HomeMy WebLinkAbout30- Employment & Training CITY OF SAN BERT RDINO REQUEST ( )R COUNCIL ACTION
Ernest B. Dowdy
From: Executive Director Subject: Request for Lease Approval for
New Building Located at 599 North
Dept: San Bernardino Employment & Training ' Arrowhead Avenue
V
Date: January 29, 1996
Synopsis of Previous Council action:
No ne
Recommended motion:
Adopt Resolution
Signature
Contact person: Ernest B. Dowdy Phone: (909) 888-71381 _
Supporting data attached: Yes Ward: N/A _
FUNDING REQUIREMENTS: Amount: $584,962.83 (5 Year Lease)
Source: (Acct. No.) Federal JTPA Funds
1Acct. Description)
Finance:
Coun9-J Notes:
S
75.0262 Agenda Item No `
CITY OF SAN EERNP►R®INO - REOUEST Poo COUNCIL ACTION
STAFF REPORT
Presently, San Bernardino Employment and Training Agency (SBETA) is located
at 646 North Sierra Way. The office is severely crowded and does not pro-
vide sufficient space for client processing, nor is it large enough to
accommodate the growth of mission requirements anticipated in the immediate
future. A variety of other major building deficiencies, none of which can
be easily corrected, are likewise involved in our request. We have surveyed
a number of buildings in the immediate area that would be suitable for our
needs. The facility recommended for lease is the former Reid & Hellyer Law
Offices located at 599 North Arrowhead Avenue. The building is owned by
Arrow Six Investment Company.
The building is approximately 10,000 square feet, at a negotiated 90¢ per
square foot. The building should be available for occupancy within 30-45
days following consummation of the lease agreement. The owners have ex-
pressed agreement toward a five (5) year lease at the stated price, with
provision for termination should the majority of our funding sources be
curtailed/eliminated.
As such, it is requested that the Executive Director of SBETA be authorized
to enter into a lease agreement on behalf of the City of San Bernardino for
the following reasons:
1) A larger facility is now required to effectively cope with
ever expanding mission needs and linkage requirements.
2) Additional space will permit expansion of our service delivery
system to include adequate areas for orientations, classroom
instruction, record storage, and security.
Financial Considerations:
The present and future SBETA administrative budget provides sufficient
funding to cover the lease at $9,000.00 per month. There will be no impact
to the City General Fund. This building will be used to administer the
Job Training Partnership Act (JTPA) programs, and the rent will be paid
with JTPA federal funds that are made available through the Department of
Labor.
REVISED PAGE
2 . 8 Interest and Late Charges. If Tenant fails to pay
within fifteen (15) days from the date it is due any rent or other
amounts or charges which Tenant is obligated to pay under the terms
of this Lease, the unpaid amounts shall bear interest at the
maximum rate then allowed by law commencing on the eleventh day
after the due date . Tenant acknowledges that the late payment of
any rent will cause Landlord to lose the use of that money and
incur costs and expenses not contemplated under this Lease,
including without limitation, administrative and collection costs
and processing and accounting expenses, the exact amount of which
is extremely difficult to ascertain. Therefore, in addition to'
interest, if any such rent is not received by Landlord within t-k--ff FPTEEN
4-3'444 days from theme it is j�ue, Tenant shall pay Landlord a late
charge equal to tek percent of such installment . Landlord
and Tenant agree that this late charge represents a reasonable
estimate of such costs and expenses and is fair compensation to
Landlord for the loss suffered from such nonpayment by Tenant .
Acceptance of any interest or late charge shall not constitute a
waiver of Tenant' s default with respect to such nonpayment by
Tenant no prevent Landlord from exercising any other rights or
remedies available to Landlord under this Lease .
3 . Use of Property.
3. 1 Use Restriction. Tenant covenants and agrees to
use and occupy the Property solely for the purposes set forth in
this section 3 and for no other purpose without the prior written
consent of Landlord. Tenant shall use the Property for general
offices for employment and training services . Loitering (by
clients, guests or invitees of Tenant) outside the exterior doors
of the building located on the Property shall not be permitted.
