HomeMy WebLinkAbout2017-039 I RESOLUTION NO. 2017-39
2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
3 BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NUMBER ONE TO THE LEASE WITH VANIR TOWER
4 BUILDING, INC. FOR 290 NORTH D STREET, SAN BERNARDINO, CALIFORNIA
5 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
6 OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The City Manager is hereby authorized to execute Amendment
8 Number One between the City of San Bernardino and Vanir Tower Building, Inc., attached
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hereto as Exhibit"A" and incorporated herein.
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11 SECTION 2. The City Manager is hereby authorized to execute any other such
12 documents as may be necessary to effectuate the intention of this Resolution.
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1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA AUTHORIZING THE CITY MANAGER TO
2 EXECUTE AMENDMENT NUMBER ONE TO THE LEASE WITH VANIR TOWER
BUILDING, INC. FOR 290 NORTH D STREET, SAN BERNARDINO, CALIFORNIA
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
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6 and City Council of the City of San Bernardino at a joint regular meeting thereof, held on
7 the 6th day of March, 2017, by the following vote, to wit:
8 Council Members: AYES NAYS ABSTAIN ABSENT
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MARQUEZ X(M)
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11 BARRIOS X
12 VALDIVIA -X--
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13 SHORETT XXS)
14 NICKEL X
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RICHARD X
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17 MULVIHILL X
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GeorgeanrlfHanna, CNIL, City Clerk
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The foregoing Resolution is hereby approved this day of 11VAecit- , 2017.
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24 R. Carey D is, Mayor
25 City of Sai Bernardino
Approved as to form:
26 Gary D. Saenz, City Attorney
27 By.
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AMh;NDMENT NVKRBR ONE T0 THE LEASEAGREI�MEN
T BETWEEN
THE CITY OF SAN BIER�INO AM
VANM TOWER BUILDING, INC.
This Amendment 'Number One' the "First Amendment") is entered into this -k day
of -AdTL—,7 20177 BY AND BETWEEN�**
the City of San Ber'nardino, a Charter City organized under the laws of the
State of California, with an address of 300 N. "D"' Street, San Bernard*
ino,
California (the "CITY")*)
AND
Vanir Tower Building, Inc,, (the "LANDLORD") (individually CITY or
LANDLORD may be referred to as a "PARTY' and collectively CITY and
LANDLORD may be referred to as the "PARTIES1.
a
W 1 T N E S S E T H Ak
WHEREASI on M"L (. 4m -o, 2017 ti -ie CITY and LANDLORD
entered 'into that certain Lease Agreement (the "Lease") for approximately 231716
square feet of office 'space Vanir Tower located at 290 North "D" Street; and
WHEREAS, CITY and LANDLORD desire to amend the Agreement
desireto amend their rights, duties, and liabilities in connection w their
pertormance thereunderl* and,
NOW., THEREFORE, for and in cons I ideration of the mutual covenants and
conditions contained , nerein', the PARTIES hereby agree as follows.*
The Pre Im*Ses of the Lease found on the Title Page s,hall be amealdeld
react as lollows,4
PREMISES" A portion of Vanir Tower*
Two Suites on the Ground Floor
Entire Third Floor
Two Suites on the Eighth Floor
2. The Commencement Date of the laease found on the Title Page shall be
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amended to read as follows,"
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COMMENCEMENT DATE OF LEASE* April 15, 2017 (subject- to
Paragraph 3)
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO ANDVANIR TOWER BUILDING,, INC,
0. The Init"al Monthly Rent of the Lease found on the Title Page shal be
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amended to read as follows 1b
O
INITUL MONTHLY RENTO $42,688.80 Year 1
$43,969.46 Year 2
$45,288.54 Option to Extend Periods
Is A
40 Paragrapil A (Initial Term) of Section 3 (Term) shall be amended to read
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as follows=
Paragraph D (Delay 'in Possession) of Section 3 (Term) shall be amended
to read as follows:
D. Delay in Possessioll. LANDLORD agrees to use all
commercially reasonable efforts to deliver possession of the Premises with
all of the Improvements Substantially Completed to CITY by the
Commencement Date. If as a result of causes beyond LANDLORD's
reasonable control, LANDLORD is unable to deliver possession as aareed,
this Lease shall not be voidable, nor shall such failure affect the valid"'ity of
this Lease. If CITY elects to terminate this Lease pursuant to this
hall
nbe discharged of all obligations under this Lease.
provisio, CITY s
6. Section 5 (Expansion of Rental Space) shall be removed in its entirety and
replaced with a heading reserving the section number.
