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HomeMy WebLinkAboutAgreement A-21-198 with D L Lowe LP.pdfL-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 1 LEASE AGREEMENT THIS LEASE AGREEMENT (“Lease”) is made and entered into this_____ day of _______________, 2021 (the “Effective Date”), by and between D & L Lowe, LP, a California limited partnership, located at 147 S. Kingswood Parkway, Reedley, CA 93654, (“LESSOR”), and the COUNTY OF FRESNO, a political subdivision of the State of California, located at 333 W. Pontiac Way, Clovis, CA 93611 (“LESSEE”). LESSOR and LESSEE may be referred to in this Lease individually as a “Party” or collectively at times as the “Parties”. 1.PREMISES - LESSOR hereby leases to LESSEE the real property at the location commonly known as 1201 E. Manning, Reedley, CA 93654, which includes a building containing approximately 18,414 square feet of office space (the “Building”), along with parking for LESSEE’s use, as depicted on Exhibit “A”, which is attached and incorporated by this reference, together with surrounding common area parking (collectively, the “Premises”). LESSEE’s employees shall park their vehicles in the 70 stalls located at the north end of the shopping center, as depicted on Exhibit “B”, however, in the event that all 70 parking stalls are full, LESSEE’s employees may park their vehicles in the surrounding stalls on an as- needed basis. 2.TERM – The term of this Lease shall be for nineteen (19) years (“Term”), commencing on the date LESSEE first takes occupancy of the Premises (“Rent Commencement Date”), as described in Section 3, herein, and ending on the 19th anniversary of the Rent Commencement Date. In no event shall the term of this Lease extend beyond nineteen (19) years after the Rent Commencement Date. 3.RENT – LESSEE’s obligation to pay rents and any other amounts due under the Agreement shall commence on the Rent Commencement Date, as defined herein, and shall be subject to LESSEE’s constitutional debt limitation (Article XVI, Section 19 of the California Constitution). Effective upon the Rent Commencement Date, as defined herein, and throughout the Initial Term, LESSEE shall pay to LESSOR without offset, demand or prior notice, rent for the Premises on or before the first of each month (“Base Rent”), according to the schedule set forth on Exhibit “C”, which is attached and incorporated by this 8th June Agreement No. 21-198 L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 2 reference. A. Rent Commencement Date – The “Delivery Date” shall be the date that LESSOR has delivered possession of the Premises to LESSEE, after substantial completion of the Tenant Improvements to the Premises, as defined in Section 8 below, and such delivery has been accepted in writing by LESSEE, by LESSEE’s signing LESSOR’s written notification. “Substantial completion” is defined as the issuance of a building occupancy permit from the local governing agency. LESSOR’s written notification shall confirm the Rent Commencement Date, which shall be the first of the month following the issuance of a building occupancy permit issued from the local governing agency, and shall become an exhibit to this Lease (“Rent Commencement Date”). As to LESSEE, its County Administrative Office or Director of Internal Services/Chief Information Officer, or a designee of one of them, is hereby authorized to execute said notification of completion confirming the Rent Commencement Date. B. Prior Access – LESSOR shall allow LESSEE access to the Premises prior to the Rent Commencement Date, without charge, for the purpose of installing furniture and network equipment. LESSEE shall coordinate with LESSOR for such access. 4. ADDITIONAL RENTS – In addition to the Base Rent, LESSEE shall pay on a monthly basis as “Additional Rent” the operations costs for the Premises to LESSOR, consisting of 100% of: LESSOR’S actual out of pocket cost for real estate taxes and insurance, plus all maintenance expenses incurred by LESSOR allocable to the Premises (collectively, “Operation Costs”), and a ten percent (10%) administrative fee on all maintenance expenses incurred by LESSOR, which are all described on Exhibit “F”, attached and incorporated by this reference. Base Rent, Additional Rent, and Tenant Improvement Payments, as defined in Section 8, herein, shall collectively be referred to as “Rent” in this Lease. The estimated Operation Costs for the 2021 calendar year based on current L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 3 Operation Costs are $66,100.48, as set forth in Exhibit “F”, however, this figure is simply an estimate, and shall not be deemed or otherwise construed as a representation, warranty, or covenant by LESSOR as to the actual Operation Costs for the 2021 calendar year. Based on the foregoing estimate, beginning on the Commencement Date, LESSEE shall pay Additional Rent to LESSEE for each month or partial month at the rate of $5,508.37 per month, unless LESSOR provides LESSEE with a revised budget or a statement (as described herein) showing that LESSOR’s actual Operation Costs have increased, at which time LESSEE shall pay Additional Rent in accordance with LESSOR’s revised budget estimate or statement. Within 120 days after the end of each calendar year or its fiscal year, LESSOR shall furnish to LESSEE a statement covering the calendar or fiscal year (as the case may be) just expired, showing by cost category the actual Operation Costs incurred for that year, and the monthly payments made by LESSEE during that year for the Operation Costs. If LESSEE’s share of the Operation Costs exceeds LESSEE’s prior payments, LESSEE shall pay to LESSOR, as Additional Rent, the deficiency within forty-five (45) days after receipt of such annual statement. If LESSEE’s payments for the calendar or fiscal year (as the case may be) exceed LESSEE’s actual share of the Operation Costs, and provided LESSEE is not in arrears as to the payment of any Base Rent or Additional Rent, LESSEE may offset the excess against any payments of Operation Costs next due to LESSOR. 5. UTILITIES – LESSEE shall pay for metered utilities, including water, sewer, garbage, gas, and electricity. LESSOR shall pay for any utilities that cannot be separately metered from the adjacent buildings, and LESSEE shall reimburse LESSOR for its proportionate share of such utilities based on square footage leased by LESSEE. LESSEE shall procure and pay for telecommunications services that LESSEE requires in its use of the Premises. 