HomeMy WebLinkAboutAgreement A-17-519 with Building #7, LLC.pdf Agreement No. 17-519
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1 LEASE AGREEMENT
2 THIS LEASE AGREEMENT (hereinafter "Lease") is made and entered into this 26th
3 day of September , 2017 (the "Effective Date"), by and between Pontiac 7, LLC, a
4 limited liability company, 2780 N. Miami Ave., Ste. 101, Fresno, CA 93727, (hereinafter
5 "LESSOR"), and the COUNTY OF FRESNO, a political subdivision of the State of California,
6 333 W. Pontiac Way, Clovis, CA 93612 (hereinafter "LESSEE"). LESSOR and LESSEE may
7 be referred to in this Lease individually as a "Party" or collectively at times as the "Parties".
8 1. PREMISES - LESSOR hereby leases to LESSEE the real property at the
9 location commonly known as 205 W. Pontiac, Clovis, CA 93612, which includes a building
10 containing approximately 101,696 square feet of office space and 49,897 of warehouse space
11 (the "Building"), together with surrounding common area parking, as depicted on Attachment
12 "A", which is attached to and by this reference incorporated herein (the "Premises").
13 2. TERM —
14 1. The primary term of this Lease shall be eight (8) years ("Primary Term")
15 commencing on the date LESSEE first takes occupancy of the Premises
16 (hereinafter"Rent Commencement Date") as set forth in a written
17 acknowledgement signed by LESSOR and LESSEE's Director of Internal
18 Services. It is understood by the parties herein that LESSEE's occupancy
19 of the Premises shall commence only after said written acknowledgement
20 is executed. If the Rent Commencement Date is not the first day of a
21 calendar month, then the Primary Term shall include both the partial
22 calendar month, and a full eight-year term starting thereafter on the first
23 day of the month following such partial calendar month. Said Rent
24 Commencement Date shall occur no later than December 31, 2017.
25 2. Upon expiration of the Primary Term, this Lease shall automatically renew
26 for one (1) additional two-year period ("Renewal Term"), unless LESSEE
27 provides written notice of non-renewal to LESSOR at least six (6) months
28 prior to the expiration of the Primary Term. LESSEE's Director of Internal
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1 Services is hereby authorized to provide such notice of non-renewal.
2 The Primary Term and the Renewal Term may be referred to hereinafter
3 either singularly or collectively as the "Term" or"term."
4 3. RENT/OPERATION COSTS — LESSEE shall pay to LESSOR on a monthly
5 basis both Base Rent and Additional Rent (as both terms are defined hereinbelow). Base
6 Rent and Additional Rent shall hereinafter be collectively referred to as the "Rent." If the Rent
7 Commencement Date is not on the first day of a month, LESSEE shall pay Base Rent and
8 Additional Rent as prorated for such partial month.
9 1. Base Rent— LESSEE shall pay rent on a monthly basis for the Premises
10 ("Base Rent") beginning on the Rent Commencement Date as shown in the
11 below payment schedule. Base Rent shall increase by two percent (2%)
12 each year on the anniversary of the Rent Commencement Date:
13 Rent Period Office Warehouse Total
Year One $ 155,594.88 $ 27,942.32 $ 183,537.20
14 Year Two $ 158,706.78 $ 28,501.17 $ 187,207.94
Year Three $ 161,880.91 $ 29,071.19 $ 190,952.10
15 Year Four $ 165,118.53 $ 29,652.61 $ 194,771.14
16 Year Five $ 168,420.90 $ 30,245.67 $ 198,666.57
Year Six $ 171,789.32 $ 30,850.58 $ 202,639.90
17 Year Seven $ 175,225.11 $ 31,467.59 $ 206,692.70
Year Eight $ 178,729.61 $ 32,096.94 $ 210,826.55
18 Year Nine $ 182,304.20 $ 32,738.88 $ 215,043.08
Year Ten $ 185,950.28 $ 33,393.66 $ 219,343.94
19
20 2. ADDITIONAL RENT— In addition to the Base Rent, LESSEE shall pay on
21 a monthly basis as "Additional Rent", the annual operations costs for the
22 Premises to LESSOR, consisting of 100% of: LESSOR'S actual out of
23 pocket cost for real estate taxes, insurance and all maintenance related
24 expenses incurred by LESSOR allocable to the Premises (collectively,
25 "Operation Costs") as listed in the Operating Budget attached hereto as
26 Attachment "B" and incorporated herein by reference. Anticipated total
27 Operation Costs for the 2017 calendar year based on current Operation
28 Costs are $1,169,691.60 as set forth in Attachment "B." However, this
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1 figure is simply an estimate and shall not be deemed or otherwise
2 construed as a representation, warranty or covenant by LESSOR as to the
3 actual Operation Costs for the 2018 calendar year. Based on the foregoing
4 estimate, beginning on the Rent Commencement Date, LESSEE shall pay
5 Additional Rent to LESSEE for each month or partial month at the rate of
6 $97,474.30 per month, unless LESSOR provides LESSEE with an revised
7 budget or a statement (as described hereinbelow) showing that LESSOR's
8 actual Operation Costs have increased, at which time LESSEE shall pay
9 Additional rent in accordance with LESSOR's revised budget estimate or
10 statement.
11 Within 90 days after the end of each calendar year this Lease is in force, LESSOR
12 shall make good faith efforts and endeavor to furnish to LESSEE, a statement covering the
13 calendar year just expired, showing by cost category the actual Operation Costs incurred for
14 that year, and the monthly payments made by LESSEE during that year for the Operation
15 Costs. If LESSEE's share of the Operation Costs exceeds LESSEE's prior payments,
16 LESSEE shall pay to LESSOR, as Additional Rent, the deficiency, within 45 days after receipt
17 of such annual statement. If LESSEE's payments for the calendar year exceed LESSEE's
18 actual share of the Operation Costs, and provided LESSEE is not in arrears as to the
19 payment of any Base Rent or Additional Rent, LESSEE may offset the excess against any
20 payments of Operation Costs next due LESSOR.
21 4. UTILITIES—
22 LESSEE shall pay market rate to the LESSOR for metered electricity, which amounts
23 shall be included as a component of Operation Costs payable monthly to LESSOR as
24 Additional Rent.
25 LESSEE is responsible for contracting directly with the applicable utility provider and
26 paying directly thereto for natural gas, water/sewer, telephone and internet services for the
27 Premises and any and all other utility services LESSEE requires in connection with its use of
28 the Premises.
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1 5. MAINTENANCE AND REPAIRS — LESSOR shall be responsible for all
2 exterior and interior maintenance, including repair of air conditioning, heating units, plumbing
3 systems, electrical systems, elevators, and interior/exterior lights and fixture ballasts, fire
4 sprinkler system, roof, painting, flooring, landscape, parking and other maintenance at the
5 Premises, as set forth in the Premises Services Agreement, attached hereto as Attachment
6 "C" and incorporated herein by reference. LESSOR is also responsible for the structural
7 condition of the building and agrees that the building will always be maintained in a condition
8 acceptable for the LESSEE'S intended use of the Premises. LESSOR's maintenance
9 responsibilities shall include carpet replacement and exterior and interior painting, as needed,
10 due to normal wear and tear. All items of maintenance and repair as set forth in Attachment
11 "C" shall be included as a component of Operation Costs payable monthly to LESSOR as
12 Additional Rent.
13 In the event building systems such as air conditioning and heating units' malfunction,
14 restroom fixtures are not draining properly, or water intrusion, leaks or other events that
15 immediately impact the occupancy of the Premises by LESSEE occur, LESSOR shall use its
16 best efforts to respond within twenty-four (24) hours after contact by LESSEE to diligently
17 pursue repairs and replace equipment to restore the systems to full working order. Structural
18 issues, including but not limited to damaged doors, walls, roof, and windows shall be a
19 priority, and shall be addressed within the same day such are reported. LESSOR covenants
20 that the Premises shall be maintained in substantially the same condition as that existing at
21 the commencement of this LEASE.
