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HomeMy WebLinkAbout1998-075 '1 ; RESOLUTION NO. 98-75 21: RESOLUTION OF THE CITY OF SAN BERNARDINO APPRO~G A SUBLEASE BY !II AND BETWEEN THE COUNTY OF SA,'\[ BERNARDINO AJ'\ID THE CITY OF SAN 3 . BERNARDINO EMPLOYMENT AND TRAINING AGENCY 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS 5 SECTION 1. The Mayor is hereby authorized to execute a Sublease by and between the 6 County of San Bernardino and the City of San Bernardino Employment and Training Agency, 7 8 I attached hereto as Exhibit A I SECTION 2. The authorization granted hereunder shall expire and be void and of no iurther I 9 I effect if the sublease is not executed by both parties and returned to the Office of the City Clerk 10 11 'I within sixty (60) days following the effective date of the resolution, I i I I! I ]') . I .- I till! I 13 !I I 11:1' I I / 14 . . I! II / 15 III 16 II! I 17 1 I II I 181 Ii II I 19,' . I' I II I 20 ' III 21 III '721 III 23 III 24 ! Ii II I 'is ., _. 'Ii II I 261 !i II I 271\ I 28 llncjs [Suh1caseRes] I I I 1 98:L175 I II 1 'I RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING A SUBLEASE BY I I AND BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF SAN 2 BERNARDINO EMPLOYMENT AND TRAINING AGENCY 3 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 4 Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the 5 2nd day of March , 1998 by the following vote, to wit: 6 I Council Members: I 7 ESTRADA ABSTAIN l\BSENT AYES NAYS x 8 LIEN 9 ARIAS 10 SCHNETZ x x x 1] DEVLIN 1211 ANDERSON 13 MILLER x x x f'2. ~~_~};;. ~_~ ~lerk 16 The foregoing resolution is hereby approved thislfl1. day of _'~~~_m' 1998. 14 15 19 _J 171 , I 18 ' 20 Approved as to form and legal content: 21 JAMES F. PENMAN 22 CitY,Attorney f'l 2311 BY~~ 7- i!L~'1-""""'- 24 (j j 25 26 271 28 HTC:js [Subkase.Res] II 2 98-75 Fil e No. SUBLEASE J. THIS SUBLEASE, made and entered into this L(fl.. day of '~IV\~ ~1~1g by and between the County of San Bernardino, hereinafter called Sub essor, and the City of San Bernardino Employment and Training Agency, by and through its duly elected Mayor, hereinafter called City. The parties hereto mutually agree as follows: WITNESSETH: 1.) October 21, 1997, by Family Trust. This is a Sublease of that certain Master Lease dated and between the County of San Bernardino and Sedlak 2.) Sublessor hereby subleases unto City who hereby hires from Sublessor those certain premises situated in the City of San Bernardino, County of San Bernardino, State of California, and more particularly described as follows: Approximately 620 net usable square feet of office space on the ground floor of the building located at 646 North Sierra Way as outlined in red on the attached Exhibit "A" Plan, together with Specifications marked Exhibit "B". said Exhibits "A" and "B", being incorporated by reference into this Lease, and including an unlimited use of the building's common facilities, including available parking in the adjacent lot, all on a share and share alike basis. 3.) To have and hold said leased premises, together with the appurtenances, rights, privileges, and easements thereunto belonging or apper- taining unto Sublessor, for a term commencing on the first day of March 1, 1998, and ending on the February 28th day of 2003, with such rights of termination as are hereinafter set forth, with rental payable by City in arrears as follows: Mar. 1, 1998 thru Feb. 28, 1999 - monthly payments of $1,777.00. Mar. 1, 1999 thru Feb. 28, 2000 - monthly payments of $1,830.00. Mar. 1, 2000 thru Feb. 29, 2001 - monthly payments of $1,885.00. Mar. 1, 2001 thru Feb. 28, 2002 - monthly payments of $1,942.00. Mar. 1, 2002 thru Feb. 28, 2003 - monthly payments of $2,000.00. 4. ) City agrees to pay the aforesaid rental to Sublessor at the address specified herein, or to such other address as the Sublessor may designate by a notice in writing to the: City of San Bernardino Employment and Training Agency 599 North Arrowhead Avenue San Bernardino, California 92401 1 1-- 98-75 5.) All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States Mail, certified and postage prepaid, and addressed to the Sublessor at: County of San Bernardino Real Estate Services Department 825 East Third Street San Bernardino, CA 92415-0832 and to the City at the address indicated in Paragraph 4. Nothing herein con- tained shall preclude the giving of any such written notice by personal service. 6.) Either party may terminate this Sublease at any time by glVlng notice to the other at least thirty (30) days prior to the date when such termination shall become effective. 7.) Sublessor shall furnish to City during the Sublease term. at Sublessor's sole cost, the following services and utilities: A. Janitorial services, including but not limited to, regular cleaning of offices and restrooms, toilet supplies and waste disposal. B. All utilities. 8. ) leased premises, at to the premises. 9.) In the event the subleased premises or any essential part thereof shall be destroyed by fire or other casualty, this Sublease shall, in the case of total destruction of the subleased premises, immediately termi- nate. In case of partial destruction or damage, City may elect to terminate by giving written notice setting forth the date of termination to the Sub- lessor within twenty-five (25) days after such fire or casualty, and no rent shall accrue or be payable to the Sublessor after such termination. In the event of any such destruction where the City remains in possession of said premises, whether for the remainder of the term or temporarily pending termi- nation, the rental as herein provided shall be reduced by the ratio of the floor space City is precluded from occupying to the total floor space of the subleased premises. Sublessor reserves the right to enter and inspect the reasonable times, and to have made any necessary repairs 10.) Rental payable hereunder for any period of time less than that for which periodic rental is payable shall be determined by pro- rating the rental due for the applicable period of occupancy. 11.) During the performance of this Sublease, the Sublessor shall not deny benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they 2 ,--- 98-75 discriminate unlawfully against any employee or applicant for employment be- cause of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, or marital status. Sublessor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Sublessor shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.), the provisions of Article 9.5, Chapter I, Part 1, Division 3, Title 2 of the Government Code (Government Code, Sections 11135- 11139.5), and the regulations or standards adopted by the awarding City agency to implement such article. 12.) In no event shall the term of this Sublease continue beyond the expiration of the Master Lease. 13.) In the event of a conflict between the provisions of this Sublease and the afore-specified Master Lease, the provisions of the Lease shall prevail, and the parties to this Sublease shall be bound accordingly. *** *** *** *** *** *** *** *** *** *** 3 1- 98-75 v 14.) The Sublessor may unilaterally amend this Sublease to bring it into conformity with the Master Lease and City's Sole remedy to such amendment shall be 1 imited to termination in accordance with Paragraph 6.. Sublessor shall have no liability for consequential or other damages which may be suffered by City in the event of such amendment resulting in termination of this Sublease. IN WITNESS WHEREOF, this Sublease has been executed by the parties hereto as of the date first above written. CITY OF SAN BERNARDINO Emp 1 oyment and Tra i nj ng Agency COUNTY OF SAN BERNARDINO By Title Byi1~~f~ , 11tle_ ~ Q.ated -r;-;//.,/ r r Dated JAMES PENMAN, City Attorney City of S n Bernardino, California , Approved as to Legal Form: ALAN K. MARKS, County Counsel San Bernardino County, California Approved as to Legal Form: By ~ By 7~r~ Dated .J :.-C;; ~9~ Da ted 1JJ1M.s 4 98-75 EXHIBIT SAN BERNARDINO ONE-STOP SPACE ALLOCATION -3% INCREASE TOTAL LEASABLE SPACE: 7,225 Work Area Soace: Office Reception Work Stations (3) (3) (35) 120 x 3 = 360 33 x 3 = 99 35x49=1.715 Total Staff Space 2,171 Exclusive Use Soaces: Office Reception Work Stations EDD SBETA Co. JTPA (1) (1) (I) 120 sf (1) 120 sf (1) 120 sf (1) 33 sf 33 sf 33 sf (14) (6) (15) 686 sf= 839 = 39% 284 sf= 446 = 20% 735 sf= 888 = 41 % EDD 7,225 sf x 39% = 2,817.75 x $1.23 sf $3,465.83 mo. SBETA 7,225 sf x 20% = 1,445.00 x $1.23 sf = $1,777.35 mo. Co. JTPA 7,225 sf x 41 % = 2,962.25 x $1.23 sf $3,643.57 mo. 7,225 sf x $1.23 sf = $8,886.75 mo. ~~ ~ 25 " ~~ U 98-75 g} ~&1 ~~ ~o 8'-' ,-~ . ~ ~~ ~ <{ ~~5 ~'l' ~ ~ ~ ~ u ~:J~ 5~ ~ ~ ~:R ~;:\ ~ <{ 0 ~~~ ~ ':; 3 % 15 ~<< ~~~ _IS " <{ ~ <0 ~'1 ~ ""2 ~ <{ ~ <{ ;;':'l' ~ w % .0_ .-0' E " '" " ?;9~ :;!2~ ~~ w <{ '" ~.. <5 % ~ ~ % ~~f r...., /"lj w ~ <{ ~ ~ " , , " I , I \ ,Idr I ~ " . , . .. 0 o D . . " " > . ~v <::\ - ~. ~ -" ~ ~ ] ~ ~ ~ 0 ~ "' ~ Co '\.I u ~~ . " ~ 6~ ", ~i H ,. - ~ ing ~ g " .u U~@] ~ .w -. . ~~ - ::i::;:;-= " " 0 ~- {', H l~fll.llll:l:I = 0 = _H "0 x ~; ~ u - -,. '3 v , ~ "'" ~ 'w \:'~l'~ U~~ ill~ ~ U:::r-': ~ ~ ~~ 0 J~" {', ~ ,. ~ ~ , . I 13NI9n Q---1 --I" .' '" >-- = ~~ I ;;;; ~!ill I ~~ . a~~ .0 I ~ :- tlli_ [] ~ ~ ~ L ~~ j ".>. L"..:: ,., ~~ ~~...., ::~~ 'i:!:",~ ~O:::;~ <L~'" .o..sg ,v '!;I\,:! " ~3 -e> L_ _ :U{:= :!}~ -€(> ;~ = o o = 0 o@l ~@";O~ ,- t<llLl 'W - ~ = ~ , " " " o ". dO '0 .0 ~~ o~ "' ~~ 6 " " " ~ "z ~~ ~~ l- ., ~ = o o = ~ U@] = 0 .w _ ~ :-:: "";i = -- o u ~ ;- ~ o . Q o D < " z z Q C C . < " ( "' z . " X Q . .., ~ o iO o f < . , Q I ~ ~ ~ u [B] '" 0 " ~ " 'I ~~ .. ". Ie ffiJ; ". ~ D' ~=' " ~, " 8~ ~u ,,,l. ~.,. l'~ 11<" ~< C) ~. ~~ 'z U , ~l' ~'D ~ ~O o~. " u~ ~~ h u ~ m m '3 . ~~ .z z. 6 --~ ~ ~D~ " . . y' = 0 0 = :=~ ~ ~ ~ t:; ,~, g ~ = <L ~~ ~ '~EiL ESTATE SERVICES DEPARTMENT 825 Eool Third Street. San Bernerdlno, CA 92415.0832 . fax (909) 387.2778 Administration (909) 387-2769 Properly Managament (808) 387-2767/2793 Rlght.oj'Way (909) 387-2784/2766 COUNTY OF SAN BERNARDi' ::. GENeRAL sERVICES G,;~" 1'~}: ';'tl MANUEL MIU.RO Director Fcbruary 2, 1998 Sedlak Fanli1y Trust 3272 Parkside Drive San Ilernardino, CA 92404 Attention: Nancy W. Sedlak Re: San 8eruardiuo - 646 North Slcrra Way - Connty of Sail Bernardino, City of San Beruardlno & Stllte of Califorula Facility, Lcase Agreement No. 97-881 For your infon11ation, thc County of San Bernardino is entering into two small sublease agreements with tlle City of San Bernardino and the State of California, Departmcllt of Employment Dcvelopment Department, tor a one-stop facility for job placement training in the above-referenced leased facility. Although our tease agrccment does not requirc the County to obtain your consent, our suhtenants havc rcquested that we obtain your acknowlcdgc[[,c:'", suhleases. Therefore, would you please sign and rcturn this letter as your acknowledgmcnt of the sublcases. A self-addressed stamped envelope is encloscd for your convenience. If you have any questions, I can be contacted at (909) 387-2767. VelY tl11ly yours, LI\l\dlord does hereby aeknowled"e the above-referenced subleases: (/dl':='~LI At",,; 1~. TRUDY SMrfH Real Property Agent ~ A , By:--'l:!~ ){C-L!'I/ 'd/(a.t-" . F TS:bas Dale; ..;;, (. _1, / f f f?_ Cc: Mark Weinstcin, DPSS Roger Lyons, DPSS ',\ ":".:':!I/\'i'li,/\ I 'I ,. . '" ~ ; n,' ,Ii ;!. ,i I' fI~ \ ~ ;j i' ; I '. \ UO:HiJ <ll " ',"11<'1. I"W. iL'Ill fl '{,'('\I,II'-I'I \, I" 11' 1~}\lll'/ ,~. 'VIVI',:; 11),\: f' ,'l'~q~l "I;ill!",!.in r'II):"',: I 1" . . r 11 11, -i " I ,,,' ~ . I. ' : l Iii ; I I 'hi TO'd TOO' oH 17(;: 8 86,170 83.:1 :01 98-75 r\ /) " I EXHIBIT SAN BERNARDINO ONE-STOP SPACE ALLOCATION - 3% INCREASE TOTAL LEASA8LE SPACE: 7,225 Work Area SDace: Office Reception Work Stations (3) (3) ()5) 120 x J ~ 360 33 x 3 =' 99 35x49= 1.715 Total Staff Space 2.171 Exclusive Use SDaces: Office Reception Work Stations "i'l EOD (I) 120 sf (1) 33 sf (14) 686 sf= 839 = 39% SBET A (1) 120 sf (1) 33 sf (6) 284 sf= 446 = 20% Co. JTPA (I) 120 sf (I) 33 sf (15) 735 sf= 888 ~41% EDD 7,225 sf x 39% = 2,817.75 x $1.23 sf .., $3,465.83 mo. SBETA 7,225 sf x 20% = 1,445.00 x $1.23 sf - $1,777.35 mo, Cu, JTPA 7,225 sf x 41 % = 2,962.25 x $1.23 sf ,- $3.643.57 mo. 7,225 sf x $1.23 sf = $&,886.75 mo. ~l! ZO'd TOO'oN 17(::8 86,170 a:::L:J :a1 r--- ~.