6. MAINTENANCE – LESSOR, at LESSOR’s sole cost and expense, shall maintain and keep the Premises in good order, condition, and repair, and in good sanitary condition, including, but not limited to, all exterior and interior maintenance and repair of, HVAC systems, plumbing systems, electrical systems, interior and exterior lighting, including L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 4 ballasts, fire sprinkler systems and alarms, mechanical systems, roof, landscape, parking lot, parking lot lighting, graffiti abatement/removal, bird and pest control, and other common area maintenance. LESSOR is also responsible for, at LESSOR’s sole cost and expense, the structural condition of the Building on the Premises, and agrees that the Building will always be maintained in a condition acceptable for the LESSEE’S intended use of the Premises. LESSOR’s maintenance responsibility includes exterior and interior painting as needed due to normal wear and tear, LESSOR shall provide routine plumbing services at the request of LESSEE, such as clearing a clogged drain, and/or toilets caused by LESSEE’s use, and LESSEE shall pay to LESSOR the actual cost for such requested services. If allowed by the LESSOR’s contracted sanitation company, LESSOR shall install a lock on the trash lid for the trash dumpster, and a lock on the trash dumpster enclosure, and shall provide a key to LESSEE upon request. LESSEE, at LESSEE’s sole cost and expense, shall be responsible for janitorial service, and routine items within the Premises caused by LESSEE’s use. In addition, LESSEE shall be responsible to set heating and cooling thermostats to adjust the temperature of the Premises. LESSOR may install a device to secure the thermostats, and shall provide a key to LESSEE upon request. 7. USE - LESSEE intends to use the Premises as office space for its Department of Social Services, and/or any other County Department, office, or agency. LESSEE shall strictly comply with all applicable laws, ordinances, and regulations in connection with such use. 8. IMPROVEMENTS TO THE PREMISES – LESSOR shall use commercially reasonable efforts to ensure that Tenant Improvements (as described in this Section 8) are completed within two hundred and forty (240) days of the execution of this Lease. All drawings, plans, and specifications for Tenant Improvements, and any modifications to said improvements, which are set forth in Exhibit “D,” must be approved in writing by both LESSOR and LESSEE. LESSOR shall construct Tenant Improvements, which costs will include Architectural L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 5 Services, 1% bank loan fee, and appraisal fee (collectively, “Tenant Improvement Cost”), based on written input from the Department of Social Services regarding office space design. Tenant Improvements shall be constructed by LESSOR as described in Exhibit D. LESSEE shall pay LESSOR for LESSEE Tenant Improvements (“Tenant Improvement Payments”) on or before the first of each month, according to the schedule described in Exhibit “C”. The schedule on Exhibit C, including the final Tenant Improvement Cost and Tenant Improvement Payment amounts, is estimated as of the Effective Date of this Agreement, and will be updated when the final Tenant Improvement Costs have been provided by the LESSOR to LESSEE. LESSEE’s duty to pay LESSOR for Tenant Improvements shall not begin until the Rent Commencement Date, and the final Tenant Improvement Cost and Tenant Improvement Payment amounts have been provided to LESSEE. LESSEE shall not be required to pay partial payments for the Tenant Improvement Costs, and shall not be liable for or charged extra accrued interest or any other fees or penalties, including, but not limited to late fees, while LESSEE is waiting for the Tenant Improvement Cost and Tenant Improvement Payment amounts to be finalized. LESSOR and LESSEE agree that approved Plans and/or Permits shall be in place prior to the commencement of construction of any Tenant Improvements. 9. COMPLIANCE WITH ALL LAWS – If any work is undertaken at the Premises by or on behalf of LESSOR, LESSOR shall comply with, and shall ensure compliance by all contractors and subcontractors with, all applicable laws and regulations, including the payment of prevailing wages pursuant to Section 1770 et seq. of the Labor Code. It is LESSOR’s sole responsibility to ensure compliance with California Labor Code §§1770-1780 and any regulations or directions promulgated thereunder by the DIR to the extent legally applicable to said work. To the extent legally applicable to said work, LESSOR shall insert in any contract with its contractor(s), and further shall require its contractor(s) to insert in any subcontract, the requirements contained in California Labor Code §§1770-1780. LESSEE has made no representations upon which LESSOR has relied, and under no circumstances shall LESSEE be responsible for any violation of any wage or employment law, regulation or DIR requirement. Compliance with said laws, regulations and DIR L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 6 requirements is the sole responsibility of LESSOR and its contractor(s). 10. INDEPENDENT CONTRACTOR - In performance of the work, duties and obligations assumed by LESSOR under this Lease, it is mutually understood and agreed that LESSOR, including any and all of the LESSOR'S officers, agents, and employees, will at all times be acting and performing as an independent contractor, and shall act in an independent capacity and not as an officer, agent, servant, employee, joint venture, partner, or associate of LESSEE. Furthermore, LESSEE shall have no right to control or supervise or direct the manner or method by which LESSOR shall perform its work and function. However, LESSEE shall retain the right to administer this Lease so as to verify that LESSOR is performing its obligations in accordance with the terms and conditions thereof. LESSOR and LESSEE shall comply with all applicable provisions of law and the rules and regulations, if any, of governmental authorities having jurisdiction over matters the subject thereof. Because of its status as an independent contractor, LESSOR shall have absolutely no right to employment rights and benefits available to the employees of LESSEE. LESSOR shall be solely liable and responsible for providing to, or on behalf of, its employees all legally required employee benefits. In addition, LESSOR shall be solely responsible and save LESSEE harmless from all matters relating to payment of LESSOR’S employees, including compliance with Social Security withholding and all other regulations governing such matters. It is acknowledged that during the term of this Lease, LESSOR may be providing services to others unrelated to the LESSEE or to this Lease. 