22 LESSEE shall be responsible for damages and repairs caused by LESSEE's
23 employees or clients.
24 6. USE - LESSEE shall use the Premises as office space for its Department of
25 Social Services or for any other County department. LESSEE shall strictly comply with all
26 applicable laws, ordinances and regulations in connection with such use.
27 7. JANITORIAL SERVICES AND COST— LESSOR shall procure and provide
28 janitorial services and supplies at the Premises (hereinafter"Janitorial Services"). Such
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1 Janitorial Services shall be provided five (5) days per week and shall include the services and
2 supplies as described in Attachment "C". All such expenses for Janitorial Services shall be
3 included as a component of Operation Costs payable monthly to LESSOR as Additional Rent.
4 LESSOR and LESSEE may agree to select a different janitorial service to correct
5 deterioration in the quality of the janitorial service, or for any other reason mutually agreed
6 upon by the parties.
7 8. ALTERATIONS: - LESSEE shall make no, alterations, installation, changes or
8 additions in or to the Premises or Building (collectively, "Alterations") without written consent
9 from LESSOR. Alterations shall not include moveable office furniture, office furnishings and
10 office equipment.
11 9. INDEPENDENT CONTRACTOR- In performance of the work, duties and
12 obligations assumed by LESSOR under this Lease, if any, it is mutually understood and agreed
13 that LESSOR, including any and all of the LESSOR'S officers, agents, and employees will at all
14 times be acting and performing as an independent contractor, and shall act in an independent
15 capacity and not as an officer, agent, servant, employee,joint venture, partner, or associate of
16 the LESSEE. Furthermore, LESSEE shall have no right to control or supervise or direct the
17 manner or method by which LESSOR shall perform its work and function; provided; LESSOR
18 shall satisfy and comply with its obligations as set forth herein.
19 LESSOR and LESSEE shall comply with all applicable provisions of law and the rules
20 and regulations, if any, of governmental authorities having jurisdiction over matters the
21 subject thereof.
22 Because of its status as an independent contractor, LESSOR shall have absolutely no
23 right to employment rights and benefits available to LESSEE'S employees. LESSOR shall be
24 solely liable and responsible for providing to, or on behalf of, its employees all legally-required
25 employee benefits. In addition, LESSOR shall be solely responsible and save LESSEE
26 harmless from all matters relating to payment of LESSOR'S employees, including compliance
27 with Social Security withholding and all other law and regulations governing such matters. It
28 is acknowledged that during the term of this Lease, LESSOR may be providing services to
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1 others unrelated to the LESSEE or to this Lease.
2 10. COMPLIANCE WITH ALL LAWS— If any work is undertaken at the Premises by
3 or on behalf of LESSOR, LESSOR shall comply with, and shall ensure compliance by all
4 contractors and subcontractors with, all applicable laws and regulations, including the payment
5 of prevailing wages pursuant to Section 1770 et. seq. of the Labor Code. Notwithstanding the
6 foregoing, neither this Lease nor either party contemplates LESSOR undertaking any
7 improvements to the Premises during the term of this Lease.
8 11. NON FUNDING TERMINATION - This LEASE is contingent on the allocation
9 of funds by a governmental agency. Should funds not be allocated, this LEASE may be
10 terminated by the Board of Supervisors at any time by giving at least thirty (30) days prior
11 written notice to LESSOR.
12 12. BREACH OF OBLIGATION TO MAINTAIN — In the event LESSOR breaches
13 its obligation to maintain the Premises as herein provided, LESSEE shall give written notice
14 to LESSOR within fifteen (15) days of the discovery of such breach. LESSOR shall then
15 have thirty (30) days from the date of such notice to cure its breach; however, if such default
16 continues beyond thirty (30) days after written notice thereof from LESSEE to LESSOR then
17 LESSOR will not be in default hereunder if within such thirty (30) day period, LESSOR
18 commences the curing of such default and diligently and in good faith prosecutes the same to
19 completion. If the period for cure expires and if, in LESSEE'S sole and reasonable
20 determination, LESSOR has failed to cure, then LESSEE may, at its election:
21 (A) terminate this LEASE by providing thirty (30) days prior written notice. In such
22 case, LESSEE shall have the right to demand LESSOR refund any monies
23 which, in the reasonable judgment of LESSEE, were paid to LESSOR
24 pursuant to the LEASE but which were not earned by LESSOR by
25 consequence of its breach. Upon receipt of such demand, LESSOR shall
26 promptly refund all such monies; or
27 (B) cure LESSOR'S breach and deduct the cost of such cure, together with
28 reasonable administrative costs, from LESSEE'S future rent obligation.
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1 LESSEE'S decision to cure LESSOR'S breach shall not constitute a waiver of
2 any rights or remedies that LESSEE may have arising from this LEASE or by
3 operation of law, except that LESSEE shall not have the right to terminate
4 described above with respect to the circumstances related to such cured
5 breach.
6 13. CONDEMNATION OR PROHIBITED USE — If the Premises, or any portion
7 thereof, is appropriated, condemned, or taken by any governmental authority or public agency
8 other than LESSEE by use or exercise of eminent domain proceedings or other proceedings,
9 or by inverse condemnation, or is sold under threat of use or exercise of eminent domain by
10 any governmental authority or public agency other than LESSEE, or if by reason of law,
11 ordinance, regulation, or court judgment, LESSEE's use or occupancy of the Premises, or
12 any portion thereof, shall be materially and adversely affected for the period set forth in
13 clause (i) below, but excluding therefrom any day that is not a LESSEE business day
14 (hereinafter collectively "Condemnation or Prohibited Use"), then LESSEE shall have the right
15 to do either of the following:
16 (i) If the Condemnation or Prohibited Use has a material adverse effect on
17 LESSEE's use and occupancy of the Premises and is reasonably anticipated
18 to impact such use in excess of ninety (90) days, then LESSEE may terminate
19 this LEASE by giving written notice thereof to LESSOR. Such notice shall
20 specify a date of termination of this LEASE not less than one hundred eighty
21 (180) calendar days, and not more than two-hundred ten (210) calendar days,
22 from the date of such notice, or from the date that LESSEE's use of the
23 Premises will be materially adversely affected pursuant to the notice LESSEE
24 receives from LESSOR of such appropriation, condemnation, taking, or sale
25 that shall prohibit LESSEE's use or occupancy of the Premises, or the affected
26 part thereof, whichever is earlier. The County Administrative Officer or the
27 Director of Internal Services/Chief Information Officer, or a designee of one of
28 them, shall have the authority to provide such notice on behalf of LESSEE.