~'" 9 E X New M Change X Cancel County Department FOR COUNTY USE ONL Y Vendor Code Dept. Contract Number 98-75 SC RNT A Q1-gg I Dept. Orgn. Contractor's License No. 1 E tate Services RNT RNT County Department Contract Representative Ph. Ext. Amount of Contract County of San Bernardino Activity GRC/PAOJ/JOB Number 57N313 4 Estimated Payment Total by Fiscal Year Amount 110 FY Amount lID FAS CONTRACT TRANSMITTAL FY Project Name SAN BERNARDINO JESD - 646 N. Wa CONTRACTOR The Sedlak Familv Trust (Robert Joseph Sedlak and Nancy Woodward Sedlak, Co-Trustees of The Sedlak Family Trust, established April Birth Date 3, 1984) FederallD No. or Social Security No. Contractor's Representative Frank Schnetz, Property Manaqer Address 215 N. "D" St., Ste. 101, San Bernardino, CA 92~e(909) 889-0754 Facs imi le: (909) 888-6202 Nature of Contract: (Briefly describe the general terms of the contract) This Lease Contract is for a period of five (5) years with two (2) three-year options to extend. Leased premises consist of 7,225 square feet with build-to-suit offices. Rental is $1.23 per square foot. LANDLORD shall provide all interior and exterior maintenance to include grounds and parking lot maintenance. LANDLORD to pay water, sewer, trash and all other utilities. (Attach this transmittal to all contracts not prepared on the "Standard Contract" form.) Reviewed as to Affirmative Action Reviewed for Processing ~ ~ Agency Administrator/CAD Date Date Date 02> 12294.000 Rev_ 11190 98-75 COUNTY OF SAN BERNARDINO LEASE AGREEMENT LANDLORD: THE SEDLAK F AMIL Y TRUST 3272 Parkside Drive San Bernardino, CA 92404 COUNTY: COUNTY OF SAN BERNARDINO General Services Group Real Estate Services Department 825 East'Third Street San Bernardino, CA 92415-0832 PREMISES: 646 N. Sierra Way San Bernardino, CA 92410 TERM OF LEASE: Five (5) years with two (2) three-year options COMMENCEMENT DATE OF LEASE: COST PER SQUARE FOOT: $1.23 full service COUNTY CONTRACT NUMBER: REV. 08/27/97 TYPED: 09/26/97 ,-- 98-75 PARAGRAPH 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 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 . TABLE OF CONTENTS CAPTION PARTIES PREMISES LEASED TERM RENT ELECTRIC UTILITY EXPENSE CAP OPTION TO EXTEND TERM RETURN OF PREMISES HOLDING OVER TAXES USE HEALTH, SAFETY & FIRE CODE REQUIREMENTS SIGNS MAINTENANCE ALTERATIONS FIXTURES UTILITIES HOLD HARMLESS INSURANCE DESTRUCTION OF PREMISES LANDLORD'S DEFAULT COUNTY'S REMEDIES ON LANDLORD'S DEFAULT COUNTY'S DEFAULT LANDLORD'S REMEDIES ON COUNTY'S DEF AUL T LANDLORD'S ACCESS TO PREMISES NOTICES INCORPORATION OF PRIOR AGREEMENT WAIVERS AMENDMENTS SUCCESSORS SEVERABILITY TIME OF ESSENCE QUIET ENJOYNIENT PROVISIONS ARE COVENANTS & CONDITIONS CONSENT EXHIBITS LAW VENUE ATTORNEYS' FEES AND COSTS JURY TRIAL WAIVER COUNTY'S RIGHT TO TERMINATE LEASE LANDLORD'S IMPROVEMENTS CAPTIONS, TABLE OF CONTENTS & COVER PAGE SURVIVAL BROKER'S COMMISSIONS ESTOPPEL CERTIFICATES SUBORDINATION AND ATTORNMENT INTERPRETATIONS PAGE 1 1 1 1 2 3 3 3 3 3 4 4 4 5 5 6 6 6 8 10 10 10 11 11 12 13 13 13 13 13 13 13 13 13 13 13 14 14 14 14 15 17 17 17 17 17 19 Exhibit A, Premises Specifications Exhibit B, Janitorial Services Exhibit C, Estoppel Certificate ~ Sample of Subordination and Attornment Agreement attached at end of agreement. 98-75 LEASE AGREEMENT 1. PARTIES: This lease is made between The Sedlak Family Trust (Robert Joseph Sedlak and Nancy Woodward Sedlak, Co-Trustees of The Sedlak Family Trust, established April 3, 1984) ("LANDLORD"), and the County of San Bernardino ("COUNTY"), who agree as follows: 2. PREMISES I,EASED: LANDLORD leases to COUNTY and COUNTY leases from LANDLORD 7,225 square feet of building, real property, and other improvements, with thirty-four (34) parking spaces, including handicapped parking, located at 646 N. Sierra Way, San Bernardino, CA 92410 ("Premises"), as described in Exhibit A, Premises Specifications. 3. TERlVI: This lease shall commence on February 1, 1998, and/or upon acceptance of the Premises by COUNTY with the improvements of Paragraph 41, LANDLORD'S IMPROVEMENTS, substantially completed (for the purposes of this lease, "substantially completed" shall mean that the Premises can 'be used for their intended purposes and have been certified for occupancy by the entity that issued the building permits, notwithstanding that minor corrections and/or additions remain to be completed, it being understood that LANDLORD shall promptly complete said corrections and/or additions), and end on January 31, 2003 ("initial term"). In the event the term commences prior to the date specified for the commencement of the term as a result of COUNTY's acceptance of possession of the improved Premises, the ending date of the term shall not be changed. If LANDLORD is unable to deliver possession of. the improved Premises by the date specified for the commencement of the term as a result of causes beyond its reasonable control, LANDLORD shall not be liable for any damage caused for failing to deliver possession, and this lease shall not be void or voidable. COUNTY shall not be liable for rent and the initial term of this lease shall not commence until LANDLORD delivers possession of the improved Premises to COUNTY, but the ending date of the term shall not be extended by the delay. IfLAl"IDLORD does not deliver possession of the improved Premises to COUNTY by March 15, 1998, COUNTY can elect to terminate this lease by giving notice to LANDLORD at anytime before the date LANDLORD delivers possession of the improved Premises to COUNTY. 4. RENT: a. COUNTY shall pay to LANDLORD the following monthly rental payments in arrears on the last day of each month, commencing when the term commences, continuing during the term: Commencement thru Jan 31,1999 - monthly payments of$8,887.00 ($1.23/sq. ft.). Feb 1, 1999 thru Jan 31, 2000 - monthly payments of $9, 153.00 ($I.27/sq. ft.). Feb 1,2000 thru Jan 31, 2001 - monthly payments of$9,428.00 ($1.30/sq. ft.). Feb 1,2001 thru Jan 31, 2002 - monthly payments of$9,71 1.00 ($1.34/sq. ft.). Feb 1, 2002 thru Jan 31, 2003 - monthly payments of$10,002.00 ($1.38/sq. ft.). r--- 98-75 b. Rent for any partial month shall be prorated based on the actual number of days in the month. All rent shall be paid to LANDLORD at the address to which notices to LANDLORD are given. c. If the COUNTY has accepted the Premises as substantially completed with minor corrections and/or additions remaining to be completed, the monthly rental payments will accrue from the commencement date of this lease but will not be paid to LANDLORD until all such minor corrections and/or additions have been completed and accepted by COUNTY. If the COUNTY withholds monthly rental payments under this subparagraph, the COUNTY will not be in default and no interest or service charges will be added to the amounts due LANDLORD upon completion of the minor corrections and/or additions. The minor corrections and/or additions remaining to be completed are subject to subparagraph 13c, MAINTENANCE. 5. ELECTRIC UTILITY EXPENSE CAP: a. For the purpose of this paragraph, the following terms and definitions apply: (1) Electric Utility Expenses: The term "Electric Utility Expenses", as used in this paragraph, shall include all direct costs and related taxes for electrical services billed to LANDLORD by the utility company for electrical service. Electrical Utility Expenses shall be calculated on a cents-per-square-foot-per-month basis. (2) Electric Utility Expense Cap: The term "Electric Utility Expense Cap", as used in this paragraph, shall be defined as the point above which LANDLORD's payment of Electric Utility Expenses become reimbursable to LANDLORD by COUNTY. b. The Electric Utility Expense Cap for the first (1st) lease year (commencernentthrough January 31, 1999), is Eighteen Cents ($.18) per square foot per month and will increase annually three percent (3%), commencing February I, 1999. c. No later than March 1 of each lease commencing March 1, 1999, and concluding January 31, 2003, LANDLORD shall notify the COUNTY in writing of any excess in Electric Utility Expenses over the Electric Utility Expense Cap for the previous one (1) year lease period ending the last day in January of each year. (The first lease year shall be commencement through January 31, 1999.) LANDLORD shall provide COUNTY with receipts and invoices necessary to verify the cost and payment of all Electric Utility Expenses. COUNTY shall review the Electric Utility Expenses within sixty (60) days of receiving the receipts and invoices, and reimburse LANDLORD for the verified expenses in excess of the Electric Utility Expense Cap. Failure by LANDLORD to notify COUNTY in writing of any such increase in Electric Utility Expenses or to provide COUNTY with receipts and invoices shall be a waiver of any increase due for that billing period only. Any waiver of expense cap overage for anyone (1) year period will not be a waiver for any succeeding one (1) year period. ****** 2 98-75 6. OPTION TO EXTEND TERL\1: a. LANDLORD gives COUNTY the option to extend the term of the lease on the same provisions and conditions, except for the monthly rent, for two (2) three-year periods ("extended terms") following expiration of the initial term, by COUNTY giving notice of its intention to exercise the option to LAl'IDLORD prior to the expiration of the preceding term or during any holding over pursuant to Paragraph 8, HOLDING OVER. The rent for each extended term shall be adjusted by good faith negotiation of the parties to the fair market rental rate then prevailing based upon the rental rates of comparable leased property in San Bernardino County. If the parties have been unable to agree upon the said fair market rental rate wIthin five (5) months of the COUNTY's notice to exercise an option for an extended term, said fair market rental rate shall be determined through arbitration conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. If the fair market rental rate is determined by arbitration, the COUNTY has the right to terminate the lease by giving termination notice to the LA."IDLORD within thirty (30) days of being notified of the new fair market rental rate. (1) The negotiations and any dispute resolution method used will be guided by the fact that the monthly rent in Paragraph 4, RENT, includes amounts for basic rent for office space, and payment for building improvements made by LANDLORD under Paragraph 41, LAl'lDLORD IMPROVEMENTS. The basic rental rate for office space starts at Ninety-Five Cents ($.95) per square foot per month for the first twelve (12) months of the initial term and with annual increases of three percent (3%), will increase to One Dollar and Six and Nine-Tenths Cents ($1.069) per square foot per month during the last twelve (12) months of the initial term. The amount for payment of LANDLORD improvements starts at Twenty-Eight Cents ($.28) per square foot per month and with annual increases of three percent (3%), will increase to Thirty-One and Five-Tenths Cents ($.315). All LANDLORD improvements will have been paid for within the initial term and no further payment for these improvements will be made by COUNTY. The negotiated/arbitrated rent shall be based upon the basic rental rate above and shall not include any rental amount for the LANDLORD's improvements. 7. RETURN OF PREMISES: The COUNTY agrees that it will, upon any termination of this lease, return the Premises in as good condition and repair as the Premises now are or shall hereafter be put; reasonable wear and tear excepted. 8. HOLDING OVER: In the event the COUNTY shall hold over and continue to occupy the Premises with the consent of the LANDLORD, expressed or implied, the tenancy shall be deemed to be a tenancy from month-to-month upon the same terms and conditions, including rent, as existed and prevailed at the time of the expiration of the term of this lease. 9. TAXES: LAJ'IDLORD shall pay all real property taxes, and general and special assessments levied and assessed against the Premises. 10. !lS.E.;. COUNTY shall occupy and use the Premises during the term hereof for the purposes of COUNTY business. 