HomeMy WebLinkAbout18-Facilities Management
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~ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: James Sharer, Director Subject: Resolution autborizing the
C. r'" , ~. . , , · !fecution of a lease a~ment with tbe San
Dept: Facilities Management ' j' . I 1... I I . I l~rnai'dino Water Department, through its
Board of Water Commissioners, for the use
Date: August 7, 2002 of City Hall office space.
Meeting Date: September 9, 2002
Synopsis of Previous Council Action
Reso 11070 - June 5, 1972 Thirty year lease of City Hall office space
Reso 86-383 Sept22,1986 First amendment to the lease
Reso 91-401 Sept 18, 1991 Second amendment to the lease
Recommended Motion:
Adopt resolution,
Contact person:
James Sharer
James W, Sharer
Phone: 384-5244
Supporting data attached: Staff Report
Ward(s): 1
FUNDING REQUIREMENTS:
Amount: $177,826,00
Source: Revenue to City from
Water Department
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/Finance
Council Notes:
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Agenda Item No.
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9/9/02-
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Resolution of the Mayor and Common Council of the City of San Bernardino
authorizing the execution of a lease agreement with the San Bernardino Water
Department, through its Board of Water Commissioners, for the use of City Hall
office space.
BACKGROUND
The San Bernardino Water Department has rented office space in the City Hall since it
was built in 1972. They initially rented 9,200 sJ. of space on the second and fifth floor
of the building. In 1986, the lease was amended to increase their space to 10,577 sJ.
The lease was amended for a second time in 1991, and the leased space increased to
12,248 at $1.25 per s.f. from $.55 per sJ. The original lease in 1972 was a thirty-year
lease that expired on April 1, 2002.
The City and the Water Department entered lease negotiations in 2002 and determined
that a new lease should be drafted to meet current legal concerns not addressed in the
30 year old document. The city wanted to keep the Water Department as a tenant in
the building, and the Water Department wanted various modifications to their thirty
year old office space. The City and Water Department agreed to the following new
terms:
1. The square footage in the previous documents was inaccurate and needed to be
addressed. The Water Department leases 12.886 sJ. on the fifth floor and 1030 sJ.
on the second floor.
2. The restrooms on the fifth floor are not ADA accessible. The fifth floor is heavily
used by the general public and needs to have accessible restrooms. The City and
Water Department agreed to prioritize the retnodel of the fifth floor restrooms,
and the cost would be split by the lessor and lessee. The Water Department share
is not to exceed $22,000.
3. The Central Cashier located on the second floor is a Water Department function
that is utilized by both the lessor and the lessee. The lease indicates that the Water
Department will not be charged rent for this space for as long as they provide
these services to the City without cost.
4. The Water Department would like to have their office space remodeled, and they
will pay the costs for the design and remodel of the fifth floor in exchange for a
rent reduction. This lease reflects a reduced lease rate of $1.15 per sJ. for the term
of the lease and for one renewal. That is a reduction of ten cents per square foot
from the previous lease. With the recalculation of the square footage that they
occupy, their annual payment to the City will go down by $5,894.00 per year. The
remodel of the fifth floor is to be completed by March 31, 2007.
5. The term of the lease will be for five years with one five year extension.
"
Staff has already brought forward a council action to remodel the fifth floor restrooms,
and the construction will start in September 2002 The Water Department has also
started on their remodel of the fifth floor, and are currently working with an architect
to finalize the design.
The new lease also includes hold-harmless and dual indemnification language that
protects both the lessor and lessee "for all damages, claims, penalties, fines and
assessments resulting from the negligence or intentional acts or omissions of its
employees, agents, officers and directors."
Staff recommends that this resolution be approved.
FINANCIAL IMPACT
The lease revenue to the general fund will be $177,826.00 per year for the five year
term of the lease. The lessor and lessee agree to split the ADA renovation costs for the
restrooms on the fifth floor, with the lessee paying a maximum of $22,000. The City
portion of this project will be paid using CDBG funds. The lessee agrees to pay for all
other tenant improvements to the fifth floor.
RECOMMENDATION
Adopt resolution.
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~(Q)~\r
Resolutidn No.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
OF A LEASE AGREEMENT WITH THE SAN BERNARDINO WATER
DEPARTMENT, THROUGH ITS BOARD OF WATER COMMISSIONERS,
FOR THE USE OF CITY HALL OFFICE SPACE.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City Of San Bernardino is hereby authorized
and directed to execute on behalf of the City a lease agreement with the San
Bernardino Water Department, through its Board of Water Commissioners, for the use
of City Hall office space, a copy of which is attached hereto, marked as Exhibit "A"
and incorporated herein by reference as fully as though set forth at length.
SECTION 2. This resolution is rescinded if the parties to the contract fail to
execute it within 60 days of the passage of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
OF A LEASE AGREEMENT WITH THE SAN BERNARDINO WATER
DEPARTMENT, THROUGH ITS BOARD OF WATER COMMISSIONERS,
FOR THE USE OF CITY HALL OFFICE SPACE.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the
day of
. 2002, by the
following vote, to wit:
Council Members:
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Abstain
Absent
ESTRADA
LIEN
MCGINNIS
DERRY
SUAREZ
ANDERSON
McCAMMACK
City Clerk
The foregoing resolution is hereby approved this
day of 2002.