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1 (ii) LESSEE may renegotiate with LESSOR with respect to the terms of any
2 amounts to be owed by LESSEE hereunder, including any portion or
3 installment of the Base Rent, when such are due and payable, and/or any
4 other amounts otherwise due and payable hereunder, for the remainder of
5 Premises not affected by such Condemnation or Prohibited Use during the
6 balance of the term of this LEASE. Any such renegotiated terms of the Base
7 Rent, and/or any other amounts otherwise to be due and payable herein shall
8 be sought in good faith and without unreasonable delay by the Parties, and
9 made only by written amendment, pursuant to Section 20, herein.
10 14. DESTRUCTION OR DAMAGE FROM CASUALTY— If the Premises are
11 damaged or destroyed as a result of fire, earthquake, act of God, or any other identifiable
12 event of a sudden, unexpected, or unusual nature (hereinafter"Casualty"), then LESSOR
13 shall either promptly and diligently repair the damage at its own cost, or terminate this Lease
14 as hereinafter provided. If LESSOR obtains any proceeds from the Property Insurance Policy
15 (as defined in Section 16 hereinbelow) that are not otherwise payable to any mortgagee or
16 beneficiary, and this Lease is not terminated as a result of such Casualty pursuant to the
17 terms hereof, then LESSOR shall promptly apply all of such insurance proceeds toward the
18 repair and restoration of the Premises pursuant to LESSOR's obligations under this Section
19 14.
20 (A) LESSOR'S Election to Repair: If LESSOR elects to repair the Casualty
21 damage to the Premises, then it shall within fifteen (15) days after the date of
22 Casualty or as soon as possible thereafter provide written notice (hereinafter
23 "Notice of Repair") to LESSEE indicating the anticipated time required to
24 repair. LESSOR shall bear the cost of all repairs to the Premises, including
25 the cost to repair any alterations or fixtures installed or attached thereto by
26 LESSEE. Such repairs shall restore the Premises to substantially the same
27 condition as that existing at the commencement of this LEASE; such repairs
28 shall also be made in compliance with all applicable state and local building
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1 codes. LESSOR shall not be liable to LESSEE for compensation for any
2 loss of business, or any inconvenience or annoyance arising from repair of
3 the Premises as a result of the Casualty except for rent reduction as
4 hereinafter provided. LESSEE shall be responsible at its sole cost and
5 expense for the replacement of its personal property.
6 (B) LESSOR'S Election to Terminate Due to Casualty: LESSOR may only elect
7 to terminate this LEASE due to Casualty if: the Premises have been
8 destroyed or substantially destroyed by said Casualty; and the estimated
9 time to repair the Premises exceeds sixty (60) days from the date of the
10 Casualty. LESSOR shall provide LESSEE with written notice of its election
11 to terminate within forty-five (45) days after the date of Casualty, specifying a
12 termination date not less than thirty (30) days from the date of said notice.
13 (C) Rent Reduction Due to Casualty: In the event of Casualty, LESSEE'S
14 obligation to pay rent shall be reduced beginning on the date of the Casualty.
15 Such reduction shall be proportional to the damage caused to the Premises
16 by the Casualty as reasonably determined by LESSEE. If LESSOR elects to
17 repair the Premises pursuant to the terms of this LEASE, to the extent the
18 premises remain unusable then the rent reduction shall continue until the
19 date of substantial completion of repair.
20 (D) LESSEE'S Election to Terminate Due to Casualty: If LESSEE does not
21 receive a Notice of Repair from LESSOR within fifteen (15) days or as soon
22 as reasonably possible after a Casualty, or if the anticipated period of repair
23 contained in the Notice of Repair exceeds ninety (90) days, then LESSEE
24 may elect to terminate this LEASE by providing thirty (30) days prior written
25 notice to LESSOR. In such case, LESSEE shall have the right to demand
26 that LESSOR refund any monies which, in the reasonable judgment of
27 LESSEE, were paid to LESSOR pursuant to the LEASE but which were not
28 earned by LESSOR by consequence of the Casualty. Upon receipt of such
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1 demand, LESSOR shall promptly refund all such monies.
2 15. HOLD HARMLESS — LESSOR will indemnify, defend, and hold LESSEE
3 harmless from and against any and all liabilities, claims, demands, actions, proceedings,
4 costs, expenses or damages of any kind or nature (collectively, "Claims") in any manner
5 directly or indirectly caused, occasioned or contributed to by reason of the negligence,
6 whether active or passive, of LESSOR or anyone acting under its direction or control or on its
7 behalf in connection with or incidental to the performance of LESSOR'S obligations pursuant
8 to this Lease.
9 LESSEE will indemnify, defend, and hold LESSOR harmless from and against any
10 Claims in any manner directly or indirectly caused, occasioned or contributed to by reason of
11 the negligence, whether active or passive, of LESSEE or anyone acting under its direction or
12 control or on its behalf in connection with or incidental to the performance of this Lease or any
13 Claims otherwise arising in connection with LESSEE'S use and occupancy of the Premises.
14 The parties acknowledge that as between LESSOR and LESSEE, each is
15 responsible for any Claims arising from the acts or omissions of its own employees and
16 invitees and notwithstanding anything to the contrary in this Section 15, each Party hereby
17 waives any claim for or right to consequential or punitive damages.
18 16. INSURANCE—
19 A. LESSOR shall maintain in full force and effect, the following insurance
20 policies throughout the term of the Lease:
21 1. Commercial General Liability - Commercial General Liability Insurance
22 covering the common areas located on the Premises with limits of not less
23 than Two Million Dollars ($2,000,000) per occurrence and an annual
24 aggregate of Four Million Dollars ($4,000,000). This policy shall be issued
25 on a per occurrence basis.
26 2. Property Insurance—A "Property Insurance Policy" which is defined herein
27 to mean a policy of special form, so called "all-risk" of physical loss
28 property insurance insuring against fire, theft, vandalism, malicious
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1 mischief, sprinkler leakage and such additional perils as are now or
2 hereafter may be included in broad form coverage (at LESSOR or
3 LESSEE's option or if otherwise required by LESSOR's mortgagee, if any,
4 also to include coverage against earthquake and flood) from time to time in
5 general use in the State of California covering the full replacement value of
6 all alterations, additions, partitions, improvements, machinery, equipment,
7 and fixtures made or placed by LESSEE in the Premises, covering the
8 Building and other improvements on the Premises, and covering any other
9 perils which LESSEE deems reasonably necessary and so requests to be
10 covered by written notice to LESSOR. The Property Insurance Policy shall
11 name LESSOR and the holder of any mortgage or deed of trust
12 encumbering the Premises (if any), as its interest may appear, as a loss
13 payee under such policy. The limits for such insurance shall be for not less
14 than the full replacement value of the Building as improved and existing as
15 of the date of Casualty (the "Minimum Insured Amount"). On the Delivery
16 Date, from time to time as LESSEE makes improvements to the Building,
17 upon LESSOR's request, and at such other times during the Term as
18 LESSEE elects in its discretion, LESSEE shall deliver to LESSOR written
19 notice of the Minimum Insured Amount and LESSOR shall communicate
20 such Minimum Insured Amount to its insurer. Neither LESSOR nor
21 LESSEE shall do or permit anything to be done which invalidates any such
22 insurance policies.
