if LESSOR vacates and delivers the Premises on September 10, 2001 then the rent commencement date will be November 9, 2001. 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 1-5 $-0- Months 6-12 $30,670.00 Months 13-24 $31 ,895.00 Months 25-36 $33,170.00 Months 37-48 $34,497.00 Months 49-60 $35,877.00 Months 61-72 $37,312.00 Months 73-84 $38,804.00 Months 85-96 $40,356.00 Months 97-108 $41 ,970.00 Months 1.09-120 $43,649.00 LESSOR shall grant COUNTY the initial five (5) months as rent abatement in lieu of a .LESSOR tenant improvement allowance. In consideration of this Lease, COUNTY will deposit with LESSOR within ten (10) days after execution of this Lease, NINETY TWO 3 C:\windows\'['EMF'\Lease-Purchase Environmental Conditions Auc Dram Version 8/27/01 3:55 PM THOUSAND TEN and NO/100 DOLLARS ($92,010.00) as prepaid rent ($30,670 times 3 months). It is the intention of the parties to this Lease that the prepaid rent be applied towards .fiscal year 2001-2002 and if the rent commencement date is beyond April 1, 2002, the LESSOR agrees to reimburse the above prepaid rent starting April 1., 2002 and each month thereafter until the total prepaid rent is reimbursed to COUNTY. If COUNTY exercises its option in Paragraph. C.3 said prepaid rent shall apply as a credit against the Purchase Option Price as stated therein. If close of escrow occurs beyond April 1., 2002, LESSOR will credit only that remaining prepaid rent that has not been used for actual rent. Payments shall be mailed to: CONTRA COSTA NEWSPAPERS, INC. ATTENTION: STEPHANIE LOCKETT 2640 SH.ADELANDS DRIVE WALNUT CREEK, CA 94598 A.6. USE OF PREMISES: The Premises shall be used during the term or extension thereof for purposes of conducting Medi-cal, In Home Supportive Service, General Assistance, and Advocacy programs of COUNTY, and any other use with prior written consent of LESSOR, which consent shall not be unreasonably withheld or delayed. A.7. UTILITIES & CUSTODIAL: COUNTY shall pay for all gas, electric, water, sewer, and refuse collection services provided to the Premises. COUNTY shall be responsible for custodial services provided to the Premises. A.8. 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 Premiscs, including the exterior doors and their fixtures, closers and hinges, and glass. 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 4 C:\windows\'I'I-MP\Lease-Purchase Environmental Conditions.doc Draft Version 8/27/01 4:41 PM 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. LESSOR shall deliver the electrical, lighting, water, and plumbing in .good condition. Thereafter COUNTY shall repair and maintain the electrical, lighting, water, and plumbing systems in good order, condition, and repair. d. COUNTY shall maintain a quarterly .maintenance contract with Marina Mechanical for the heating, ventilating, and air-conditioning systems. COUNTY shall be responsible for repairs and LESSOR shall be responsible for the replacement of the heating ventilating, and air conditioning systems should the system or unit(s) fail and recommend replacement by Marina Mechanical. e. COUNTY shall provide routine maintenance of the parking lot, landscaping, sprinkler system, and exterior lighting system. COUNTY shall be responsible for minor repairs such as replacement of sprinkler heads, shrubberies, and repair of minor potholes in the parking lot. LESSOR shall be responsible for repair of alligatoring, cracking, and deterioration of the parking lot pavement. LESSOR shall be responsible for resurfacing, sealing and restriping of the parking lot as needed. COUNTY shall have full responsibility to develop and maintain the additional parking area. 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. LESSOR shall be responsible for major repairs, code compliance, ' and replacement of the elevator system. COUNTY shall. maintain a routine maintenance contract for the elevator system. and be responsible for replacement of incidental items such as the light bulbs in the elevator. 5 C:\windows\l'EMP\Lease-Purehase Environmental Conditions.doc Draft Version 8/27/01 3:55 PM 11. LESSOR shall be responsible for the correction of any code violations which nlay 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: To LESSOR: Contra Costa Newspapers, Inc. Attention: Ron Severn 2640 Shadelands Drive Walnut Creels, CA 94598 To COUNTY: Contra Costa County General Services Department Lease Management Division 1220 Morello Avenue, Suite 100 Martinez, CA 94553-4711 A.10. .EXHIBITS AND ATTACIIMENTS: Section B, Standard Provisions, Section C, Special Provisions, and Exhibit A — Premises , Exhibit B — Parking and Exhibit C — Memorandum of Lease 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 in writing and 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 tills Lease. A.12. TIME IS OF THE ESSENCE of each and all of the teirris and provisions of this Lease. 