HomeMy WebLinkAboutSERCO, INC. (3)INSURANCE NOT ON FILE
WORK MAY NOT PROCEED
CLERK OF COUNCIL
DATE: JUL o 2 2019
O"?Vj LEASE AGREEMENT
THIS LEASE (the "Lease") is made as of June 18, 2019, by and between The City of
Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California ("City" or "Landlord"),and Serco, Inc.
(`'Tenant').
1. EXHIBITS: The following exhibit is attached hereto and incorporated herein by
reference:
Exhibit "A" The Premises
2. PREMISES: Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, upon the terms, covenants and subject to the conditions set forth herein, a portion of
the property located at 215 South Center Street in the City of Santa Ana, commonly known as
the City Yard. Specifically, Tenant will be leasing the portion identified as Suite 102A,
consisting of approximately 230 square feet of interior office space and one parking space
(hereinafter referred to as the "Premises"). Tenant shall be solely responsible at its own expense
for all improvements made to the Premises and obtain all necessary approvals. Subject to
Section 1 I of this Lease, Tenant agrees to construct a wall to separate the Premises from the
remainder of the City Stores building. The wall shall be constructed with 20 gauge steel studs
with 5I8" drywall, 8 feet high, and the remainder up to the ceiling shall be chain link fence. The
Premises are more particularly described in Exhibit A.
3, COMMENCEMENT OF TERM: The term of this Lease (the "Term") shall be for a
period of one (1) year, which shall commence on July I 2019 (the "Commencement Date"),
unless sooner terminated or extended as provided herein.
4. ADDITIONAL LEASE CONDITIONS. This section is intentionally omitted.
5. EXTENSION PERIODS: Landlord shall have the right, but not the obligation, to
provide Tenant the option to extend the Term for three (3) separate consecutive additional
periods of one (1) year each on the same terms and conditions as set forth in this Lease. Each
option shall be agreed to in writing by the Landlord and Tenant prior to the expiration of the
Term or any Extension Period then in effect. If Tenant does not exercise its option to extend as
provided herein, Tenant will be deemed a holdover Tenant and subject to paragraph 7 of this
lease, The lease is subject to a Consumer Price Index (CPI) increase for any extension period.
N-2019-118
b. RENT: (a) Beginning on July 1, 2019 tenant shall pay to Landlord, as monthly rent
(''tent"}, throughout the Term, Four Hundred and Sixty Dollars ($460) for office space and
Fifty Dollars ($50) for a single parking space for a total monthly sum of Five Hundred and Ten
Dollars ($510.00) in advance, on the I st day of each calendar month and continuing through the
life of the Term. Any partial month shall be prorated at Seventeen Dollars ($17) per day. All
payments of Rent and other sums due to Landlord hereunder shall be made payable to The City
of Santa Ana" and remitted to: City of Santa Ana M-13, 20 Civic Center Plaza, PO Box,1988,
Santa Ana, CA 92702. A LATE CHARGE OF TEN PERCENT (10%) SHALL BE APPLIED
TO ANY PAYMENT HEREUNDER DUE BUT UNPAID AFTER THE 16M of the month. (b)
Landlord and Tenant hereby agree that Rent for any Extension Period, if the option for such is
exercised, shall be subject to a CPI adjustment annually on the anniversary of the
commencement date of the term hereof.
7. HOLDOVER: Tenant has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this Lease. Nothing contained herein shall�� __,_ __,
construed as consent by Landlord to any holding over by Tenant, Any holding over by Tenant of
the Premises after the expiration or termination of this Lease shall operate and be construed as a
tenancy from month to month subject to the terms of this Lease, terminable by either party upon
thirty (30) days' prior written notice to the other.