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND VANIR TOWER BUILDINGINC.
T sedidn 6 (Option to Ext 6rld Term) shall be amended- t d s follow -so
80 Sedibn 8 (Holding Over) zhall be amended to read a I foll
a ows
91 Section 112 ($*os) shall be amended to read a's TOROW4
11 disp I fr
12. SIGNS9 CITY wi om, the windows and/or marquee of
the Yremises only such, igsi*an or 8 is that have been appr ed by i ov
LANDLORD � nd that ar not hiDit
a pro ea Dy, aw.
100 Soparagraph, 4 of Parah A of Section 13 grap (Maintenance) shafl be
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amended to read as w a$ aa
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(4) Heating, ventilation and air conditioning (HVAC) systems
servicing the Premises, air-conditioning and heating filters are to be
changed quarterly� and,
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE C11TY OF SA
BERNARDINO AND VANTIR TOWER BUILDING, INC.
Paragraph C of Section 13 (Maintenance) sha-11 b- e amended to read- as
followls'
dw
AB M
12. Sectd*oA 17 (Indemnification) shall be amended to read as follow
A
1310 Paragraph of Section 19 (Destruction of Premises) shall be amended to
readas, follows-"
9 N,
sir
1W.
lr% It A 0
i4. raragrapna of Section 25 (Notices) shall be amended to read as follows*
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 United
States mail, postage prepaid, certified or registered, return receipt
requested. 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. Notices shall be deemed delivered and effective upon
the earlier of (i) actual recei t or (ii) the date of delivery or refusal of the
ip
addressee to accept delivery if such notice is sent by or United States
mail, postage prepaid, cered or registered, return receiP t reque.fit.
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AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND VANIR TOWER BUILDING, INC.
LANDLORD's a. dr Vanir Tower Building, Inc.
ATTN'President
4540 Duckhorn Drive, Suite 100
Sacraniento, CA 95834
With a copy to: Vanir Development Company, Inc.
ATTN* President
4540 Duckhorn Drive, Suite 100
Sacramento, CA 95834
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C address' City of San Bernardino
ATTN0* City Manager
300 or "D" -Street
San Bernardino, CA 92418
Section 40 (City's Right to Termm"ate Lease) shaU be amento read as
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ded-
fouOWSO
Ask
16. Section 41 (Landlor&s Improvements) shall be amended to read as
a
follows'*
Ab
a. kN
1 0
Many _*j
r.
billing and/or accounting information necessary to verify the cost GAIN
all Improvements. Tenant Improvement costs are payable in
single payment within forty-five (45) days of invoice. I
B. LANDLORD understands and agrees that from the time that thi
agreement is executed through the completion of the Improvement
pursuant to Exhibit "A -P, Premises Specificat 'ions, and acceptanc,
t
of the improved Premises by CITY, LANDLORD shall not assign o;
transfer a controlling interest 'in the Premises to a third part
without CITY's prior review and approval.
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11) LANDLORD understands and agrees to provide to CITY all
documents and relevant information concerning any
proposed transfer. CITY will have ten (10) CITY working
days after receiving all such documents and information to
complete its review. Upon CITY 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
modiffications to the improvement plans and specifications as set
forth in Exhibit A111, Premises Specifications, without first
obtaining approval in the form of an amendment to this Lease. Any
changes to these plans and s-pecitications, without first acquiring
said approval, will be at the expense of the LANDLORD and not the
CITY.
D. In the event LANDLORD contracts for the construction of any
portion of the Improvements set forth in Exhibit "A-1", Premises
Specifications, LANDLORD shall comply with the California Public
Contract Code Sections 22000 through 22045 regarding bidding
procedures and Labor Code Sections 1720.2 and 1770 et seq.
regarding general prevailing wages, including the provisions set
forth 'in Exhibit "F-' attached hereto and 'incorporated herein by
reference. LANDLORD shall indemm*fy and hold harmless CITY
and its officers, employees, and agents from any claims, actions,
losses, amages and r liability arising out of the obligations set
forth in this subparagraph. The LANDLORD's indemnity
obligations shall survive the CITY's tenancy, and shall not be
limited by the existence or availability of insurance.
