HomeMy WebLinkAboutL-167 Agree Current Signed AGT 01-130.PDF1
2
LEASE AGREEMENT
//it #-/tfJ72
ri-',y/ o/-/..?o
L-167
HSS
3 THIS IS A LEASE, dated ll.fll ~ \] , 2001, between FRESNO-MADERA AREA
4 AGENCY ON AGING, a special district of local government, 2220 Tulare Street, 12th Floor,
5 Fresno, California 93721, hereinafter called "LESSOR", whether one or more, and the COUNTY
6 OF FRESNO, a political subdivision of the State of California, 2220 Tulare Street, 16th Floor,
7 Fresno, CA 93721, hereinafter called the "LESSEE."
8 WHEREAS, the COUNTY is in need of leased premises sufficient to accommodate
9 programs of the Human Services System and all ancillary services associated therewith; and,
10 WHEREAS, LESSOR represents it currently owns property located at 2025 E. Dakota
11 Avenue and 3821 N. Clark, Fresno, California; and,
12 WHEREAS, LESSOR will make all necessary improvements to the subject property to
13 accommodate the Human Services System and all ancillary services prior to the
14 commencement of the Lease term hereunder.
15 NOW, THEREFORE, the parties hereto agree as follows:
16 1. LEASED PREMISES -LESSOR leases to LESSEE approximately 29,939 square
17 feet of office space located on the 2nd and 4th floors of the SR. Resource Center located at 2025
18 E. Dakota Avenue, and the 16,188 square foot Medical Mall located at 3821 N. Clark, Fresno,
19 CA, for a total of 46, 127 square feet, and the non-exclusive right, in common with the other
20 tenants of the Buildings, to use the parking lots, except the parking lot directly in front of the Sr.
21 Resource Center entrance facing Dakota Avenue. LESSOR shall provide an enclosed locked
22 parking area for 10 County cars/ vans, collectively hereinafter referred to as the "premises."
23 2. IMPROVEMENTS TO PREMISES -Upon execution of this Lease by all parties,
24 LESSOR shall prepare final drawings, plans and specifications for tenant improvements to the
25 Premises necessary for its use for the Human Services System and ancillary services
26 associated therewith. The drawings, plans and specifications shall be approved in writing by the
27 Director of the Human Services System, or his authorized appointee, prior to the
28 commencement of construction of tenant improvements by LESSOR. Any modifications to the
COUNTY OF FRESNO
Fresno. California 1
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
~resno, Cahforrua
drawings, plans and specifications must be approved in writing by both LESSOR and the
Director of the Human Services System.
Subject to LESSEE'S obligation to pay LESSOR for the cost of said tenant
improvements, LESSOR shall make the tenant improvements according to the drawings, plans
and specifications approved by the Director of the Human Services System. LESSOR shall
provide all labor, material and equipment for the completion of the above-mentioned work in
strict accordance with the approved plans and specifications. LESSEE shall pay LESSOR the
actual cost of such improvements, but in no event more than $1,288,450. In the event LESSEE
wishes for LESSOR to construct tenant improvements in the Premises costing in excess of
$1,288,450, LESSEE shall be obligated to pay such excess amount to LESSOR prior to
LESSOR'S commencing construction of the tenant improvements. In the construction of these
tenant improvements, 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.
LESSEE shall pay LESSOR the actual cost of such tenant improvements, but in no
event more than $1,288,450, which LESSEE shall pay to LESSOR monthly as detailed in
Paragraph 5 below. In addition, LESSOR shall be responsible for removing all equipment and
patching and painting the walls of the Premises at LESSOR'S sole cost. :, A \e 4 f r ( Zlx)l
() c c •J-ra ("IC'tf v ----
3. TERM -The primary Lease term shall commence on January 1, 2002, or two (2)
weeks after the City of Fresno issues an occupancy permit after the completion of the
improvements mentioned in Paragraph 2 in accordance w1th the approved drawings, plans and
specifications, whichever 1s later, and shall end fifteen ( 15) years thereafter. Should LESSEE
retain possession after the Lease Agreement is terminated as provided in Clause Nos. 9. 12, 16
and 18, LESSEE shall become a tenant on a month to month basis on the same terms and
conditions as here1n provided.