11. BREACH OF OBLIGATION TO MAINTAIN - In the event LESSOR breaches its obligation to maintain the Premises as herein provided, LESSEE shall give written notice to LESSOR within fifteen (15) days of the discovery of such breach. LESSOR shall then have thirty (30) days from the date of notice to cure its breach; however, if such default continues beyond thirty (30) days after written notice thereof from LESSEE to LESSOR then LESSOR will not be in default hereunder if within such thirty (30) day period, LESSOR commences the curing of such default and diligently and in good faith prosecutes the same to completion. L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 7 If the period for cure expires and if, in LESSEE’s sole determination, LESSOR has failed to cure, then LESSEE may cure LESSOR'S breach and deduct the cost of such cure, together with reasonable administrative costs, from LESSEE’s future Rent obligations. LESSEE’s decision to cure LESSOR's breach shall not constitute a waiver of any rights or remedies that LESSEE may have arising from this Lease or by operation of law. 12. ABATEMENT OF RENT AND OTHER PAYMENTS DUE TO CASUALTY, CONDEMNATION, PROHIBITED USE, OR TITLE DEFECT A. Abatement – Notwithstanding anything to the contrary in this Lease, (i) LESSEE’s obligations to pay Rent, and/or any other amounts otherwise due and payable to LESSOR, shall be abated during any period, and to the extent, that the Premises, or any portion thereof (in the case of an affected portion of the Premises, then, such abatement shall also be in proportion thereof), cannot be used and occupied by LESSEE pursuant to this Lease as a result of any Casualty with respect to the Premises, or any portion thereof, any title defect, or of any Condemnation or Prohibited Use of the Premises, or any portion thereof, and (ii) any abatement of Rent, and/or any other amounts otherwise due and payable to LESSOR shall not be deemed to be a default under this Lease on the part of LESSEE. B. Period of Abatement – Abatement of any Rent and/or any other amounts otherwise due and payable to LESSOR shall only suspend the period during which LESSEE is otherwise required to pay Rent and/or any other amounts otherwise due and payable to LESSOR. This shall not relieve LESSEE from its duty to pay Rent, and/or any other amounts otherwise due and payable to LESSOR pursuant to this Lease once the condition giving rise to the abatement has been cured, corrected, eliminated, or satisfactorily resolved. Such abatement shall continue for the period commencing with the date of such title defect, or of any Casualty, Condemnation, or Prohibited Use of the Premises, or any portion thereof, L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 8 and ending with the cure, correction, elimination or satisfactory resolution of the title defect, Casualty, Condemnation, or Prohibited Use of the Premises, whereby LESSEE may use and occupy the Premises, or the adversely affected portion thereof, pursuant to this Lease. Cure, correction, elimination or satisfactory resolution may, upon prior mutual written approval of LESSOR and LESSEE (which the parties will negotiate in good faith and without unreasonable delay), occur in commercially reasonable stages, as determined by the nature of the problem being remedied and the impact that such staged remedial action and the coordination and timing thereof would have on LESSEE. LESSEE’s Director of Internal Services/CIO, or his/her designee, shall be authorized to execute such written approval for LESSEE. C. Rent – During this period of abatement, LESSEE shall only pay Rent, and/or any other amounts otherwise due and payable to LESSOR for the portion of the Premises that LESSEE is able to use and occupy. D. Rental Interruption or Loss Insurance – During the occurrence of any Casualty that is covered by rental interruption insurance or rental loss insurance in Section 18, herein, the proceeds of any rental interruption insurance or rental loss insurance that LESSOR may receive as a result of such Casualty shall be applied by LESSOR, to the credit of LESSEE, for the Rent; LESSOR shall so inform LESSEE of any such amounts so received. 13. CONDEMNATION OR PROHIBITED USE – If the Premises, or any portion thereof, is appropriated, condemned, or taken by any governmental authority or public agency other than LESSEE by use or exercise of eminent domain proceedings or other proceedings, or by inverse condemnation, or is sold under threat of use or exercise of eminent domain by any governmental authority or public agency other than LESSEE, or if by reason of law, ordinance, regulation, or court judgment, LESSEE’s use or occupancy of the Premises, or L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 9 any portion thereof, shall be materially and adversely affected for the period set forth in clause (i) below, but excluding therefrom any day that is not a LESSEE business day (collectively “Condemnation or Prohibited Use”), then LESSEE shall have the right to do either of the following: A. If the Condemnation or Prohibited Use has a material adverse effect on LESSEE’s use and occupancy of the Premises and is reasonably anticipated to impact such use in excess of ninety (90) days, then LESSEE may terminate this Lease by giving written notice thereof to LESSOR. Such notice shall specify a date of termination of this Lease not less than one hundred eighty (180) calendar days, and not more than two-hundred ten (210) calendar days, from the date of such notice, or from the date that LESSEE’s use of the Premises will be materially adversely affected pursuant to the notice LESSEE receives from LESSOR of such appropriation, condemnation, taking, or sale that shall prohibit LESSEE’s use or occupancy of the Premises, or the affected part thereof, whichever is earlier. The County Administrative Officer or the Director of Internal Services/Chief Information Officer, or a designee of one of them, shall have the authority to provide such notice on behalf of LESSEE. B. In the event of a condemnation or prohibited use that prevents LESSEE from using the Premises, Rent, and/or any other amounts otherwise due and payable to LESSOR shall be abated in accordance with the provisions of Section 12, herein, and LESSEE shall only pay Rent, and/or any other amounts otherwise due and payable to LESSOR for the portion of the Premises that LESSEE is able to use and occupy. 14. DESTRUCTION OR DAMAGE FROM CASUALTY - If the Premises are damaged or destroyed as a result of fire, earthquake, act of God, or any other identifiable event of a sudden, unexpected, or unusual nature ("Casualty"), then LESSOR shall either promptly and diligently repair the damage at its own cost, or terminate this Lease as L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 10 hereinafter provided. A. LESSOR'S Election to Repair: If LESSOR elects to repair the Casualty damage to the Premises, then it shall within thirty (30) days after the date of Casualty provide written notice ("Notice of Repair") to LESSEE indicating the anticipated time required to repair, not to exceed 120 days. LESSOR shall bear the cost of all repairs to the Premises, including the cost to repair any alterations or fixtures installed or attached thereto by LESSEE. Such repairs shall restore the Premises to substantially the same condition as that existing at the commencement of this Lease. Such repairs shall also be made in compliance with all applicable state and local building codes. LESSOR shall not be liable to LESSEE for compensation for any loss of business, or any inconvenience or annoyance arising from repair of the Premises as a result of the Casualty, except for rent reduction as hereinafter provided. LESSEE shall be responsible at its sole cost and expense for the replacement of its personal property. B. LESSOR'S Election to Terminate Due to Casualty: LESSOR may only elect to terminate the Lease due to Casualty if the Premises have been destroyed or substantially destroyed by said Casualty, and the estimated time to repair the