3 98-75 11. HEALTH. SAFETY AND FIRE CODE REOUlREMENTS: As a condition precedent to the existence of this lease, LANDLORD, at its sole expense will ensure the Premises meet the applicable requirements of the Health, Safety, Fire and Building Codes for public and governmental buildings, including any requirements for a notice of completion, certificate of occupancy and the Americans with Disabilities Act ("ADA"). Should the continued occupancy of the leased Premises be in any way prejudiced or prevented due to changes in the ADA or the Health, Safety or Fire Codes for Public Buildings, the LANDLORD herein shall correct, update and comply with said changes at LANDLORD's cost. 12. SIGNS: COUNTY will display from the windows and/or marquee of the Premises only such sign or signs as are not prohibited by law. 13. MAINTENANCE: a. LANDLORD at its cost shall perform such inspections, maintenance and repairs as are necessary to ensure that all portions of the Premises, including but not limited to the following, are at all times in good and safe condition: (1) The structural parts of the building and other improvements that are a part of the Premises, which structural parts include the foundations, bearing and exterior walls (including glass and doors), sub flooring, and roof; and, (2) The electrical, plumbing, and sewage systems, including, without limitation, those portions of the systems owned or controlled by LANDLORD lying outside the Premises; and, (3) Window frames, gutters, and downspouts on the building and other improvements that are a part of the Premises; and, (4) During the third year of the initial term and at the beginning of every third year thereafter, repaint the interior of the facility, meeting the same criteria as originally described in Exhibit A, Premises Specifications; and, (5) Air conditioner, heating and ventilating systems servicing the Premises; and, (6) The grounds, including all parking areas and outside lighting, grass, trees, shrubbery and other flora; and, (7) The servicing of fire extinguishers or any other fire suppression equipment attached to the facility; and, (8) Interior maintenance and janitorial services. Janitorial services must be performed in a workman-like manner by a licensed and qualified independent janitorial contractor, and are to include but are not limited to the items set forth in Exhibit B, Janitorial Services. COUNTY has the right to review the selection of all janitorial contractors and the 4 98-75 agreements for providing janitorial service. LANDLORD shall perform interior maintenance and janitorial services at a time and in a manner that will cause the least possible inconvenience, annoyance, or disturbance to COUNTY. (9) COUNTY reserves the right to require the LANDLORD to hire an independent, qualified management company to manage the Premises. COUNTY has the right to require that property management services, not limited to maintenance and repair, be performed pursuant to a property management agreement. The Premises must be inspected by the LANDLORD at least every other week, beginning the second week after the comm.encement date, and daily by the janitorial staff, to ensure that the Premises are maintained properly. If LANDLORD has hired a property management company or other maintenance and/or repair agent, the LANDLORD may have the property manager or other agent conduct such inspections on his behalf. COUNTY has the right to require inspections to be coordinated with the COUNTY representative. b. any way unsafe. LAl'IDLORD at its cost shall repair the Premises if they are damaged or in c. LANDLORD shall have ten (10) days to perform its obligation to repair under this paragraph, except that LANDLORD shall perform its obligations immediately if the nature of the problem presents an unsafe condition or emergency. Provided, however, if the nature and/or extent of LANDLORD's obligation is such that more than ten (10) days are reasonably required to complete, then LANDLORD shall not be in default if LANDLORD commences its obligation within said ten (10) day period and thereafter diligently prosecutes its obligation to completion. If LANDLORD does not perform its obligations within the time limitations in this paragraph, COUNTY after notice to LANDLORD can perform the obligations and have the right to be reimbursed for the sum it actually and reasonably expends (including charges for COUNTY's employees and equipment) in the performance of LANDLORD's obligations. COUNTY shall have the right to reimbursement by either billing LANDLORD (or at COUNTY's sole option), by withholding from future rent due the sum COUNTY has expended until COUNTY is reimbursed in full. COUNTY shall forward to LANDLORD receipts and/or documentation supporting the amount withheld. Without in any way affecting LANDLORD's duty to inspect, maintain and repair the Premises regardless of whether any specific notice of need for maintenance or repair is provided to LANDLORD by the COUNTY, the COUNTY may request specific maintenance or repairs. Any such request may be made orally, by telephone or otherwise. 14. ALTERATIONS: COUNTY shall not make any structural or exterior improvements or alterations to the Premises without LANDLORD's consent. Any such alterations made shall remain on and be surrendered with the Premises on expiration or termination of the lease. 15. FIXTURES: COUNTY shall have the right during the term(s) of this lease to install shelving and fixtures, and make interior, non-structural improvements or alterations in the Premises. Such shelving, fixtures, improvements, and alterations shall remain the property of the COUNTY and may be removed by the COUNTY during the term(s) of this lease or within a 5 98-75 reasonable time thereafter, provided that the COUNTY restores the Premises to the condition as it existed at the commencement of this lease, reasonable wear and tear excluded, or the COUNTY in its sole discretion may elect to surrender all or any part of such shelving, fixture, improvements and alterations to the LANDLORD, in which case COUNTY shall have no duty to restore the Premises. Any such election to surrender must be in writing, but need not be accepted by LANDLORD to be effective. 16. UTILITIES: Except as provided in Paragraph 5, ELECTRIC UTILITY EXPENSE CAP, LANDLORD shall furnish to the Premises and pay all service charges and related taxes for water, sewer and all other utilities. The COUNTY shall furnish and pay for its own telephone service. 17. HOLD HARi'VILESS: a. The LANDLORD agrees to indemnify, defend (with counsel approved by COUNTY) and hold harmless the COUNTY its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages, and/or liability arising out of this contract from any cause whatsoever, including the acts, errors or omissions of any person and for any costs or expenses incurred by the COUNTY on account of any claim therefore, except where such indemnification is prohibited by law. b. The COUNTY agrees to indemnify and hold harmless the LANDLORD, and its officers, employees, agents and volunteers from any and all liabilities for injury to persons and damage to property arising out of any negligent acts or omissions of the COUNTY, its officers, employees, agents, or volunteers in connection with this contract. c. In the event COUNTY and/or the LANDLORD is found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under the lease, the COUNTY and/or LANDLORD shall indemnify the other to the extent of its comparative fault. d. Furthermore, if the COUNTY or LANDLORD attempts to seek recovery from the other for Workers' Compensation benefits paid to an employee, the COUNTY and LANDLORD agree that any alleged negligence of the employee shall not be construed against the employer of that employee. 18. INSURANCE: a. COUNTY is a public entity and is self-insured. b. Without in any way affecting the indemnity herein provided and in addition thereto, the LANDLORD shall secure and maintain throughout the lease the following types of insurance with limits as shown: (1) Workers' Compensation: A program of Workers' Compensation Insurance or a state-approved Self-Insurance Program in an amount and form to meet all 6 98-75 applicable requirements of the Labor Code of the State of California, including Employer's Liability with Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) limits, covering all persons providing services on behalf of the LANDLORD and all risks to such persons under this agreement. (2) Comprehensive General and Automobile Liability Insurance: This coverage to include contractual coverage and automobile liability coverage for owned, hired and non-owned vehicles. The policy shall have combined single limits for bodily injury and property damage of not less than One Million and 00/100 Dollars ($1,000,000.00). (3) Fire Insurance: Standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements to the extent of at least forty percent (40%) of the full replacement value of the Premises. c. Additional Named Insured: All policies, except for Workers' Compensation, shall contain additional endorsements naming the COUNTY and its officers, etIl1'loyees, agents and volunteers as additional named insured with respect to liabilities arising out of this agreement. d. Waiver of Subrogation Rights: LANDLORD shall require the carriers of the above required coverages to waive all rights of subrogation against the COUNTY, its officers, employees, agents, volunteers, contractors and subcontractors. e. Policies Primary and Non-Contributory: All policies required above are to be primary and non-contributory with any insurance or self-insurance programs carried or administered by the COUNTY. f. Proof of Coverage: LANDLORD shall immediately furnish certificates of 'm= 'to.'C-()UNTY, evidencing the insurance coverage, including endorsements, above required prior to occupying the Premises and the commencement of performance of services hereunder, which certificates shall provide that such insurance shall not be terminated or expire without thirty (30) days written notice to the COUNTY, and LANDLORD shall maintain such insurance from the time of occupancy and commencement of performance of services hereunder until the completion of such occupancy. Within sixty (60) days of the commencement of this agreement, the LANDLORD shall furnish certified copies of the policies and all endorsements. g. Insurance Review: The above insurance requirements are subject to periodic review by the COUNTY. The COUNTY's Risk Manager is authorized, but not required, to reduce or waive any of the above insurance requirements whenever the Risk Manager determines that any of the above insurance is not available, is unreasonably priced, or is not needed to protect the interests of the COUNTY. In addition, if the Risk Manager determines that heretofore unreasonably priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available, the Risk Manager is authorized, but not required, to change the above insurance requirements to require additional types of insurance coverage or higher coverage limits, provided that any such change is reasonable in light of past claims against the COUNTY, inflation, or any other item reasonably related to the COUNTY's risk. Any such 7 98-75 reduction or waiver for the entire term of the agreement and any change requiring additional types of insurance coverage or higher coverage limits must be made by amendment to this agreement. LANDLORD agrees to execute any such amendment within thirty (30) days of receipt. h. Failure to Have Insurance: In the event COUNTY receives a notice of cancellation concerning any of the required policies, or should LANDLORD fail to have in effect the required coverage at any time during this lease, COUNTY may give notice to LANDLORD to immediately suspend all LANDLORD activities and/or notice to reinstate or acquire the affected coverage. Should LANDLORD fail to reinstate or acquire the affected coverage within ten (10) days of COUNTY's notice to reinstate or acquire such coverage, COUNTY may either terminate this lease, reinstate or acquire the affected coverage, and LANDLORD shall reimburse COUNTY for the necessary cost at COUNTY's option. If LANDLORD does not reimburse COUNTY within ten (10) days after demand by COUNTY, COUNTY shall have the right to withhold from future amounts due under this lease or otherwise due to LANDLORD the sum COUNTY has expended until COUNTY is reimbursed in full. i. COUNTY shall have no liability for any premiums charged for such coverage(s). The inclusion of COUNTY as additional named insured is not intended to and shall not make it a partner or joint venturer with LANDLORD. 