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HomeMy WebLinkAbout11-Parks and Recreation CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Kevin Hawkins, Director Dept: Parks, Recreation & Community Services Department Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute the First Amendment to the F AS Standard Contract with the County of San Bernardino for the lease of a portion of the Delmann Heights Community Center to be used for the Head Start Program. Date: September 19, 2011 MlCC Meeting Date: October 3,2011 Synopsis of Previous Council Action: 9/8/2009 Resolution No. 2009-314, rescinding Resolution No. 2009-300 and authorizing the City Manager to execute a revised Lease Agreement with the County of San Bernardino for the lease of a portion of the Delmann Heights Community Center to be used for the Head Start Program, was adopted. Recommended Motions: Adopt Resolution. Signature Contact person: Robert Lennox Phone: 384-5031 Supporting data attached: StalTReporl, Rew, & Amendment Ward: 6 FUNDING REQUIREMENTS: Amount: Lease revenue of approximately $23,400 for the 2nd year ofterm - September 1, 20 II through August 31, 2012 Source: (Acct. No.) 001-380-4901-0000 (Acct. Description) Misc. Receipts/Lease Agreements Finance: Council Notes: Agenda Item No. / / 10- fr ).all ~pc<-~ 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 City Manager to execute the First Amendment to the F AS Standard Contract with the County of San Bernardino for the lease of a portion of the Delmann Heights Community Center to be used for the Head Start Program. BACKGROUND: At the September 8, 2009, meeting of the Mayor and Common Council, Resolution No. 2009- 314 was adopted; Resolution 2009-314 rescinded Resolution No. 2009-300 and authorized the City Manager to execute a revised Lease Agreement with the County of San Bernardino for the lease of a portion of the Delmann Heights Community Center to be used for the Head Start Program. Under the terms of the revised Lease Agreement, the County leased 2,160 square feet of classroom and office space at a cost of $0.90 per square foot. September 1, 2011, marks the second year of the lease agreement and the first of five single-year options to extend. The County and Head Start staff members have been integral partners in providing exceptional programs and services to the Delmann Heights Community. The original agreement allowed the Head Start Program to transition from City control to County oversight, while safeguarding positions, enhancing service delivery, and creating a new revenue stream to help mitigate Departmental budget reductions. The attached agreement (Exhibit I) authorizes execution of the first amendment to the Lease Agreement with the County of San Bernardino. The County has proposed amendments to the Lease Agreement as outlined in their request letter "Exercise Option to Extend Term & Proposal" (Attachment A). Pursuant to the amended Lease Agreement, the County is proposing to pay an annual rental fee of $23,400, or $0.90 per square foot which reflects a reduction of $0.01 per square foot or $144 per year. The County proposes to continue to fund 36% of the cost of utilities at the Delmann Heights facility (water, electric, natural gas, refuse and building maintenance). The estimated amount of utilities reimbursement is $13,900 annually. Staff has also identified periodic in-kind services such as general facility/grounds maintenance that would be provided by the County, which will more than offset the $144 lease reduction. As such, the Lease Agreement, as amended, is of mutual benefit to both the City and the County and is recommended for approval. FINANCIAL IMPACT: The proposed agreement will provide approximately $23,400 (rounded) in projected rental revenue during the year. This reflects a $144 reduction in the annual rental revenue. The anticipated revenue has been included in the FY 2011-2012 budget. RECOMMENDATION: Adopt Resolution. REALESTATESER~CES( lPARTMENT COUNTY OF SAN BERNARDINO 385 North Arrowhead Avenue, Third Floor' San Bernardino, CA 92415-0180 (909) 387.5252. Fax (909) 387.5353 ATTACHMENT A David H. Slaughter Dir&etor June 20, 2011 (C 17'...... r;::"';:~""li'/7 I. .:. '-^\,j J _i'..