Premises exceeds 120 days from the date of the Casualty. LESSOR shall provide LESSEE with written notice of its election to terminate within thirty (30) days after the date of Casualty. C. Rent Reduction Due to Casualty: In the event of Casualty, LESSEE’s obligation to pay Rent, and/or any other amounts otherwise due and payable to LESSOR shall be abated beginning on the date of the Casualty, in accordance with Section 12, herein. Such reduction shall be proportional to the damage caused to the Premises by the Casualty, as determined by LESSEE. If LESSOR elects to repair the Premises pursuant to the terms of this Lease, then reduction of Rent, and/or any other amounts otherwise L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 11 due and payable to LESSOR shall continue until the date of substantial completion of repair. D. LESSEE’S Election to Terminate Due to Casualty: If LESSEE does not receive a Notice of Repair from LESSOR within thirty (30) days after a Casualty, or if the anticipated period of repair contained in the Notice of Repair exceeds 120 days, then LESSEE may elect to terminate this Lease as hereinafter provided. In such case, LESSEE shall have the right to demand that LESSOR refund any monies which, in the judgment of LESSEE, were paid to LESSOR pursuant to the Lease but which were not earned by LESSOR by consequence of the Casualty. Upon receipt of such demand, LESSOR shall promptly refund all such monies. 15. TERMINATION – If, pursuant to the terms in Sections 13 or 14, herein, either LESSOR or LESSEE have an election to terminate the Lease and so elect, then notice of such termination shall be made in writing to the non-terminating Party. Such notice shall specify a date of termination not less than 30 days from the date of said notice, after which this Lease shall convert to a month-to-month tenancy, with all of its remaining provisions in full force and effect. In the case of LESSEE, the County Administrative Officer or the Director of Internal Services shall have the power to provide such notice and terminate this Lease. 16. NO ACCELERATION OF FUTURE RENT OR OTHER PAYMENTS/AMOUNTS – Notwithstanding anything to the contrary contained in this Lease or any right or remedy of which LESSOR may otherwise avail itself pursuant to applicable law, any right of LESSOR to recover any Rent, and/or any other amounts otherwise due and payable to LESSOR as provided in this Lease shall be without acceleration of any future Rent, and/or any other amounts otherwise due and payable to LESSOR before they are due and payable hereunder. LESSOR hereby expressly waives its right to accelerate Rent, and/or any other amounts otherwise due and payable to LESSOR in the event of a termination of this Lease, pursuant to California Civil Code section 1951.2. 17. HOLD HARMLESS – LESSOR agrees to indemnify, save, hold harmless, and L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 12 at LESSEE’s request, defend LESSEE and each of its officers, agents, officials, and employees from any and all costs and expenses (including attorney’s fees and costs), damages, liabilities, claims, and losses occurring or resulting to LESSEE in connection with the performance, or failure to perform, by LESSOR, its officers, agents, or employees under this Lease, and from any and all costs and expenses (including attorney’s fees and costs), damages, liabilities, claims, and losses occurring or resulting to any person, firm, or corporation who may be injured or damaged by the performance, or failure to perform of LESSOR, its officers, agents, or employees under the Lease. This Lease is made upon the expressed condition that LESSEE shall be free of all liability, damages or injury arising from structural failures of the leased Premises, including, but not limited to external walls, glass, doors, roof, and floor. The Parties acknowledge that as between LESSOR and LESSEE, each is responsible for the negligence of its own employees and invitees. This Section 17 shall survive expiration or termination of this Lease. 18. INSURANCE A. LESSOR – Without limiting the LESSEE’s right to obtain indemnification from LESSOR or any third parties, LESSOR, at its sole expense, shall maintain in full force and effect, the following insurance policies or a program of self-insurance, including but not limited to, an insurance pooling arrangement of Joint Powers Agreement (JPA) throughout the term of this Lease: i. Commercial General Liability - Commercial General Liability Insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and an annual aggregate of Four Million Dollars ($4,000,000). This policy shall be issued on a per- occurrence basis. COUNTY may require specific coverages including completed operations, products liability, contractual liability, Explosion-Collapse-Underground, fire legal liability, or any L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 13 other liability insurance deemed necessary because of the nature of this contract. ii. Property Insurance – Against all risk of loss to property, at full replacement cost with no coinsurance penalty provision. iii. Rental Loss Insurance – A policy of rental interruption or rental loss insurance against loss, total, or partial, of the use and occupancy of the Premises, in an amount sufficient to pay Rent hereunder for a twenty-four (24) month period, as a result of the hazards covered by the insurance policy required under Section 18(a)(ii), herein. iv. Worker’s Compensation - A policy of Worker’s Compensation insurance as may be required by the California Labor Code. LESSOR shall obtain endorsements to the Commercial General Liability insurance naming the County of Fresno, its officers, agents, and employees, individually and collectively, as additional insureds, but only insofar as the operations under this Lease are concerned. Such coverage for additional insureds shall apply as primary insurance and any other insurance, or self-insurance, maintained by LESSEE, its officers, agents, and employees shall be excess only, and not contributing with insurance provided under LESSOR’S policies herein. This insurance shall not be cancelled or changed without a minimum or thirty (30) days advance written notice given to LESSEE. LESSOR hereby waives its right to recover from LESSEE, its officers, agents, and employees any amounts paid by the policy of worker’s compensation insurance required by this Agreement. LESSOR is solely responsible to obtain any endorsement to such policy that may be necessary to accomplish such waiver of subrogation, but LESSOR’s waiver of subrogation under this paragraph is effective whether or not LESSOR obtains such an endorsement. Within (30) days from the date LESSOR executes this Lease, LESSOR shall provide certificates of insurance and endorsement as stated above for all of the foregoing policies, as required herein, to the County of Fresno, Attn: ISD Lease Services (L-337), 333 W. Pontiac L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 14 Way, Clovis, CA 93612, stating that such insurance coverages have been obtained and are in full force; that the County, its