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HomeMy WebLinkAboutItem 12 - Santa Ana Regional Transportation Center - Lease AgreementPublic Works Agency https://www.santa-ana.org/pw Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 6, 2021 TOPIC: Santa Ana Regional Transportation Center — Lease Agreement AGENDA TITLE Approve a Lease Agreement with Railworks Track Services, Inc. for Office Space at the Santa Ana Regional Transportation Center for a One-year Term with Twelve One -month Extensions for a Total Amount of $19,560 (Non -General Fund) RECOMMENDED ACTION 1. Authorize the City Manager to execute a site lease agreement with RailWorks Track Services, Inc., to compensate the City $815 per month, with any partial month prorated at $27 per day, for the lease of 326 square feet of office space located at the Santa Ana Regional Transportation Center, for a one-year term beginning on April 6, 2021, and ending April 5, 2022, with an option for twelve month -to -month extensions, for a total of $19,560 in lease revenue for the entire term of the agreement, including optional extensions, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing Fiscal Year 2020-21 lease income in the amount of $2,310 into the SARTC Operations, Rental-RailWorks revenue account and appropriating the same amount to the SARTC Operations, Contractual Services expenditure account. DISCUSSION The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that brings together Amtrak, Metrolink, Orange County Transportation Authority (OCTA), interstate bus services, and in the future, the OC Streetcar. The facility is open to the public seven days a week from 5:00 a.m. to midnight and contains approximately 35,000 square feet of rental space, including ten bus bays. The OC Streetcar is the first modern streetcar project to be built in Orange County. It 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 SARTC and a new transit hub at Harbor Boulevard and Westminster Avenue in Garden Grove. Approve Lease Agreement with RailWorks Track Services, Inc. April 6, 2021 Page 2 OCTA is the lead agency for the OC Streetcar Project and selected Walsh Construction as the Contractor. Because of its proximity to the project, Walsh Construction approached the City to lease office space at SARTC and the City Council approved a three-year lease agreement with Walsh Construction at the end of 2018. SARTC quickly became a central hub for other contractors working on the Streetcar Project due to the close proximity to the project site and the availability of office space. One of those subcontractors, RailWorks Track Services Inc., has expressed interested in leasing 326 square feet of office space at SARTC. Staff seeks approval of the lease agreement, which will generate revenue for SARTC's day-to-day operations. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Approval of the site lease agreement obligates RailWorks Track Services, Inc., to compensate the City $19,560 for the term of the lease agreement including renewal options for lease of interior office space at the SARTC. Approval of the appropriation adjustment will recognize Fiscal Year 2020-21 lease income in the amount of $2,310 into the SARTC Operations, Rental-RailWorks revenue account (No. 06717002-53832) and appropriate the same amount to the SARTC Operations, Contractual Services expenditure account (No. 06717650-62300). The one-year agreement term begins April 6, 2021, and ends April 5, 2022. There is an option for twelve one -month extensions. The total anticipated revenue from this agreement is as follows: Accounting Unit Fund Accounting Unit, Fiscal Year Amount - Account # Description Account Description Public Works-SARTC 2020-21 06717002-53832 Enterprise Fund Operations, Rental- $2,310 (April -June) RailWorks Public Works-SARTC 2021-22 06717002-53832 Enterprise Fund Operations, Rental — $9,780 (July -June) RailWorks Public Works-SARTC 2022-23 06717002-53832 Enterprise Fund Operations, Rental — $7,470 (July -April) RailWorks Total: $19,560 EXHIBIT(S) 1. Lease Agreement with RailWorks Track Services, Inc. Approve Lease Agreement with RailWorks Track Services, Inc. April 6, 2021 Page 3 Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Kristine Ridge, City Manager EXHIBIT 1 LEASE AGREEMENT THIS LEASE (the "Lease") is made as of April b, 2021, by and bclween the City of Santa Ana, a charter city and municipal corporation ("City" or "Land lord"), and RailWorks Track Services, Inc. ("Tenant"). City and Tenant are sometimes individually referred to as "Party" and collectively as "Parties." 1. EXHIBITS: The following exhibits are attached hereto and incorporated herein by reference: Exhibit "A" The Premises Exhibit "B" Additional Lease Conditions 2. PREMISES: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, upon the terns, covenants and subject to the conditions set forth herein, a portion of the property located at 1000 East Santa Ana Boulevard in the City of Santa Ana, commonly known as the Santa Ana Regional Transportation Center (SARTC). Specifically, Tenant will be leasing the portion identified as Suite I06, consisting of approximately 326 square feet of interior office 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 permits. The Premises are more particularly described in Exhibit A. 3. COMMENCEMENT OF TERM: The term of this Lease (the "Term") shall he for a period of one (1) year, which shall commence on April 6, 2021 (the "Commencement Date"), unless sooner terminated or extended as provided herein. 