E. LANDLORD, at its sole expense, must provide all site plans
(including elevations of the building and details of the exterior
AMENDMENT NtJNIBER ONE TO THE LEASE AGMEMENT BETWEENTHE CITY OF SAN
BERNARDINO AND VANIR TOWER BUILDING, INC.
finish), space design plans, construction plans, and a complete set o',
the bid drawings and specifications for new construction. The bi
drawings shall be on reproducible transparent vellum with th
architect's/en ineer's professional stamp and signature, and als
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provided to CITY on a compact disc -recordable (CD -R). The fil,
format for the CD -R copy shall be an Adobe Acrobat file (.pdf fil
extension) AND AutoCAD software (.dwg file extension). Th
specitications shall be submitted as a reproducible hardeopy an
copied on a CD -R with formats compatible with Microsoft Word
LANDLORD agrees and understands that 'it will construct on th
Premises during the period immediately following execution of thi
Lease, those Improvements shown on the space design and sit•
plans prepared by LANDLORD and approved by CITY. Th
Improvements shall be constructed in accordance with Paragrap
11, HEALTH, SAFETY AND FIRE CODE REQUIREMENTS, an
Exhibi*t,,A-1,,, Premises Specifications.
U. LANDLORD and CITY agree that the Improvements are projected -
to be constructed, completed and certified for occupancy by the
CITY, acting in its regulatory capacity, by April 15, 2017 and that
the CITY must be able to occupy the improved Premises no later
than April 15, 2017.
G. LANDLORD agrees that its failure to meet the projected occupancy
date will mean that the CITY will not be able to occupy the
improved Premises by April 15, 2017, and that the sole remedy of
the CITY shall be liquidated damages in accordance with
Paragraph 41.1 'in the event the LANDLORD fails to meet the
projected occupancy date. Any such election to terminate by the
CITY must be in writing and given to LANDLORD within ninety
(90) CITY working days of the projected occupancy date, and before
the LANDLORD completes the Improvements and notifies the
CITY of such completion.
H. LANDLORD agrees to provide the CITY a written progress report
every thirty (30) days. The report shall contain up -date information
of construction progress and notification of any permit approval.
1. LANDLORD acknowledges that late delivery of the Premises to
CITY will cause CITY 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 del* er
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the improved Premises by the projected occupancy date of April 15,
2017, LANDLORD agrees to liquidated damages of Five Hundred
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERN.,XRDINO AND VANIR TOWER BUILDING, INC.
and 00/00 Dollars ($500.00) for each day's delay from the projected
occupancy date of April 15, 2017, to the date the CITY accepts the
Premises or terminates this Lease agreement under Paragraph 3.D.
Liquidated damages shall be prorated to the extent that a portion of
the Premises have been completed and accepted by CITY. The
parties agree that this charge represents a fair and reasonable
estimate of the costs that CITY will 'incur by reason of late delivery.
Acceptance of any charge shall not constitute a waiver of
LANDLORD's default or prevent CITY from exercising any of the
other fights and remedies available to CITY.
J. Notwithstanding subparagraphs 171, "G" and "I". above, in th4
event LANDLORD, after exercising all due clidigence, is unable b
meet the projected occupancy date due to reasons whiel
LANDLORD proves are outside the control of LANDLORD, sucl
reasons include but are not limited to acts of God, unreasonabli
acts of governmental agencies causing unavoicia " ble delays (th4
normMl and reasonable times for review, action and reasonabli
4.
anticipated delays by governmental agencies are already 'Include(
in the timing of the projected occupancy date), strikes, or la --i
ba
troubles, then the projected occupancy date shall be extended for f
period equivalent to the period of such delay.
As soon as LANDLORD becomes aware, or should in the
exercise of due gence have become aware of any facts or
circumstances that may or will cause such a delay,
LANDLORD shall immediately notify CITY of any such
delay or anticipated delay. In the event LANDLORD falls to
timely notify CITY of any such delay or anticipated delay,
LANDLORD, notwithstanding the main portion of thi's
subparagraph above, shall be subject to subparagraph
above, for the entire length of any delay.
17. Paragraph A of Section 48 (Hazardous Substances) shall be amended to
read as follows:
A. LANDLORD hereby represents and warrants that, to the best of
LANDLORD's knowledge, information and belief. (f) the Premises and
the property on which the Premises forms a part of are presently free of
all Hazardous Substances; (ii) neither the LANDLORD nor any of the
other current tenants, if any, on the property of which the Premises forms
a part is in violation or subject to an existing, pending or threatened
investigation by any governmental authority under any applicable federal,
state or local law, regulation, ordinance or other legislation pertaining to
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF Sj�-N
BERNARDINO AND VANIR TOWER BUILDING, INC.