19. DESTRUCTION OF PREMISES: a. If during the term of this lease, any casualty renders ten percent (10%) or less of the floor space of the Premises unusable for the purpose intended, LANDLORD shall commence restoration of the Premises within thirty (30) days of notice of the casualty and shall thereafter diligently pursue complete restoration of the Premises within a reasonable time. If LANDLORD does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to LANDLORD, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for COUNTY's employees and equipment used) in the performance of LANDLORD's obligations, or COUNTY may terminate this lease by notice to LANDLORD. If COUNTY performs LANDLORD's obligations under this subparagraph, and LANDLORD does not reimburse COUNTY within thirty (30) days after demand from COUNTY, COUNTY shall have the right to withhold from future rent due the sum COUNTY has expended until COUNTY is reimbursed in full, or institute an action to collect the amount expended without first withholding rent due. b. If during the term of this lease, any casualty renders more than ten percent (10%) but less than twenty-five percent (25%) of the floor space of the Premises unusable for the purpose intended, LANDLORD shall commence restoration of the Premises within ninety (90) days of notice of the casualty and shall thereafter diligently pursue complete restoration of the Premises within a reasonable time. If LANDLORD does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to LANDLORD, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for COUNTY's 8 98-75 employees and equipment used) in the performance of LANDLORD's obligations, or COUNTY may terminate this lease by notice to LANDLORD. If COUNTY performs LANDLORD's obligations under this subparagraph, and LANDLORD does not reimburse COUNTY within thirty (30) days after demand from COUNTY, COUNTY shall have the right to withhold from future rent due the sum COUNTY has expended until COUNTY is reimbursed in full, or institute an action to collect the amount expended without first withholding rent due. c. If during the term of this lease, any casualty renders at least twenty-five percent (25%) but less than forty percent (40%) of the floor space of the Premises unusable for the purpose intended, COUNTY shall within thirty (30) days of the casualty and at its option and in its sole discretion, terminate this lease by notice to LAL'IDLORD or request LANDLORD to restore the Premises. If COUNTY requests LANDLORD to restore the Premises, the LANDLORD shall either terminate this lease by notice to COUNTY within ten (10) days of receiving COUNTY's request for restoration or commence restoration of the Premises within ninety (90) days of receiving COUNTY's request for restoration and thereafter diligently pursue complete restoration of the Premises within a reasonable time. If LANDLORD does not terminate the lease and does not perform the restoration obligations of this subparagraph within the time limitations set forth, COUNTY may, at its option and in its sole discretion, after notice to LANDLORD, perform the obligations and have the right to be reimbursed for all sums it actually and reasonably expends (including charges for COUNTY's employees and equipment used) in the performance of LANDLORD's obligations, or COUNTY may terminate this lease by notice to LANDLORD. If COUNTY performs LANDLORD's obligations under this subparagraph, and LANDLORD does not reimburse COUNTY within thirty (30) days after demand from COUNTY, COUNTY shall have the right to withhold from future rent due the sum COUNTY has expended until COUNTY is reimbursed in full, or institute an action to collect the amount expended without first withholding rent due. d. If during the term of the lease, any casualty renders forty percent (40%) or more of the floor space of the Premises unusable for the purpose intended, this lease shall be terminated as of the date of the casualty. If the lease is terminated pursuant to this subparagraph, COUNTY shall have a reasonable time to vacate the Premises and shall not be required to pay rent during the reasonable time required to vacate the Premises. e. In the event there is a destruction of a portion of the Premises as set out in subparagraphs a, band c, above, there shall be an abatement or reduction of the rent between the date of destruction and the date of completion of restoration or the date of termination of this lease, whichever comes first. The abatement or reduction of the rent shall be in the percentage as the percentage of unusable floor space. Unusable floor space for the purpose of calculating the percentage of rent abatement or reduction shall include not only that floor space which is rendered unusable for the purpose intended by the casualty itself, but any additional floor space which is not usable for the purpose intended because ofrestoration or similar activities. f. In the event there is a destruction of a portion of the Premises as set out in subparagraphs a, band c, above, and the lease is not terminated because of such destruction, LANDLORD agrees to use any and all insurance proceeds received for said destruction in the restoration of the Premises. 9 98-75 g. In the event LANDLORD is required to restore the Premises as provided in this paragraph, LANDLORD shall restore, at LANDLORD's expense, any structural or exterior improvements or alterations to the Premises made by COUNTY pursuant to Paragraph 14, ALTERATIONS, of this lease, but shall not be responsible for restoring any shelving, fixtures, or interior nonstructural improvements or alteration made by the COUNTY pursuant to Paragraph 15, FIXTURES, of this lease. h. It is the purpose and intent of this paragraph to determine who shall bear the initial responsibility for restoration of the Premises in the event of any such destruction and not to determine the party responsible for the ultimate costs of such restoration. 20. LANDLORD'S DEFAULT: Except where another time limit is specifically provided, LANDLORD shall be in default of this lease if it fails or refuses to perform any material provisions of this lease that it is obligated to perform if the failure to perform is not cured within thirty (30) days after notice of such default has been given by COUNTY to LANDLORD. {fthe default cannot reasonably be cured within thirty (30) days, LANDLORD shall not be in default of this lease if LANDLORD commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. 21. COUNTY'S REMEDIES ON LANDLORD'S DEFAULT: COUNTY, at anytime after LANDLORD is in default, can terminate this lease or can cure the default at LANDLORD's cost. If COUNTY at any time, by reason of LANDLORD's default, pays any sum or does any act that requires the payment of any sum (including charges for COUNTY's employees and equipment), the sum paid by COUNTY shall be due from LANDLORD to COUNTY within five (5) days of notice of such sum, and ifpaid at a later date shall bear interest at the maximum rate the COUNTY is permitted by law to charge from the date the sum is paid by COUNTY until COUNTY is reimbursed by LANDLORD. If LANDLORD fails to reimburse COUNTY as required by this paragraph, COUNTY shall have the right to withhold from future rent due the sum COUNTY has paid until COUNTY is reimbursed in full for the sum and interest on it. The remedies set forth in this paragraph are in addition to and do not in any manner limit other remedies set forth in particular paragraphs of this lease. 22. COUNTY'S DEFAULT: The occurrence of anyone or more of the following events shall constitute a default and breach of this lease by COUNTY: a. The vacating for more than thirty (30) consecutive days or abandonment of the Premises by COUNTY. b. The failure by COUNTY to perform any material provisions of this lease to be performed by COUNTY, including the payment of rent, where such failure shall continue for a period of thirty (30) days after notice by LANDLORD to COUNTY; provided, however, that if the nature of COUNTY's default is such that more than thirty (30) days are reasonably required for its cure, then COUNTY shall not be deemed to be in default if COUNTY commences such cure within said thirty (30) day period and thereafter diligently prosecutes such 10 98-75 cure to completion. The purpose of this notice requirement is to extend the notice requirements of the unlawful detainer statutes of California. 23. LANDLORD'S REMEDIES ON COUNTY'S DEFAULT: In the event of any material default by COUNTY which is not cured by COUNTY, LANDLORD may, at its election, terminate this lease by giving COUNTY thirty (30) days notice of termination. The purpose of this notice requirement is to extend the notice requirement of the unlawful detainer statutes of California. On termination of the lease for default pursuant to this paragraph, LANDLORD shall have the right to recover from COUNTY only the following amounts for any and all damages which may be the direct or indirect result of such default: a. The worth, at the time of the award, of the unpaid rent that has been earned at the time of termination of this lease; and, b. The worth, at the time of the award, of the amount by which the unpaid rent that would have been eamed after the date of termination of this lease until the time of award exceeds the amount of the loss of rent that LANDLORD proves could not have been reasonably avoided; and, c. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that LAL"lDLORD proves could not have been reasonably avoided; and, d. Any other amount, and court costs, necessary to compensate LANDLORD for all detriment proximately caused by COUNTY's default which LANDLORD proves could not have been reasonably avoided. "The worth, at the time of the award," as used in subparagraphs a and b of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. "The worth, at the time of the award," as referred to in subparagraph C of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (I %). 24. LANDLORD'S ACCESS TO PREMISES: LANDLORD and its authorized representatives shall have the right to enter the Premises at all reasonable times for any of the following purposes: a. To determine whether the Premises are in good condition; and, b. To do any necessary maintenance and to make any restoration to the Premises that LANDLORD has the right or obligation to perform; and, c. To serve, post, or keep posted any notices required by law; and, d. To post "for sale" signs at any time during the term, to post "for rent" or "for lease" signs during the last three (3) months of the term; and, 11 98-75 e. To show the Premises to prospective brokers, agents, buyers, tenants, lenders or persons interested in an exchange, at any time during the term. LANDLORD shall conduct its activities on the Premises as allowed in this paragraph in a manner that will cause the least possible inconvenience, annoyance, or disturbance to COUNTY. 25. NOTICES: a. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party shall be addressed to the other party at the address set forth below. Either party may change its address by notifying the other party of'the change of address. Notice shall be deemed 'communicated two (2) COUNTY working days from the time of mailing if mailed as provided in this paragraph. LANDLORD's address: Attn: Nancy W. Sedlak The Sedlak Family Trust 3272 Parkside Drive San Bernardino, CA 92404 and Frank E. Schnetz, Property Manager 215 N. "D" Street, Suite 101 San Bernardino, CA 92401 COUNTY's address: General Services Group Real Estate Services Department 825 East Third Street, Room 207 San Bernardino, CA 92415-0832 b. If, at any time after the COUNTY accepts the Premises, the LANDLORD assigns or transfers a non-controlling interest of its rights in the Premises to a third party, LANDLORD must notify COUNTY of its action at least fifteen (15) COUNTY working days prior to completing any such action. c. If, at any time after the COUNTY accepts the Premises, the LANDLORD assigns or transfers a controlling interest of its rights in the Premises to a third party, LANDLORD must notify COUNTY of its action at least fifteen (15) COUNTY working days prior to completing any such action. The new owner must provide COUNTY with evidence of completion of such action. The parties shall immediately execute an amendment to this lease stating the change of ownership of the Premises. 