officers, agents and employees will not be responsible for any premiums on the policies; that for such worker’s compensation insurance the CONTRACTOR has waived its right to recover from the COUNTY, its officers, agents, and employees any amounts paid under the insurance policy and that waiver does not invalidate the insurance policy; that such Commercial General Liability insurance names the County, its officers, agents, and employees, individually and collectively, as additional insured, but only insofar as the operations under this Lease are concerned. Coverage for additional insured shall apply as primary insurance and any other insurance, or self-insurance, shall not be cancelled or changed without a minimum of thirty (30) days advance, written notice given to County. In the event LESSOR fails to keep in effect at all times insurance coverage as herein provided, LESSEE may, in addition to other remedies it may have, suspend, or terminate this Lease upon the occurrence of such event. All policies shall be with admitted insurers licensed to do business in the State of California. Insurance shall be purchased from companies possessing a current A.M. Best Company rating of A FSC VII or better. B. LESSEE – Shall maintain during the term of this Lease the following policies of insurance, which coverages may be provided in whole or in part through one or more programs of self-insurance: i. Commercial General liability insurance with limits of not less than Two Million Dollars ($2,000,000.00) per occurrence and an annual aggregate of not less than Four Million Dollars ($4,000,000.00). This policy shall be issued on an occurrence basis. ii. Property insurance covering the personal property of LESSEE. iii. A policy of Worker’s Compensation insurance as may be required by the California Labor Code. 19. SURRENDER OF POSSESSION - Upon the expiration or termination of this Lease, LESSEE will surrender the Premises to LESSOR in such condition as that existing at L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 15 the commencement of this Lease, less reasonable wear and tear, less the effects of any Casualty as herein defined, and less the effects of any breach of LESSOR'S covenant to maintain. LESSEE will not be responsible for any damage that LESSEE was not obligated hereunder to repair. 20. FIXTURES - LESSOR agrees that any equipment, fixtures, or apparatus installed in or on the Premises by LESSEE shall continue to be the property of LESSEE, and may be removed by LESSEE at any time. LESSEE shall pay for the repair of any damage caused by the removal of fixtures. Any fixtures not removed after LESSEE surrenders possession shall be deemed abandoned by LESSEE, and shall become the property of LESSOR. 21. RIGHT OF ENTRY - LESSOR, or its representative(s), upon twenty-four (24) hour written notice, shall have the right to enter the Premises at any time during business hours, or at such other time as LESSEE deems appropriate, to make any alterations, repairs or improvements to the Premises. The normal business of LESSEE or its invitees shall not be unnecessarily inconvenienced. 22. AMENDMENT - This Lease may be amended in writing by the mutual consent of the parties without in any way affecting the remainder of this Lease. 23. NON-ASSIGNMENT - LESSEE shall not assign, transfer or subcontract this LEASE, or the rights or duties under this Lease, without the prior written consent of the LESSOR. 24. GOVERNING LAW - Venue for any action arising out of or relating to this Lease shall be in Fresno County, California. This Lease shall be governed by the laws of the State of California. 25. NOTICES - The persons and their addresses having authority to give and receive notices under this Lease including the following: LESSEE: County of Fresno (L-339) Director of Internal Services 333 W. Pontiac Way Clovis, CA 93612 (559) 600-6200 LESSOR: D & L Lowe LP c/o Dennis Lowe 147 S. Kingswood Parkway Reedley, CA 93654 L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 16 All notices between LESSEE and LESSOR provided for or permitted under this Lease must be in writing and delivered either by personal service, by first-class United States mail, or by an overnight commercial courier service. A notice delivered by personal service is effective upon service to the recipient. A notice delivered by first-class United States mail is effective three LESSEE business days after deposit in the United States mail, postage prepaid, addressed to the recipient. A notice delivered by an overnight commercial courier service is effective one LESSEE business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient. For all claims arising out of or related to this Lease, nothing in this section establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including but not limited to the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810). 26. AUDITS AND INSPECTIONS – At LESSEE’s request, LESSOR shall at any time during business hours, and as often as the LESSEE may deem necessary, make available to the LESSEE for examination, records and data with respect to the matters covered by this Lease. The LESSOR shall, upon request by the LESSEE, permit the LESSEE to audit and inspect all of such records and data necessary to ensure LESSOR'S compliance with the terms of this Lease. If this Lease exceeds ten thousand dollars ($10,000.00), LESSOR shall be subject to the examination and audit of the California State Auditor for a period of three (3) years after final payment under contract (Government Code Section 8546.7). 27. DISCLOSURE OF SELF DEALING TRANSACTIONS – This provision is only applicable if the LESSOR is operating as a corporation (a for-profit or non-profit corporation) or if during the term of this Lease, the LESSOR changes its status to operate as a corporation. Members of LESSOR’S Board of Directors shall disclose any self-dealing transactions that they are a party to while LESSOR is providing goods or performing services under this Lease. A self-dealing transaction shall mean a transaction to which the LESSOR is a party L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 17 and in which one or more of its directors has a material financial interest. Members of the Board of Directors shall disclose any self-dealing transactions that they are a party to by completing and signing a Self-Dealing Transaction Disclosure Form Exhibit “E”, attached hereto and by this reference incorporated herein, and submitting it to the County of Fresno prior to commencing with the self-dealing transaction or immediately thereafter. 28. ENTIRE AGREEMENT - This Lease constitutes the entire agreement between the LESSOR and LESSEE with respect to the subject matter hereof, and supersedes all prior leases, negotiations, proposals, commitments, writings, advertisements, publications, and understandings of any nature whatsoever, unless expressly referenced in this Lease. 29. COUNTERPARTS. This Lease may be executed in one or more counterparts (which may be facsimile or .pdf e-mail counterparts followed by originals), each of which will be deemed an original and all, taken together, will constitute one and the same instrument. 