4. DELAY IN POSSESSION-LESSOR agrees to use reasonable efforts to complete
promptly the tenant improvement work described in Paragraph 2 of the Lease within nine (9)
months of Lease execution. However, LESSOR shall not be liable for any damages caused by
2
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
F-resno, California
any delay in the completion of such work, nor shall any such delay affect the validity of this
Lease or the obligations of LESSEE hereunder. LESSOR and LESSEE agree that this Lease
may be terminated by LESSEE, however, notwithstanding any other provisions hereof, if the
Commencement Date has not occurred on or before the first anniversary of the date hereof.
5. RENT -LESSEE shall pay on or about the 1st of each month a monthly base rent
(the "Base Rent") in the amount of $34,595.25 ($.75/sf) per month for years 1 through 5 of the
primary term, $36,901.60 ($.80/sf) for years 6 through 10 and$ 39,207.95 ($.85/sf) for years 11
through 15. In addition to the Base, LESSEE shall pay on or about the 1st of each month a
remodeling rent (the "Remodeling Rent"). The Remodeling Rent shall be computed as the
monthly amount required to fully amortize the actual cost of tenant improvements (which shall
not exceed $1,288,450) referenced in Paragraph 2 over the first ten ( 1 0) years of the primary
term at an interest rate not to exceed 9.5% per annum. The actual amount of said cost will be
determined after final drawings are prepared and project put out to bid. The final cost for tenant
improvements shall be mutually agreed on by LESSOR and LESSEE after bids are received.
6. UTILITIES-
a. Electrical Charges -Electric panels serving the portion of the premises occupied
by LESSEE shall be monitored and recorded for power usage. The recorded usage will be used
to determine the percentage of total usage of the building. That percentage will be used to
determine the charges from the total utility billing for LESSEE'S space. Shared space (public
restrooms, hallways, elevators, etc.) will be charged as a percentage of the total building floor
space per tenant space occupied. Electrical power monitoring shall be taken prior to tenant
occupancy of space to provide an initial usage percentage pending actual occupied usage
monitoring. Monitoring shall consist of a recorded 24-hour period for each sub-panel serving the
space involved. Air handling units and any other peripheral equipment serving the premises will
also be monitored for a 24-hour period and be included as a part of the percentage.
b. Natural Gas Charges -Natural gas charges shall be calculated as a
percentage of the total building floor space per tenant space occup1ed. The kitchen facilities are
served by a separate gas meter and will not be a part of the natural gas charges for tenant
3
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, Californ•a
space.
7. USE -LESSEE shall use the leased Premises for the purpose of accommodating
the programs of the Human Services System and all ancillary services associated with said use.
LESSEE agrees to comply with all applicable laws, ordinances and regulations in connection
with its use of the Premises. LESSOR covenants that said Premises shall be suitable for the
intended use of LESSEE, and shall be in compliance with all applicable laws, ordinances and
regulations for said use, at the commencement of the Lease term.
8. MAINTENANCE -All exterior and interior maintenance, and repair of air
conditioning, heating units and roof is to be the responsibility of the LESSOR, including janitorial
service and supplies. Janitorial service will be provided five (5) days per week and will include
the services as shown on the attached Exhibit "B" and will be paid for by LESSEE at the rate of
$2,306.35 ($.05/sf) per month along with the rent. LESSOR is also responsible for the structural
condition of the building and agrees that the building will always be maintained in a condition
acceptable for the LESSEE'S intended use of the Premises. This will include interior and
exterior painting as needed due to normal wear and tear.
