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Home My WebLink AboutMINUTES - 06132006 - C.71 -- L CONTRA TO: ►BOARD OF SUPERVISORS `;< "'• FROM: MICHAEL J. LANGO, DIRECTOR OF GENERAL SERVICES COSTA DATE: JUNE 13, 2006 COUNTY StA CUUN'r•{ I SUBJECT: LEASE AMENDMENT FOR THE PREMISES AT 2300 EL PORTAL DRIVE, SAN PABLO FOR THE EMPLOYMENT AND HUMAN e SERVICES DEPARTMENT '- WORKFORCE DEVELOPMENT BOARD (T00580) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION I APPROVE the First Amendment to Lease between the County and the San Pablo Redevelopment Agency to relocate the Employment and Human Services Department — Workforce Development Board's existing office space at 2300 EI Portal Drive, San Pablo into new space in the building, under the terms and conditions more particularly set forth in the Lease Amendment, and AUTHORIZE the Director of General Services, or designee, to EXECUTE the Lease Amendment. I FINANCIAL IMPACT The San Pablo Redevelopment Agency will make a one-time payment of $62,000 to the County to offset Employment and Human Services Department's expenses related to the relocation. I BACKGROUND I The San Pablo Redevelopment Agency lowns the building located at 2300 EI Portal Drive, San Pablo, and leases a portion of that building to Ithe County for the operation of the Employment and Human Services Department's (EHSD) Workforce Development Board One-Stop Employment Service. The Agency plans to sell the building to Signature Properties as part of a larger plan to redevelop the area. To accommodate the sale of the'property to Signature Properties, the Agency has asked that the One-Stop program be relocated to 'another area of the building. The Agency will complete and pay for all tenant improvements to the new space in accordance with plans approved by the County. The Agency will also pay all relocation expenses related to the new space, and will make a one-time payment of$62,000 to the County to offset EHSD's relocation related expenses. I I I I CONTINUED ON ATTACHMENT: LYES SIGNATURE: --FTE-COMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIO COMMITTEE `90PROVE OTHER I SIGNATURES: w ACTION OF BO RD ON /�7 1 y APPROVED AS RECOMMENDED _ OTHER I I I I I I VOTE OF SUPERVISORS I UNANIMOUS(ABSENT AYES: NOES: ABSENTS: ABSTAIN: I MEDIA CONTACT: MICHAEL J.LANGO(313-7100) Originating Dept.:General Services Department cc: General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE Real Estate Services Division AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. Auditor-Controller(via RES) Risk Management(via RES) ATTESTED Employment&Human Services Department—Workforce JOHN CULLEN,CLERK OF THE BOARD OF SU VISORS Development Board(via RES) AND COUNTY ADMINISTRATOR San Pablo Redevelopment Agency(via RES) c BY O DEPUTY I I . I:\LeaseMgt\Board Ord ers\2006-06-1 3\053006 EHS Board Order.doc DLS:dIs Page 1 of 1 - M382(10/88) I DRAFT FIRST AMENDMENT TO LEASE 1 Between SAN PABLO REDEVELOPMENT AGENCY I And COUNTY OF CONTRA COSTA I For 2300 EL PORTAL DRIVE, SAN PABLO I 1. PARTIES: Effective 1 , 2006, (the "Effective Date") this first amendment to lease ("First Amendment") is made and entered by and between the SAN PABLO REDEVELOPMENT AGENCY, a public body, corporate and politic ("AGENCY"), and the County of Contra Costa, a political subdivision of the State of California ("COUNTY"). 2. PURPOSE: The COUNTY currently occupies a portion of the building (the "Building") more commonly known as 2300 EI Portal (formerly 1500 International Marketplace) in the City of San Pablo for the operation of a One Stop employment facility.I The existing premises (the "Existing Premises") contain 5,259 square feet of general office space and 571 square feet of I common area, for a total of 5,830 rentable square feet. The COUNTY's initial occupancy of the Existing Premises was pursuant to that certain lease ("Lease") dated December 1, 1998, between COUNTY and EI Portal, LLC (the "Original Lessor"). On December 18, 2001, the Original Lessor sold the Building to the AGENCY, and the Lease was assigned to the AGENCY via an Assignment I Agreement dated April 1, 2003. I I DRA:DS F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 1 5/31/2006 8:53 AM i DRAFT The AGENCY now desires to sell the property to Signature Properties, I Inc. ("Signature"), and to iassign its interest in the Lease to Signature. In order to facilitate the sale, Signature has requested that COUNTY agree to relocate its One Stop occupancy to a space in the back of the Building (the "Relocated I Premises"). As an incentive