30. ESTOPPEL CERTIFICATE. LESSEE shall, at any time upon not less than thirty (30) days prior request by LESSOR, execute, acknowledge, and deliver to LESSOR a written estoppel certificate, in form satisfactory to LESSOR, certifying that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications) and, if applicable, the dates to which the Rent and any other charges have been paid in advance. Any such statement delivered pursuant to this Section 30 may be relied upon by third persons, including a prospective purchaser or encumbrancer of the Premises. LESSEE’S failure to execute and deliver an estoppel certificate within thirty (30) days after LESSEE’S receipt of LESSOR’S written request therefore shall be conclusive upon LESSEE that this Lease is in full force and effect, without modification, except as may be represented by LESSOR, that there are no uncured defaults in LESSOR’S performance, that not more than one month’s rental has been paid in advance, and that all other statements required to be made in the estoppel certificate are conclusively made. 31. SUBORDINATION AND ATTORNMENT. At LESSOR’S option, this Lease shall be subordinated to any mortgage or deed of trust which is now or shall hereafter be L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 18 placed upon the Premises, and LESSEE agrees to execute and deliver any instrument which may be necessary to further effect the subordination of the Lease to any such mortgage or deed of trust; provided, however, that such instrument of subordination shall provide, or the mortgagee or beneficiary of such mortgage or deed of trust otherwise shall agree in writing in recordable form delivered to LESSEE, that the mortgagee or beneficiary, including their successors and assigns, recognize LEESSE’s leasehold interest under this Lease, and that so long as LESSEE is not in default under this Lease, foreclosure of any such mortgage or deed of trust or sale pursuant to exercise of any power of sale thereunder, or deed given in lieu thereof, shall not affect this Lease, but such foreclosure or sale, or deed given in lieu thereof, shall be made subject to this Lease, which shall continue in full force and effect, binding on LESSEE, as lessee, and the transferee, as lessor. LESSEE shall attorn to the transferee as if said transferee was LESSOR under this Lease. 32. MEMORANDUM OF LEASE – LESSOR hereby agrees to the terms of the Memorandum of Lease, a form of which is attached as Exhibit “G”, and incorporated by reference. LESSOR agrees to execute the Memorandum of Lease in recordable form, and authorizes LESSEE to record the executed Memorandum of Lease against the Premises in the Office of the County Recorder upon the Parties’ execution of the Lease. 33. ELECTRONIC SIGNATURES. The parties agree that this Lease may be executed by electronic signature as provided in this section. An “electronic signature” means any symbol or process intended by an individual signing this Lease to represent their signature, including but not limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an electronically scanned and transmitted (for example by PDF document) of a handwritten signature. Each electronic signature affixed or attached to this Lease (1) is deemed equivalent to a valid original handwritten signature of the person signing this Lease for all purposes, including but not limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect as the valid original handwritten signature of that person. The provisions of this section satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 19 3, Part 2, Title 2.5, beginning with section 1633.1). Each party using a digital signature represents that it has undertaken and satisfied the requirements of Government Code section 16.5, subdivision (a), paragraphs (1) through (5), and agrees that each other party may rely upon that representation. This Lease is not conditioned upon the parties conducting the transactions under it by electronic means and either party may sign this Lease with an original handwritten signature. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California L-339 DSS Reedley IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first hereinabove written. LESSOR: D & L Lowe LP By :_~---"------ Dennis Lowe, Manager FOR ACCOUNTING USE ONLY: ORG : Account: Fund : Subclass : 5610 7340 0001 10000 LESSEE: COUNTY Steve Brand , Chairman of the Board of Supervisors of the County of Fresno ATTEST : Bernice E. Seidel Clerk of the Board of Supervisors County of Fresno , State of California By :___,,,_d o...;;.;;.J:l,....;;;;__ 0 _....;~;c..._..+-D----D~V 20 L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 21 Exhibit A 1201 E. Manning, Reedley, CA 93654 L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 22 Exhibit B LESSEE Employee Parking Area L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 23 Exhibit C Payment Schedule Base Rent: 18,414 Sq/Ft Monthly **Tenant Improvement Payments Monthly Year 1 $ 11,969.10 Year 1 $ 27,423.99 Year 2 $ 12,208.48 Year 2 $ 27,423.99 Year 3 $ 12,452.65 Year 3 $ 27,423.99 Year 4 $ 12,701.70 Year 4 $ 27,423.99 Year 5 $ 12,955.74 Year 5 $ 27,423.99 Year 6 $ 13,214.85 Year 6 $ 27,423.99 Year 7 $ 13,479.15 Year 7 $ 27,423.99 Year 8 $ 13,748.73 Year 8 $ 27,423.99 Year 9 $ 14,023.71 Year 9 $ 27,423.99 Year 10 $ 14,304.18 Year 10 $ 27,423.99 Year 11 $ 14,590.27 Year 11 $ 27,423.99 Year 12 $ 14,882.07 Year 12 $ 27,423.99 Year 13 $ 15,179.71 Year 13 $ 27,423.99 Year 14 $ 15,483.31 Year 14 $ 27,423.99 Year 15 $ 15,792.97 Year 15 $ 27,423.99 Year 16 $ 16,108.83 Year 16 $ 27,423.99 Year 17 $ 16,431.01 Year 17 $ 27,423.99 Year 18 $ 16,759.63 Year 18 $ 27,423.99 Year 19 $ 17,094.82 Year 19 $ 27,423.99 **Tenant Improvement Payments assume $3,209,356.00 in Tenant Improvement costs, amortized over the 19-year term at 8% interest, not to exceed $3,209,356.00. This schedule shall be updated to reflect actual costs once final costs are known. L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 24 Exhibit D Tenant Improvements The Scope of Work (including all labor, materials, taxes, and equipment required to complete the work as outlined below, subject to change) shall be performed by Ardent General, Inc. The Scope of Work includes the following: • Demolition/Abatement o Demo and remove all interior walls, acoustical ceiling system, and wires o Demo and dispose all HVAC ductwork back to plenum, registers, and grilles o Remove all abandoned electrical and conduits o Dispose of all plumbing fixtures, restroom fixtures and partitions o Demo and remove all doors and frames, and remove existing infill frames o Demo storefront windows and storefront doors o Saw cut, break, and dispose concrete slab for new plumbing o Remove remaining floor tile and all mastic on concrete slab • Concrete o Pour and place concrete to patch back trenches for new plumbing, including vapor barrier and rebar  Rebar to be epoxied into existing slab • Structural Steel o Fabricate and install structural header for folding partition wall • Rough Carpentry o Supply all lumber and hardware