8. LANDLORD'S TITLE: Landlord hereby covenants, represents and warrants to Tenant
that Landlord has fee simple title to the Premises and has the full right and lawful authority to
make this Lease. Notwithstanding anything contained herein to the contrary, if there are any
liens, security interests, restrictions, leases, encumbrances, encroachments, laws, ordinances,
governmental rules or regulations, title restrictions, zoning, endangered species or any other
matters which in fact interfere with Tenant's use of the Premises, then Tenant may terminate this
Lease without owing any liability to Landlord. Landlord covenants that so long as Tenant is not
in monetary default as defined hereunder, Tenant shall have quiet and peaceful possession and
enjoyment of the Premises, all improvements located thereon and of all easements, rights and
appurtenances thereunto belonging.
9. DELIVERY OF POSSESSION UPON TERMINATION OR EXPIRATION OF
TERM: Tenant agrees to deliver to Landlord physical possession of the Premises upon the
termination or expiration of this Lease in good condition except, however, ordinary wear and
tear, damage by fire or any other casualty, or damage from any other cause unless such other
cause is attributable to Tenant.
10. ASSIGNMENT AND SUBLETTING: Tenant may not assign this Lease or sublet the
Premises or any part thereof without the prior written consent of Landlord.
11. TENANT'S REPAIRS, ALTERATIONS AND FIXTURES: Except for reasonable
wear and tear, Tenant agrees at Tenant's expense to maintain the premises in good repair.
Subject to Landlord approval, Tenant shall make and pay for any renovations, alterations, minor
repairs (light bulbs, etc.) and improvements to the Premises as Tenant deems desirable and
Tenant agrees that all such alterations and improvements shall be made in a good and
workmanlike manner and in such fashion as not to diminish the value of the building, and that no
such alterations shall compromise the structural integrity of the Premises. All improvements,
additions and alterations, shall be in accordance with applicable laws and at Tenant's own
expense. Tenant shall indemnify and defend Landlord for all liens, claims, or damages caused by
remodeling, improvements, additions and alterations completed by Tenant. It shall be Tenant's
duty to keep the Premises free and clear of all liens, claims, and demands for work performed,
materials furnished, or operations conducted on the Premises at the request of Tenant. On
surrendering possession of the Premises to Landlord at the expiration or sooner termination of
this Lease or any Extension Period, Tenant shall be required to return the premises in the same
condition upon commencement of lease except for normal wear and tear.
Tenant may paint the interior of the Premises and may also paint, erect or authorize the installation
of "temporary signs" in accordance with a signage plan that is pre -approved by the Landlord.
Landlord shall not install or maintain or permit anyone other than Tenant to install or maintain,
any signs on any part of the Premises or within the air space above the Premises during the Term
or any Extension Period of this Lease.
12. MAINTENANCE: Tenant shall provide at its own cost and expense janitorial services
for the Premises.
13. COMPLIANCE WITH LAWS: Tenant shall make and pay for nonstructural
improvements and alterations to comply with all applicable laws, rules, regulations and
ordinances of any and all applicable governmental entities (the "Governmental Laws') applying
to the physical condition of the Premises and the building located thereon and arising solely from
Tenant's conduct of business.
14. UTILITIES: Landlord agrees to pay for all utilities furnished to the Premises and
which are consumed by Tenant, during the Term and any Extension Period, including charges or
assessments for water, sewer, gas, heat, electricity, garbage disposal and trash disposal.
15. ESTOPPEL CERTIFICATES: Landlord and Tenant shall, from time to time upon
thirty (30) days' request by the other (but not to exceed more than three (3) times in any given
calendar year), execute, acknowledge and deliver a statement, dated currently, certifying that this
Lease is unmodified and in full, force and effect (or, if there have been modifications, that this
Lease is in full effect as modified, and identifying such modifications) and the dates to which the
Rent have been paid, and that no default exists in the observance of this Lease and no event of
default has occurred and is continuing, or specifying each such default or event of default of
which Landlord or Tenant may have knowledge, it being intended that any such statement may
be relied upon by Landlord's or Tenant's Mortgagees, any prospective purchaser of the interest of
Landlord or Tenant in their respective premises described herein.