9. MAINTENANCE, NON-PERFORMANCE -In the event LESSOR neglects, fails or
refuses to maintain said Premises as aforesaid, within fifteen ( 15) days after written notice has
been given by LESSEE, LESSEE may, notwithstanding any other termination provisions
contained herein:
A. Terminate this Lease; or
B. At LESSEE'S sole option, cure any such default by performance of any act,
including payment of money, and subtract the cost thereof plus reasonable
administrative costs from the rent.
10. LIABILITY -This Lease is made upon the expressed condition that the LESSEE is
to be free of all liability and damages or injury arising from structural failures or from external
cause to walls. doors, roof and floor. This Lease acknowledges that as between LESSOR and
LESSEE, LESSEE is responsible for the negligence of its employees.
LESSEE shall indemnify, defend and hold harmless LESSOR from and against any
and all claims arising from the conduct of LESSEE'S business or from any activity, work or
4
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
things done, permitted or suffered by LESSEE in or about the Premises and shall further
indemnify, defend and hold harmless LESSOR from and against any and all claims arising from
any breach or default in the performance of any obligation on LESSEE'S part to be performed
under the terms of this Lease and from and against all costs, attorney's fees, expenses and
liabilities incurred in the defense of any such claim or any action or proceeding brought thereon.
LESSOR shall indemnify, defend and hold harmless LESSEE from and against any
and all claims, damages, or injury arising from the condition of the premises and from breach or
default in the performance of any obligation on LESSOR'S part to be performed under the terms
of this Lease and from and against all costs, attorney's fees, expenses and liabilities incurred in
the defense of any such claim or any action or proceeding brought thereon.
11. INSURANCE. LESSOR shall maintain during the term of this Lease the following
policies of insurance:
a. Commercial General liability insurance with limits of not less than $1 million per
occurrence.
b. All-Risk or fire insurance and extended coverage on the premises, and shall add
the LESSEE as an additional loss payee thereon as its interests may appear.
Such coverage shall not be materially altered, cancelled or non-renewed unless LESSEE
has received not less than thirty (30) days advance written notice.
LESSEE shall maintain during the term of this Lease the following policies of insurance:
a. Commercial General Liability insurance with limits of not less than $1 million per
occurrence
b. All-Risk property insurance covering the personal property of LESSEE.
It is understood that LESSEE may elect to provide all or a portion of such insurance
coverage through one or more programs of self-insurance.
12. NON-FUNDING, TERMINATION-The term of this Lease is contingent on the
approval of funds by the appropriating governmental agency. Should funds not be allocated,
this Lease may be terminated by LESSEE by delivering not less than ninety (90) days written
notice of termination to LESSOR. Should LESSEE exercise its option to terminate urider this
5
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
Paragraph 12 within the primary ten (1 0) year Lease term, LESSEE shall pay to LESSOR, within
thirty (30) days after the Lease termination date an amount equal to the unamortized principal
balance of the cost of the tenant improvements made under Paragraphs 2 and 5 at an annual
interest rate not to exceed 9.5% per annum for ten (1 0) years.
13. SURRENDER OF POSSESSION -It is mutually understood that upon any
termination of this Lease, LESSEE will surrender Premises to LESSOR in original condition less
reasonable wear and tear and will not be responsible for any damage or destruction which
LESSEE was not obligated hereunder to repair or replace.
14. FIXTURES-It is further mutually understood and agreed that any equipment,
fixtures or apparatus installed in or on said Premises by the LESSEE, with the permission of
LESSOR, shall continue to be the property of the LESSEE and shall be removed by the
LESSEE without recourse at the expiration of tenancy. The provisions of this Paragraph 14
shall not apply to the tenant improvements constructed by LESSOR pursuant to Paragraph 2
above, which shall not be removed by LESSEE at the expiration or termination of this Lease.
Notwithstanding anything to the contrary in this Paragraph 14, LESSEE has no right to make
any alterations, improvements or additions to the Premises without LESSOR's prior written
consent, which may be granted or withheld in LESSOR's sole and absolute discretion.