23 3. Rental Loss Insurance -A policy of rental interruption or rental loss
24 insurance against loss, total or partial, of the use and occupancy of the
25 Premises, in an amount sufficient to pay the Base Rent and Additional
26 Rent required to be paid by LESSEE hereunder for a twenty—four (24)
27 month period, as a result of any of the hazards covered by the Property
28 Insurance Policy required hereunder.
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1 4. Worker's Compensation -Worker's Compensation insurance, if required by
2 the California Labor Code.
3 LESSOR shall obtain endorsements to the Commercial General Liability
4 insurance naming the County of Fresno (hereinafter "County"), its officers, agents, and
5 employees, individually and collectively, as additional insured, but only insofar as the
6 operations under this Lease are concerned. This insurance shall not be cancelled or
7 changed without a minimum or thirty (30) days advance written notice given to County.
8 Within (30) days after the Effective Date, LESSOR shall provide certificates of
9 insurance and endorsement as stated above for all of the foregoing policies, as required
10 herein, to the County of Fresno, Attn: ISD Lease Services (L-324), 333 W. Pontiac Way,
11 Clovis, CA 93612 stating that such insurance coverages have been obtained and are in full
12 force; that such Commercial General Liability insurance names the LESSEE, its officers,
13 agents, and employees, individually and collectively, as additional insured as required herein
14 and that such insurance shall not be cancelled or changed without a minimum of thirty (30)
15 days advance, written notice given to LESSEE.
16 In the event LESSOR fails to keep in effect at all times insurance coverage as
17 herein provided, then LESSEE may, after thirty (30) days written notice to LESSOR, obtain
18 such insurance on LESSOR'S behalf and offset Base Rent by the amount of such insurance
19 premiums incurred by LESSEE after providing written notice of such amounts and proof of
20 insurance to LESSOR.
21 The costs incurred by LESSOR in obtaining and maintaining the insurance policies
22 required of LESSOR hereunder (including any deductibles payable in the event of a loss
23 covered by such policies) shall be referred to herein collectively as "LESSOR'S Insurance
24 Costs" and shall be reimbursable to LESSOR as Additional Rent in accordance with Section 3
25 hereinabove.
26 B. LESSEE shall maintain during the term of this Lease the following policies of
27 insurance, which coverages may be provided in whole or in part through one
28 or more programs of self-insurance (provided that any such self-insurance
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1 program shall not diminish or reduce LESSEE'S liability hereunder):
2 i. Commercial General Liability insurance with limits of not less than
3 Two Million Dollars ($2,000,000.00) per occurrence and an annual
4 aggregate of not less than Four Million Dollars ($4,000,000.00).
5 This policy shall be issued on an occurrence basis, shall name
6 LESSOR as additional insured, and shall be primary and non-
7 contributing as to occurrences and claims in connection with events
8 occurring within the Building (as opposed to in the common area of
9 the Premises for which LESSOR'S Commercial General Liability
10 policy shall be primary).
11 ii. All-Risk property insurance. A Special form casualty insurance
12 coverage which shall include fire and such other perils as are
13 customarily included in such insurance maintained by prudent
14 tenants leasing similar space in the same general area of the
15 Premises, in an amount adequate to cover the replacement cost of
16 (i) LESSEE'S merchandise, trade fixtures, furnishings, equipment
17 and other personal property of LESSEE located on or within the
18 Premises, and (ii) at LESSEE's option, the leasehold
19 improvements, alterations and additions to the Premises for which
20 LESSOR shall be named as a loss payee under such insurance,
21 provided however, the proceeds of such insurance shall be
22 delivered to and used by LESSOR to repair or replace the affected
23 leasehold improvements, alterations and additions, and if not so
24 used, shall be paid to LESSEE.
25 LESSEE shall provide copies of the insurance policies, appropriately authenticated by
26 the insurer, or original insurance certificates reasonably acceptable to LESSOR, evidencing
27 the insurance coverages called for above. Such copies of policies or certificates shall be
28 furnished to LESSOR upon execution of this Lease. The policies or certificates shall contain
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1 a provision that the insurer will not cancel or refuse to renew the policies, or change in any
2 material way the nature or extent of the coverage provided by such policies without first giving
3 LESSOR thirty (30) days prior written notice. Thirty (30) days prior to expiration of any
4 policies of insurance carried by LESSEE, LESSEE shall provide proof of continuing coverage.
5 5. Waiver of Subrogation. Neither LESSOR nor LESSEE shall be liable to the
6 other or to any insurance company (by way of subrogation or otherwise)
7 insuring the other party for any loss or damage to any building, structure or
8 other tangible property, or any resulting loss of income and benefits, even
9 though such loss or damage might have been occasioned by the
10 negligence of such party, its agents or employees, if any such loss or
11 damage is covered by insurance benefiting the party suffering such loss or
12 damage or was required to be covered by insurance pursuant to this
13 Lease. LESSOR and LESSEE shall require their respective insurance
14 companies to include a standard waiver of subrogation provisions in their
15 respective policies.
16 All policies hereunder shall be with admitted insurers licensed to do business in the
17 State of California. Insurance purchased shall be purchased from companies possessing a
18 current AM Best Company rating of A FSC VII or better.
19 17. SURRENDER OF POSSESSION / HOLDOVER— Upon the expiration or
20 termination of this Lease, LESSEE will surrender the Premises to LESSOR broom clean and
21 otherwise in such condition as existing on the Rent Commencement Date, less reasonable
22 wear and tear, but including all improvements made by LESSEE. If LESSEE holds over after
23 the expiration of the term or earlier termination thereof, with or without the express or implied
24 consent of LESSOR, such tenancy shall be tenancy at sufferance only, and shall not
25 constitute a renewal hereof or an extension for any further term, and in such case LESSEE
26 shall pay one hundred three percent (103%) of the Base Rent in effect just prior to expiration
27 or termination, until either party gives the other thirty (30) days written notice of termination,
28 reciting therein the effective date of cancellation. LESSOR hereby expressly reserves the
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1 right to require LESSEE to surrender possession of the Premises to LESSOR as provided in
2 this Lease upon the expiration or other termination of this Lease. The provisions of this
3 Section 17 shall not be deemed to limit or constitute a waiver of any other rights or remedies
4 of LESSOR provided herein or at law.
5 18. FIXTURES — LESSOR agrees that any equipment, fixtures or apparatus
6 installed in or on the Premises by LESSEE shall continue to be the property of LESSEE and
7 may be removed by LESSEE at any time. LESSEE shall pay for the repair of any damage
8 caused by the removal of fixtures. Any fixtures not removed after LESSEE surrenders
9 possession shall be deemed abandoned by LESSEE and become the property of LESSOR.
10 19. RIGHT OF ENTRY — LESSOR, or its representative(s), upon twenty-four (24)
11 hour notice, or immediately in the event of an emergency, shall have the right to enter the
12 Premises at any time during business hours, or at such other time as LESSEE deems
13 appropriate, to make any alterations, repairs or improvements to the Premises. The normal
14 business of LESSEE or its invitees shall not be unnecessarily inconvenienced. In the event
15 of an emergency, LESSOR may enter the Premises at any time without giving prior notice to
16 LESSEE.
17 20. AMENDMENT—This Lease may be amended in writing by the mutual consent
18 of the parties without in any way affecting the remainder of this Lease.