16. INDEMNITY: Tenant shall indemnify, defend, and hold harmless Landlord from and
against any and all liability, loss, damage, expense, and costs (including attorney's fees) due to
bodily injury, including death, to any person, or loss or damage (including loss of use) to any
property, caused by the negligence or willful misconduct of Tenant, its employees,
representatives, or agents in connection with this Lease.
17. INSURANCE: Throughout the Term or any Extension Period, Tenant shall maintain
insurance as described below:
a. Commercial General Liability Insurance: Commercial general liability
insurance for injury to person (including death) or damage to property occurring within the
building arising out of the use and occupancy thereof by Tenant, its licensees, employees,
invitees, agents and customers. The amounts of insurance shall be not less than the following:
single limit coverage applying to bodily and personal injury, including death resulting therefrom,
and property damage, in the total amount of $2,000,000 per occurrence and $5,000,000 in the
aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers
and representatives as additional insured(s); (b) be primary and not contributory with respect to
insurance or self-insurance programs maintained by the City; and (c) contain standard separation
of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a
combined single limit of not less than $5,000,000 per occurrence. Such insurance shall include
coverage for owned, hired and non -owned automobiles.
C. Worker's Compensation Insurance. In accordance with the provisions of
Section 3300 of the Labor Code, Tenant, if Tenant has any employees, is required to be insured
against liability for worker's compensation or to undertake self-insurance. Such policy shall
include a `Waiver of Subrogation' endorsement. Tenant shall provide Landlord with a copy of
such endorsement along with the certificate of insurance or copy of the policy. Prior to
commencing the performance of the work under this Agreement, Tenant agrees to obtain and
maintain any employer's liability insurance with limits not less than $1,000,000 per accident.
d. Property Insurance. Tenant shall maintain not less than $1,000,000 Fire
Legal liability on all real property being leased, including improvements and betterments owned
by the Landlord, and shall name the Landlord as a loss payee. Tenant shall also provide fire
insurance on all personal property contained within or on the leased premises. The policy must
be written on an "all risks" basis, excluding earthquake and flood. The Tenant shall name the
Landlord as additional insured.
e. Interruption of Business Insurance. Tenant shall, at its sole cost and
expense, maintain business interruption insurance by which the minimum monthly rent will be
paid to Landlord for a period of up to (1) year if the premises are destroyed or rendered
inaccessible by a risk insured against by a policy of standard fire and extended coverage
insurance, with vandalism and malicious mischief endorsements.
£ The following requirements apply to the insurance to be provided by
Tenant pursuant to this section:
i. If the Tenant maintains broader coverage and/or higher limits than the
minimums shown above, the Landlord shall be entitled to the broader
coverage and/or higher limits maintained by the Tenant. Any available
insurance proceeds in excess of the specified minimum limits of insurance
and coverage shall be available to the Landlord.
ii. Tenant shall maintain all insurance required above in full force and effect
for the entire period covered by this Agreement.
iii. Certificates of insurance shall be furnished to the Landlord upon execution
of this Agreement.
iv. Certificates and policies shall state that the policies shall not be cancelled
or reduced in coverage or changed in any other material aspect without
thirty (30) days' prior written notice to the City, except for 10 days' notice
for non-payment of premium.
v. If Tenant fails or refuses to produce or maintain the insurance required by
this section or fails or refuses to furnish the Landlord with required proof
that insurance has been procured and is in force and paid for, the Landlord
shall have the right, at the Landlord's election, to forthwith terminate this
Agreement as provided herein.
18. DAMAGE BY CASUALTY
(a) In the event of a fire or other casualty in the Premises, Tenant shall
immediately give notice thereof to Landlord.
(b) If the Premises, through no fault of Tenant, its agents, employees, invitees,
or visitors, shall be partially destroyed by fire or other casualty so as to render the
Premises untenantable as reasonably determined by Landlord, Rent shall abate in
proportion to the percentageofsquare footage of the Promises rendered unusable until
such time as the Premises are made tenantable as reasonably determined by Landlord. The
entire Premises shall be made tenantable by Landlord's diligent repair within sixty (60)
days following the fire or casualty incident.