to frame for new roof access hatch location  Including access ladder and safety railing • Casework o Fabricate and install P-LAM upper/lower cabinets with white melamine interiors and brushed chrome hardware o Countertops figured to be a Corian solid surface with backsplash – no solid surface specified on ID drawings o Furnish and install all countertop supports, figured to be surface mount • Modular Walls (CORE Interiors) o Furnish and install pre-finished modular walls to connect to existing deck including their doors/frames/hardware • Insulation o Furnish and install R-19 unfaced batts insulation over gyp board ceilings and at 2x6 interior walls o Furnish and install R-13 unfaced batts insulation at interior 2x4 walls o Roof deck insulation figured as existing and to remain, as well as insulation at perimeter furred walls • Roofing o Includes allowance for miscellaneous patching of existing roofing system for new roof hatch, HVAC units etc. • Flashing/Sheet Metal L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 25 o Install flashing for new roof openings and roof access hatch curb • Skylights o Furnish and install (12) Solamaster 330 DS skylights including penetrations and flashing at roof • Roof Hatch o Cut and install new roof access hatch at a new location • Door/Frame/Hardware o Furnish and install (12) 3070 1-3/4” solid core wood doors with plastic laminate finish, on Wester Integrated frames with 302 flush casing with extended strike o Furnish and install (2) 3070 hollow metal doors on hollow metal frames to replace existing exterior doors o Doors to receive Hager hardware with Schlage locksets, and Norton Closers, all with US26D finish • Folding Partition o Furnish and Install (1) Modernfold AcoustiSeal operable partition wall, to be manual o Finish to be vinyl, with color to be determined • Storefront o Supply and install new exterior storefront system – to be clear anodized metal with Narrow Stile doors o Doors to receive non-electric VonDuprin panic hardware and pull handles o Exterior glass to be 1” insulated solarban60 Low “E”, clear and tempered o Supply and install interior storefront – to be clear anodized metal with ¼” clear tempered glazing o Interior storefront doors to be Narrow Stile with dead bolt locks • Metal Studs/Drywall o Frame new walls and soffits where shown with 3 5/8” 20ga studs to be 6” above ceiling height o Includes new metal stud framed wall to be full height between Storage 120 & Electrical Room 119 o Hang new 5/8” gyp board at all new walls with level 4 finish with light stipple texture o Hang cement board backer boards at restrooms for wall tile o Furnish and install flat strap backing where required for accessories and fixtures • Ceramic Tile o Furnish and install ceramic tile on walls at restrooms up to 4ft. above finished floor o Furnish and install aluminum coved base and glass accent tile at top • Flooring/Base o Furnish and install carpet – to be Mohawk Lithosphere #GT334 o Install polished concrete finish at restrooms, break room, server room, Janitor, Storage, and electrical room o Furnish and install LVT flooring at waiting room and interview booths – to be Mohawk Grown Up #C0075 o Provide and install rubber base flooring throughout except at restrooms L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 26 • Painting o Prime and paint interior gypsum board surfaces throughout, exposed columns, and touch up exterior tilt-up walls o Prime and paint hollow metal doors and frames and paint accents per design drawings o Exterior painting is NOT figured in this scope of work • Acoustical Ceiling/FRP o Furnish and install 15/16” t-bar ceiling grid with Armstrong’s #2767 Cortega 2nd Look Tile per A2.0 and ID1.0 o Furnish and install 4’x10’ FRP with pebble textures, Class C up to 4ft above finished floor at Janitors • Code Signage o Provide and install code signage, i.e. accessibility signage, door to remain unlocked, etc. • Restroom Accessories o Furnish and install the following Bobrick Accessories:  Toilet Paper Dispensers  Paper Towel Dispensers w/ Waste disposal  Seat Cover Dispensers  36” Grab bars and (4) 48” grab bars  Soap Dispensers  Baby Changing Stations  ADA Hand Dryers o Furnish and install plastic laminate restroom partitions • Roller Shades o Furnish and install (9) Roller shades with 5% Ecoscreen for storefront • Awnings o Fabricate and install (3) awnings over exterior doors, anchored into concrete wall • Fire Extinguishers & Cabinets/Knox Box o Furnish and install (3) 5lb. fire extinguishers with semi-recessed cabinet – cabinet to be Cosmopolitan 1037F17 • Fire Sprinklers o Provide design and permitting for City of Reedley for re-routing and installing new fire sprinklers o Heads to be chrome including semi-recessed escutcheons • Plumbing o Provide and install all new in slab piping for all domestic water supply to new plumbing fixtures o Includes hot water piping, gas lines, and condensate lines for HVAC system o Furnish and install plumbing fixtures for all restrooms and break room o Includes cleanouts, and all vent piping o Repair and replace roof drains L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 27 • HVAC o Provide required air balance as required o Start and test of HVAC units o Furnish and install new ducting to accommodate new offices, rooms, and restrooms o Furnish and install new registers/grilles, install new exhaust fans, new ODU and IDU o Provide and install all T-stats and wiring, CO2 sensors, dampers both fire and volume • Electrical o Safe-off all electrical and demo all existing panels and conduit as needed and relocate existing telephone conduit o Provide and install new electrical panels at new electrical room and provide all new power distribution  Re-route power to existing RTUs & disconnects, and provide power to exhaust fans and duct detectors o Provide electrical to voice, data, and television devices o Furnish and install new light fixtures throughout and controls to meet T24 requirements o Title 24 documentation and certifications • Fire Alarm o Provide design and permitting for new fire alarm system o Install all wiring and stand-alone fire alarm control panel with devices  Wire to be run open or through partial conduit system – conduit, j- boxes, outlet boxes to be by electrician • Exterior Improvements o Provide slurry crack seal and seal coat for the south side of the building directly behind the shopping center where the County vehicles will be parking o Provide striping for the back parking lot where County is occupying the fenced area o Includes an allowance for new building sign ($20,000) • General Conditions o General Supervision o General liability, workman’s comp, and auto liability 3mm/5mm standard.  