12 98-75 (I) Within fifteen (15) COUNTY working days of completing any action which affects a change in the ownership of the Premises, the new owner must provide COUNTY evidence of obtaining insurance in compliance with Paragraph 18, INSURAL'ICE. 26. INCORPORATION OF PRIOR AGREEMENT: This lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this lease, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. 27. WAIVERS: No waiver by either party of any provisions of this lease shall be deemed to be a waiver of any other provision hereof or of any subsequent breach by either party of the same or any other provisions. 28. AlVlENDMENTS: No provision of this lease may be amended or added to except by an agreement in writing signed bX the parties hereto or their respective successor in interest, expressing by its terms an intention to modify this lease. 29. SUCCESSORS: This lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors, and assigns of the parties hereto. 30. SEVERABILITY: If any word, phrase, clause, sentence, paragraph, section, article, part or portion of this lease is or shall be invalid for any reason, the same shall be deemed severable from the remainder hereof and shall in no way affect or impair the validity of this lease or any other portion thereof. 31. TIME OF ESSENCE: Time is of the essence of each provision of this lease which specifies a time within which performance is to occur. In the absence of any specific time for performance, performance may be made within a reasonable time. 32. OUlET ENJOYMENT: Subject to the provisions of this lease and conditioned upon performance of all the provisions to be performed by COUNTY hereunder, LAi.'IDLORD shall secure to COUNTY during the lease term the quiet and peaceful possession of the Premises and all right and privilege appertaining thereto. 33. PROVISIONS ARE COVENANTS AND CONDITIONS: All provisions, whether covenants or conditions, on the part of either party shall be deemed to be both covenants and conditions. 34. CONSENT: Whenever consent or approval of either party is required that party shall not unreasonably withhold or delay such consent or approval. 35. EXHIBITS: All exhibits referred to are attached to this lease and incorporated by reference. 36. LAW: This lease shall be construed and interpreted in accordance with the laws of the State ofCalifomia. 13 98-75 37. VENUE: The parties acknowledge and agree that this lease was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue for any action or claim brought by any party to this lease will be San Bernardino County. Each party hereby waives any law or rule of court which would allow them to request or demand a change of venue. If any action or claim concerning this lease is brought by any third party, the parties hereto agree to use their best efforts to obtain a change of venue to the Central District of San Bernardino County. 38. ATTORNEYS' FEES AND COSTS: If any legal action is instituted to enforce or declare any party's rights hereunder, each party, including the prevailing party, must bear its own costs and attorneys' fees. This paragraph shall not apply to those costs and attorneys' fees directly arising from any third party legal action against a party hereto and payable under Paragraph 17, HOLD HARMLESS. 39. JURY TRIAL WAIVER: 'LANDLORD and COUNTY hereby waive their respective right to trial by jury and agree to accept trial by judge alone of any cause of action, claim, counterclaim or cross-complaint in any action, proceeding and/or hearing brought by either LANDLORD against COUNTY or COUNTY against LANDLORD on any matter whatsoever arising out of, or in any way connected with, this lease, the relationship of LANDLORD and COUNTY, COUNTY's use or occupancy of the Premises, or any claim of injury or damage, or the enforcement of any remedy under any law, statute, or regulation, emergency or otherwise, now or hereafter in effect. 40. COUNTY'S RIGHT TO TERMINATE LEASE: The COUNTY shall have the right to terminate this lease at any time whenever COUNTY, in its sole discretion, determines it would be in COUNTY's best interests to terminate this lease. COUNTY shall give LANDLORD notice of any termination pursuant to this paragraph at least ninety (90) days prior to the date of termination. In the event COUNTY terminates this lease pursuant to this paragraph, the LANDLORD shall have the right to receive from COUNTY only the following amounts under this lease: a. If on the date of termination, the COUNTY has been in possession of the Premises for at least sixty percent (60%) of the initial term of this lease, the LANDLORD shall be entitled to the rent which will have been earned at the date of termination of this lease. b. If on the date of termination, the COUNTY has not been in possession of the leased Premises for at least sixty percent (60%) of the initial term of the lease, the LANDLORD shall be entitled to the rent which will have been earned at the date of termination of this lease and the amount of unpaid rent which would have been earned had the date of termination been on the date when the COUNTY would have been in possession of the Premises for sixty percent (60%) of the initial term of this lease. c. If the LANDLORD has made any agreed upon improvements for COUNTY under Paragraph 41, LANDLORD'S IMPROVEMENTS, the LANDLORD shall 14 98-75 be entitled to be reimbursed for that portion of the improvements which have not been amortized on the date of termination. d. The total amount which the LANDLORD is entitled to receive under this paragraph shall be paid in monthly installments equal to the monthly rent being paid at the date of termination. The installment payments under this paragraph shall commence on the date after the date of termination when the next monthly rent would have been due, and shall continue until the total amount is paid in full. No interest or service charge shall be added to the total amount due. 41. LANDLORD'S IMPROVEMENTS: a. LANDLORD, at its cost, agrees to make the improvements to the Premises set forth in Exhibit A, Premises Specifications. The improvements shall be completed on the schedule set forth in Paragraph 3, TERi'VI. LANDLORD shall provide COUNTY receipts, invoices and other billing and/or accounting information necessary to verify the cost of all improvements. The costs of all improvements made by LANDLORD pursuant to this paragraph shall be amortized over the initial term of this lease regardless of the actual commencement date of the initial term. The monthly rent, as set out in Paragraph 4, RENT, shall be deemed to include a proportionate share of the amortized cost of the improvements. b. LANDLORD understands and agrees that from the time that this agreement is executed through the completion of the improvements pursuant to Exhibit A, Premises Specifications, and acceptance of the improved Premises by COUNTY, LANDLORD shall not assign or transfer a controlling interest in the Premises to a third party, without COUNTY's prior review and approval. (I) LAL'IDLORD understands and agrees to provide to COUNTY all documents and relevant information conceming any proposed transfer. COUNTY will have ten (10) COUNTY working days after receiving all such documents and information to complete its review. Upon COUNTY approval of an assignment or transfer, the parties shall immediately execute an amendment to this lease stating the change of ownership of the Premises. c. LANDLORD understands and agrees not to make any modifications to the improvement plans and specifications as set forth in Exhibit A, Premises Specifications, without first obtaining approval in the form of an amendment to this Lease. Any changes to these plans and specifications, without first acquiring said approval, will be at the expense of the LANDLORD and not the COUNTY. d. In the event LANDLORD contracts for the construction of any portion of the improvements set forth in Exhibit A, Premises Specifications, LANDLORD shall comply with the applicable portions of Labor Code Section 1720.2 and 1770 et seq. regarding general prevailing wages. e. LANDLORD, at its sole expense, must provide all site plans (including an artist's rendering of the building and details of the exterior finish), space design plans and 15 98-75 construction plans. LANDLORD agrees and understands that it will construct on the Premises during the period immediately following execution of this lease, those improvements shown on the space design and site plans prepared by LANDLORD and approved by COUNTY. The improvements shall be constructed in accordance with Paragraph 11, HEALTH, SAFETY AND F1RE CODE REQUIREMENTS, and Exhibit A, Premises Specifications. f. LANDLORD and COUNTY agree that the improvements are projected to be constructed, completed and certified for occupancy by the City of San Bernardino by February 1, 1998, and that the COUNTY must be able to occupy the improved Premises no later than March 15, 1998. In order to meet the projected occupancy date, the parties have agreed upon 'a Project Construction Schedule, Exhibit A, Premises Specifications, setting forth the essential elements of construction, the projected completion dates, and the critical completion dates for each element. Those dates are as follows: (1) Preparation and Submittal of Building and Site Plans to City of San Bernardino: Completed August 1, 1997. (2) Plan Check and Approval by City Agencies: Completed August 30, 1997. (3) Permit Issuance: Completed September 1,1997. (4) Tenant Improvement Plan Review and Approval by City Agencies: Completed September 18, 1997. (5) Site Work and Building Construction, Construction of Tenant Improvements, and Certified for Occupancy: Projected Completion Date: February 1, 1998. Critical Completion Date: March 15, 1998: g. LANDLORD agrees that its failure to meet .am:: of the above Critical Completion Date(s) will mean that the COUNTY will not be able to occupy the improved Premises by February 1, 1998, and that the COUNTY may therefore elect to terminate this lease in the event the LANDLORD fails to meet .am:: of said dates. Any such election to terminate by the COUNTY must be in writing and given to LANDLORD within thirty (30) COUNTY working days of the missed Critical Completion Date, and before the LANDLORD completes the element and notifies the COUNTY of such completion. h. LANDLORD agrees to provide the COUNTY a written progress report every thirty (30) days. The report shall contain up-date information of construction progress and notification of any permit approval. LANDLORD shall immediately notify COUNTY of the completion of every element in the Project Construction Schedule. i. LANDLORD acknowledges that late delivery of the Premises to COUNTY will cause COUNTY to incur costs not contemplated by this lease agreement, the exact amount of such costs being extremely difficult and impracticable to fix. Therefore, if LANDLORD does not deliver the improved Premises by February 1, 1998, or no later than ninety (90) days after 16 98-75 COUNTY approves, executes and delivers this lease agreement to the LANDLORD or LANDLORD's agent, LANDLORD agrees to liquidated damages of Two Hundred and 00/00 Dollars ($200.00) for each day's delay from February 1, 1998, or no later than ninety (90) days after COUNTY approves, executes and delivers this lease agreement to the LANDLORD or LANDLORD's agent, to the date the COUNTY accepts the Premises or terminates this lease agreement. The parties agree that this charge represents a fair and reasonable estimate of the costs that COUNTY will incur by reason of late delivery. Acceptance of any charge shall not constitute a waiver of LANDLORD's default or prevent COUNTY from exercising any of the other rights and remedies available to COUNTY. 42. CAPTIONS. TABLE OF CONTENTS AND COVER PAGE: The paragraph captions, table of contents and the cover page of this lease shall have no effect on its interpretations. 