HomeMy WebLinkAbout2013/10/15 Item 09 - ;��-�.-�.
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10/15/13, Item 9
RESOLUTION OF THE CITY COLTiVCIL OF THE CITY OF
ITEA'I TITLE: CHULA VISTA APPROVII��G A LEASE AGREEA4ENT �'��ITH LB
CIVIL CO\iSTRUCTION, I�'C. FOR A CITY O\4'i�'ED BUILDI�iG
AND APPURTANANCES LOCATED AT 610 BAY BOULEVARD
AND APPROPRIATIIvG LEASE REVENUES TO OFFSET
UTILITY' COSTS -
SUBA'IITTED BY: DIRECTOR OF PUBLIC Vl'ORKS ��
ASSISTA.\TT DIRECTOR OF ENGli� i�G��i
REVIE�4'ED BY: CITY MAI�rAGER
ASSISTA\TT CITY I��A,\'AGER�
4/STHS �'OTE: YES � NO ❑
SU11'IlVL�RY
In Februan� of 20li, the City purchased a bank buildine and lot located at 610 Bay Boulevazd.
This site was acquired on the open mazket and is intended to be developed into the future fue
station required for the development of the Bayfront. As a part of the Bayfront Development the
Port of San Dieeo currently is constructing certain infrastructure impro��ements. They need
office space in the �iciniry for their contractor and approached the Cih� about interim use of the
site. �Ve have reached a tentative aereement �iith the Port and the contractor to enter into a lease
for the duration of their construction. Staff is requestine to appropriate the revenue from this
lease for utilities espendimres at this site.
ENVIRO\'�1'IENTAL REVIEVV
The Derelopment Senices Director has revie��Ted the proposed activit�� for compliance ���th the
Califomia Environmental Qualin� Act (CEQA) and has determined that the activin- is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines because the activity
consists of a eovemmental administrative/fiscal activity im�oh�ine approval of a lease agreement
that ��-i11 not result in duect or indirect physical chanees to the environment. Therefore, pursuant
to Section 15060(c)(3) of the State CEQA Guidelines the acti��in� is not subject to CEQA. Thus;
no environmental re��iew� is required.
RECOAII�ZENDATION
Council adopt the resolution.
BOARDS/COMI�4ISSION RECONI111ENDATION
I�'ot applicable.
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10/15/13, Item �
Page 2 of 2
DISCUSSION
As set forth in the summary above, 610 Bay Street is intended to eventually be a fire station to
support the development of the Bayfront. It is currently vacant and not needed for any City uses.
The Port previously entered into an Agreement with the City to construct the H Street extension.
To facilitate this construction, the Port needs office space for their contractor. After discussions
with the Port, the City has agreed to consider leasing space to the Contractor, LB Civil
Construction, Inc. for the duration of their project. The azea to be leased consists of the majoriry
of the ground floor of the building, excepting out certain azea that are not currently usable. The
entire upper floor (with sepazate secure access) would remain available for City use or lease to an
outside tenant.
Should Council authorize entering into this lease, the City would receive $1,000 per month in
rent. The City would continue to pay for utilities at the site. The term of the lease would be for
the duration of the construction which is believed to be azound one year,
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property that is the subject of this action.
CURRENT YEAR FISCAL IMPACT
By approving the lease agreement, the City will receive $1,000 per month. The City is currently
paying for the utilities on the site at an estimated cost of$1,000 per month. Staff is requesting an
appropriation of $8,000 to the Non Departmental budget for utility costs to be offset by the
revenue from the lease agreement. There is no net fiscal impact resulting from this
appropriation.
ONGOING FISCAL IMPACT
There is no net fiscal impact resulting from approval of the lease agreement The lease
agreement revenue will offset tbe utility costs for this site. These expenditures and revenues will
be added to the Fiscal Year 2014-15 budget as part of the normal budget process.
ATTACHMENTS
Lease Agreement
Prepared by: Rick Ryals, Real Properry A4anager, Public Works Engineerrng
J:IEngrneerlAGENDAI CAS2013110-I 5-131REPORT-PW-LB Civrl Lease AgenduREV/SED final.doc
9-2
THE ATTACHED AGREEA�I�iT HAS BEEI`T RE�/IE��JED
AI�TD APPROVED AS TO FORM BY THE CITY
ATTORI�TEY'S OFFICE AND «�ILL BE
FORMALLY SIGNED UPOI�T APPROVAL BY
THE CITY CO CIL ._
�- l��r�
len . GooQins
ity Attorney
Dated: �D 9 i3
PROPERTY LEASE AGREEME\iT
BETWEEN
THE CITY OF CF3ULA VISTA and
LB SIVIL CONSTRUCTIOI�', INC.
FOR THE USE OF CITY O�T��TED REAL PROPERTY
LOCATED AT 610 BAY BOULEVARD
9-3
PROPERTY LEASE �GREEMENT
BY Al�'D BETR'EEN
OF THE GITY OF CHULA VISTA - �
AND
LB CIV'IL CONSTRUCTION, INC.