6 C:\windows\TEMP\Lease-Purchase Environmental Conditions.dos Drall Version 8/27/01 3:55 PM A.13. .SIGNATURE BLOCK COUNTY LESSOR COUNTY OF CONTRA COSTA, a CONTRA COSTA NEWSPAPERS, INC. Political subdivision of the State of California By By Director of General Services .RECOMMENDED FOR APPROVAL: B Y Director of Capital Facilities and Debt Manageincnt By Department Representative EMPLOYMENT AND HUMAN SERVICES By Lease Manager APPROVED AS TO FORM: SILVANO MARCHESI, County Counsel By. � 5 - - .. Deputy 130 JG C:\windows\"I'EMP\Lease-Purchase Environmental Conditions.doe Draft Version 8/27/01 3:55 PM LEASE FOR CONTRA COSTA COUNTY EMPLOYMENT AND HUMAN SERVICES 1650 CAVA:L:LO ROAD ANTIOCH, CALIFORNIA, SECTION B: STANDARD PROVISIONS B.1. HOLDING OVER: Any holding over after the term or extension of this Lease provided COUNTY is negotiating a renewal in good faith with LESSOR hereinabove shall be construed to be a tenancy from month to month and provided said renewal does not extend ninety (90) days past the expiration date. Thereafter, the monthly rental will be increased 120% of the last monthly rent payment to LESSOR 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, 111,Jll1"y 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 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 L:ESSOR'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 S C:\windows\'rL•MP\Lease-Purchase Environmental Conditions.doe Draft Version 8/27/01 3:55 PM 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 for the City of Antioch and LESSOR's approval. BA. 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 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: 9 C:\windows\"I'EMP\Lease-Purchase Environmental Conditions.doc Draft Version 8/27/01 3:55 PM 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 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 sixty (60) 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 sixty (60) days, COUNTY's failure to perform shall constitute a default under the Lease unless COUNTY has attempted to cure the default within said sixty (60) 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 1.. LESSOR's failure to perform any of its obligations under this Lease. shall constitute a default by LESSOR.if the failure continues for sixty (60) days after written notice of the failure from COUNTY to LESSOR. If the required cure of the noticed default cannot be completed within sixty (60) days, LESSOR's' failure to perform shall constitute a default under the Lease unless LESSOR has attempted to cure the default within said sixty (60) day period and has diligently and continuously attempted to complete the cure as soon as reasonably possible. 10 C:\windows\"rEMP\Lcase-Purchase Environmental Conditions.doc Di all Version 8/27/01 3:55 PM 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 i>ivitees, LESSOR shall use reasonable efforts to immediately address. the situation and shall use diligent efforts to correct the perilous condition. If no response by LESSOR within sixty (60) days of written notice, COUNTY may terminate this Lease and quit the Premises without further cost or obligation. B.7. SURRENDER OF PREMISES: On the last day of the term, or sooner termination of this Lease, 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 tennination 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. 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.I.U. 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 M. 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. 11 C:\windows\'I'EMI'\Lease-Purchase Environmental Conditions.doe Draft Version 8/27/01 3:55 I'M BA I. 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. 12 C:\windows\TEMP\Lease-Purchase Environmental Conditions.doc Draft Version 8/27/01 3:55 1'M LEASE FOR CONTRA COSTA COUNTY EMPLOYMENT AND HUMAN SERVICES 1650 CAVALLO ROAD ANTIOCH, CALIFORNIA SECTION C: SPECIAL PROVISIONS C.1. 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 term of this Lease or extension thereof, upon consent of LESSOR, which consent shall not be unreasonably with or delayed. C.2. SIGNAGE: LESSOR shall provide COUNTY with prominent identity. to the building. COUNTY shall pay for all expenses for said signage. Such signage shall be compatible with the building design, shall conform with all applicable local government codes and regulations, shall be frilly visible from the street, shall be free of any and all obstructions such as landscaping, and such visibility shall be maintained by LESSOR throughout the Lease term. C.3. PURCHASE OPTION: a. As part of the consideration of this .Lease, LESSOR hereby grants to COUNTY or its assignee the exclusive right and privilege to purchase the Premises and land, as further described herein, for THREE MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($3,250,000.00) ("Purchase Option Price") including the improvements thereon and any appurtenant easements thereto, as shown. on Exhibit "B" and further described as Parcel B. 13 C:\windows\'I'EMP\Lease-Purchase Environmental Conditions Am Draft Version 8/27/01 3:55 PM b. In addition to the consideration of this Lease and the granting of