to COUNTY to relocate its occupancy, the AGENCY has agreed to amend the Lease to provide (i) that AGENCY will install I new windows to the Relocated Premises, and will provide street-front directional signage for COUNTY's occupancy of the Relocated Premises, each pursuant to I plans and specifications agreed to in writing by COUNTY and made an exhibit to i the Lease, (ii) that AGENCY will pay for all construction and moving expenses necessary for the One Stop operation to be moved from the Existing Premises to I the Relocated Premises,(iii) for the Agency to make a one-time payment of $62,000 to the COUNTY to offset any of COUNTY's incidental expenses, and (iv) I the introduction of a common area maintenance charge by COUNTY. I 3. AMENDMENTS: I A. Paragraph A.1 PARTIES,, is hereby deleted in its entirety and replaced with the following: i A.1. PARTIES. Effective on the SAN PABLO REDEVELOPMENT AGENCY I (hereinafter "AGENCY"), and the COUNTY OF CONTRA COSTA, a political subdivision of the state of California (hereinafter called I "COUNTY"), mutually agree and promise as follows: I I i DRA:DS 2 F:Dick/2300EIPorta 1/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM I I I DRAFT B. Paragraph A.2. LEASE OF PREMISES is hereby deleted in its entirety, and I replaced with the following: A.2. LEASE OF PREMISES: Beginning December 1, 1998 and I ending upon COUNTY's written acceptance of the Improvements described herein , AGENCY, for and in consideration of the rents, hereby leases to COUNTY, and COUNTY leases from AGENCY those certain I premises described as one office suite located in Building 15 in that complex commonly known and designated as 1500 International I Marketplace (which address has been changed to 2300 EI Portal), San Pablo, containing approximately 5,259 square feet plus 571 square feet of I common area for a total of 5,830 rentable square feet (the "Existing Premises"), as shown on Exhibit , which is attached hereto i and made a part hereof. Effectiveupon the COUNTY's written acceptance I of the Improvements described herein, the COUNTY occupants of the Existing Premises will be relocated to another portion of Building 15 in the I above complex, which new space shall contain approximately square feet plus nol more than square feet of common area for I a total of rentable square feet, as shown on Exhibit , which is attached hereto and made a part hereof. The Premises in Exhibit I are referred to herein as the "Premises" or "Relocated i Premises." I I I DRA:DS 3 F:0ick/2300EIPorta1/53006E[Portal 1stAmnd(clean) 5/31/2006 8:53 AM I I DRAFT C. Paragraph A.7. UTILITIES is hereby deleted in its entirety and replaced with the following: A.7. UTILITIES: Prior to the occupancy of the Relocated Premises, COUNTY shall pay for all separately metered gas, electric, water, sewer, and refuse collection services provided to the Existing Premises. Effective upon the date of COUNTY's occupancy of the Relocated Premises, COUNTY shall pay for all separately metered gas, electric, water, sewer, and refuse collection services provided to the Relocated Premises, and shall no longer be responsible for those utilities provided to the Existing Premises. In addition, upon COUNTY's occupancy of the Relocated Premises, COUNTY shall pay AGENCY the sum of and No/100 Dollars ($ .00) each month, prorated as necessary, for the remaining term of the lease, as extended, as additional rent ("Additional Rent") for COUNTY's prorata share of common area maintenance charges ("CAM Charges") to the property, as described in Exhibit attached hereto and made a part hereof; provided, however, the CAM Charges figure shall be adjusted on each July 1 during the term of this Lease, as extended, by the most recent one-year change in the Consumers Price Index, as described herein. In the event those services described in Exhibit are reduced, then the CAM Charges described above shall be reduced DRA:DS 4 F:Dick/2300EIPortal/53006E[Portal 1stAmnd(clean) 5/31/2006 8:53 AM i DRAFT I proportionately. The Consumer Price Index ("CPI"), as used I herein, shall be the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers, for the San Francisco-Oakland-San Jose area, All Items (1982- 1984=1 00), 1982-1984=100), or successor index. I E. Paragraph C.3. ACCOMPLISHMENT OF IMPROVEMENTS is hereby I deleted in its entirety and replaced with the following: I C.3. ACCOMPLISHMENT OF IMPROVEMENTS: AGENCY shall construct those improvements to the Premises ("Improvements") as described in the plans and specifications ("Plans and