19 21. NON-ASSIGNMENT—Neither Party shall assign, transfer or sub-let this LEASE,
20 or the rights or duties under this LEASE, without the prior written consent of the other Party,
21 which consent shall not be unreasonably withheld or denied, except that LESSOR may sell or
22 refinance the Premises or any part thereof, in which case LESSOR shall promptly notify
23 LESSEE in writing of such sale or refinancing. .Further, in the event of any such assignment,
24 sublease or transfer of LESSEE's rights or obligations hereunder, the originally named LESSEE
25 hereunder(i.e., the COUNTY OF FRESNO, a political subdivision of the State of California)
26 shall remain fully and primarily liable for all duties and obligations of LESSEE under this
27 Lease.
28 22. GOVERNING LAW—Venue for any action arising out of or relating to this
COUNTY OF FRESNO
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1 Lease shall be in Fresno County, California. This Lease shall be governed by the laws of the
2 State of California.
3 23. NOTICES —All notices to be given under this Lease by either Party to the
4 other Party shall be in writing, and given by any one of the following methods:
5 (i) Personal delivery to the applicable address as set for below; or
6 (ii) Sent by certified United States mail, first class postage prepaid, with
7 return receipt requested, to the applicable addresses as set forth below, in which case such
8 notice shall be deemed given three (3) business days if LESSOR is the recipient, or three (3)
9 days if LESSEE is the recipient, after such deposit and postmark with the United States
10 Postal Service; or
11 (iii) Sent by a reputable overnight commercial courier, in which case such
12 notice shall be deemed given one (1) business day if LESSOR is the recipient, or one (1) day
13 if LESSEE is the recipient, after such deposit with that courier to the applicable addresses as
14 set forth below.
15 The addresses and telephone numbers of the Parties for purposes of giving
16 receiving notices under this Lease are as follows:
17
LESSEE: LESSOR:
18
County of Fresno Pontiac 7, LLC, a limited liability
19 Jean M. Rousseau company
County Administrative Office (CAO) Attn: Clayton Medina
20 2281 Tulare Street, Suite 304 2780 N. Miami Ave., Ste. 10
Hall of Records Fresno, CA 93727
21 Fresno, CA 93721 (559) 346-1400
22 (559) 600-1710
23 with copies to:
County of Fresno
24 Robert W. Bash (L-324)
Director of Internal Services
25 333 W. Pontiac Way
Clovis, CA 93612
26 (559) 600-6200
27
28 Bryan W. Burton
Sr. Staff Analyst
333 W. Pontiac Way
COUNTY OF FRESNO
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Clovis, CA 93612
1 (559) 600-5647
2 Provided however, such notices may be given to such person or at such other place as
3 either of the Parties may from time to time designate by giving written notice to the other Party,
4 and provided further however, in any event notices of changes of address or termination of this
5 Lease shall not be effective until actual delivery of such notice. Notices given
6 hereunder shall not be amendments or modifications to this Lease.
7 24. DISCLOSURE OF SELF DEALING TRANSACTIONS —This provision is only
8 applicable if the LESSOR is operating as a corporation (a for-profit or non-profit corporation)
9 or if during the term of this Lease, the LESSOR changes its status to operate as a
10 corporation.
11 Members of LESSOR'S Board of Directors shall disclose any self-dealing transactions
12 that they are a party to while LESSOR is providing goods or performing services under this
13 Lease. A self-dealing transaction shall mean a transaction to which the LESSOR is a party
14 and in which one or more of its directors has a material financial interest. Members of the
15 Board of Directors shall disclose any self-dealing transactions that they are a party to by
16 completing and signing a Self-Dealing Transaction Disclosure Form Attachment "D", attached
17 hereto and by this reference incorporated herein, and submitting it to the County of Fresno
18 prior to commencing with the self-dealing transaction or immediately thereafter.
19 25. SUCCESSORS —This Lease shall inure to the benefit of and be binding upon
20 the heirs, executors, administrators, successors and assigns of the respective parties hereto,
21 always providing that nothing in this Section 25 shall impair any of the provisions herein
22 above set forth prohibiting assignment or other transfer of this Lease by LESSEE without the
23 prior written consent of LESSOR.
24 26. LESSEE'S DEFAULT AND LESSOR'S REMEDIES —
25 A. LESSEE'S Default. LESSEE shall be in default under this Lease if LESSEE
26 fails to perform any of its obligations hereunder and (i) if the failure is in the
27 payment of Base Rent, or any other failure which can be cured by the payment
28 of money, the failure continues uncured for a period of five (5) days after
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1 written notice thereof from LESSOR (provided, however, LESSOR shall have
2 no obligation to provide such written notice more than two (2) times in any
3 twelve (12) consecutive month period), or (ii) if the failure is in any of the other
4 provisions of this Lease and such failure continues uncured for a period of
5 thirty (30) days after written notice thereof from LESSOR, unless such cure is
6 not capable of completion within thirty (30) days, in which case LESSEE shall
7 be afforded such additional time as may be reasonably necessary to complete
8 the cure provided LESSEE commences the cure within thirty (30) days of
9 LESSOR'S notice and diligently pursues such cure to completion, or, in the
10 event of a threatened injury to life or property due to such failure, continues for
11 such lesser period as LESSOR may specify in such written notice.
12 B. LESSOR'S Remedies. In the event of a default by LESSEE then, besides any
13 other rights and remedies of LESSOR at law or equity, LESSOR shall have the
14 following rights and remedies. All remedies herein conferred on LESSOR
15 shall, to the fullest extent permitted by law, be deemed cumulative and no one
16 exclusive of the other or of any other remedy conferred by law or in equity, and
17 nothing herein shall prevent LESSOR from pursuing any and all other
18 remedies it may have upon LESSEE'S default.
19 1. Election to Continue or Terminate Lease. LESSOR shall have the right to
20 elect either to continue or terminate this Lease, as follows:
21 (a) Continuation of Lease. LESSOR shall have the remedy described
22 in California Civil Code Section 1951.4 (LESSOR may continue this
23 Lease in effect after LESSEE'S breach and abandonment and
24 recover rent as it becomes due, if LESSEE has the right to sublet or
25 assign, subject only to reasonable limitations). Accordingly, if
26 LESSOR does not elect to terminate this Lease on account of any
27 default by LESSEE, LESSOR may, from time to time, without
28 terminating this Lease, enforce all of its rights and remedies under
COUNTY OF FRESNO
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1 this Lease, including the right to recover all Rent as it becomes due.
2 (b) Termination of Lease. LESSOR shall have the right to terminate
3 this Lease, by giving written notice of termination to LESSEE or, if
4 LESSEE'S address is unknown, by posting such notice on the
5 Premises. Absent such written notice, no acts of LESSOR
6 (including entering, repairing, preparing to re-let, or re-letting the
7 Premises) shall be construed as an election to terminate the Lease.
8 In the event that LESSOR elects to terminate this Lease, then
9 LESSOR shall be entitled to its statutory unlawful detainer remedy.
10 No Event of Default. Notwithstanding anything herein to the contrary, LESSEE shall
11 NOT be in default under this LEASE solely because of the failure to pay any amounts to be
12 owed by LESSEE hereunder — including any portion or installment of the Base Rent, when
13 they are to be due and payable herein, and/or any other amounts otherwise due and payable
14 herein—to the extent such amounts are subject to abatement as set forth in Section 30,
15 hereinbeiow.