Approved as to form and Legal content;
James F. Penman, City Attorney
/f :; ().
BY:. '11", - I C1.i1~
Judith Valles, Mayor
City of San Bernardino
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LEASE AGREEMENT
BETWEEN THE CITY OF SAN BERNADINO AND
SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
This Lease Agreement is made and entered into this ____day
of , 2002, between the City of San Bernardino, a
municipal corporation, "Lessor", and the San Bernardino
Municipal Water Department, through its Board of Water
Commissioners, "Lessee".
RECITALS
1. Lessor is the builder and owner of the City Hall
Building located at 300 North "D" Street, San Bernardino,
California; and,
2. Lessee desires to lease space in said City Hall
Building from Lessor for use as office space for the Water
Department.
NOW, THEREFORE, in consideration of the terms, covenants
and conditions set forth herein, the parties to this Lease
Agreement agree as follows:
AGREEMENT
1. Leased Propertv
Lessor hereby leases to Lessee 12,886 square feet of office
space located on the fifth floor of City Hall Building on the
terms and conditions hereinafter set forth.
2. Common Space Propertv (Second Floor)
Lessee will occupy approximately 1030 square feet of City
Hall Building space, on the second floor, at no cost to Lessee,
provided that Lessee continues the cashiering function that
LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 1
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benefits the Lessor. If Lessee discontinues the cashiering
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function benefiting the Lessor and continues occupancy of the
second floor space, Lessee will pay for 1030 square feet at
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$1.15 per square foot.
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Term
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The term of this lease shall be from April 1, 2002,
7 retroactively, through March 31, 2007. This lease shall
8 automatically renew thereafter for one additional five-year
9 term, on the same terms and conditions, unless the parties to
10 this Lease Agreement mutually consent to other terms. Renewals
11 shall be at the same lease rate as specified at Section 4.
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4.
Rental Payment (Annual)
13 Lessee agrees to pay to Lessor the rental payments due
14 hereunder in an annual lump sum payment made on or before July
C 15 1st of each fiscal year, with the exception of the 2002-2003
16 lease payment, which will be paid by the Lessee within thirty
17 (30) days after City Council approval of the lease agreement.
18 The annual lump sum base rental payment, except as otherwise
19 provided herein for rent adjustment, shall be One Hundred
20 Seventy-Seven Thousand Dollars, Eight Hundred Twenty-Six Dollars
21 ($177,826.00). This is computed by multiplying the lease space
22 (12,886 square feet) by $1.15 and multiplying that amount by 12
23 months.
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Bathroom Renovations
5.
25 The Lessor shall pay $27,000 toward renovation of the
26 bathrooms on the fifth floor, and shall retain the appropriate
27 consultants and contractors, to bring those bathrooms into
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compliance with the Americans with Disabilities Act.
The Lessee
LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 2
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2 bathrooms. The renovations will be completed no later than
3 December 31, 2003. Payment from the Lessee is due within thirty
4 (30) days of City Council approval of this lease agreement.
5 6. Purooses
6 Lessee agrees to use the City Hall Building for normal
7 office and administrative purposes and agrees to keep the
8 interior areas in good condition, normal wear and tear excepted.
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7.
Structural Maintenance
10 During the useful life of the building, and barring
11 catastrophic damage to the building to an extent that renders it
12 unfit for occupancy, Lessor agrees to repair and maintain the
13 exterior and structural portions, including the roof of the
14 building, in watertight and weatherproof condition, and to
C 15 repair and be responsible for any interior damage to the
16 building resulting from exterior and structural defects in the
17 building. Lessor shall also be responsible for any and all
18 improvements required to meet applicable Federal, State, Local
19 or Municipal laws, statutes, and regulations. Lessee agrees to
20 maintain and repair interior areas of the leased premises, and
21 make all tenant improvements. Tenant improvements shall be
22 approved by the Lessor and shall be completed in a timely
23 fashion. The current, contemplated renovation of the fifth
24 floor will be completed by the end of the first term of this
25 lease.
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8 .
Access to Premises
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The Lessor shall have access to leased premises at any and
all reasonable times to inspect or to otherwise determine
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LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT _ 3
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compliance with the lease by the Lessee.
9. Sublettinq
The rights of the Lessee hereunder may not be assigned or
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sublet to any other person, firm or corporation without the
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written consent of the Lessor first had and obtained, provided
that consent shall not be unreasonably withheld by Lessor.
10. Liens
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8 Lessee agrees to keep the leased premises free and clear of
9 mechanic's liens that might arise from repairs or improvements
10 made to the leased premises by Lessee.
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11. Utilities. Services and Parkinq
12 Lessor shall provide to Lessee, without cost, the same
13 utilities and building services furnished by it to other City
14 departments occupying the building, with the exception of
<:: 15 telephone or other communication services. Lessee and Lessor
16 shall have the right to use parking spaces allocated for
17 assigned employee parking in the same ratio as the total square
18 footage of office space that each party bears to the total
19 square footage of useable office space in the building.