43. SURVIVAL: The obligations of the parties which, by their nature, continue beyond the term of this lease, will survive the termination of this lease. 44. BROKER'S COMMISSIONS: LANDLORD is solely responsible for the payment of any commissions to any broker who has negotiated or otherwise provided services in connection with this lease. 45. ESTOPPEL CERTIFICATES: Each party within thirty (30) days after notice from the other party, shall execute and deliver to other party, in recordable form, a certificate stating that this lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The certificate also shall state the amount of minimum monthly rent, the dates to which the rent has been paid in advance, the amount of any security deposit or prepaid rent, and that there are no uncured defaults or specifying in reasonable detail the nature of any uncured default claimed. Failure to deliver the certificate within thirty (30) days shall be conclusive upon the party requesting the certificate and any successor to the party requesting the certificate, that this lease is in full force and effect and has not been modified except as may be represented by the party requesting the certificate, and that there are no uncured defaults on the part of the party requesting the certificate. The estoppel certificate shall be in the form as shown in Exhibit C, Estoppel Certificate. 46. SUBORDINATION AND ATTORNMENT: a. This lease is and shall be prior to any encumbrance now ofrecord and any encumbrance recorded after the date of this lease affecting the Premises. b. If, however, a lender requires that this lease be subordinate to any such encumbrance, this lease shall be subordinate to that encumbrance, if LANDLORD first obtains from the lender an agreement that provides substantially the following: "As long as COUNTY performs its obligations under this lease, no foreclosure of deed given in lieu of foreclosure or sale under the encumbrance, and no steps or procedures taken under the encumbrance, shall affect COUNTY's rights under this lease. 17 98-75 "The provisions of Paragraph 19, DESTRUCTION OF PREMISES, of this lease, concerning the use of insurance proceeds on destruction of Premises, shall prevail over any conflicting provisions in the encumbrance." c. COUNTY shall attorn to any purchaser at any foreclosure sale, or to any grantee or transferee designated in any deed given in lieu of foreclosure. d. COUNTY shall execute the agreement and any other documents required by the lender to accomplish the purposes oftrns paragraph. ****** ****** ****** 18 98-75 47. INTERPRET A nONS: As this agreement was jointly prepared by both parties, the language in all parts of this agreement shall be construed, in all cases, according to its fair meaning, and not for or against either party hereto. END OF LEASE TERMS. COUNTY OF SAN BERNARDINO vJs,LANDLORD: The Sedlak Family Trust 1\ "(Rubc.l Ju,eph Sedlak amI Nancy Woodward Sedlak, WT'rustees of The Sedlak Family Trust, established 'April 3, 1984) ~~ l)'/;vU5 0- Trustee By: Robert Joseph Se Dated: OCT 2 1 1997 SIGNED AND CERTIFIED THAT A COpy OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD By: ;JUUUM2 D.ewt::udMJ<--- Nancy Wo dward Sedlak, Co-Trustee Dated: $-C.I/ .3 0 I I f fJ , EARLENE SPROAT, Clerk of the Board of Supervisors Approved as to Legal Form: By1?P~II;ti 7J ffjCiiif Deputy Dated: OCT 2 1 1997 ALAN K. MARKS, County Counsel San Bernardino County, California BY~~_ Dated: 5l-.s0- 9? 19 !f" Co' 98-75 aDO qJ.Y~....:;;I.~ <>r ,dVo'? ~ ... ~ ': . ~ . - ,. . " c...\..": , "& o "'J:j 1:: .. I , "- " , , , !. ~"' c> I '- @ , ~, 'c> '" . " " .-- I ~ '[0:',"' ~ ... \.... ~- :::. ".- illt/:. "<lD (li), '..J... _ v .1>'" A<lli .~~" ~~ ,'~ A. ~ rF I" I _ _ ''I I \.l, !..) - )" . tf b 1\ I __. " , " , ! I" "'.L l ." ~ ~_JJ L ) , , /' <IDe. ~. :' I . , : t . [ , , :;;. ~! '. ~. :::. ~I - l -1 L ~. , , .(@ , o , II - r; , - . ~ ,i ,. " ::: ^' . . , -.; ~ -; , \S J .8.-'- -- I , ----LB . . JJ:. ! I ~ (I)- f -r --I f ~~J ---1_ ~ ]:'. 1'1 T.].' ~ .q])^ \ll.lV o ~ < g t .98-75 '- 10081\01 - I """'"" I I \j ".. __ _ _ . . . .-'1.. _ _ _ _ i \ \ \ II ill III : <:J..... I <:: ~ .~ ~ I .J '1 I I : I I I i J I I I ! Q 0 I 0 I : U>o7.'<U -------1 I i I I [ I ~ i I i r~ ~ ~ I ~QOF : i I ,,'cu -------1 I q 0 Co 0 I I I I 'I ! --'- : ;. ~I 1I111 i /11 <:l ~ c /111 .. - - - - I , ~ I ^ I , -- - IlJ I~ ~ '\:\"" ~'j . -~ . ~~~~ I - - .~ ~ '\:'<\ '" : I I \. \"-.\ J3~! \\\, \.\ \ Q 6j- .- Co \..\ \, \.", \ '~'1~:~ i i~- ~: f i --f :/ c '~~.o I " .e.. ~ 0 ~ ~ II I I ~~I I I i=-' ~ I I 11 - ,\.> \....:.~ - r,;.,.' .-'1 Q 0 " ~,"'... ~ ~ -- " Q Co ~I r =t · " 4< I' " r.; Q ,,1 j" :. ); ARCHfTECTURAL SITE PLAN ~ ,.,~atGoU ~tr.WPUNM" ".......,rrco.ot.~ N County of San Bernardino [.easec P:-emises: \\ \\\\\ . with 34 parking spaces Exhibit "A" Page 2 98-75 SAN BERNARDINO ONE STOP JTPA EMPLOYMENT SERVICES CENTER EXIllBIT "A" SCOPE OF WORK SPECIFICATIONS GENERAL SPECIFICATIONS: On all items listed within Exhibit "A", Scope of Work-Specifications, COUNTY is to select and/or approve all colors, textures, types, meldels, styles, etc., used on the 'exterior and within the lease facility. LANDLORD is to coordinate and provide for all health, handicap, building and safety, and fire requirements pursuant to all COUNTY, state and federal codes. All construction drawings are to be provided at LANDLORD'S expense. 1. CEILINGS: a. 2' x 4' suspended acoustic 'ceiling with Donn DX exposed ceiling tile tee systems or COUNTY approved equal with electro-galvanized grid. b. 2' x 4' three (3) or four (4) tube fluorescent drop--in fixtures, minimum 70 foot candles. Lighting must meet all Uniform Building Codes applicable to commercial office buildings. All rooms to have separate lighting controls (switches or light sensors). c. Ceilings are to be nine foot (9') unless otherwise specified in Finish Specifications, (some are specified to be ten foot). d. Five-eighths inch (5/8") thick Armstrong Cortega ceiling acoustical panels (AP-l) unless otherwise specified in the Finish Specifications. e. Armstrong High Performance tiberglass ceiling acoustical panels (AP-2), fl3103, NRC range 1" - .90-1.00, nubby paint, when specified in Finish Specifications. r. A 2' x 4' three (3) or four (4) tube Iluorescent light fixture is to remain on at all times in each hallway, stairwell, lobby and Open Work Area. g. Ceiling or wall mounted light fixtures with battery pack power supply in each stairwell, hallway, lobby and Open Work Area to provide emergency lighting in case electrical power is interrupted. h. The wall mounted light switches for control of ceiling lighting in each lobby or Open Work Area are to be located together in the lobby or Open Work Area, Location of light switches to be approved by COUNTY. 2. CEILING FANS: Emerson Premium, 52", 5 blade, white flCF 4552 WW or equal with wall Jl10unteu switches to control on/off and forward/reverse. 3. vVlNOOW COVERINGS: Vertical blinds 011 all winuows, Blind Design curved wave, gray. Pane 3 '" 1- 98-75 EXIllBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) 4. WALLS: a. The interior side of all exterior concrete or block walls are to be furred b. All interior concrete or block walls are to be furred, except 104, 107, 113. c. All interior walls shall be constructed from floor to ceiling. 5 . PAINTED WALLS: All interior walls shall be orange peel textured with two coats interior latex paint, Dunn-Edwards. a. P-l - French White, 164, semi-gloss. b. P-2 - French White, 164, high-gloss. c. P-3 - Seine, DE 1065 LI, semi-gloss (accent color). 6. AIR CONDITIONING: a. The facility HV AC system (heating, ventilation, and refrigerated air conditioning) shall be zone controlled properly to provide an even temperature throughout the facility, unless noted otherwise. b. All air conditioning outlets with 4-way adjustable louvers, Metal Aire Model 7000 or COUNTY approved equal. c. All rooms are to have air conditioning outlets and returns. d. Thermostats enclosed in metal lock boxes. e. Air conditioning requirements for the Phone Room are included in Exhibit "A", Page 21. 7. CARPET (CARP): a. 28 oZ., tufted loop pile, 20# heavy-tuff unitary backing 1. Atlas Exeter, TW-141487-A (Clifton, special order); or 2. Philadelphia Vocation, 83483 Polar Mist; or 3. Stratton Structures Il, 26410 Blueberry. b. Installation to be straight glue down. c All carpet seams are to be sealed with carpet manufacturer's approved seam sealer. d. Burke, 303 Tahoe, 4" rubber base coping, 8. STAIR TREAD (ST-l): Mercer Products Company, Nornlal Comrnercial, 204 .Gray. 9. SIGNS: Interior and exterior signs as specified by COUNTY. Page 4 98-75 EXHIBIT "A" - SCOPE OF WORK SPECIF1CATIONS (Continued) 10. FLOORING: a. Flooring must be constructed to withstand a minimum force of 125 pounds per square foot loading. b. Armstrong Exelon vinyl tile 118" gauge, Imperial Texture, 51905 Hazelnut (VT-1). Burke, 415P Mauve, 4" rubber base coping. c. Florida ceramic tile, 8285A Rose Natura Granite Plus, 8" square, non-skid, tile coping to match (CT-3). Custom Building Products, #110 Mauve grout. 11. BREAK ROOM: a. 8' over-counter storage cabinet to be formic a laminated, Nevamar, Arp Surface, S-I-23T Rose Pearl, textured. Adjustable shelves, 3/4" thick Melamine, Domtar Decorative Panels, #CS-557 International White fmish on all exposed surfaces. b. 8' counter and storage cabinet with rounded corners, 36" high, cabinet and top to be formica laminated, Nevamar, Arp Surface, S-I-23T Rose Pearl, textured. Adjustable shelves, 3/4" thick Melamine, Domtar Decorative Panels, #CS-557 International White finish on all exposed surfaces. c. Soap and paper towel dispensers. d. Stainless steel double sink with garbage disposal. e. 20 C.F. rdrigerator and 1.0 c.F. microwave oven. 12. HARDWARE: a. Schlage, or COUNTY approved equal, unless otherwise specified. b, Von Duprin 99L-RH (LH for left side handle) panic bars, 36" device, 2060 finish, unless otherwise specified. c. Door closures on all lobby, rest room, entry, stairway. and exit doors. d. Push plates and pull handles instead of door knobs or lever handles on rest room entrance doors and on doors from area behind lobby counter to Open Work Area on first and second tloors. e, Must meet handicap requirements. f. Simplex #LlOOO-2 combination door locks where specified. 13. MAIL BOX: The LANDLORD is responsible for providing and installing a mail box outside the building that will meet United States Postal Service requirements and insure delivery of mail to this COUNTY facility. Page 5 98-75 EXHIBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) 14. J. 15. REST ROOM FACILITIES: a. All to meet handicap requirements. b. Floors to be unglazed porcelain ceramic tile with abrasive particles added (7 1/2 % abrasive content surface. special order), (CT-l), 1. Dal-Tile, /lDK-36 Maca, 2" x 2"; or 2. American Olean, /lASS Doe, 2" x 2". 3. Custom Building Products, /l110 Mauve grout. Walls to be glazed ceramic interior wall tile, (CT-2), tiled floor to ceiling, I. Dal-Tile, /lD-135 Almond, 4 1/4" x 4 1/4"; or 2, American Olean, /lX13 Bone, 41/4" x 41/4". 3. Custom Building Products, /1110 Mauve grout. Installation of stalls, privacy panels, commercial grade toilets/urinals, floor drains, dispensers for paper towels, rolled toilet paper, soap, toilet seat liners, sanitary napkins, exhaust fans, mirrors, trash cans, battery operated room fresheners, and rest room signs per applicable health, safety, and handicap codes. Toilets to be American Standard 2221.018 Water Saver Madera toilet with siphon jet action, elongated bowl, vitreous china, 2 1/2" ball pass opening, 1 1/2" water inlet, Sloan Royal 110-3 water saver Ilush valve, and 01sonite No. 95. white seat; handicap toilets to be same with following exception: Sloan 115-3 water saver flush valve and Olsonite No. L-310cc, 3" open front white seat with stainless hinge and check. Rest room tloor to slope from walls to Iloor drain in center of rest room. Sink counter tops to be formica laminated with rounded corners, Nevamar, Arp Surface, MR-2-2T Greige Matrix, textured. Tan stalls and privacy panels. Breeze II 1817 battery operated air l'resl1ener dispenser mounted one foot from ceiling. Refills to be provided by LANDLORD. Push plates and pull handles instead of door knobs or lever handles on rest room entmnce doors. c. d. e. 1'. a 0' h. L STORAGE: Shelf units, and mail racks to be 3/4" thick Melamine, Domtar Decorative Panels. /lCS-557 International White finish on all exposed surfaces and firmly secured to the walL All shelves and dividers are to be non-adjustable. All shelves and dividers are to be glued and either nailed or screwed to the sides, top, bottom. and back of the shelf unit, or mail rack. The backs of all shelf units, and mail racks to be 1/4" thick finish grade plywood. painted with high gloss paint to match the Melamine, Domtar Decorative Panels. Dimensions are included in Exhibit ";\", Pages 17 ami IS. Page 6 98-75 EXIllBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) '" 16. DRINKING FOUNTAIN: a. One (1) refrigerated (existing) and one (1) non-refrigerated.. b. Fountains to be installed at height necessary to meet Chapter 14 Handicap requirements. c. Locations to be approved by COUNTY. 