& . JUIl t I 1&11 -~ Mr. Robert Lennox City of San Bernardino 301 S. "E~ Street San Bernardino, CA 92401 Re: SAN BERNARDINO - PRESCHOOL SERVICES DEPARTMENT (PSD) - 2969 FLORES STREET - LEASE NO. 09-830 - NOTICE OF INTENTION TO EXERCISE OPTION TO EXTEND TERM & PROPOSAL Dear Mr. Lennox: The purpose of this letter is to formally notify the City of San Bernardino (herein referred to as "LANDLORD") of the County of San Bernardino's Real Estate Services Department, acting on behalf of the Preschool Services Department (collectively referred to as "COUNTY''), intention to exercise the first of five one (1) year option to extend from September I, 2011 through August 31,2012, for the above referenced location. Paragraph 6, OPTION TO EXTEND TERM currently states: "CITY gives COUNTY the option to extend the term of the Lease on the same provisions and conditions, except for the monthly rent, for five (5) one-year periods ("extended terms ") following expiration of the Initial Term, by COUNTY giving notice of its intention to exercise the option to CITY prior to the expiration of the term or during any holding over pursuant to Paragraph 8, HOLDING OVER The rent for each extended term shall be a4Justed 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. Based on the above, the CITY and COUNTY are required to negotiate a new lease rate based on the fair market rental rate then prevailing in the San Bernardino area. As you are aware, our nation is in a recession, the State of California is experiencing tremendous budget challenges and unemployment in the Inland Empire has hit records highs. According to an article entitled U.S. Industrial Markets Pull Back - North America Highlights, printed by Colliers International - Q 1 201 O/Industrial reports, "U.s. industrial real estate markets began 2010 much like they finished 2009: poorly. These factors have negatively impacted the business environment. Nevertheless, the current economic conditions have created a tremendous beneficial situation for tenants. GREGORY C. OEVEREAUX Clllef Executive OftIcer Boaed of SupefVlsors BRAD MITZELFEL T, VIce Chair. . . . First Olslrlcl NEIL OERRY . . . . . . . . . . . . . . . . . Third Dlsll1et JANICE RUTHERFORD. . . . . . . . .. Second Dlsmet GARY C. OVITT. . . . . . . . . . . . . . . Fourth Dlsll1et JOSIE GONZALES. Chair. . . . . . . . . . . . Fifth Dislrlct City of San Bernardino June 20,2011 Page- 2- ATTACHMENT A The market control has shifted away from the landlords and towards the tenant. Tenants are driving the market and enjoying the benefits of multiple prime location options, additional concessions and more tenant-friendly lease terms which translate to higher tenant improvement allowances, discounted lease rates and more free rent, resulting in lower effective rents, according to CB Richard Ellis, Market View - Inland Empire Office, First Quarter. Los Angeles Time reports in an article entitled, "Southern California Office Market Is Hammered By Recession" states vacancy rates have climbed as high as 30% in some areas, and landlords have been offering deep discounts or such perks as a year of free rent as an incentive to sign leases according to Joe Vargas, Senior Managing Director of Real Estate Brokerage Cushman & Wakefield. In reviewing our files, currently the County of San Bernardino leases 2,160 square feet of classroom and office space and 256 square feet of playground for a child developmentlhead start program. As you are aware, our programs are family-oriented and provide a model of excellence in child development and family empowerment programs. Our current monthly rate is $1,962.00 ($0.91 per square foot), which based on comparables is in the low-range for the San Bernardino area. Because this facility provides needed educational services in the inner city community for enhanced child development/educations purposes, I propose reducing the monthly rate to $1,950.00 ($0.90 per square foot). PROPOSAL The COUNTY hereby submits this PROPOSAL upon which COUNTY is prepared to continue discussions for an amended lease (the "Amendment'') with CITY for certain premises at 2969 Flores Street, San Bernardino, California ("Premises"). Existing Lease: Lease Agreement No. 09-830 that is scheduled to expire on August 31, 2011. Premises: 2969 Flores Street, San Bernardino, CA. Square Footage: 2,160 square feet of classroom and office. Terms & Commencement Date: Subject to acceptable negotiation of terms of extensions. Exercise first of five one-year options extending the term from September I, 20 II (the "Commencement Date of the First Extended Term'') and expiring August 31, 2012 (the "Expiration Date ofthe First Extended Term"). Base Rent: The COUNTY proposes the following: from the Commencement Date and continuing through the Expiration Date, COUNTY shall pay to LANDLORD the following monthly rental payments in arrears on the last City of San Bernardino June 20, 201 I Page-3- ATTACHMENT A day of each month, commencing when the term commences, continuing during the term, as provided below: Sept. 1,201 I tbru Aug. 31, 2012 - $1,950 ($0.90 psi) Annual Increases: None. Option to Extend: None. Updated Lease Language: COUNTY provides CITY with our updated language (See enclosure). LANDLORD to advise if this language is acceptable. New Indemnification Language that replaces Paragraph 17 Hold Hannless. New Insurance Requirements and Specifications that replaces Paragraph 18 Insurance Specifications. The COUNTY intends to continue good-faith negotiations to exercise the first of five one-year option to extend. This