Specifications") attached hereto and made a part hereof as Exhibit "_," at no expense to COUNTY, under the following terms and conditions: 1) The Plans and Specifications shall be approved in writing by COUNTY before any construction of the Improvements shall I commence. The AGENCY agrees that the approval of the Plans I and Specific iations by the COUNTY shall not relieve the AGENCY of responsibility for the adequacy, fitness and correctness of the Plans and Specifications or for design work, which has been produced in laccordance with sound and accepted architectural and engineering 1principles. Neither COUNTY nor AGENCY shall make or cause to be made any changes in the Plans and Specifications without the prior written consent of the other Party. I DRA:DS S F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM DRAFT 2) Once the Plans and Specifications have been approved by COUNTY, AGENCY shall construct all of the Improvements in conformance with both the Plans and Specifications, and with all applicable statutes, ordinances, and building codes. 3) AGENCY shall be solely responsible for obtaining all necessary permits and approvals, and for paying any and all fees required for the construction of the Improvements. 4) AGENCY shall submit applications for building permits within 30 days after the Effective Date of the First Amendment to Lease, and shall commence construction of the Improvements within thirty (30) calendar days of the issuance of all building permits. The Improvements shall be completed, including final inspections and issuance of a Notice of Completion, within five (5) months from issuance of such permits. If (i) actual construction has not commenced within two (2) months of the Effective Date of the First Amendment to Lease, unless such delay is caused by the actions of COUNTY, or (ii) if the Improvements have not been completed within five (5) months from issuance of all required building permits, unless such delay is caused by the actions of COUNTY, COUNTY may, at its sole discretion and upon fifteen (15) days prior written notice to AGENCY, either (i) cancel the terms of the First Amendment to Lease and upon such cancellation COUNTY will not relocate to the Relocated Premises and the terms of the original DRA:DS 6 F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM I DRAFT Lease dated (December 1, 1998 between Agency and County will continue to apply, or (ii) terminate this Lease without cost or obligation tot COUNTY. County's rights . to cancel the First I Amendment to Lease or to terminate the Lease shall not apply if I AGENCY has commenced construction within said fifteen (15) day I period, andl is diligently pursuing those Improvements to completion. 1 5) COUNTY hereby reserves the right to inspect the Improvements during their construction, but will not interfere with I AGENCY's work and will notify AGENCY in writing of any change requests or recommendations. 6) Upon I AGENCY'S written request, the dates in this paragraph shall be extended by the time lost as a result of work I stoppages, strikes, shortages of material, weather elements, Acts I of God, or other events; provided such time lost is entirely beyond AGENCY'S control. 7) AGENCY shall comply with the California Labor Code Sections 1720-1861 as they apply to the construction of these I COUNTY Improvements. In addition, upon the written request of I COUNTY, AGENCY shall disclose fully all information concerning the construction of the Improvements, and shall make all records, contracts, and subcontracts available to the COUNTY. I i I DRA:DS 7 F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM I I DRAFT I F. Paragraph C.4. COMPLETION AND OCCUPANCY is hereby deleted in I its entirety and replaced with the following: C.4. COMPLETION AND OCCUPANCY: The following procedure shall I apply to the COUNTY'S acceptance of the Relocated Premises: 1) Upon (AGENCY'S completion of the Improvements, as I described herein, AGENCY shall give written notice ("Completion I Notice") thereof to the COUNTY'S General Services Director, or designee. COUNTY shall inspect the Improvements within five (5) I business days after receiving said Completion Notice and shall accept or reject the Improvements within five (5) business days after such inspection. Acceptance by COUNTY shall not constitute a waiver of any warranty of any defect in regard to workmanship or I material of thI e Improvements within the Relocation Premises. AGENCY shall warrant that all construction in the Relocated Premises shall be performed