17. ELECTRICAL CONNECTIONS: LANDLORD is responsible for all electrical connections from portable partitions to power source on site. 18. TELEPHONE EQUIPMENT: Landlord is responsible for the following: a. As described in Exhibit "A", Page 21. b. All telephone jack locations shall have 3/4 inch conduit stubbed out above the ceiling. If the ceiling is not accessible for pulling cable, the conduit must home run to the nearest IDF location. c. Covers over all unused telephone/data outlets. Telephone equipment, lines, and jacks shall be installed by COUNTY Communications Department. 19. BICYCLE RACK AND OUTSIDE PATIO AREA: a. Area including building exit and sidewalk to patio area is to be concreted and covered. COUNTY to approve design of patio area and cover. b. COUNTY will supply a bicycle rack for installation by LANDLORD in location as identified by LANDLORD. c. LANDLORD to supply two concrete picnic tables with benches in location as identified by LANDLORD. d. Six foot high fence around patio area, COUNTY to approve fence material. 20. FIRE ALARM: To be installed at LANDLORD expense to meet all city, COUNTY, state and federal requirements. Fire alarm system should have strobe lights and audible alarm in all rest rooms, general usage areas, hallways, lobbies, and any other area for common use as required by the Americans with Disabilities Act. COUNTY to approve location of fire alarm control panel. Page 7 98-75 EXHIBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) FINISH SPECIFICATION~ Room No. Floor Walls 10 1 Open Work Area Carp P-l 102 Conference Room Carp P-I Comments · 10' high ceiling with AP-l acoustical panels. · 14 duplex. · 14 phones. · 10 J boxes in ceiling, each with one 20 amp circuit. · 4 ceiling fans, switches in one location. · One mail rack per' General Specifications and Exhibit "A" ,Page 18. · Panic bar on entrance door' to lock after exit, keyed dead bolt on outside, panic bar with key operated mechanism for open and. closed positions, with emergency exit alarm. · 10' high ceiling with AP-2 acoustical pane Is. . 9 duplex. . I phone 42" from floor. · 9 phones 12" from floor. · 2 light switches for 2 level lighting per code. . 2 white dry erase boards, 4' x 12' and 4' x 8' with tray. . I thermostat. · Doors with different keyed locks. (llocked to room 101) (llocked to room 103) · I ceiling fan Page 8 98-75 EXlllBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) F1NISH SPECIFICATIONS Room No. Floor 104 Storage Carp 105 Equipment, Phone, VT-I Data Room 106 Meeting Room Carp 107 Entrance to Public Rest Rooms CT-3 108 Men's Rest Room CT-I Walls P-2 P-I P-2 P-2 CT-2 Comments · Door with a different keyed lock. . ,/ . 10" high ceiling ,,;it!-, Ar lit'::5ihtit~1 p!lfIcls . f,P . 3 duplex. . I dedicated receptacle, 4 circuit. · 8 of shelving per General Specifications and Exhibit "A", Page 17. . . 3 phones. . Dry wall ceiling existing. 30 amp, conductor 220 . volt groUnded . Per code. . Door with different keyed lock. . . Raise floor to eliminate recess. . 3 duplex, 3 phones. . LANDLORD to remove existing vinyl tile. . Three 4-plex, each on a dedicated IS amp circuit. . Telephone Company entrance cable. See Exhibit" A", Page 21. . Door with a different keyed lock. . 10' high ceiling with .\P I EleEll~5tieal p:U1El3.~ . 3 duplex. . 3 phones. . Dry wall ceiling existing. . 10' high ceiling with AP-I acoustical panels. . 1 duplex. . 4' x 8' bulletin board. . I duplex above sink with ground fault interrupter. . I water closet (l handicap). . I urinal. Page 10 98-75 EXHIBIT "A" - SCOPE OF WORK SPECIF1CA TIONS -(Continued) FINISH SPECIFICATIONS Room No. Floor Walls 108 Men's Rest Room (Cant) 109 Women's Rest Room CT-l CT-2 110 Janitor's Closet CT-l P-2 III Hallway CT-3 P-l Comment~ ~ 1 sink. o See General Specifications for complete rest room requirements. o 1 duplex above counter with ground fault Interrupter. o 3 water closets (1 handicap). o 2 sinks. o 1 sanitary napkin dispenser. o See General Specifications for complete rest room requirements. o 10' high ceiling with AP-l acoustical pane Is. o 3' of shelving per General Specifications and Exhibit "A", Page 17. o I duplex. o Service/mop sink, Fiat #MSB 3624 or equal. o 1 exhaust fan. o Lockable door. o 1 outlet, 42" high, for security alarm keypad (interior). o 1 outlet, 42" high, for keypad access control (exterior). o Metal Exit door with Von Duprin 99L- RH (LH for left side handle), 99RX panic bar with #050251 signal switch, 36" device, 2060 finish. Door to lock after exit, lever handle, keyed on outside. COUNTY to install digital keypad access control with magnetic lock on this door. o Refrigerated drinking fountain (existing). o I duplex. Page 11 98-75 EXIllBIT "A" - SCOPE OF WORK SPECIFICATIONS (Continued) FINISH SPECIFICATIONS Room No. Floor 112 Electrical Room VT-l 113 Break Room CT-3 114 Patio Concrete 115-117 Offices Carp 118 Offices Carp Walls P-l P-2 P-l P-3 P-l P-3 Comments · Metal exterior door with different keyed lock. · Per code. . · 7 duplex on 3 dedicated circuits (3 duplex to have ground fault interrupters, two above counter, and one below counter for disposal). . 1 phone 42" from floor. . See General Specifications for Break Room requirements. . Stairs - Mercer Products Co., normal commercial, 204 gray. . Metal exterior door with pamc bar, door to lock after exit, keyed on outside. . Protective railing existing concrete landing. . I duplex. . 2 concrete tables with benches. . See General Specifications for Bicycle and Outside Patio Area requirements. . 2 duplex. . 2 phones. . Doors each with a different keyed lock. . P-3 accent wall to be specified at a later time. . 4 duplex. . 4 phones. . Doors each with a different keyed lock. . P-3 accent wall to be specified at a later time. Page 12 98-75 ( ~~ v I oc ~ r- ei oc ~oc ~ ~ ~~ ~ CI ...l ~ ~ .9-,l \, ^ - , I ~ ~ ~ lU ~ 1 .9 ,~ 1 z o - r- <( >. W ..J W a: W r- Z :J o o w o - (J) W o - > a:~ W~ I- (j) b Exhibit "A" z Page 13 98-75 ( -ll , c-. . 2'-12)' L 1'-12)" " 1'-12)" L T ----l---J ( 1 LAMINATED DIVIDER I I I I I I I I II 2Xh'IDOUBLE TOP FLATE LAMINATED CGUNTERTOP I I c Q , '" -ll , c-. 4X4 OUTLET BOX TTy FHCNE OUTLET ----lr <2> II0V DUFLEX -t@l@ OUTLET - BASE BOARD 112~~YP. BOARD ON _ _B<2..Jn SIDES FI-lCM: LINE CONDUIT COM-lECT TO ALL FI-lCM: OUTLET EOXES 2"Xh" STUDS AT {g" OC. I"~ BiT CCNDUIT - ca-lNECT TO ALL OUTLET EOXE5 2Xh l30TTCM FLATE L__ BASE EOARD SERVICE SIDE CUSTOMER SIDE SIT DOWN SERVICE COUNTER SCALE: I" = 1'-0' Exhibit "A" Page 14 . -ll . '" 98-75 l;IMINATED CCtNTERTOP 12' DEEF elOTe FCR LE6AL SIZE FAFERS 3' fJIGH X 9' WIDE 1-4' D--::EF $lore, FOR L~L SIZE PAffRt'> 3' fJlGH X 9' WIDE 24' 2'.1; V4' & 31-4' I . I SERVICE SIDE o o ( 2><6 DOJBlE TOP PlATE 10;~~~ARD CN 2")(!,' 51UDB AT \!)' OC. TX(, OOTTa1 PlATE 8A5E BOARD CU5TOMER SIDE STAND UP SERVICE COUNTER i!>CALE. " . I'-Cl' Exhibit "A" Page 15 o..QC => = 'l:':! ~ .Q?i r- ~8 98-75 ::c ~ ::c '" I-x a -1 w Q)a cL3 ~o, I fu~ w- aG ~lli I 0.. 5 w w ;:: a 0 = lli !::! I a l:':! ~ ~ 0.. w -1 w a . ..;- , 1\ \ I 1 ,9-,'0 , ~ ( ~ I- o W d) z o - r- <( > W -.J W a: W r- Z :J o o w o .- (f) W o - >Q a: -: W ~ Exhibit "A" (j) ~ Page 16 - ( 98-75 / SEE PLAN ( / / 36/1 1/ / OR LESS / 0 II ~ FRONT SHELF UNI NOT TO SCALE NO TES 1. SHELVING TO BE 3/4" THICK. ' OR 1/8" THICK FI~IISHED WOOD 2. ALL WOOD TO BE FiNISHED WO 3 A TTA TCe: UI\IIT SECURELY TO IN )6/- R LESS I ![ II II I I I ; il I[ !I -i n " : " n i i : I to . ~i' m , " n " " n ii ~[ 'I I " ~I" '-..... n 7 " I' I' I I ! p'f i I ! I I "'" /~ 2" SIDE T ELEVATION =NCLOSED BACK TO BE 1/4" WOOD /vIlN. TO /vIA TCH "/vIILCORE" SHELVING FINISH. 00 SUCH AS "MILCORE" OR APPROVED EQUAL. AU Exhibit "A" Page 17 98-75 MAIL RACK SPECIFICA TION , NOTEI SHELVING 3/4' THICK MELAMINE, DOMTAR DECORATIVE PANELS, IICS-557 INTERN A TIONAL \.IHITE FINISH ON ALL EXPOSED SURFACES. ENCLOSED BACK 1/4' \.IOOD. I II II II I I . II II II I I II II II I I II II ICJ I II I[ II I I II II II I 73 3/4' [ II [I I[ I I II [I [I I I II II II I I II II II I 5' TYP I II II II l-r I II II II 11 I 4 3/4' J - f-2' ~1'+1'+1'-+1'~ r-1'-j FRONT SIDE Exhibit "A" Page 18 . . ( 98-75 ~{."--7 ?T 9" .~ /!;" ( I)," :s- J: t:. s: 'V:C>=. w ( Ex..-c:J~:ro Q. /'it" WALL:. ) /7/. . " (, , I ~ 7 k ( ~1.." ,. ."i f r H~, ~ -? 0 ,}_ / / J~ ., / / / / /- / "' I'" " \=LA? O~E ~ .:rt..Cl\ Q N V C.'/.T\;.<;:,,:r:OR UALL.. ALL M E."'r.:s:-u ~E.M.t:;:.N n;- A Q..E. I>--l:!"X\::,\::: ~J:t"n;:'N:r-ro r-J.~ V'f" Fr.lo..\u\-\l::..tl Woo\:) o~ :sl-\- S. ;: T h b. TP. L :::Lo, t .- - - - - - - - ~ ( _ -t ~'':' _ _ . . _ _ _ I<': IoN ) I l' I ?:rAfJO f-\I.-J6-E. 1-/0 "~ ?j ) ~ SLOT Iq" - - - - -- - -- - p7 I)..'. # '/ "An Exhibit Page 19 98-75 BREAK ROOM/CONFERENCE ROOM ( ~ <:{ :::l If d) <:{ --1 CL r' '< z o ~i : ~I : w I .J 11 W I / / '"I 'I H I I "- / /, W " )' I Z ~ / \ITl[I)~ ~-<:: 1-0<t ';,- ~ Ci. ill >- !l) 1/ ""i 11<' ~ "" /1 ! >( fri ! / "" CL I ~ ~ .~ I'" '- ~<f) '" '- / old I <..lCL <:{<fJ "" ~t ~8 / -I \\ / [I / "-, / I "" "'/ / 1/ ^ I "- / , I, l 1/ ^ ,70 ~ ,91': " ,,* Exhibit "A" Page 20 98-75 TELEPHONE SPECIFICATIONS FOR DPSS AT 646 N. SIERRA The following specifications are based on the assumption that the telephone instruments will be wired from 600 N. Sierra through a 4" conduit placed between the two buildings. It is recommended that a second 4" conduit for future requirements be placed at the same time. Conduit specifications are in Section 2.2 below. 1. Telephone Room: 1.1 Room size shall be such that a 4' x 8' sheet of plywood can be mounted vertically on the wall and there be a minimum of3' of clear space in front of that area. This backboard is to be dedicated for telephone equipment only. Please note that all portions of lite roOl/!, including power, air conditioning, and lighting shall be completed fot/r weeks prior to tile requested in-service date. 1.2 An electrical outlet shall be provided near the backboard. The receptacle shall be a type A isolated ground quad outlet rated at 15 amp 115 volts AC. 1.3 The air conditioning should be desigiled to cool this room to normal office temperature, 1.4 The floor shall be covered with dust.sealed vinyl tile. The room dust density should be Zone 4 (0,OOOI4g/mJ) or better. 1.5 The room shall have good lighting for safe and adequate working conditions. 2. Conduit Requirements: 2.1 All telephone jack locations shall have 3/4" conduit stubbed out two inches above the ceiling, If the ceiling is not accessible for pulling cable, then the conduit must home run to the nearest lOF location. 2.2 Conduit used to connect buildings should be 4" minimum schedule 40. Bends within 10' of the building shall be 48" and midpoint bends shall be a minimum of 72'1, 3. Exceptions and Modifications Any exceptions or modifications of these telephone specifications must be approved by the County Communications Divisi"IL Contact the telephone engineers at (909) 387-2000. Exhibit "A" Page 21 98-75 EXlllBIT "B" SAN BERNARDINO COUNTY - JANITORIAL SERVICES (Janitorial Service to provide/supply all sanitary and paper goods.) DAII,Y SERVICES: I. Empty and damp clean all ashtrays. 2. Empty all waste baskets and other waste containers. 3. Dust mop all tiled/terrazzo floors. 4. Vacuwn traffic lanes of carpeting. 5. Dust all desks, chairs, tables, filing cabinets and other office furniture. 