16 No Acceleration of Future Rent or Other Payments/Amounts. Notwithstanding anything
17 to the contrary contained herein this Lease or any right or remedy of which LESSOR may
18 otherwise avail itself pursuant to applicable law, any right of LESSOR to recover any rents
19 (including Base Rent and Additional Rent) and/or any other amounts to be paid by LESSEE as
20 provided in this Lease shall be without acceleration of any future Base Rent and/or any future
21 Additional Rent, and/or any other amounts to be paid by LESSEE herein, before they are due
22 and payable hereunder. LESSOR hereby expressly waives its right to accelerate rent in the
23 event of a termination of this Lease pursuant to California Civil Code section 1951.2.
24 27. WAIVER— No covenant or condition of this Lease shall be deemed waived,
25 except by the written consent of LESSOR or LESSEE, as appropriate, and any forbearance
26 or indulgence by the party entitled to performance shall not constitute a waiver of the
27 covenant or condition to be performed. Until complete performance of such covenant or
28 condition, the party entitled to performance shall have the right to invoke any remedy
COUNTY OF FRESNO
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1 available to it under this Lease or by law, despite such forbearance or indulgence. The
2 subsequent acceptance of Rent hereunder by LESSOR shall not be deemed to be a waiver of
3 any preceding default by LESSEE of any term, covenant or condition of this Lease, other than
4 the failure of LESSEE to pay the particular Rent so accepted, regardless of LESSOR'S
5 knowledge of such preceding default at the time of acceptance of such Rent.
6 28. LATE CHARGES — LESSEE hereby acknowledges that late payment by
7 LESSEE to LESSOR of Rent or other sums due hereunder shall cause LESSOR to incur
8 costs not contemplated by this Lease, the exact amount of which will be extremely difficult to
9 ascertain. Such costs include, but are not limited to, processing and accounting charges.
10 Accordingly, if any installment of Rent or any other sums due from LESSEE shall not be
11 received by LESSOR or LESSOR'S assignee within forty-five (45) days after the date due,
12 then LESSEE shall pay to LESSOR a late charge equal to three (3%) percent of such
13 overdue amount plus any attorney's fees incurred by LESSOR by reason of LESSEE'S failure
14 to pay Rent and/or other sums when due hereunder; provided that any payment postmarked
15 by the 5th of the month shall be presumed to be mailed in a timely manner. The parties
16 hereby agree that such late charge represents a fair and reasonable estimate of the cost that
17 LESSOR will incur by reason of the late payment by LESSEE. Acceptance of such late
18 charges by LESSOR shall in no event constitute a waiver of LESSEE'S default with respect to
19 such overdue amounts, nor prevent LESSOR from exercising any of the other rights and
20 remedies granted hereunder. In addition, LESSEE shall pay to LESSOR interest at the
21 Interest Rate on any delinquent payments, commencing ninety (90) days after the date
22 payment was due and continuing until paid.
23 29. INTEREST—Any amount owing from one party to the other under this Lease
24 which is not paid within ninety (90) days of the date when due shall thereafter bear interest at
25 the Interest Rate. As used herein, the term "Interest Rate" means a per annum rate of
26 interest equal to the lesser of (i) five percent (5%) per annum over the then most recent
27 annual prime or reference rate of interest announced by Bank of America N.A. (or in the event
28 Bank of America N.A. ceases to publish a prime or reference rate, the prime rate of a
COUNTY OF FRESNO
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1 comparable national banking institution reasonably agreed upon by the parties), or(ii) the
2 maximum rate permitted by applicable law.
3 30. ABATEMENT OF BASE RENTS, AND OTHER PAYMENTS - Notwithstanding
4 anything to the contrary in this LEASE, (i) LESSEE's obligations to pay the Base Rent, and/or
5 any other amounts otherwise due and payable hereunder to LESSOR shall be abated during
6 any period, and to the extent, that the Premises, or any portion thereof(in the case of an
7 affected portion of the Premises, then, such abatement shall also be in proportion thereof),
8 cannot be used and occupied by LESSEE pursuant to this LEASE as a result of any title
9 defect (excluding any permitted encumbrances at execution date), or of any Condemnation or
10 Prohibited Use of the Premises, or any portion thereof, and (ii) any abatement of any Base
11 Rent, and/or other amounts otherwise due and payable, herein pursuant to this Section shall
12 not be deemed to be a default under this LEASE on the part of LESSEE.
13 Abatement of any Base Rent, and/or of any other amounts otherwise due and payable
14 hereunder shall only suspend the period during which LESSEE is otherwise required to pay
15 Base Rent, and/or any other amounts otherwise due and payable, hereunder to LESSOR,
16 and shall not relieve LESSEE from subsequently paying the remainder of all such Base Rent ,
17 and/or any other amounts otherwise due and payable herein, pursuant to this LEASE once
18 the condition giving rise to the abatement has been cured, corrected, eliminated, or
19 satisfactorily resolved. Such abatement shall continue for the period commencing with the
20 date of such title defect referred to in this Section 30, or of any Condemnation or Prohibited
21 Use of the Premises, or any portion thereof, and ending with the cure, correction, elimination
22 or satisfactory resolution of the title defect whereby LESSEE may use and occupy the
23 Premises, or the adversely affected portion thereof, pursuant to this LEASE. Cure, correction,
24 elimination or satisfactory resolution may, upon prior mutual written approval of LESSOR and
25 LESSEE (which the parties will negotiate in good faith and without unreasonable delay),
26 occur in commercially reasonable stages, as determined by the nature of the problem being
27 remedied and the impact that such staged remedial action and the coordination and timing
28 thereof would have on LESSEE, LESSEE's Director of Internal Services/Chief Information
COUNTY OF FRESNO 21
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1 Officer, or his/her designee, shall be authorized to execute such written approval for LESSEE.
2 The monthly Base Rent, and any other amounts otherwise due and payable
3 hereunder, by LESSEE to LESSOR with respect to the Premises, or any portion thereof, shall
4 be abated to the extent that the amount of the monthly fair rental value of the portion of the
5 Premises in respect of which there is no substantial interference with LESSEE's use and
6 occupancy of the Premises is less than the amount of monthly Base Rent and any other
7 amounts otherwise due and payable hereunder, in which case the monthly Base Rent and
8 any other amounts otherwise due and payable hereunder shall be abated only by an amount
9 equal to the difference thereof.
10 During the occurrence of any Casualty which is covered by rental interruption
11 insurance or rental loss insurance (See Section 16A(3) herein) the proceeds of any rental
12 interruption insurance or rental loss insurance that LESSOR may receive as a result of such
13 Casualty shall be applied by LESSOR, to the credit of LESSEE, for any monthly Base Rent,
14 and any other amounts otherwise due and payable hereunder; in such instance of such
15 amounts so received, LESSOR shall so inform LESSEE of any such amounts so received.
16 Nothing contained in this Section 30 shall obligate LESSEE for payments of Base
17 Rent, and/or any other amounts otherwise due and payable hereunder if this LEASE is
18 terminated pursuant to Section 11 herein.