4. ADDITIONAL LEASE CONDITIONS: Tenant acknowledges that this lease is subject to compliance with the additional lease conditions attached hereto as Exhibit B. These additional lease conditions are a material part of this lease agreement and any default of these conditions will be deemed a major breach and will subject this lease to termination per the terms identified herein. 5. EXTENSION PERIODS: Landlord shall have the right, but not the obligation, to provide Tenant the option to extend the Tenn for additional periods of one (1) month on the same terms and conditions as set forth in this Lease, up to twelve (12) months total. 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. 6. RENT: (a) Beginning on April 6, 2021 tenant shall pay to Landlord, as rent ("Rent'), throughout the Tenn, the monthly sum of Eight Hundred and Fifteen Dollars ($815.00) in advance, on the 1 st day of each calendar month and continuing through the life of the Term. Any partial month shall be prorated at $27 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 (1 O%) SHALL BE APPLIED TO ANY PAYMENT HEREUNDER DUE BUT UNPAID AFTER THE 10'�n 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 s 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 be 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: (a) 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 xerminate 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- DELNERY 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 Fre or any other casualty, or damage from any other cause unless such other cause is solely attributable to the negligence of Tenant. 1 O. ASSIGNMENT AND SUBLETTING: Tenant may not assign this Lease or sublet the Premises or any part thereof without the prior written consent of Landlord. 1 I. TENANT'S REPAIRS, ALTERATIONS AND FIXTURES: Except for reasonable wear and roar, 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 [o 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 urns, 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. It is the responsibility of the Landlord to correct or repair defects identified by Tenant upon notice from the Tenant. Landlord agrees to perform any such correction or repair work within RReen (15) business days of receipt of notice from Tennant, unless otherwise agreed to in writing by both parties. In the event Landlord fails to correct, repair or maintain defects as requested by Tenant, Tenant, upon City's approval, may perform, directly or through athird-party, the necessary work and deduct the costs associated Rom the next month's rent. Tenant retains the right to contract with outside entities to perform such repair work in the event the Landlord is non -responsive or cannot perform the repairs within fiReen (15) business days, unless otherwise agreed to in writing by both parties. 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. 72. MAINTENANCE: Landlord shall provide at its own cost and expense janitorial services for the Premises. Janitorial supplies and services shall be provided on afive-day-per- week basis. 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 "Oovernmcntal Laws") applying to the physical condition of the Premises and the building located thereon and azising solely from Tenant's conduct of business. 14. UTILITIES: Landlord agrees to pay for all utilities famished to the Premises and which are consumed by Tenant, during the Tenn 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 tune 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, chat 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 o£ 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 attorneys 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. 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 $1,00Q000 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 Landlortl for a period of up to (1) year if the premises are destroyed or rendered 4 inaccessible by a risk insured against by a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements. f. 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 [he broader coverage and/or higher limits maintained by the Tenant. Aay available insurance proceeds in excess of the speciFed 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. Cer[ifcates 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 Ciry, except for I O 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 famish 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 Ageement as provided herein. 