(c) Except where Landlord is not obligated to repair or rebuild the Building or
the Premises, Landlord will use due diligence to repair or rebuild the same (except that
Landlord will have no obligation to repair or replace any alteration, addition, or
improvements to the Premises other than the Tenant Improvements installed at Landlord's
expense which will be repaired only to the level of Building Standard Improvements).
(d) In the event of (i) the total destruction of the Premises, (ii) the partial
destruction of the Premises or the Building where the same'is so damaged that it cannot, in
Landlord's reasonable opinion, be repaired within sixty (60) days of the occurrence of
such damage, or (III) damage or destruction as a result of any casualty for which insurance
proceeds are not available to pay 100% of the cost of repair or rebuilding, Landlord will
have no obligation to repair or rebuild the Premises or the Building. Landlord will make
its determination whether to repair or rebuild within sixty (60) days of the occurrence of
such damage or destruction. Upon notification to Tenant of Landlord's decision not to
repair or rebuild, this Lease shall terminate. In such an event, Tenant shall be reimbursed
by Landlord any rent monies transferred from Tenant to Landlord during this sixty (60)
day period within fourteen (14) days after the termination of the lease.
19. EMINENT DOMAIN: (a) If (i) all or part of the Premises, the building located
thereon, or (ii) so much of any rights in the Premises or the building located thereon shall be
taken or appropriated under any right of eminent domain or under any other legal right whereby
the taking authority is obligated to compensate Landlord therefor so that there does not remain
premises suitable in the sole opinion of Tenant for the operation of its business, then Tenant may
terminate and cancel this Lease without owing any liability to Landlord as of the date on which
the condemning authority takes physical possession upon giving to Landlord written notice of
such election. Landlord agrees immediately within ten (10) days after any notice of intended or
actual taking or appropriation to give Tenant written notice thereof, providing to Tenant full
details of such taking or appropriation, including, without limitation copies of all condemnation
plans or surveys submitted by the condemning authority, a statement of the nature of the project
to be conducted by the condemning authority, and such other information as might be necessary
to enable Tenant to determine its future course of conduct. TENANT ACKNOWLEDGES
THAT LANDLORD'S EXERCISE OF ITS RIGHT TO TERMINATE THIS LEASE
UNDER ANY OF THE PROVISIONS OF THIS LEASE SHALL NOT ENTITLE
TENANT TO ANY RIGHTS OR CLAIMS FOR RELOCATION BENEFITS OR ANY
OTHER CLAIMS RELATED TO CONDEMNATION OR INVERSE CONDEMNATION.
(b) If this Lease shall be terminated and canceled as a result of any taking or
appropriation, Tenant shall be released from any further liability and Rent and other sums for the
last month of Tenant's occupancy shall be prorated and Landlord shall immediately refund to
Tenant any sums paid in advance. --
(c) Tenant reserves unto itself the right to prosecute Tenant's claim for an
award for damages for the termination of this Lease caused by such appropriation or taking,
together with damages based on the value of Tenant's improvements and Tenant's fixtures and
other personal property erected or installed on the Premises and damages Tenant may sustain to
the interest in the business operated by Tenant on the Premises, including, but not limited to,
goodwill, patronage, and the removal, relocation, and replacement costs and expenses caused by
such appropriation or taking, and Tenant may file such claims as are permitted by law for the
loss of its leasehold interest, business dislocation damages, moving expense, or other damages
caused by such taking or appropriation. Tenant's right to receive compensation or damages for
its fixtures or its personal property shall not be affected in any manner by this Lease.
20. LIENS: Tenant shall promptly remove and discharge, at its cost and expense, all
mechanic's liens, or other liens, for labor performed or materials furnished with respect to the
Premises by or for Tenant.
21. PARKING AREA: A designated parking space has been designated as part of this
lease agreement identified in Exhibit A.
22. TENANT'S DEFAULT: (a) If Tenant shall default in payment of Rent, when due,
Landlord shall forward written notice, pursuant to Section 22, of such default to Tenant, and the
failure of Tenant to cure such default within seven (7) days after the date of receipt of such
notice shall, at the sole option of Landlord, cause the termination of this Lease.