the Purchase Option, COUNTY will deposit with LESSOR within ten (10) ' days after execution of the Lcase, NINETY TWO THOUSAND TEN and NO/100 DOLLARS ($92,010.00). Should COUNTY exercise its option as stated Herein, said consideration in Paragraph A.4 and this paragraph shall be applied as a credit against the Purchase Option Price. Should COUNTY not exercise. its option and close escrow within sixty (60) days following execution of the Lease, the option will expire and LESSOR shall immediately return to COUNTY said NINETY TWO THOUSAND TEN and NO/100 :DOLLARS ($92,010.00). c. COUNTY may exercise this option by giving LESSOR written notice of its intention to exercise said option. d. LESSOR shall deliver to COUNTY an executed grant deed in recordable form conveying the Premises. At the time COUNTY exercises its option to purchase, the grant deed shall be delivered to COUNTY upon deposit by COUNTY into escrow of the Purchase Option Price, less any prepaid rents and option deposits as identified hereinabove. Title to the Premises and land shall be conveyed by LESSOR to COUNTY .free and clear of all liens, encumbrances, but subject to covenants, conditions, restrictions, easements, rights of way of record, and other matters of record, Current taxes and those portions of current assessments not yet due and payable. e. The sale shall be consummated through an escrow company (North American Title Company) to be opened after the COUNTY notice exercising the option has been given to LESSOR. Escrow shall be deemed.to be opened under this paragraph on the date escrow instructions are drawn. The parties shall execute all documents required by escrow holder as long as they are consistent with the provisions of this paragraph. Escrow shall be deemed to be closed pursuant to this paragraph on the date the grant deed is recorded. 14 C:\windows\TEMP\Lease-Purchase Environmental Conditions.doc Drall Version 8/27/01 3:55 PM f. At the close of escrow, escrow holder must be prepared to issue a CLTA Standard Coverage Policy of Title Insurance in the amount of the Purchase Price insuring title to the Premises vested in COUNTY, subject only to the matters set forth in subparagraph d above. g. COUNTY shall pay for title insurance. h. LESSOR shall pay transfer taxes and recording fees on the deed. Both parties shall equally share the costs of escrow fees and other closing costs. i. On close of escrow, the parties shall be released from all liabilities and obligations under this Lease. Both parties acknowledge that LESSOR has filed an application with the City of Antioch ("City") for subdivision of APN #065-151-044 to create two parcels, A & B as depicted on Exhibit "B". LESSOR anticipates approval of this subdivision by the City on August 15, 2001. Both parties acknowledge that delays in the approval of the subdivision may result in delay of close of escrow. It is the intention of COUNTY and LESSOR to close escrow by November 1, 2001 unless there are delays beyond the control of either party. LESSOR further acknowledges that COUNTY is obligated to follow specific State law and regulations in the acquisition of real property, which may affect the date for close of escrow. Such regulations include compliance with the provisions of the California Environmental Quality Act (CEQA), compliance with State Goverrunent Code regulations for acquisition of real property, development of a Purchase Agreement, scheduling the matter before the County Board of Supervisors, and publication requirements. CA SATELLITE DISH: COUNTY shall have the right to install a satellite dish on the roof or the side of the building in a location to be satisfactory to both LESSOR and COUNTY. Prior to installation, COUNTY shall submit to LESSOR elevations and specifications for the satellite dish. COUNTY shall install the satellite dish at its own expense and repair any damage caused by installation. At the end of the Lease term, COUNTY shall be responsible for removing the satellite dish from its location and 15 C:\windows\TEMP\Lease-Purchase Environmental Conditions.doc Dralt Version 8/27/01 3:55 1'M repairing any damage caused by such removal. Lessor shall not receive any enumeration., License fees, or rents from COUNTY as a result of any satellite dish installed by the COUNTY, for COUN' 'Y use. COUNTY is excluded from renting roof area to any other third party. C.5. ENVIRONMENTAL CONDITIONS: LESSOR warrants that the Premises do not contain any asbestos, polychlorinated biphenyl ("PCB's") or urea formaldehyde. LESSOR, to the best of its knowledge, is in compliance with the provisions of all federal., state, and local environmental requirements applicable to the Premises and the land. The LESSOR acknowledges that COUNTY has completed a Phase I Environmental Site Assessment dated July 31, 2001 and a copy of said report has been delivered to LESSOR. Any correctional items noted in the Phase I report shall be the sole responsibility of LESSOR. The COUNTY has ordered an Environmental Building Assessment and a