FOR THE USE OF CITY O�'VNED REAL PROPERTY
LOCATED AT
610 SAP BOULEVARD
9-4
SECTION PAR?.GR4PH PAGE
SECTION 1: USES
1A1 Premises 1
1.02 Lises 1
1.03 Reservarion of Riehts 2
SECTION 2: CO:�'IPENSATION
2.01 Rent for lise of Premises - - 2
2.02 Park Clean Up 2
2.02 litilities 2
SECTI01' 3: TER11
3A1 Term 2
3.02 Terminatio❑ Z
3.03 Surrender of Premises 3
SECTIO\� 4: L�`SLR�\'CE RISKS/SECLRIT'Y
4.01 Indemnity �
4.02 Insurance 4
4.03 Accident Reports 6
SECTION 5: TER�iS 9\D CO\DITIONS OF OCCliP.ANCY
iAl FormofA�reement 6
�.02 Right to Occupy 6
5.03 Taxes 6
SECTIO\ 6: LIIPROV"E�IENTS/ALTER�,TIONS/REP.AIRS
6.01 Acceptance of Premises �
6.02 �4'aste, Damage; or Destruction �
6.03 Maintenance /
6.04 Improvements/Alterations 8
9-5
6.05 Liens 8
6.06 Si�s 8
6.07 Ownership of Improvements 9
6.08 Breach by Lessee 9
SECTION 7: DEFAULT A1V"D TERI�ZINATION
7.01 Default 8
7.02 I�'otice of Default 9
7.03 Remedies 9
7.04 Other Causes for Tem�ination 10
7.05 Retaking Possession 10
SECTION 8: GENERAL PROVISIONS - -
8A1 Notices 10
8.02 Headin�s 11
8.03 Gender and Number 11
8.04 Reference to Paragraphs 1 I
8.05 lncorporation of Recitals 1 I
8.06 Covenants and Conditions 11
8.07 Integration 11
8.08 Severability 11
8.09 Drafring Ambiguities 11
8.10 Conflicts Between Terms 12
8.11 Prompt Perfonnance 12
812 Exhibits 12
8.13 Go��erning Law/Venue
8.14 Attomev's Fees 12
8.15 Third Party Relationships 12
8.16 Successors in Interest 12
8.17 I`TO Waiver 13
8.18 Administrative Claims Requirements 13
8.19 Nondiscrimination 13
8.20 EqualOpportunity 13
5.21 Assignment and Subletting-No Encumbrance li
8.22 Other Regulations 14
3.23 Non-Liability of Officials 14
S.24 Relationship Between City and Lessee 14
8.25 Capacity of Parties 14
SIGNATtiRE PAGE 1�
EXHIBITS
Exhibit ".a" - Sketch of Premises 16
9-6
THIS LE?�SE AGREE�'�4E?�7, hereina8er called ':4geement", dated as of
- , solely for identification purposes; is executed behveen the City of Chula
Vista; a public body corporate and politic, hereinafter called "City"; and LB Civil Construction,
Inc., a California Corporation, hereinafter calied "Lessee", to establish terms and conditions of
Lessee`s use of certain real propem oHmed bt Cin� and to provide terms and conditions of
Lessee's occupancy and use of Cin�'s properh�. The effective date of this ?.Qreement shall be the
date this Agreement is approved by the City (�Effecti��e Date").
RECI7' ALS
�4�HEREAS. Ciiy is the le�al and equitable o�imer of that certain real property located at
610 Bay Boule��ard, Chula Vista, currently identified as San Dieeo County 9ssesso: s Parcel �10.
�71-330-21. more fullv described herein belo��: �
«`F-IEREAS. Lessee Is a contractor u�orkine for the Pon of San Dieeo and needs office
space to facilitate their operations in and around the Chula Vista bay front; and,
�'�'HEREAS, City is ��illing to lease a portion of the above described property (the
Premises) as more particulazly described herein to Lessee under the terms, covenants, conditions
and provisions contained herein.
AGREE �� E �' T
1`O�V THEREFORE, for good and valuable consideration, the sufficiency of which the
parties hereby acknowledge, the City and Consultant do hereby mumally aeree as follows:
SECTION 1: USES
1.01 Premises. Citv hereby Leases to, in accordance �•ith the terms, covenants, conditions and
provisions hereof, a portion of that certain City owned real property located at 610 Bay
Boulevard, Chula Vista, currently identified as San Diego Count}� Assessor's Parcel No.
�71-330-21 and more particularly shown a sketch thereof desi�ated as Exhibit "A"
attached hereto and by this reference made part of this Ageement (the "Premises"). Lessee
. hereby affees to act in accordance with and abide by the terms, covenants; conditioas and
provisions of this Aereement.
1.02 Uses. It is expressly a�eed that the Premises shall be used by Lessee solely and
exclusively for the purpose of operating a construction office and for such other related or
incidental purposes as may be required to support said opera[ions. Other, unrelated
acti��ities may also be allowed at the Premises with prior written approval in writing bv the
Cirv's Real Propem ?�4anaQer(`Alanager').
