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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 ��