copy of said report will be delivered to LESSOR upon receipt by COUNTY. Any correctional items noted in the Environmental Building Assessment report shall be the sole responsibility of LESSOR. The LESSOR is not a responsible party with respect to the Premises under any federal, state, or local statutes providing for financial responsibility for clean up or other actions with respect to the release or threatened release of hazardous substances. LESSOR shall indemnify COUNTY against any and all damages, claims,judgments, fines, penalties, costs, and liabilities, including attorney fees, 'resulting from any claims brought by third parties that the Premises, building, and land are not in compliance with federal, state, or local regulations. The LESSOR acknowledges that if its' correctional responsibilities resulting from the Phase I and Phase II Assessment Reports are not completed prior to the expiration or termination date of this Lease, LESSOR's responsibilities to complete all correction items will. survive beyond the expiration or termination date of this Lease. C.6. COUNTY TENANT IMPROVEMENTS: In accordance with Exhibits A-1 and A- 2 attached to this Lease, COUNTY will be responsible for tenant improvements to the Premises. LESSOR warrants and guarantees that to the best of his knowledge the 16 C:\windows\TEMP\Lease-Purchase Environmental Conditions.doe Drall Version 8/27/01 3:55 1'M mechanical systems, electrical, air conditioning units, lighting and plumbing to the Premises are in good working order on the cornunencement date of. this Lease. Should COUNTY find that items of this nature are not working properly, COUNTY will notify LESSOR in a timely manner. Lessor will ascertain the problem and correct immediately. COUNTY will design the Premises and provide :LESSOR a copy of all improvements prior to commencement of any construction. LESSOR agrees that COUNTY may select and use its own contractors, subject to LESSOR'S approval, which will not be unreasonably withheld. COUNTY will indemnify LESSOR against any claims, liens and expenses during the construction of the Premises. C.7. PROPERTY TAXES: COUNTY shall be responsible for property taxes associated with the new parcel B in Exhibit "B". 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. 17 C:\windows\']'EMP\Lease-I'in-chase Environmental Conditions.doc Draft Version 8/27/01 3:55 PM 0 0 E En E LL LL -c E 0 . ....... AI zi: a. J'i If UJ CSI G D LJL_J (D IDI Ir_,. t.zIJ CE A— CE I L 16 -7 ri C C, 01 uu A z zPD- LD z 2 --;, ,;� �_�° °�; � : _ Irk �. o c UI1,J�' 1 06 LT !CU i p CE E \Y4 cl J A. r—r r T w g 9 -k �-J Jc_ ._j- `Pq (H, j aw 11D- QQ U —7 i ',` I( � i .. ... '$ ".j._....�� P it �� 1 7L 7[7 11CO ij U k 10 72 0 - Cf Di D D IF n- T a Z. C LTI Tj in a D - ............ L7, F'c" Y L'tA EXHIBIT A-1 ^ EXHIBIT 8-2 "'OD Q, ".of olp C. 4 14 OL BA .7 Of 9PAR N T- T1 TV, rnn] I W., 10" 1Fj;W A CD 19 O r aTTAry 0 X:o 3� Pq V"W""t 7 f1 r�7 0 1 .:•Md 1;,' 3 .1C.QC.6QV S-I'k,-Id-ill 1ET-1 I c4ir ell 1A N zz; EAST 181h 717 _j - — — - — — — — — — — Lf OC 1:0 3 .0f.0 I.Ag N C-) c Ln Twa U301F 301,JN03 m Pp.fgr a .01,gpop N Exhibit "B" TENTATIVE MAP Cullen Encineering Associates,Inc. SUBDIVISION-CAVALLO RD. PROPER ,Cw wi A, Civil Engirienring-Sur-layinq 100n Ad— S!-1. .110t, A - P.O. no, 5PI ANrlocir. r'A EXHIBIT C MEMORANDUM OF LEASE 1650 CAVALLO ROAD, ANTIOCH, CALIFORNIA This Memorandum of Lease is made and entered into on , by and between CONTRA COSTA NEWSPAPERS INC., a California corporation, hereinafter called "LESSOR", and the COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter called "COUNTY". LESSOR, for valuable consideration, the receipt and sufficiency of which is hereby acluzowledged, and in consideration ofthe terms and conditions of that certain Lease dated , 2001., does hereby Lease, let, and demise unto COUNTY the real property hereinafter described as those certain premises, commonly known as 1650 Cavallo Road, Antioch, California. The term of this Lease commenced , 2001. and shall end , 2011, or upon cancellation as provided in said Lease. This Memorandum of Lease is made upon the terms, option rights, covenants, and .conditions of that certain Lease dated , 2001. Said Lease, which is by reference incorporated herein and made a part hereof, is on file with the Clerk of the Board of Supervisors, Contra Costa County, California. The provisions hereof are binding upon and shall inure to the benefit of the parties hereto and them' respective heirs, executors, administrators, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have executed this MEMORANDUM OF LEASE as of the day and year first herein above written. CO UN'I'Y LESSOR COUNTY OF CONTRA COSTA, a CONTRA COSTA NEWSPAPERS INC., Political subdivision of the State of a California corporation California By By Director of General Services RECOMMENDED FOR APPROVAL: By By APPROVED AS TO FORM: SILVANO MARCIIESI, County Counsel By Deputy 18 C:\windows\TEMP\Lease-Purchase Environmental Conditions.doc Draft Version 8/27/01 3:55 PM