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12. Surrender of Premises
21 Should Lessee be required, at the request of the Lessor, to
22 surrender all or any portion of the leased premises during the
23 term of this lease, or any of its extension, then and in that
24 event, Lessor agrees to provide, at its own expense, a like
25 amount of square footage as that surrendered, together with all
26 of the services provided in this agreement, and to pay the total
27 costs of relocation and cause any relocation to be done. The
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substituted premises and services must be acceptable and
LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 4
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satisfactory to the Board of Water Commissioners or its
successor.
13. Damaqe to Buildinq
City agrees that should the leased premises be so badly
damaged by fire, incidents of war or undeclared hostilities,
terrorism, or other violent actions of the elements so as to
render them wholly unfit for occupancy, then this lease shall be
terminated immediately upon the happening of any such event. On
termination under this Section, the Water Department shall
surrender the premises and shall not be liable for any further
rental, and the City shall refund any unearned rent paid in
advance by the Water Department, calculated by taking the pro
rata amount from the annual rental amount. In the event of any
lesser damage by any cause other than the Water Department's own
intentional or malicious acts or omissions, the premises shall
be restored with all reasonable speed by the City, at its
expense, and rent shall be prorated based upon the percentage of
un-usable floor area from the date of such damage or destruction
19 until the damaged premises are again made ready by City for
20 occupancy by the Department and they are accepted by the
21 Department for occupancy.
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14. Defense, Indemnification and Hold Harmless
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The City of San Bernardino will defend, indemnify and hold
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harmless the City of San Bernardino Municipal Water Department
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for all damages, claims, penalties, fines, and assessments
resulting from the negligence or intentional acts or omissions
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of its employees, agents, officers, and directors. The City of
San Bernardino Municipal Water Department will defend, indemnify
LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 5
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and hold harmless the City of San Bernardino for all damages,
claims, penalties, fines, and assessments resulting from the
negligence or intentional acts or omissions of its employees,
agents, officers, and directors.
15. Termination
Either party may terminate this lease by giving written
notice of termination to the other party at lease six (6) months
prior to its termination date on March 31, 2007
16. Insurance
Lessee agrees to purchase and maintain during the primary
term, and any subsequent terms, liability insurance to protect
against any liability to the public incident to the use of or
resulting from any accident occurring in or about the leased
premises. Lessee shall furnish Lessor with certificates of
insurance as evidence of Lessee's compliance with the foregoing
provisions, if so required.
17. Fixtures
All improvements and fixtures, which may be placed on the
leased premises by Lessee, shall be removed within sixty (60)
days after the termination of this lease, if required by Lessor.
If not removed within sixty (60) days of request, the Lessor
may, after notice to Lessee, remove and store all improvements
at Lessee's expense. Lessee shall leave premises in the same
condition as existed on April 1, 2902, normal wear and tear
excepted.
18. Buildinq Rules and Requlations
Lessee agrees to conform to and abide by any and all
building rules and regulations uniformly applicable to employees
LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 6
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and departments of Lessor at City Hall such as shall be
established by Lessor or as shall be adopted, amended or revised
during the term of this Lease Agreement.
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19. Notices
5 All notices to be given by either party to the other shall
6 be given in writing, delivered either personally or by first-
7 class United States mail, to the addresses of the parties as
8 follows:
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City Clerk
City Hall, 300 North "D" Street
San Bernardino, CA 92401
Lessor:
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Lessee:
General Manager, Water Department
City Hall, 300 North "D" Street
San Bernardino, CA 92401
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IN WITNESS WHEREOF, the parties have executed this Lease
14 Agreement this
day of
, 2002, at San
C 15 Bernardino, California.
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CITY OF SAN BERNARDINO
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By:
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Judith Valles, Mayor
ATTEST:
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Rachel Clark, City Clerk
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BOARD O~ WATER COMMISSIONERS
By'~~J!J~RN~
President
By: ~~
Secreta
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Approved as to form and legal content:
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LEASE AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO MUNICIPAL WATER DEPARTMENT - 7
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 3."1 -02
Vote: Ayes'- " Nays
Item#~
..e Abstain
Resolution #
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?{YJ2. - 2'iS1l
Absent 6
Change to motion to amend original documents: -
Reso. # On Attachments: -.L Contract term: -
Note on Resolution of Attachment stored separately: -=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W /COUNTY
NuIlNoid After: <Co DA-'f> II \-1\-0;)...
J
By: _
Date Sent to Mayor: Cj-l \ -o?-
Date of Mayor's Signature: C\- I )-'D;l
Date of ClerklCDC Signature: "1-13>"0;)-
Reso. Log Updated: ~
Seal Impressed: V
Date-.Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
----
See Attached:
Date Returned: -
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
Yes ,/ No By
Yes No-./-- By
Yes No --L.- By
Yes No -L- By
Yes NoL By
Copies Distributed to:
City Attorney (
Parks & Rec.
Code Compliance Dev. Services
Police Public Services
EDA
Water ,/
Finance ,./
MIS
Others:
f1\'Q\ LI11 t:;:$
Notes:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: m'C Date: ~
Revised 01112/01