in a good and workmanlike manner I and that the material, equipment and other Building facilities furnished inl connection with the Improvements shall be free of I defects, latent or patent. AGENCY shall, at its expense, repair and replace any 'poor workmanship or defective materials, equipment in I the Relocated Premises, or other Building facilities within a reasonable time after written notice thereof, provided said notice is submitted by COUNTY within one (1) year of the COUNTY's I acceptance ,of the Improvements. AGENCY'S obligations under DRA:DS 8 F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM I I DRAFT this paragraph are in addition to and not in limitation of any other obligation of AGENCY. Enforcement of AGENCY's contractor's express warranties and guarantees to repair contained in any contract documents shall be in addition to, and not in limitation of, any other rights or remedies the COUNTY may have under the Lease, in law, or in equity for defective work. 2) AGENCY shall provide the following items to COUNTY: (a) Three (3) copies of any warranties for the Improvements described herein. The date of acceptance of the Improvements will be the date of commencement of the warranties; (b) An HVAC balance report completed by a company licensed to perform and provide such reports; (c) Any other reports or calculations reasonably required by a governmental agency in connection with approvals or permits for the Improvements; and (d) Operation and maintenance data manuals meeting the criteria as described in Exhibit 3) Upon COUNTY's written acceptance of the Relocated Premises, AGENCY shall move, at no expense to COUNTY, all of COUNTY's personal property located in the Existing Premises, including but not limited to, the dismantling, removal, and re- installation of County's furniture, work stations, and equipment to DRA:DS 9 F:Dick/2300EIPortal/53006EIPortal 1stAmnd(clean) 5/31/2006 8:53 AM DRAFT the Relocated Premises; provided, however,the moving of all of I COUNTY's telephone, data, and communication lines and equipment to the Relocated Premises will be accomplished by I COUNTY, at1 AGENCY's sole expense. Upon the completion of COUNTY's work in relocating its telephone and communication I lines and equipment, COUNTY shall provide AGENCY with written evidence of COUNTY's actual and verifiable costs and expenses in I completing that work, and AGENCY agrees to reimburse COUNTY for those costs and expenses within fifteen (15) business days I thereafter. I 4) Upon I COUNTY's written acceptance of the Relocated I Premises, AGENCY shall make a one-time payment of Sixty-Two I Thousand and No/100 Dollars ($62,000) to COUNTY to offset any of COUNTY,s costs related to the above relocation ("Relocation I Cost Offset"). Such Relocation Cost Offset payment shall be I made by check made payable to Contra Costa County and mailed I to the following address: Contra Costa County— General Services Department Attn: Real Estate Manager 1 1220 Morello Avenue, Suite 100 Martinez, CA 94553 4. EFFECT. AGENCY ands COUNTY hereby ratify and confirm each and every term and provision of the Lease and agree that except as amended by this First I Amendment to Lease, all the terms and conditions of the Lease shall remain unchanged I and in full force and effect throughout the Term and any extensions thereof. I DRA:DS F:Dick/2300EIPortal/53006EIPortal IstAmnd(dean) 10 5/31/2006 8:53 AM 1 I DRAFT IN WITNESS WHEREOF, AGENCY and COUNTY have caused this First Amendment to be executed as of the date first above written, by their respective officer or parties duly authorized. I COUNTY I AGENCY COUNTY OF CONTRA COSTA, a SAN PABLO REDEVELOPMENT political subdivision of the State of AGENCY, a public body, corporate and California politic BY BY Michael J. Lango Brock Arden Director of General Services Executive Director RECOMMENDED FOR APPROVAL APPROVED AS TO FORM: By By Dick R. Awenius Agency Counsel Real Estate Manager APPROVED AS TO FORM: SILVANO B. MARCHESI, County Counsel By Lillian T. Fujii, Deputy CONSENT OF SIGNATURE PROPERTIES: Signature Properties hereby consents to the terms of the above first Amendment to Lease and, provided Signature Properties purchases the property, agrees to be bound by the Lease as amended by thel First Amendment to Lease. DRA:DS F:Dick/2300EIPorta1/53006E[Portal 1stAmnd(clean) 1 1 5/31/2006 8:53 AM I DRAFT I President, Signature Properties I I I I I I I I I I I I I I I I I I I I I I I i I I i DRA:DS IZ F:Dick/2300EIPortal/53006EIPortal lstAmnd(clean) 5/31/2006 8:53 AM I I