letter is intended solely and exclusively as a preliminary expression of general intentions. It is intended that neither party shall have any binding contractual obligations to the other with respect to the matters referred to herein unless and until a formal written lease amendment has been prepared with adequate opportunity for review by legal counsel and has been fully executed and delivered by the parties. Please be advised that the Board of Supervisors is the final authority for executing the proposed lease amendment on behalf ofthe County of San Bernardino. If the above is acceptable, please contact me at (909) 387-5121. tJ;;kff Elsy Banks Real Property Agent II EB:ma Enclosures - As stated above DELETE the existing Paragraph 1 +. ~~tEss in its entirety and replace with a new Paragraph 17, entitled INDEMNIFICATION: 17. INDEMNIFICATION: The CITY agrees to indemnify, defend (with counsel reasonably approved by COUNTY) and hold harmless the COUNTY and 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 except where such indemnification is prohibited by law. This indemnification provision shall apply regardless of the existence or degree of fault of indemnities. The CITY's indemnification obligation applies to the COUNTY's "active" as well as "passive" negligence but does not apply to the COUNTY's "sole negligence" or "willful misconduct" within the meaning of Civic Code Section 2782. A. CONFIDENTIALITY. CITY acknowledges that the premises will be used by COUNTY for the processing and storage of confidential information protected from unlawful access and disclosure by federal, state and local laws. COUNTY and its officers, agents, volunteers and employees, agree to comply with relevant federal, state and local laws pertaining to the security and protection of such confidential information while on the premises. CITY agrees that it will prevent any unlawful access to or disclosure of the confidential information by CITY, its officers, agents, volunteers, employees and contractors. CITY agrees that all entities with which CITY contracts to provide services on the premises will prevent any unlawful access or disclosure of the confidential information, and that said entities will agree to the same in writing. CITY acknowledges that any unlawful access to or disclosure of confidential information may result in the imposition of civil and criminal sanctions. DELETE the existing Paragraph 18. INSURANCE SPECIFICATIONS in its entirety and replace with a new Paragraph 18, entitled INSURANCE REQUIREMENTS AND SPECIFICATIONS: 18. INSURANCE REOUIREMENTS AND SPECIFICATIONS: A. COUNTY is a self-insured public entity for purposes of professional liability, general liability and workers' compensation. B. The CITY agrees to provide insurance set forth in accordance with the requirements herein. If the CITY uses existing coverage to comply with these requirements and that coverage does not meet the specified requirements, the CITY agrees to amend, supplement or endorse the existing coverage to do so. The type(s) of insurance required is determined by the scope of the lease hereunder. Without in anyway affecting the indemnity herein provided and in addition thereto, the CITY shall secure and maintain throughout the contract term the following types of insurance with limits as shown: ATTACHMENT A (I) Workers' ComoensationlEmolovers Liabilitv - A program of Workers' Compensation insurance or a state-approved, self-insurance program in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employer's Liability with $250,000 limits covering all persons including volunteers providing services on behalf of the CITY and all risks to such persons under this lease agreement. If CITY has no employees, it may certify or warrant to the COUNTY that is does not currently have any employees or individuals who are defined as "employees" under the Labor Code and the requirement for Workers' Compensation coverage will be waived by the COUNTY's Director of Risk Management. If, CITY is a non-profit corporation, organized under California or Federal law, volunteers for CITY are required to be covered by Workers' Compensation insurance. (2) Commercial/General Liability Insurance - The CITY shall carry General Liability Insurance covering all operations performed by or on behalf of the CITY providing coverage for bodily injury and property damage with a combined single limit of not less than one million dollars ($1,000,000), per occurrence. The policy coverage shall include: (a) Premises operations and mobile equipment. (b) Products and completed operations. (c) Broad form property damage (including completed operations). (d) Personal injury (e) Contractual liability. (f) $2,000,000 general aggregate limit. (3) Commercial Prooertv Insurance providing all risk coverage for the leased premises, building, fixtures, equipment and all property constituting a part