(b) If Tenant shall default in the performance of any other terms or provisions
of this Lease, and if Landlord shall give to Tenant written notice, pursuant to Section 22, of such
default, and if Tenant shall fail to cure such default within thirty (30) days after receipt of such
notice, Landlord at its sole option, shall cause the termination of this Lease immediately.
23. HAZARDOUS SUBSTANCES: (a) As used herein, the term "Hazardous Substances"
shall mean, without limitation, any substance that is biologically or chemically active or any
hazardous, toxic, or dangerous waste, substance (including, but not limited to, lead -based paint,
asbestos or petroleum derivative substances), or material defined as such in (or for purposes of)
(i) any state, federal or local environmental laws, interpretive letters, regulations, decrees or
ordinances, (ii) the Comprehensive Environmental Response, Compensation and Liability Act,
as amended, (iii) the Resource Conservation and Recovery Act, (iv) any of the state or local
"Super Fund", "Super Lien" or "Cleanup Lien" laws or (v) any other federal, state or local
statute, law, ordinance, code, rule, interpretive letter, regulation, order or decree regulating,
relating to or imposing liability or standards of conduct concerning any such substances or
materials or any amendments or successor statutes with respect to any of the foregoing.
(b) During the Term of this Lease, Tenant represents and warrants that no Hazardous
Substances will be stored on the Premises and no Hazardous Substances will be discharged on
the Premises by Tenant. Tenant agrees that such representations and warranties shall survive any
termination of this Lease, and Tenant agrees to indemnify and hold harmless Landlord from any
and all costs, expenses, claims and damages, including, but not limited to, attorneys' fees and
costs of remediation, arising from Tenant's breach of any of the representations and warranties
contained in this Section.
24. NOTICE: Any notice, tender, demand, delivery, or other communication pursuant to
this Lease shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, to the following persons.
TO TENANT:
TO CITX:
Serco, Inc. Public Works Agency
Attn: Dirk Smith City of Santa Ana
12930 Worldgate Dr 20 Civic Center Plaza (M-21)
Suite 600 Santa Ana, California 92701
Herdon,VA 20170 Attention: Executive Director of Public Works Agency
MIME
Clerk of Council
City of Santa Ana
20 Civic Center Plaza (M29)
Santa Ana, California 92701
A party may change its address by giving notice in writing to the other party at least 15 days
prior to the effective change. Thereafter, any communication shall be addressed and transmitted
to the new address. If sent by mail, communication shall be effective or deemed to have been
given three (3) days after it has been deposited in the United States mail, duly registered or
certified, with postage prepaid, and addressed as set forth above. For purposes of calculating
these time frames, weekends, federal, state, County or City holidays shall be excluded.
25. USE: For the purposes of this Lease, Tenant's intended use of the Premises is strictly
for office space. No other use of the Premises shall be permitted without written consent of
Landlord.
26. GENERAL PROVISIONS:
(a) This Lease (and the documents referred to herein) constitutes the entire agreement
between the parties pertaining to the lease of Suite 102A contained herein and supersedes any
and all prior and contemporaneous agreements, representations and understandings, oral or
otherwise, between or among the parties with respect to the matters contained herein.
(b) Landlord agrees to turn over the Premises is clean, good condition and in working
order.
_(c) This Lease shall be binding upon, and -inure to the benefit of, the parties hereto
and their respective heirs, legatees, distributes, legal representatives, successors and assigns.
(d) This Lease shall not be modified, amended or supplemented, in whole or part,
.without the prior written consent of all parties hereto. Each and every waiver of any covenant,
representation, warranty or any other provision hereof must be in writing and signed by each
party whose interests are adversely affected by such waiver. No waiver granted in any one
instance shall be construed as a continuing waiver applicable in any other instance.