3.2 Disruption of Adjacent Tenant. Tenant acknowledges
that the Property is part of a larger parcel that includes the
building leased by Tenant pursuant to this lease and an adjacent
approximate 5, 000 square foot office building (the 11595 Building") .
Neither Tenant, nor its guests, employees, clients or invitees
shall engage in any activity that is materially disruptive of the
use of the 595 Building. The provisions of this section 3 .2 are
both covenants by Tenant and conditions to Landlord' s obligations
under this lease.
3.3 General Restrictions. Tenant shall not do or
permit to be done anything which will invalidate or increase the
cost of any fire, extended coverage or any other insurance policy
covering the Property and shall comply with all rules, orders,
regulations and requirements of the Pacific Fire Rating Bureau or
any other organization performing a similar function. Tenant shall
not allow the Property to be used for any unlawful purpose, nor
shall Tenant cause, maintain or permit any nuisance in, on or about
the Property.
4 . Insurance.
4. 1 Tenant at its sole cost and expense, but for the
mutual benefit of Landlord and Tenant as named insureds, shall
2/99900/JKM/ARROWSIX/MSHI.EAS.001 5 1-4 2�>
REVISED PAGE
maintain comprehensive general liability insurance on an
"occurrence basis" against claims for "personal injury" , including
without limitation, bodily injury, death or property damage,
occurring upon, in or about the Property and on, in or about the
adjoining sidewalks, streets, and passageways, such insurance to
afford immediate protection, at the time of the inception of this
Lease, and at all times during the term hereof, to a combined
single limit of $1, 000, 000 . 00 . Such insurance shall also include
coverage against liability for bodily injury or property damage
arising out of the use, by or on behalf of Tenant, or any other
person or organization, or any owned, non-owned, leased or hired'
automotive equipment in the conduct of any and all operations
permitted under this Lease . Notwithstanding the above, Tenant
shall be entitled to satisfy the insurance requirements of this
section 4 . 1 through self-insurance, provided that the following
requirements are satisfied:
A. City will self insure (without pooling of risks) for
losses up to $1, 000, 000 . 00, acrd-•will self- i re €L-efR lei-=Lsem.
"wer-n rental lantit-y pr% l i gg arrangeraG= . City will deliver to
Landlord a certificate of self insurance.
B. In the event of the bankruptcy of Tenant, Tenant
shall within ten (10) days of filing provide to Landlord proof of
third party insurance in accordance with this section 4 :
C. In the event of self insurance, Tenant shall
indemnify Landlord (in accordance with the provisions of section 14
hereof) against all claims, actions, proceedings, liabilities,
costs or expenses arising from Tenant' s decision to self insure;
provided, however, Tenant shall stand in the same position as an
insurance company and shall have no rights, claims or defenses that
would be denied to an insurance company under a standard liability
insurance policy issued in California.
4.2 The insurance required to be carried by Tenant
hereunder shall be issued by an insurer of recognized
responsibility which is authorized to write insurance in the State
of California. Upon the execution of this Lease and thereafter not
less than fifteen (15) days prior to the expiration of any policy
of insurance required to be carried hereunder, Tenant shall furnish
to Landlord evidence reasonably satisfactory to Landlord of the
payment of premiums and issuance of a policy of liability insurance
in compliance with the provisions of this section.
4.3 The policy of insurance required hereunder shall
contain an agreement by the insurer that such policy will not be
canceled without at least thirty (30) days prior written notice by
certified mail to Landlord.
S . Damage or Destruction.
5. 1 Casualty. Should the Property, or any part thereof,
be damaged (which term includes complete as well as partial
destruction) by fire or by any other casualty, Landlord shall, at
2/99900/JXM/ARROWSIX/MSHLEAS.001 6 , L -;_7 ��