19 31. LESSOR EXCULPATION — It is expressly understood and agreed that
20 notwithstanding anything in this Lease to the contrary, and notwithstanding any applicable law
21 to the contrary, the liability of LESSOR and the LESSOR'S members, owners, agents,
22 employees, and partners (including any successor landlord) (collectively, the "LESSOR
23 Parties") and any recourse by LESSEE against LESSOR or the LESSOR Parties shall be
24 limited solely and exclusively to an amount which is equal to the ownership interest of
25 LESSOR in the Building in which the Premises is located (excluding any proceeds thereof),
26 and neither LESSOR, nor any of LESSOR's members shall have any personal liability
27 therefor, and LESSEE hereby expressly waives and releases such personal liability on behalf
28 of itself and all persons claiming by, through or under LESSEE.
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1 32. ENERGY CONSUMPTION DISCLOSURE — If LESSEE (or any party claiming
2 by, through or under LESSEE) pays directly to the provider for any energy consumed at the
3 Premises, LESSEE shall, promptly upon request, deliver to LESSOR (or, at LESSOR'S
4 option, execute and deliver to LESSOR an instrument enabling LESSOR to obtain from such
5 provider) any data about such consumption that LESSOR, in its reasonable judgment, is
6 required to disclose to a prospective buyer, tenant or mortgagee or prospective mortgagee
7 under California Public Resources Code § 25402.10 or any similar law.
8 33. COUNTERPARTS—This Lease may be executed in one or more counterparts
9 (which may be facsimile or .pdf e-mail counterparts followed by originals), each of which will
10 be deemed an original and all, taken together, will constitute one and the same instrument.
11 34. FORCE MAJEURE — In the event that either party hereto shall be delayed or
12 hindered in or prevented from the performance of any act required hereunder by reason of
13 strikes, lockouts, adverse weather (including rain), inability to procure labor or materials,
14 failure of power, restrictive governmental laws or regulations, riots, insurrection, war, fire or
15 other casualty or other reason of a similar nature beyond the reasonable control of the party
16 delayed in performing work or doing the act required under the terms of this Lease, then
17 performance of such act shall be excused for the period of the delay and the period from the
18 performance of any such act shall be extended for a period equivalent to the period of such
19 delay (any such delay is herein referred to as an "Force Majeure Delay"). In no event shall
20 LESSEE'S inability to satisfy a monetary obligation hereunder constitute or be subject to
21 Force Majeure Delay.
22 35. ESTOPPEL CERTIFICATE — LESSEE shall, at any time upon not less than
23 thirty (30) days prior request by LESSOR, execute, acknowledge and deliver to LESSOR a
24 written estoppel certificate, in a form satisfactory to LESSOR, certifying that this Lease is
25 unmodified and in full force and effect (or, if there have been modifications, that the same is in
26 full force and effect as modified and stating the modifications) and, if applicable, the dates to
27 which the Rent and any other charges have been paid in advance. Any such statement
28 delivered pursuant to this Section 35 may be relied upon by third persons, including a
i
COUNTY OF FRESNO
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1 prospective purchaser or encumbrancer of the Premises.
2 LESSEE'S failure to execute and deliver an estoppel certificate within thirty (30) days
3 after LESSEE'S receipt of LESSOR'S written request therefore shall be conclusive upon
4 LESSEE that this Lease is in full force and effect, without modification except as may be
5 represented by LESSOR, that there are no uncured defaults in LESSOR'S performance, that
6 not more than one month's rental has been paid in advance, and that all other statements
7 required to be made in the estoppel certificate are conclusively made.
8 36. SUBORDINATION AND ATTORNMENT—At LESSOR'S option, this Lease
9 shall be subordinated to any mortgage or deed of trust which is now or shall hereafter be
10 placed upon the Premises, and LESSEE agrees to execute and deliver any instrument which
11 may be necessary to further effect the subordination of the Lease to any such mortgage or
12 deed of trust; provided, however, that such instrument of subordination shall provide, or the
13 mortgagee or beneficiary of such mortgage or deed of trust otherwise shall agree in writing in
14 recordable form delivered to LESSEE, that the mortgagee or beneficiary, including their
15 successors and assigns, recognize LEESSE's leasehold interest under this Lease and that so
16 long as LESSEE is not in default under this Lease, foreclosure of any such mortgage or deed
17 of trust or sale pursuant to exercise of any power of sale thereunder, or deed given in lieu
18 thereof, shall not affect this Lease but such foreclosure or sale, or deed given in lieu thereof,
19 shall be made subject to this Lease which shall continue in full force and effect, binding on
20 LESSEE, as lessee, and the transferee, as lessor. LESSEE shall attorn to the transferee as if
21 said transferee was LESSOR under this Lease.
22 37. AUTHORITY— Each individual executing this Lease on behalf of LESSOR
23 represents and warrants that the individual(s) executing this Lease on behalf of LESSOR are
24 duly authorized to execute and deliver this Lease on behalf of Pontiac 7 LLC, a limited liability
25 company and that this Lease is binding upon Pontiac 7 LLC, a limited liability company in
26 accordance with its terms.
27 38. ENTIRE AGREEMENT— This Lease constitutes the entire Lease between the
28 LESSOR and LESSEE with respect to the subject matter hereof and supersedes all prior
COUNTY OF FRESNO
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1 leases, negotiations, proposals, commitments, writings, advertisements, publications, and
2 understandings of any nature whatsoever unless expressly referenced in this Lease.
3
4
5 [SIGNATURES ON FOLLOWING PAGE(S)]
6
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1 EXECUTED as of the EFFECTIVE DATE.
2 LESSOR: LESSEE:
3 Pontiac 7, LLC, a limited liability COUNTY OF FRESNO
4 company,
5 B �
Y
6 B Brian Pacheco, Chairman
Cl t n Medina, CFcv Board of Supervisors
7
8 Date: nt 01M UQ1A, I to 30 t`(
9 ATTEST: BERNICE E. SEIDEL, CLERK
BOARQ n, F SUPf RVISORS
10 By:
Deputy
11
APPROVED AS TO LEGAL FORM:
12 DANIEL C. CEDERBORG, COUNTY
13 COUN EL
14 By. �
eputy
15 APPROVED AS TO ACCOUNTING FORM:
16 OSCAR J. GARCIA, CPA
AUDITOR-CONTROLLER/TREASURER-
17 TAX COLLECTOR
18 By: 6
�t
J
19
R ED FOR A ROYAL:
20
21 Robert W. Bash, Director of
Internal Services/Chief Information
22 Officer
23
24 RECgD
ED F RAP ROVAL:
25 0001 J '0' By.