of the premises. Coverage shall be sufficient to insure One Hundred percent (100%) of the replacement cost. (4) Automobile Liabilitv Insurance - Primary insurance coverage shall be written on ISO Business Auto coverage form for all owned, hired and non-owned automobiles or symbol 1 (any auto). The policy shall have a combined single limit of not less than one million dollars ($1,000,000) for bodily injury and property damage, per occurrence. (5) Umbrella Liability Insurance - An umbrella (over primary) or excess policy may be used to comply with limits or other primary coverage requirements. When used, the umbrella policy shall apply to bodily injury/property damage, personal injury/advertising injury and shall include a "dropdown" provision providing primary coverage for any liability not covm6)ChtA/l~~ policy. The coverage shall also apply to automobile liability. C. If CITY performs any construction of the Premises on behalf of the COUNTY, CITY shall also procure and maintain coverages as follows: (I) For construction contracts for projects over One Million Dollars ($1,000,000) and less than Three Million Dollars ($3,000,000) require limits of not less than Three Million Dollars in General Liability and Auto Liability coverage. (2) For construction contracts for projects over Three Million Dollars ($3,000,000) and less than Five Million Dollars ($5,000,000) require limits of not less than Five Million Dollars ($5,000,000) in General Liability and Auto Liability coverage. (3) For construction contracts for projects over Five Million Dollars ($5,000,000) and less than Ten Million Dollars ($10,000,000) require limits of not less than Ten Million Dollars (10,000,000) in General Liability and Auto Liability coverage. (4) Subcontractor Insurance ReQuirements. The CITY agrees to require all parties or subcontractors, including architects or others it hires or contracts with related to the performance of this contract to provide insurance covering the contracted operation with the basic requirements for all contracts in B I and the insurance sections for all contracts in B2, (including waiver of subrogation rights) and naming the COUNTY as an additional insured. The CITY agrees to monitor and review all such coverage and assumes all responsibility ensuring that such coverage is provided as required here. (5) Course of Construction/Installation (Builder's Risk) property insurance providing all risk, including theft coverage for all property and materials to be used on the project. The insurance policy shall not have any coinsurance penalty. D. Additional Insured - All policies, except for the Workers' Compensation, shall contain endorsements naming the COUNTY and their officers, employees, agents and volunteers as additional insureds with respect to liabilities arising out of the use under this lease hereunder. The additional insured endorsements shall not limit the scope of coverage for the COUNTY to vicarious liability but shall allow coverage for the COUNTY to the full extent provided by the policy. Such additional insured coverage shall be at least as broad as Additional Insured (Form B) endorsement form ISO, CG 2010.11 85. E. Waiver of Subrogation Rights - The CITY shall require the carriers of required coverages to waive all rights of subrogation against the COUNTY, their officers, employees, agents, volunteers, contractors and subcontractors. All general or auto liability insurance coverage provided shall not prohibit the CITY and CITY's employees or agents from waiving the right of subrogation prior to a loss or claim. The CITY hereby waives all rights of subrogation against the COUNTY. ATTACHMENT A F. Policies Primary and Non-Contributorv - All policies required herein are to be primary and non-contributory with any insurance or self-insurance programs carried or administered by the COUNTY. G. Severability of Interests - The CITY agrees to ensure that coverage provided to meet these requirements is applicable separately to each insured and there will be no cross liability exclusions that preclude coverage for suits between the CITY and the COUNTY or between the COUNTY and any other insured or additional insured under the policy. H. Proof of Coveral!e - The CITY shall furnish Certificates of Insurance to the San Bernardino Real Estate Services Department (RESD) administering the lease evidencing the insurance coverage, including endorsements, as required, prior to 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 RESD, and CITY shall maintain such insurance from the time CITY commences use under the lease hereunder until the end of the period of the lease. Within fifteen (15) days of the commencement of this contract, the CITY shall furnish a copy of the Declaration page for all applicable policies and will provide complete certified copies of the policies and endorsements immediately upon request. I. Acceptability