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air, water, or soil quality or the handling, transportation, storage,
treatment, usage or disposal of Hazardous Substances; (iii) any handling,
transportation storage, treatment or use of tox*
I ic or Hazardous
Substances to date has been in compliance with applicable laws,* and (iv)
no reportable use has occurred on the Premises and the property on which
the Premises forms a part of to date, and the soil, groundwater and vapor
on or under the Premises and the property on which the Premises forms a
part of is:ft-ee of Hazardous Substances as of the Commencement Date.
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18. ection 52 (Material Misrepresentation) shall be •amended to read as
follows**
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52. MATERIAL MISREPRESENTATION* If during the course of
the administration of this lease, the CITY determines that the
LANDLORD has made a material misstatement or misrepresentation or
that materially inaccurate 'Information has been provided to the CITY,
and that the CITY has relied to its detriment resulting in damages, this
Lease may be immediately terminated. If this Lease is terminated
according to this provision, the CITY is entitled to pursue any available
legal remedies.
19. Exhibit A to the Agreement 'is hereby replaced with Exhibit A to thi-q.....
Amendment.
20. Exhibit A- 1 to the Agreement ishereby replaced with Exhibit A-1 to thi
Amendment.
21. Exhibit B to the Agreement is hereby replaced with Exhibit B to this
Amendment.
22. All other terms and condons of the Lease shall rema 'in 'in full force and
effect.
l��1111ij!
11 111d Z,11 1111ir
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERN,ARDINO AND VANIR TONVER BUILDING, INC.
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND
VANIR TOWER BUILDING, INC.
IN WITNESS THEREOF, the parties hereto have executed this Agreement
on the day and date set for below.
Dated. February 8 2017
D a t e d r2 0 17
LANDLORD Vanir Tower Bull lding . Inc.
--4
/100' f--)
1 wirik 'r,
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By: -A
Its: President
By:
Mark Scott, City Manager
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APPROVED AS TO FORM*
Gary D. Saenz, City Attorney
By: C�
AMENDMENT NUMBER ONE TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND VANIR TOWER BUILDING, INC.
FoR �CLARITY� the P�
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2% Nortb D St., San Bcmardin� CA 92401
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Vanir TOWOr, CRY Of San Bmxdim n
2% Nortb D St., San Bcmardin� CA 92401
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EXHIBIT UB11
LICENSED JANITORIAL AND MAINTENANCE CONTRACTOR SERVICES
(Janitorial Service to provide/supply all sanitary .n
11, Empty and damp clean all ashtrays.
2. Empty all wl,aste b,laskets an other waste containers.
3'. Dust mop all tiled/ter,ralzzo floors.
4. Vacuum traffic lanes of carpeting,
5. Dust all desks, chairs tables, filing cad* t and other office
6. Damp claan lobby counters
7. Clean and fixtures, mirrors, chrome pip(,as, etc.
8. Clem splash markswalls f rest rooms.
9. Refill soap, towel and paper containers.
10, Clean and sanit zerroil g fountains. .
11. Clean hand marks off glasson entrance doors'
12 p clean table tops in cottee rooms.
3. Clean kitchexi sinks and counters.
14. Sweep entryways.,
a Bush down steps of inside stairwells
16, Vacuum elevator carpet. All carpeted gees are to be Vacuumed using
motor vacuum' With a rottingcyl" dxical in
brrather her than a beaterbar.
17. Spot clean all walls and doors including elevator.
18. Spot clean carpets of small spillage, footprints, etc.
9. Keep janitor closets clean and orderly,
20. Remove paper and debris outside main entrance.
WEEKLY SERVICKO
1. Wet op all tiled/terrazzo floors.
2 Clean all desk tops and tables that are cleared; . 11 chairs.
3 Clean hand marks from galls, doors and woodwork.
4. Vacuum all carpeting etel . All carpeted areas are to be vacuumed using
a. clual motor vacuum with a rotating cylmdrical brush, rather
.r
TWCE-Moxi!gLy NE QE41
rm „� ►-I .. „.
',
Vacuum upholstered . s
3. Clean . ire .� , r
glass.isher
t Machine clean and seal #
EVERY
THREE MOXTHS*
1. Vacuum dust and dirt accumulation from aix condit'o
2.
Wit...,insideu.
*ildingI
EXHIBIT 11BIt
LICENSED JANITORIAL ANTD MAJN-TENANCE CONTRA CTOR SERVICES
(continued)':
Uc�ilsed
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1. Carpet to be cleaned by a professional carpet cleamng company
using hot
water extraction process.
2. Wash exterior and inter ior winctows ancl part" tions.
2-