(e) If any legal action or other proceeding is brought for the enforcement hereof, or
because of an alleged dispute, breach, default or misrepresentation in connection with any
provisions hereof, the successful or prevailing party or parties shall be entitled to recover
reasonable and necessary attorneys' fees, court costs and all reasonable and necessary expenses
even if not taxable as court costs (including, without limitation, all such fees, costs and expenses
incident to appeals), incurred in that action or proceeding, in addition to any other relief to which
such party or parties may be entitled.
(f) This Lease shall be governed by the internal laws of the State of California
without regard to and excluding its principles of conflicts of laws.
(g) The parties further agree that upon request, they shall do such further acts and
deeds, and shall execute, acknowledge, deliver and record such other documents and
instruments, as may be reasonably necessary from time to time to evidence, confirm or carry out
the intent and purposes of this Lease.
(h) Unless the context in which used clearly requires another construction, throughout
this Lease, the masculine gender shall be deemed to include the neuter of feminine or both, the
neuter gender shall include the masculine or both, and the singular of terms shall include the
plural and vice versa. The section headings are for convenience only and shall not affect the
construction hereof
(i) If any one or more of the provisions hereof shall for any reason be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect the validity or enforceability of any other provision hereof, which shall be construed as if
such invalid, illegal or unenforceable provision had never been contained herein. The parties
intend that if any provision hereof is capable of two constructions, one of which would render
the provision void and the other of which would render the provision valid, then the provision
shall have the meaning which renders it valid.
0) Time is of the essence in the performance of each party's respective obligations.
(k) This Lease may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one in the
same instrument, and it shall not be necessary that any single counterpart bear the signatures of
all parties.
(1) Unless expressly stated to be exclusive, no remedy conferred herein shall be
deemed to be exclusive of any other remedy conferred herein or any other remedy now or
hereafter available at law or equity. All remedies conferred herein, and all remedies now or
hereafter available at law or equity, shall be deemed to be cumulative and not alternative, and
may be enforced concurrently or successively.
(m) All provisions of this Lease shall be construed as covenants and agreements
where used in each separate provision hereof and shall bind and inure to the benefit of the parties
hereto, their respective heirs, legal representatives, successors and assigns.
(n) All periods of time shall include Saturdays, Sundays and legal holidays; provided
that, if the last day to perform any act or give notice falls on a Saturday, Sunday or legal holiday,
then such act or notice shall be timely performed if given on the next succeeding business day.
(o) Any holding over by Tenant of the Premises after the expiration or termination of
this Lease shall operate and be construed as a tenancy from month to month on all terms of this
Lease, terminable by either party upon thirty (30) days' prior written notice to the other.
(p) Nothing contained in this Lease shall be deemed or construed by the parties
hereto or by any third party to create the relationship of principal and agent or of partnership or
of joint venture or of any association between Landlord and Tenant, and no provision contained
in this Lease nor any acts of the parties hereto shall be deemed to create any relationship between
Landlord and Tenant other than the relationship of landlord and tenant.
M
27. LANDLORD'S REPRESENTATIONS: Landlord hereby covenants, warrants and
represents to Tenant that:
(a) Landlord has the sole right, legal power and authority to enter into this Lease.
(b) All required actions have been taken and satisfied by Landlord to authorize the
execution and performance of this Lease. No other proceedings or actions on the part of
Landlord are necessary to authorize this Lease or to carry out the transactions contemplated
hereby. This Agreement constitutes the legal, valid and binding obligation of Landlord
enforceable against Landlord in accordance with its terms.
(c) The individual(s) executing this Lease, on behalf of Landlord, has (or have) the
full right, legal power and actual authority to bind Landlord to the terms and conditions hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first written above.
ATTEST:
CITY OF SANTA ANA
Acting Clerk of the Council City Manager
APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney
By: r
Johnunk
Assistant City Attorney
RECOMMENDED FOR APPROVAL
FUAD S. SWEISS, PE, PLS
Executive Director
Public Works Agency
Serco, Inc.
Dirk Smith
10
Corporate Services 6 Operations
Exhibit A
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