of Insurance Carrier - Unless otherwise approved by the COUNTY Department of Risk Management, insurance shall be written by insurers authorized to do business in the State of California and with a minimum "Best" Insurance Guide rating of "A- VII". J. Insurance Review - Insurance requirements are subject to periodic review by the COUNTY. The COUNTY's Director of Risk Management or designee is authorized, but not required, to reduce, waive or suspend any insurance requirements whenever the COUNTY's Department of Risk Management determines that any of the required insurance is not available, is unreasonably priced, or is not needed to protect the interests of the COUNTY. In addition, the COUNTY's Director of Risk Management or designee 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 change requiring additional types of insurance coverage or higher coverage limits must be made by amendment to this lease. CITY agrees to execute any such amendment within thirty (30) days of receipt. Any failure, actual or alleged, on the part of RESD or COUNTY to monitor or enforce compliance with any of the insurance and indemnification requirements will not be deemed as a waiver of any rights on the part ofRESD or the COUNTY. K. Failw-e to Procure ~HMFl'1ItAnce required must be maintained in force at all times by CITY. Failure to maintain said insurance, due to expiration, cancellation, etc., shall be cause for the COUNTY to give notice to immediately suspend all CITY's business activities on the Premises. Failure to reinstate said insurance within the (10) days of notice to do so shall be cause for termination and for forfeiture of this agreement, and/or COUNTY, at its discretion, may procw-e or renew such insurance and pay any and all premiums in connection therewith, and all monies so paid by COUNTY shall be repaid by CITY to COUNTY upon demand but only for the pro rata period of non- compliance. L. 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 a partner or joint venturer with CITY in CITY's operations. M. The CITY agrees to require all parties or subcontractors, or others it hires or contracts with related to the use of this lease to provide insurance covering such use with the basic requirements and naming the COUNTY as additional insured. LICENSEE agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided as required herein. 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 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE FAS STANDARD CONTRACT WITH THE COUNTY OF SAN BERNARDINO FOR THE LEASE OF A PORTION OF THE DELMANN HEIGHTS COMMUNITY CENTER TO BE USED FOR THE HEAD START PROGRAM. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the City Manager is hereby authorized to execute the First Amendment to the F AS Standard Contract with the County of San Bernardino for the lease of a portion of the Oelmann Heights Community Center to be used for the Head Start Program, a copy of which is attached hereto, marked Exhibit "I" and incorporated herein by reference as though set forth at length; and SECTION 2. That the authorization granted hereunder shall expire and be void and of no further effect if the Agreement is not executed by both parties and returned to the office of the City Clerk within ninety (90) days following the effective date of the Resolution. III III III III III III III III III 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 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE FAS STANDARD CONTRACT WITH THE COUNTY OF SAN BERNARDINO FOR THE LEASE OF A PORTION OF THE DELMANN HEIGHTS COMMUNITY CENTER TO BE USED FOR THE HEAD START PROGRAM. 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 ,2011, by the following vote, to wit: Council Members: AYES NA YS ABSTAIN ABSENT MARQUEZ JENKINS BRINKER SHORETT KELLEY JOHNSON MCCAMMACK Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of ,20] 1. Approved as to form: Patrick J. Morris, Mayor City of San Bernardino EXHIBIT I - ~New Vendor Code Dept. Contract Number Change SC A 09-830 A-1 Cancel County Department Depl. Orgn. Contractor's license No. Real Estate Services Department County Department Contract Representative Telephone Total Contrad Amount County of San Bernardino David H. Slaughter, Director (909) 387-5104 $ FAS n Revenue 15<1 Encumbered Contract Type n other: n Un~ncumbered STANDARD CONTRACT If not encumbered or revenue contract tvoe, provide reason: -1. Commodity Code I Contract Start Date Contract End Date Original Amount Amendment Amount $ $ FIRST AMENDMENT Fund Depl. Organization Appr. ObjlRev Souroa GRCIPROJ/JOB No Amount AM RNT RNT 200 2905 , 59002663 $ Fund Depl. Organization Appr. ObjlRev Source GRC/PROJ/JOB No. Amount $ Fund Depl. Organization Appr. Obj/Rev Souroa GRC/PROJ/JOB No. Amount $ Project Name Estimated Payment Total by Fiscal Year San Bernardino - PSD FY Amount lID FY Amount I/O 2969 Flores Street - - - - Contract