16 ° 06 I7
' o . eira, Dire or of
�'��� Social Se ices
26 5'�, 6 0� c7tr� �c-Crc�k
27 7 3 40 i4L4,Cb VN
w/ 4D
28 P�n�tsc �arP
COUNTY OF FRESNO
Fresno,California 26
ATTACHMENT "A"
Premises Map
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Attachment "B"
Maintenance
Operating Budget
Services Per Sq Ft Monthly Annually
Utilities $ 0.182 $ 27,589.93 $ 331,079.11
Property Taxes $ 0.140 $ 21,223.02 $ 254,676.24
Landscaping $ 0.029 $ 4,396.20 $ 52,754.36
Maintenance $ 0.055 $ 8,337.62 $ 100,051.38
Pest Control $ 0.001 $ 151.59 $ 1,819.12
Management $ 0.061 $ 9,247.17 $ 110,966.08
Insurance $ 0.042 $ 6,366.91 $ 76,402.87
Janitorial Service $ 0.101 $ 15,310.89 $ 183,730.72
Janitorial Supplies $ 0.032 $ 4,850.98 $ 58,211.71
Total $ 0.643 $ 97,474.30 $1,169,691.59
ATTACHMENT "C"
Premises Services Agreement
Landscape
1. Maintenance of all Landscaped areas on the Premises
2. All Tree Maintenance
3. Plant replacement
Parking Lot
1. Contract Vacuuming
a. 1 x a month sweeping of all parking lot stalls
2. Resurfacing or repaving
Exterior Building Maintenance
1. Pressure Washing to be performed
a. 2 x year-Window washing all floors
b. 1 x month -Window Washing for 1 st floor windows only
2. Painting
a. Graffiti removal as needed
3. Pest Control
a. 1 x month, exterior only—Treat and spray the outside of the building
4. Common Area Repairs
a. Vandalism repairs as needed
5. Roof Repairs
Janitorial
1. Daily:
a. Vacuum all carpeted areas
b. Sweep and/or dry mop floors
c. Dust cleared desk and table surfaces, clean counters
d. Empty all waste baskets and dispose of trash in appropriate trash bins
e. Clean smudges and unsightly appearances form door jambs, light switches,
glass partitions, and counters
f. Clean and sanitize all sinks, toilets, and urinals
g. Clean all restroom mirrors, tile and splash walls
h. Spot clean restroom walls and partitions
i. Refill supplies in Restrooms (paper towels, toilet tissue, soap, etc.)
2. Monthly:
a. Dust all blinds and sills
3. Perform as Required:
a. Wet mop floors
b. Remove interior cobwebs
c. Dust wall picture frames and partition tops
d. High dust, including walls, light fixtures, vents and ledges above normal reach,
door ledges
e. Wash/clean light fixtures, walls, A/C vents
L-324-D55 Building 7 Attachment C.Doa
f. Dust/clean baseboards
g. Spot clean carpets
h. Steam clean all carpets
i. Strip and wax all vinyl and tile flooring
j. Clean Interior windows
HVAC
1. Contract Maintenance
a. Quarterly Service Agreement
Interior Building Maintenance
1. Electrical Repairs
2. Plumbing
a. Service calls
i. Urinal
ii. Toilet
iii. Fixture repairs
3. Elevator Contract Maintenance
a. Cost is based on two elevators
b. Service to be performed quarterly
Vendors
1. Lessee shall have the right to approve all vendors.
On-Site Management
1. Property Management available upon request
2. 1 x week- Property Management assessment of interior and exterior of building visits
with lead personnel
3. Property Management or their representative will visit the building on a daily basis
Monday through Friday.
Utilities
1. Utility- Gas-Tenant pays direct to PG&E
2. Utility- Electric-Tenant pays to LESSOR
3. Elevator Phone Line
a. To allow access to make emergency calls in case of an entrapment
Fire Safety
1. Maintenance of Fire Alarm System
a. Testing system on quarterly basis per FFD regulations
b. Testing system on a yearly basis per FFD regulations
c. Testing system on a 5-year basis per FFD regulations
2. Fire System Phone Line
a. Phone line to ensure fire alarm system is active and able to communicate to
central monitoring station
2
L-324-D55 Building 7 Attachment C.Doa
Insurance
1. Property Insurance based on then current Building value
2. General Liability
3. Other coverages, including earthquake insurance
Property Taxes
1. Property taxes and assessments
Operating Expenses
1. Operating expenses shall be considered Additional Rent under the Lease.
2. Additional rent shall be paid by Lessee on or about the 1 st of the month along with monthly
Base Rent. Each payment shall be equal to 1/12t" of the annual budget.
3. Lessor shall endeavor to deliver to Lessee an annual good faith Operating Expense
budget at least 120 days prior to the start of the next calendar year.
4. Within 90 days after the year is completed, Lessor shall submit to Lessee a reconciliation
of the actual Operating Expenses.
5. Any overpayment of Operating Expenses shall, at Lessor's option, either be refunded to
Lessee within thirty(30) days after Lessor's delivery of the statement setting forth such
amount OR credited against Lessee's installment(s) of the rent next becoming due under
this Lease. Any underpayment shall be paid by Lessee to Lessor within 45 days.
Modification to Agreement
This agreement may be modified upon the mutual agreement of both parties.
Management Fee
Lessee shall pay a 9.5% Management Fee to Lessor on all expenses.
Repairs
Lessor shall make any necessary repairs and replacements during the course of the life
of the lease of every kind and nature and which shall be considered an operating
expense.
All repairs, replacement, maintenance, restoration or operation of the building and on
any floor or conference room are considered as part of this agreement and will be an
operating expense whether paid or incurred and without any limitation.
Term of Agreement
The term of this agreement will be for the life of the Lease.
Termination of Agreement
This Premises Services Agreement or any portion thereof may be terminated by Lessee
with a 60-day notice for cause.
3
L-324-DSS Building 7 Attachment C.Docc
*To the extent Lessor and Lessee agree upon modifications to the services to be provided by
Landlord pursuant hereto, the budget shall be modified to reflect such modifications and Tenant's
estimated monthly payment shall be adjusted accordingly.
4
L-324-DSS Building 7 Attachment C.Doa
1 ATTACHMENT "D"
2
3 SELF-DEALING TRANSAC110N DISCLOSURE FORM
4 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"),
5 must disclose any self-dealing transactions that they are a party to while providing goods,
6 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
7 which one or more of its directors has a material financial interest"
8 The definition above will be utilized for purposes of completing this disclosure form.
9
INSTRUCTIONS
10
(1) Enter board member's name, job title (if applicable), and date this disclosure is being
11 made.
12 (2) Enter the board member's company/agency name and address.
13 (3) Describe in detail the nature of the self-dealing transaction that is being disclosed to
14 the County. At a minimum, include a description of the following:
a. The name of the agency/company with which the corporation has the
15 transaction; and
16 b. The nature of the material financial interest in the Corporation's transaction
that the board member has.
17
(4) Describe in detail why the self-dealing transaction is appropriate based on
18 applicable provisions of the Corporations Code.
19 (5) Form must be signed by the board member that is involved in the self-dealing
20 transaction described in Sections (3) and (4).
Mail the completed form to: County of Fresno
21 Attn: Lease Services (L-324)
22 Internal Services Department
333 W. Pontiac Way
23 Clovis, CA 93612
24
25
26
27
28
COUNTY OF FRESNO
Fresno,California 27
1 (1)Company Board Member Information:
2 Name: Date:
Job Title:
3 (2)Company/Agency Name and Address:
4
5
6
7
8 (3)Disclosure(Please describe the nature of the self-dealing transaction you are a party to):
9
10
11
12
13
14
15
16
17
18
4)Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233
19 (a):
20
21
22
23
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25 (5)Authorized Signature
26 Signature: Date:
27
28
COUNTY OF FRESNO
Fresno,California 28