18. DAMAGE BY CASUALTY (a) In the event of a Fre 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 percentage of square footage of the Premises 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 tnay 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 (1 O) days aRer 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 [he 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 THIS PARAGRAPH 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 Tenants occupancy shall be prorated and Landlord shall immediately refund to Tenant any sums paid in advance. (c) Tenon[ 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 wiffi damages based on the value of Tenant's improvements and Tenant's Fxtures and other personal property erected or installed on the Premises and damages Tenon[ 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 0 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) All those portions of the SARTC which are not presently occupied by buildings and which are designated parking spaces within [he parking strucmre shall be available for use by Tenant and Tenants agents, employees, customers and invitees for parking and access to the public streets and highways (the "Parking Area"). Tenant acknowledges that Landlord has entered into an agreement with the Orange County Transportation Authority for the operations of the OC Streetcar at SARTC, which is under construction. Such operations may affect the number o£parking spaces available at any one time, though it is not possible to determine the precise efY'ect at the time of this Lease. Surface Parking Lots 1 and 2 allow up to 72-hour parking. Landlord will provide parking passes to identify all Tenant vehicles parked at SARTC at no cost to Tenant. If the parking structure at SARTC is full, Teaant and Tenant's agents, employees, customers and invitees must use [he surface lots at SARTC. 22- TENANT'S DEFAULT: (a) If Tenaa[ shall default in payment of Rent, when due, Landlord shall Forward written notice, pursuant to Section 22, of such default [o Tenant, and the failure of Tenant to tune 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 tkus Lease- (b) If Tenant shall default in the performance of any other terms or provisions o£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 ot) (i) any state, federal or local envvonmen[al laws, interpretive lett¢rs, regulations, decrees or ordinances, (ii) the Compreh¢nsive 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, intetpretive 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 o£ the foregoing- (b) During the Term o{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 fi-om any and all costs, expenses, claims and damages, including, but not limited to, attorneys' fees and costs of remediation, arising from Tenants breach of any of the representations and warranties contained in [his 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 CITV: RailWorks Track Services, Inc. Public Works Agency Attn: Ernesto Rivera City of Santa Ana 12740-B Lakeland Road 20 Civic Center Plaza(M-21) Santa Fe Springs, CA 90670 Santa Ana, California 92701 Attention: Bxecutive Director of Public Works Agency AND Clerk of Council City of Sant¢ 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 I5 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, Tenants intended use of the Premises is strictly for oflice 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 ageement between the parties pertaining to the lease of Suite 106 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 mm over the Premises is clean, good condition and in working order. (c) This Lease shall be binding upon, and inure [o the benefit of, the parties hereto and their respective heirs, legatees, distributes, legal representatives, successors and assigns. (d) This Lease shall not be modiFed, amended or supplemented, in whole or par[, 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 instmments, 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 o£terms shall include the plural and vice versa. The section headings aze fot convenience only and shall not affect [he constrnc[ion hereof. (i) If any one or more o£the provisions hereof shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shalt 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. (j) 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 hereaRer available at law or equity. All remedies conferred herein, and all remedies now or 0 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 tke 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) No[hing 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 join[ 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. 27. LANDLORD'S REPRESENTAT70N5: 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 satis£ed by Landlord to authorize the execution and performance of this Lease. No other proceedings or actions on the part o£ 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 individuals) 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. [Signatures on the following page] 10 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: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho City Attorney By: Jose ontoya Deputy City Attorney RECOMMENDED FOR APPROVAL NABIL SABA, PE Executive Director Public Works Agency Kristine Ridge City Manager RailWorks Track Services, Inc, I� Title: EXHIBIT' A -PREMISES 12 EXHIBIT A 'iHE PREMISES SARTC —Suite 9 06 � � � � � I � � � � - _.J' ® LICENSE AREA EXHIBIT B ADDITIONAL LEASE CONDITIONS • SARTC business hours are seven days a wash £rom SAM to midnight end there is on -site security 24/7. I£tenant needs to access tenant space during non -business fiou`s they will need to contact the security guard on duty at 65']-23G-9293 or 65']-236-9266. • Tenant must provide SARTC Property Management O£tice with a point o£contact £or regular business hours and after hours. 13