6. Damp clean lobby counters. 7, Clean and sanitize rest room fLxtures, mirrors, chrome pipes, etc. 8. Clean splash marks from walls of rest rooms. 9. Wet mop and sanitize rest room floors. 10. Refill soap, towel and paper containers. II. Clean and sanitize drinking fountains. 12. Clean hand marks off glass on entrance doors. 13, Damp clean table tops in coffee rooms. 14, Clean kitchen sinks and counters. IS. Sweep entryway. 16. Brush down steps of inside stairwells. 17. Vacuwn elevator carpet. 18. Spot clean elevator walls and doors. 19. Spot clean carpets of small spillage, footprints, etc. 20. Keep janitor closets clean and orderly. WEEKLY SERVICE: 1. Wet mop all tiled/terrazzo floors. 2. Clean all desk tops that are cleared. 3. Clean hand marks from walls, doors and woodwork. 4. Vacuum all carpeting completely. ONCE-MONTIIL Y SERVICE: 1. Pest control. TWICE-MONTHI,Y SERVICE: I. Dust high areas, including window coverings. 2. Vacuwn upholstered furniture. 3. Clean lobby directories and fIre extinguisher glass. 4. Machine scrub all tiled floors. 5. Wax all tiled floors. 6. Machine polish all tiled floors. EVERY THREE MONTHS: I , Wash outside windows. 2. Wash inside windows and partitions. 3. Supply and change entry mats. OTHER SERVICES WHEN NEEDED: 1. Vacuwn dust and dirt accumulation from air conditioning vents. 2. Replace light bulbs and tubes inside building. 3, Brush down cobwebs inside building. 4. Machine scrub or dry clean all carpeted areas. 5. Machine scrub tile and reseal. 6, Replace cartridge in rest room automatic air fresheners.o The above are considered the minimum standard janitorial items. Landlord is responsible for providing all services related to the health and cleanliness ofthe leased facility. 98-75 EXHIBIT "C" COUNTY ESTOPPEL CERTIFICATE TO: Re: (address) (the "Property"). (city) The undersigned ("County") hereby certifies as follows: 1. County is in possession of , California (the "Premises"). County leases the Premises under a written lease agreement dated , 19_, Lease Agreement No. (the "Lease"), wherein County is the lessee or tenant, and , a (type of partnership, if any) ("Owner"), is the lessor or landlord. 2. The Lease is in full force and effect and has not been amended, supplemented or changed, except as follows: on ,19_.. 3. The term of the Lease commenced and is scheduled to expire 19_. County has no right or option to renew or extend the term of the Lease except as to the following: U _-year options. 4. County's current monthly rental is $ month. . , payable on the last day of each 5. County currently has no security deposit with Owner. 6. County is not in default under the terms of the Lease and no condition exists which, with the passage of time or the giving of notice, or both, would constitute such a default. To the best of County's knowledge, Owner is not in default under the terms of the Lease, and no condition exists which, with the passage of time or the giving of notice, or both, would constitute such a default. 7. County hereby certifies that the foregoing is true and correct. By: John Yuhas, Property Manager Real Estate Services Department County of San BernardinolDate Rev. 02/01/96 98-75 RECORDED AT REQUEST OF AND TO BE RETURNED TO: Attn: SUBORDINATION AND ATTORNJ\lIENT AGREEMENT THIS SUBORDINATION entered into this day of ("Tenant"), and AND ATTORNMENT AGREEMENT ("Agreement") is 19_, by and between ("lender"). (name) (type of partnership) Recitals A. Tenant entered into a certain Lease Agreement, dated as of 19 (the "Lease"), between Tenant, as lessee, and ("Landlord"), as lessor, pertaining to that certain premises commonly known as , Califomia (zip code), as more particularly described in the Lease ("Premises"), located on that certain real property located in the County of San Bernardino, State of Califomia, as more particularly described in Exhibit "A", attached hereto and incorporated herein (the "Property"). Original Landlord shall be referred to as "Borrower" . B. Borrower made, executed and delivered, or is about to make, execute and deliver to Lender a certain promissory note, dated substantially contemporaneously herewith ("the Note"), in the original principal sum of $ . The obligations evidenced by the Note shall be referred to as the "Loan". The Note is executed pursuant to the terms of a certain Construction Loan Agreement, dated substantially contemporaneously herewith (the "Loan Agreement"), between Lender and Landlord. C. Borrower has executed and delivered, or is about to execute and deliver to Lender, a certain Deed of Trust and Assignment of Rents, dated substantially contemporaneously herewith (the "Deed of Trust"), encumbering the Property to secure the Loan. D. It is a condition precedent to the Loan that the Deed of Trust shall unconditionally be and remain at all times a lien or charge upon the Property, prior and superior to the Lease. 1 98-75 E. It is a condition precedent to the Loan that Tenant will specifically and unconditionally subordinate and subject the Lease, together with all rights and privileges of Tenant thereunder, to the lien or charge of the Deed of Trust. F. the Loan. It is to the mutual benefit of the parties hereto that Lender and Borrower enter into Covenants In consideration of the recitals set forth above and the covenants and agreements contained herein, the parties agree as follows: I. Subordination: Tenant hereby subordinates all of Tenant's right, title, interest and leasehold estate in and to the Premises to the lien, operation, and effect of the Deed of Trust, provided that as long as Tenant performs its obligations under the Lease, no foreclosure of deed given in lieu of foreclosure or sale under the encumbrance, and no steps or procedures taken under the encumbrance shall effect Tenant's rights under the Lease, and further provided that the provisions of Paragraph --' "DESTRUCTION OF PREJ\iIlSES", of the Lease, concerning the use of insurance proceeds on destruction of the Premises, shall prevail over any conflicting provisions in the encumbrance. 2. Attornment: Ifthe Deed of Trust is foreclosed for any reason, or Landlord deeds the Property to Lender in lieu of foreclosure, the Lease shall not be extinguished and Tenant shall be bound to Lender under all the terms, covenants, and conditions of the Lease for the balance of the term of the Lease with the same force and effect as if Lender was the lessor under the Lease. Tenant shall attorn to Lender as Tenant's Lessor, and agrees to recognize Lender as the new owner and promises to pay the rent to Lender as Landlord. This attornment shall be effective and self- operative, without the execution of any other instruments on the part of any of the parties to this Agreement, immediately upon Lender succeeding to the interest of Landlord under the Lease. 3. Disbursements: Lender is under no obligation or duty to monitor the application of the proceeds of the Loan. Any application of such proceeds for purposes other than those provided for in the Loan Agreement or any of the other Loan Documents shall not defeat the effect of this Agreement in whole or in part. 4. Acknowledgment of Assignment: Tenant acknowledges and consents to the assignment of Landlord's rights under the Lease to Lender pursuant to a certain Assignment of Leases (the "Assignment"). Tenant shall pay rent to Lender upon receipt of written notice from Lender that Lender has revoked the waiver of Landlord's right to receive the rents from the Premises pursuant to the Assignment, notwithstanding the fact that Lender has not foreclosed the Deed of Trust, nor succeeded to the interest of Landlord under the Lease. Tenant shall not be liable to Landlord for any payments made to Lender hereunder. 2 98-75 5. Lender Protections: If the Deed of Trust is foreclosed and Lender succeeds to the interest of Landlord under the Lease, Lender shall be bound to Tenant under all the terms, covenants, and conditions of the Lease, but Lender shall not be (a) liable for any act or omission of Landlord or any prior lessor; (b) bound by any rent or additional rent that Tenant may have paid for more than the current month to Landlord or any prior lessor; or (c) liable for any security deposits or any other prepaid charges paid to Landlord. 6. Assignment or Sublease: Tenant may assign or sublease all or any portion of the Property in accordance with the Lease, but no such assignment, transfer, or subletting shall relieve Tenant of any of its obligations under the Lease. Tenant hereby covenants that the Lease has not been modified or altered. Tenant shall not enter into or agree to any amendment or modification to the Lease with Landlord, without the prior written consent of Lender. Tenant shall not voluntarily subordinate or subject the Lease or any interest therein to any lien or encumbrance without the prior written consent of Lender, unless said lien or encumbrance shall relate to personal property that can be removed without damage to the Premises. 7. Notices: Tenant shall deliver to Lender a copy of all notices, requests, or demands delivered by Tenant to Landlord in accordance with this Paragraph. Tenant shall also deliver to Lender any and all notices, demands, or requests received by Tenant from Landlord relating to any of the aforesaid. Lender shall deliver to Tenant all notices, requests or demands in accordance with this Paragraph. All notices required hereunder or pertaining hereto shall be in writing and shall be deemed delivered and effective upon the earlier of (i) actual receipt; or (ii) the date of delivery or refusal of the addressee to accept delivery if such notice is sent by express courier service or United States mail, postage prepaid, certified or registered, return receipt requested; or (iii) the date of delivery if such notice is sent by facsimile, in each case, to the applicable address as follows: to Tenant: General Services Group Real Estate Services Department 825 East Third Street San Bernardino, California 92415-0832 Facsimile No.: (909) 387-2779 to Landlord: Attn: Facsimile No.: 3 98-75 to Lender: Attn: Facsimile No.: Notwithstanding the foregoing, any notice under or pertaining to this Agreement, given and effective in accordance with applicable law, shall be effective for purposes hereof. Any party may change the address at which it is to receive notices hereunder to another business address within the United States (but not a post office box or similar mail receptacle) by giving notice of such change of address in accordance herewith. 8. Landlord's Default: Tenant hereby agrees that Tenant will notify Lender in writing, in accordance with Paragraph 7 above, of any default by Landlord under the terms of the Lease and Tenant shall not cancel or terminate, or acquiesce to the cancellation or termination of the Lease without giving Lender a reasonable period (not less than 30 days) after delivery of such notice to cure the default; Lender's rights and remedies under the Loan Agreement or any of the Loan Documents (as defined in the Loan Agreement) shall not be prejudiced by its exercise or failure to exercise the right to cure described above. Except for Landlord's defaults under Paragraph ---' "TER.J"i", of the Lease, relating to Landlord's failure to meet the Critical Completion Dates as set forth in Exhibit "A", if Lender elects within such thirty (30) day period to foreclose on the Deed of Trust, such time period shall be extended so that Lender shall have a reasonable period within which to foreclose the Deed of Trust and shall have an additional thirty (30) days from the time Lender becomes owner of the Property through foreclosure within which to cure such default. If any default by Landlord is cured within the time periods described above, Tenant shall have no right to terminate the Lease by virtue of such default. 9. Binding Effect: This Agreement shall be binding upon the parties and their respective heirs, personal representatives, successors, and assigns. 1 O. Counterparts: This Agreement may be executed by the parties in counterparts, and when anyone or more copies of this Agreement have been executed by all of the parties, this Agreement shall be effective, and all of such copies shall be deemed and construed to be one agreement. ****** ****** ****** 4