type 5(a) FOR COUNTY USE ONLY THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, hereinafter called the County, and Name City of San Bernardino hereinafter called Landlord Address 301 S. "E" Street San Bernardino, CA 92401 Telephone (909) 384-5031 IT IS HEREBY AGREED AS FOLLOWS: Federal 10 No. or Social Security No. WHEREAS, the COUNTY and the CITY OF SAN BERNARDINO ("LANDLORD") have previously entered into a Lease Agreement, Contract No. 09-830 (the "Lease"), wherein LANDLORD agreed to lease certain real property to the COUNTY; and, WHEREAS, under the terms of the Lease Agreement, Contract No. 09-830, COUNTY has five (5) one-year options to extend the term; and, WHEREAS, COUNTY and LANDLORD now desire to amend the Lease to exercise the first one-year option to extend the term from September 1,2011 (the "Commencement Date of the First One-Year Extended Term") through August 31, 2012 (the "Expiration Date of the First One-Year Extended Term"); and modify Paragraph 48. PUBLIC RECORDS DISCLOSURE. Auditor/Controller-Recorder Use Onl D Contract Database D FAS Input Date Keyed By Page 1 of 3 EXHIBIT 1 NOW, THEREFORE, in consideration of mutual covenants and conditions, the parties hereto agree the Lease Agreement, Contract No. 09-830, is amended as follows: 1. CHANGE that portion of Paragraph 3, TERM, which now reads "...shall commence on September 9, 2009 and end on August 31,2011" ... to read ... "shall commence on September 1, 2011 (the "Commencement Date of the First One Year Extended Term") and end on August 31,2012 (the "Expiration Date of the First One Year Extended Term")". 2. EXTEND the term of the Lease pursuant to Paragraph 6, OPTION TO EXTEND TERM, from September 1, 2011 (the "Commencement Date of the First One Year Extended Term") through August 31, 2012 (the "Expiration Date of the First One Year Extended Term") at a monthly rate of One Thousand Nine Hundred Fifty and 00/100 Dollars ($1,950.00 or $0.90/sq.ft.) for the first twelve (12) months. 3. DELETE in its entirety, Subparagraph 4.a., RENT, and SUBSTITUTE, therefore, the following as a new Subparagraph 4.a. RENT: 4. RENT: a. COUNTY shall pay to CITY the following monthly rental payments in arrears on the last day of each month, commencing when the term commences, continuing during the term. September 1,2011 thru August 31,2012 - monthly payments of $1,950.00 ($0.90/sq.ft.) 4. DELETE in its entirety Paragraph 48. PUBLIC RECORDS DISCLOSURE and SUBSTITUTE, therefore, the following as a new Paragraph 48. PUBLIC RECORDS DISCLOSURE as follows: 48. PUBLIC RECORDS DISCLOSURE: a. All information received by the CITY or COUNTY concerning this Lease, including the Lease itself, may be treated as public information subject to disclosure under the provisions of the California Public Records Act, Government Code Section 6250 et sea. (the "Public Records Act"). The Parties understand that although all materials received in connection with this Lease are intended for the exclusive use of the parties, they are potentially subject to disclosure under the provision of the Public Records Act. b. CONFIDENTIALITY. CITY acknowledges that the premises will be used by COUNTY for the processing and storage of confidential information protected from unlawful access and disclosure by federal, state and local laws. COUNTY and its officers, agents, volunteers and employees, agree to comply with relevant federal, state and local laws pertaining to the security and protection of such confidential information while on the premises. CITY agrees that it will prevent any unlawful access to or disclosure of the confidential information by CITY, its officers, agents, volunteers, employees and contractors. CITY agrees that all entities with which CITY contracts to provide services on the premises will prevent any unlawful access or disclosure of the confidential information, and that said entities will agree to the same in writing. CITY acknowledges that any unlawful access to or disclosure of confidential information may result in the imposition of civil and criminal sanctions. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] Revised 1/1112011 Page 2 of 3 EXHIBIT I 5. All other provision and terms of the Lease Agreement, Contract No. 09-830, shall remain the same and are hereby incorporated by referenced. END OF FIRST AMENDMENT. COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO ~ Josie Gonzales, Chair, Board of Supervisor By: ~ (Authorized signature - sign in blue ink) Dated: Name: SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Laura H. Welch Clerk of the Board of Supervisors of the County of San Bernardino Title: Dated: By Deputy Address: 301 S. "E" Street. San Bernardino. CA 92401 Approved as 10 Legal Fonn Reviewed by Contract Compliance Presenled 10 BOS for Signalure ~ Robert F. Messinger, County Counsel ~ ~ Department Head Date Date Date Revised 1/1112011 Page 3 of 3