15. RIGHT OF ENTRY-LESSOR, or his representatives, shall have the right to enter
said Premises during business hours at any time during the term of this Lease to make any
alteration, repair or improvement to said building, or the Premises. which he or she deems
convenient for the maintenance or preservation thereof provided always that the normal
business of LESSEE or its invitees shall not be unnecessarily inconvenienced.
16. OPTION TO RENEW-It is further understood and agreed that LESSOR g1ves to
LESSEE an option to renew this Lease and continue on the premises under the same terms and
conditions on a year to year basis after the primary term. Said option will be automatically
exercised each year unless either LESSOR or LESSEE advises the other to the contrary by
giving at least a ninety (90) day written notice before the last day of the then current lease term.
/IIIII
6
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 Cal1forma
17. RENT INCREASE -LESSOR may propose an adjustment in monthly rental rates
only for changes in taxes, maintenance, or insurance costs after completion of the primary term.
Said rental adjustment will be effective as of the first month of the renewal term or July 1,
whichever is later. LESSOR shall give written notice of such proposed rental adjustment not
later than January first preceding the effective date.
18. DESTRUCTION OR DAMAGE -
(a) If the Premises or the portion of the Building necessary for LESSEE'S ccupancy
is damaged by fire, earthquake, act of God, the elements of other casualty, LESSOR shall,
subject to the provisions of this Paragraph 18, promptly repair the damage, if such repairs can,
in LESSOR'S opinion, be completed within ninety (90) days. If LESSOR determines that repairs
can be completed within ninety (90) days, this Lease shall remain in full force and effect, except
that if such damage is not the result of the negligence or willful misconduct of LESSEE or
LESSEE'S agents, employees, contractors, licensees or invitees, the Base Rent shall be abated
to the extent LESSEE'S use of the Premises is impaired, commencing with the date of damage
and continuing until completion of the repairs required of LESSOR under Paragraph 18(d)
below.
(b) If in LESSOR'S opinion, such repairs to the Premises or portion of the Building
necessary for LESSEE'S occupancy cannot be completed within ninety (90) days, LESSOR
may elect, upon notice to LESSEE given within thirty (30) days after the date of such fire or
other casualty, to repair such damage, in which event this Lease shall continue in full force and
effect, but the Base Rent shall be partially abated as provided in Paragraph 18(a) above. If
LESSOR does not so elect to make such repairs, this Lease shall terminate as of the date of
such fire or other casualty.
(c) If any other portion of the Building or Center is totally destroyed or damaged to
the extent that in LESSOR'S opinion repair thereof cannot be completed w1thin ninety (90) days.
LESSOR may elect upon notice to LESSEE given within thirty (30) days after the date of such
fire or other casualty, to repa1r such damage, in which event this Lease shall continue in full
force and effect, but the Base Rent shall be partially abated as prov1ded in Paragraph 18(a). If
7
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
LESSOR does not elect to make such repairs, this Lease shall terminate as of the date of such
fire or other casualty.
(d) If the Premises are to be repaired under this Paragraph 18, LESSOR shall
repair at its cost any injury or damage to the Building and Building Standard Work in the
Premises. LESSEE shall be responsible at its sole cost and expense for replacement of
LESSEE'S personal property. LESSOR shall not be liable for any loss of business,
inconvenience or annoyance arising from any repair or restoration of any portion of the
Premises, Building or Center as a result of any damage from fire or other casualty.
(e) This Lease shall be considered an express agreement governing any case of
damage to or destruction of the Premises, Building or Center by fire or other casualty, and any
present or future law, which purports to govern the rights of LESSOR and LESSEE in such
circumstances, in the absence of express agreement shall have no application.