8mm umbrella policy o General Clean-up, final construction cleanup o Debris boxes including recycling reports, (10) box figured o Includes Procore web-based project management software for project team, including owners, stakeholders & AEC • Qualifications o Any unused portions of Allowance items will be returned to owner upon completion of project. o Scope of Work is figured as Prevailing Wage; Ardent General, Inc. is NON- UNION o Working hours are planned as standard Monday – Friday, 7am-3:30pm o Scope of Work specifically excludes any work not detailed in scope above o Price based upon concept plan. Ardent General, Inc. reserves the right to adjust final pricing dependent on final construction documents or owner changes based on final selections L-339 DSS Reedley 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 28 o Final Clean completed and punch list to be generated prior to F.F.E. move-in and owner occupancy. o Includes standard one (1) year warranty o Builders risk carried by Ardent General o Figure modular walls to come complete with track for heads of walls • Exclusions – this Scope of Work excludes the following: o All permits, special Inspections, and testing fees o Architectural, engineering fees o Low-voltage, cabling, and terminations other than as listed o Signage other than code required o Furniture, fixtures, appliances, and tenant provided items o Floor leveling, floor grinding, floor sealing for vapor remediation o Etching of glass, glass coatings/frosting o Bond costs, builders risk, specialty insurance, and/or additional named requirements which exceed Ardent General Standards. o Specialty insurance and/or additionally insured endorsements which exceed Ardent General Inc. standards o Work outside of building, site improvements besides that mentioned above o Any LEED certifications and/or building commissioning o New roof is not included in Scope of Work •:1· I Fresno County D55 Reedley Site Furniture Spaceplan RPC Quote # --·- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 30 Exhibit E SELF-DEALING TRANSACTION DISCLOSURE FORM In order to conduct business with the County of Fresno (hereinafter referred to as “County”), members of a contractor’s board of directors (hereinafter referred to as “County Contractor”), must disclose any self-dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self-dealing transaction is defined below: “A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its directors has a material financial interest” The definition above will be utilized for purposes of completing this disclosure form. INSTRUCTIONS (1)Enter board member’s name, job title (if applicable), and date this disclosure is being made. (2)Enter the board member’s company/agency name and address. (3)Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following: a.The name of the agency/company with which the corporation has the transaction; and b.The nature of the material financial interest in the Corporation’s transaction that the board member has. (4)Describe in detail why the self-dealing transaction is appropriate based on applicable provisions of the Corporations Code. (5)Form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4). Mail the completed form to: County of Fresno Attn: Lease Services (L-339) Internal Services Department 333 W. Pontiac Way Clovis, CA 93611 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 31 (1) Company Board Member Information: Name: Date: Job Title: (2) Company/Agency Name and Address: (3) Disclosure (Please describe the nature of the self-dealing transaction you are a party to): (4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233 (a): (5) Authorized Signature Signature: Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 32 Exhibit F Estimated Operation Costs Leased Area: 18,414 Square Feet Proportional Share: 25.41% Category Monthly Cost County Pro-rata Share (Monthly) Electrical Utility $1,000.00 $254.10 Security $2,000.00 $ 508.20 Landscape Maintenance/Repairs $1,500.00 $381.15 Fire Monitoring $200.00 $50.82 Pressure Washing $350.00 $88.94 Parking Lot sweeping/Repairs $1,800.00 $457.38 Building Painting (5-Year amortization) $1,000.00 $254.10 Porter Service $800.00 $203.28 General Maintenance/Repairs $600.00 $152.46 Graffiti/Vandalism - Common Area $250.00 $63.53 Pest Control $150.00 $38.12 Parking Lot Seal/Stripe (3-year amortization) $2,000.00 $508.20 Tree Trimming $200.00 $50.82 City Services (trash & irrigation water) $1,000.00 $254.10 Subtotal $12,850.00 $3,265.19 Management Fee (10% CAM) $1,285.00 $326.52 Total CAM $14,135.00 $3,591.70 Property Taxes (Monthly) $916.67 Insurance (incl. rental interruption insurance) (Monthly) $1,000.00 Total Operation Costs (Monthly) $5,508.37 Total Operation Costs (Annually) $66,100.48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California 33 Exhibit G Memorandum of Lease RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: County of Fresno Director of Internal Services/ Chief Information Officer 333 W. Pontiac Way Clovis, CA 93612 FOR RECORDER’S USE ONLY EXEMPT FROM RECORDING FEES PURSUANT TO GOV'T. CODE SECTIONS 27383 AND 27388.1(a)(2)(D)(AB 110, SB 2) AND DOCUMENTARY TRANSFER TAX PURSUANT TO REVENUE AND TAXATION CODE SECTION 11922. MEMORANDUM OF LEASE THIS MEMORANDUM OF LEASE (“Memorandum”) is made and entered into this _____ day of ________________, 2021, by and between the County of Fresno, a political subdivision of the State of California (“County”), whose address as of the date hereof is 333 W.Pontiac Way, Clovis, California, 93612, and D & L Lowe, LP, a California limited partnership (“Lessor”), whose address is 147 S. Kingswood Parkway, Reedley, CA 93654. A.Lessor represents that it is the sole fee owner of that certain improved real property located in Fresno County, State of California, and having a street address of 1201 E. Manning, Reedley, CA 93654 (the “Real Property”); B.Pursuant to that certain Lease Agreement of the same date as this Memorandum of Lease (the “Lease Agreement”), Lessor has leased certain Premises (as defined in the Lease Agreement) located on and constituting a portion of the Real Property to the County, and the County has leased such Premises from the Lessor; C.Pursuant to the terms and conditions of the Lease Agreement, this Memorandum is to be recorded in the Official Records of the Fresno County Recorder with respect to the Real Property for the purpose of memorializing the existence of the Lease Agreement, the terms and conditions of which inure to the benefit of, and bind the Lessor, the County, and their respective successors and assigns. Any third-party interested in obtaining information about the Lease Agreement may contact the parties at the above-referenced addresses. // // // 8th June 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNTY OF FRESNO Fresno, California IN WITNESS WHEREOF, this Memorandum has been executed as of the day and year first above written . LESSOR: D & L Lowe, LP, a California limited partnership ~(}~ By:--------- Dennis Lowe, Manager [Notary Attestation-Attached] Steve randau, Chairman of the Board of Supervisors of the County of Fresno [Notary Attestation-Attached] ATTEST: Bernice E. Seidel Clerk of the Board of Supervisors County of Fresno , State of California By cl~ c..15 Deputy 34 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Cali !,g.r.c ia County of t V'"ebav personally appeared O ~ ~ ~ _ who proved to me on the basis of satisfactoryevidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ~ \C, t...g (Seal)