Loading...
HomeMy WebLinkAboutItem 18 - Site Lease Agreement Amendments with Aldridge Electric, Inc. Public Works Agency www.santa-ana.org/pw Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 15, 2022 TOPIC: Site Lease Agreement Amendments with Aldridge Electric, Inc. AGENDA TITLE Approve Lease Amendment with Aldridge Electric, Inc. to Extend the Term Two Years to February 19, 2024 with a One-Year Renewal Option, for a Total Amount of $370,527 (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a third amendment to the site lease agreement with Aldridge Electric, Inc. for the rental of office space to extend the lease for a two-year period from February 20, 2022 to February 19, 2024, with a one-year renewal option, and increase the monthly rate to $10,361, for a total amount of $370,527, subject to non- substantive changes approved by the City Manager and City Attorney. DISCUSSION The OC Streetcar is the first modern streetcar project to be built in Orange County and will service Santa Ana’s historic downtown, which includes federal, state, and local courthouses, government offices, colleges, an artists’ village, and a thriving restaurant scene. The OC Streetcar will operate along a 4.15-mile route that connects the Santa Ana Regional Transportation Center (SARTC) and a new transit hub at Harbor Boulevard and Westminster Avenue in Garden Grove. The Orange County Transportation Authority (OCTA) is the lead agency for the OC Streetcar project. Aldridge Electric, Inc. is one of the contractors working on the OC Streetcar Project and is currently leasing 4,934 square feet on the third floor of the Santa Ana Regional Transportation Center. The lease agreement is due to expire on February 19, 2022 and Aldridge Electric, Inc. has requested to extend their lease for two years with a one-year renewal option (Exhibit 1). With the proposed extension, the monthly rental rate will increase to $10,361. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Site Lease Agreement Amendments with Aldridge Electric, Inc. February 15, 2022 Page 2 2 4 2 7 FISCAL IMPACT Lease Income in the amount of $370,527 will be deposited into the SARTC Operations Rental – Aldridge Electric, Inc. revenue account (No. 06717002-53826) for future appropriations. Lease and License Agreement Term (February 20, 2022, through February 19, 2024) Fiscal Year Accounting Unit – Account No. Fund Description Accounting Unit, Account Description Amount 2021-22 (Feb-June)06717002-53826 Regional Transportation Center PWA- SARTC Operations, Rental – Aldridge Electric $44,510 2022-23 (July-June)06717002-53826 Regional Transportation Center PWA- SARTC Operations, Rental – Aldridge Electric $123,509 2023-24 (July-Feb)06717002-53826 Regional Transportation Center PWA- SARTC Operations, Rental – Aldridge Electric $78,999 Lease and License Agreement 1-year Renewal Option (February 20, 2024, through February 19, 2025) 2023-24 (Feb-June)06717002-53826 Regional Transportation Center PWA- SARTC Operations, Rental – Aldridge Electric $44,510 2024-25 (July-Feb)06717002-53826 Regional Transportation Center PWA- SARTC Operations, Rental – Aldridge Electric $78,999 Total:$370,527 EXHIBIT(S) 1. Third Amendment to Site Lease Agreement with Aldridge Electric, Inc. Submitted By: Nabil Saba, Executive Dir Public Works Approved By: Kristine Ridge, City Manager 1 THIRD AMENDMENT TO LEASE AGREEMENT WITH ALDRIDGE ELECTRIC, INC. THIS THIRD AMENDMENT to the above-referenced agreement is entered into on February 15, 2022, by and between Aldridge Electric, Inc. (“Tenant”) and 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”). RECITALS A.The parties entered into Agreement No. A-2019-029, dated February 19, 2019 (“Lease Agreement”), by which City leased to Tenant certain office space at the Santa Ana Regional Transportation Center for Tenant’s business operations (“Premises”). B. On June 18, 2019, the parties entered into First Amendment No. A-2019-029-01, by which the City amended the Lease Agreement to expand the square footage of the Premises being leased by Tenant and to provide for Tenant’s correct entity name. C.On April 7, 2020, the parties entered into Second Amendment No. A- 2019- 029- 02 to expand the square footage of the Premises, extend the Term through February 19, 2022, provide additional extension periods of up to twenty-four (24) months on a month-to-month basis, and increase the monthly rent to Eight Thousand Three Hundred Dollars ($8,300), with any partial month prorated at $273 per day. D.The parties now wish to further amend the Lease Agreement to extend the term of the Lease for two years from February 20, 2022 with a one-year renewal option, update insurance requirements and increase the monthly rent. The Parties therefore agree: 1.Section 3, Commencement of Term, is amended to extend the Term of the Lease Agreement from February 20, 2022 to February 19, 2024 2.Section 5, Extension Periods, is amended such that the Term of the Lease Agreement may be extended by mutual agreement of the Parties for up to one (1) one (1) year renewal period. All other terms of Section 5, as applicable, shall remain in effect. 3.Section 6, Rent, is amended such that, effective February 20, 2022, the Rent payable under the Lease Agreement shall be the monthly sum of Ten Thousand Three Hundred Sixty-One $10,361 per month, with any partial month prorated at $341 per day. 4.Section 17, Insurance, is hereby deleted in its entirety and replaced with the following: Tenant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Tenant, his agents, representatives, employees or subcontractors.           EXHIBIT 1 2 A. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Tenant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. If the Tenant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the 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 City. B. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions: 1. Additional Insured Status: The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Tenant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Tenant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). 2. Primary Coverage: For any claims related to this contract, the Tenant’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Tenant’s insurance and shall not contribute with it.           3 3. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. 4. Waiver of Subrogation: Tenant hereby grants to City a waiver of any right to subrogation which any insurer of said Tenant may acquire against the City by virtue of the payment of any loss under such insurance. Tenant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. 5. Self-Insured Retentions: Self-insured retentions must be declared to and approved by the City. The City may require the Tenant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. 6. Acceptability of Insurers: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. 7. Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage: a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the contract effective date, the Tenant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. 8. Verification of Coverage: Tenant shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Tenant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.           4 9.Special Risks or Circumstances: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 5. Except as modified by this Third Amendment, and the First and Second Amendments, all terms and conditions of the Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to Lease Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA _______________________________ ______________________________ Daisy Gomez Kristine Ridge Clerk of the Council City Manager APPROVED AS TO FORM ALDRIDGE ELECTRIC, INC. SONIA R. CARVALHO, City Attorney By:___________________________ _______________________________ Jose Montoya Gene Huebner Assistant City Attorney Chief Financial Officer RECOMMENDED FOR APPROVAL ________________________________ Nabil Saba Executive Director Public Works Agency