19. SECURITY SERVICES -LESSOR shall provide security services for the premises
during the hours of 7:00A.M. to 6:00P.M. Monday-Friday. Security services shall include
patrolling and monitoring the premises as requested and scheduled by LESSEE. The daily
security services shall include, but not be limited to, assisting with disruptive consumers,
opening and securing the facility, escorting staff and consumers, and patrolling the parking
areas assigned to LESSEE. LESSEE shall pay LESSOR the amount of $3,228.89 ($.07/sf) per
month for said services.
20. SUCCESSORS AND ASSIGNS -The parties hereby each bind themselves, their
respective successors and assigns with respect to all terms and conditions of this Lease.
LESSEE shall not assign or transfer its rights or obligations under this Lease. or sub-lease said
Premises or any portion thereof, without the prior, written consent of the LESSOR, which
consent may be granted or withheld in LESSOR'S sole and absolute discretion.
21. VENUE -Venue for any action arising out of or relating to this Lease shall only be 1n
Fresno County, California. The rights and obligations of the part1es and all interpretation and
performance of this Lease shall be governed in all respects by the laws of the State of California.
IIIII/
8
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. Calitorma
22. ATTORNEYS' FEES -If any action or proceeding is brought by either party against the
other pertaining to or arising out of this Lease, the finally prevailing party shall be entitled to recover
all costs and expenses, including reasonable attorneys' fees, incurred on account of such action or
proceeding.
23. NOTICES -Any notice required or intended to be given to either party under the
terms of this Lease shall be in writing and shall be deemed to be duly given if delivered
personally or deposited into the United States mail, with postage prepaid, addressed to the party
at the address previously stated herein.
24. ENTIRETY-SUCCESSION -This Lease Agreement merges and supersedes all
prior negotiations, representations, and contracts, and constitutes the entire agreement
concerning LESSOR'S leasing of the Premises to LESSEE and the consideration therefore.
This Lease Agreement shall be binding on and inure to the benefit of LESSOR'S heirs,
successor and assigns.
EXECUTED as of the date first herein written.
APPROVED AS TO LEGAL FORM:
PHILLIPS. CRONIN, COUNTY COUNSEL
Deputy
APPROVED AS TO ACCOUNTING FORM:
GARY W. PETERSON
AUDITOR-CONTROLLER/TREASURER-
TAX COLL TOR
By (l 1~ David Dent, Director
Human Services System
Fund No. 0001 Org. Nos. 56107001, 56307630
Acct. No. 7340
Tax ID # qc.f:-2fa{p3Cf2c.j
L-167A L3.doc
9
LESSOR
FRESNO-MADERA AREA AGENCY ON AGING
LE E
COUNTY OF FRESNO
ATTEST: SHARI GijEENWOOD. CLERK
BOARD OF SUP VISORS
-
1 Exhibit "A"
2 PERFORMED DAILY:
3 Vacuum all carpeted areas
4 Dust mop/sweep, mop floors
5 Spot clean carpets
6 Dust cleared desk and table surfaces, clean counters
7 Empty all waste baskets and dispose of trash in appropriate trash bins
8 Remove interior cobwebs
9 Clean smudges and unsightly appearances from door jambs, light switches, glass partitions,
10 and counters
11 Clean and sanitize all sinks, toilets, and urinals
12 Refill paper supplies in restrooms (paper towels, toilet tissue, soap, etc.)
13 Replace all burned out light bulbs
14 PERFORMED WEEKLY:
15 Dust wall picture frames and partition tops
16 Spot clean restroom walls and partitions
17 PERORMED EVERY OTHER WEEK:
18 High dust, including walls, light fixtures, vents and ledges above normal reach, door ledges
19 Wash/clean light fixtures, walls, A/C vents
20 PERFORMED EVERY THREE MONTHS:
21 Dust/clean baseboards
22 Dust all mini blinds
23 Shampoo all carpets
24 Strip and wax all vinyl and tile flooring
25 PERFORMED EVERY SIX MONTHS:
26 Interior windows
27 Exterior windows
28
COUNTY OF FRESNO
Fresno, Californta 10