Lessee covenants and a�ees to use the Premises only for tbe above specified purpose and
to diligently pursue said putpose throughout the term hereo£ Lessee shall not use or pemvt
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9-7
any use of the Premises in any manner which disturbs the use and quiet enjoyment by City
or any surrounding tenants or the general public. In the event that Lessee fails to
continuously use che Premises for said purpose, or uses the Premises for purposes not
expressly authorized herein, the Lessee shall be deemed in default under this Agzeement.
1.03 Reservation of Ri�hts. City shall not unreasonably or substantially interfere with Lessee
use of the Premises while Lessee is in possession of the Premises. However, the City
specifically retains the following rights:
a. Subsurface Rights. City hereby reserves all rights, title and interest in any and all
subsurface natural gas, oil, minerals and water on or within the Premises.
b. Easements. City reserves tlte right to grant and use easements or to establish and use
ri�hts-of-«�ay over, under, along and across the Premises for utilities, thoroughfazes, or
access as it deems advisable for the public good. - �
c. Right to Enter. City has the right to enter the Premises for the purpose of performing
maintenance, inspections, repairs or improvements, or developing municipal resources
and services.
SECTION 2: CODIPENSATION
2.01 Rent for Use of Premises. Lessee shall pay City the sum of $I,000.00 in advance, per
month for the use of the premises. Said payment shall be made in lawful money of the
United States unconditionally, without demand, deduction qualification or set-off; at City`s
address as set forth herein or at such other address as City may designate in writing.
Payments made after the fifth day of the month shall include a 5% penalty of 5�0.00 for
late payment.
2.02 Intentionally lefr blank
2.03 Utilities. Utilities (electric, gas and water) are included in the lease and shall be paid for by
the City.
SECTION 3: TERM
3A1 Term. The term of this Agreement shall commence on November 1, 2013 and terminate
upon completion of Lessee's contract ���ith the Port of San Diego or as agreed to by the
parties.
3.02 Termination. This I,ease may be terminated only upon the mutual consent of the parties
hereto, except as o2herwise provided for herein.
3.03 Surrender of Premises. At the expiration or earlier tennination of this Agreement, Lessee
shal] surrender the Premises to City free and clear of all liens and encumbrances, except
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those liens and encumbrances �vhich existed on the date of the eaecution of this .��eement
by City. The Premises, �vhen surrendered by Lessee, shall be in a safe and sanitar}°
condition and shali be in as eood or better condition as the condition at the commencement
of this A�eement, absent normal wear and tear.
SECTION 4: I�`SL"RaNCE RISIiS/SECURITI'
4.01 Indemnih�.
a. Defend, Indemnify and Hold Aarmless. Lessee hereby a�ees to defend, indemnify,
and hold the City, its directors, officers, employees, and agents, harmless from and
against any and all claims, dema�ds, caases of action, costs, expenses (including
reasonable attorney's fees and actual costs). liabilit}; loss, damage or injun°, in law or
equity, to property or persons, includine wroneful death, in any manner arising out of
or incident to any afleged acts, omissions; negiisence, or �;-illful misconduct of Lessee,
or any employee, asent, in�itee, contractor of Lessee, or other person acting by or on
behalf of Lessee on or about the Premises, arising out of; related to or in connection
with the use of the Premises or this Aereement. This indemnity provision does not
include any daims; damages, liability, costs and expenses arising from the sole
❑egliQence or sole w�iilfui misconduct of the City, its officers, employees. Also covered
is liability arising from; connected w�th; caused by or ctaimed to be caused by the
ac[ive or passive negli�ent acu or omissions of the City, iu aeents, officers, or
employees which may be in combination with the active or passive neeli�ent acu or
omissions of ihe Lessee; its emplo��ees, a�ents or officers, or any third party.
b. Costs of Defense and A�eard. Included in the obligations in Sections 1 and 2, above,
is [he Lessee`s oblieation to defend; at Lessee's o��n.cost, expense and risk, any and all
aforesaid suits; actions or other legal proceedines of every kind that may be brought or
instituted aeainst the City, its duectors, officials, officers, emplo}�ees, agents and/or
volunteers. Lessee shall pay and satisfy an;� }udemeni; awazd or decree that mav be
rendered aeainst City or its directors, officials; officers, employees, aeents and/or
volunteers, for any and all leeal expense and cost incurred by each of them in
connection therewith.
c. Insurance Proceeds. Lessee`s obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the City, its directors, officials, officers,
employees, aoents, and/or�olunteers.
d. Declarations. Lessee`s oblieations under Section 4 shall not be limitul by any prior or
subsequent declaration by the I,essee.
e. Enforcement Costs. Lessee agrees to pay any and all costs City incurs enforcin� the
indeinnity and defense provisions set fortt� in Section 4.
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f. Survival. L,essee's obligations under Section 4 shall survive tbe termination of this
Agreement.
4.02 .Insurance. Lessee shall take out and maintain at all times during the term of this
Agreement the following insurance at its sole expense:
a.Lessee shall maintain the following minimum limits:
General Liabilitv Insurance
Commercial General Liability Insurance covering liability of the Lessee with respect to
all operations to be performed and all obligations assumed by the Lessee under the
terms of this Agreement. Coverage for commercial general liability shall be at least as
broad as Insurance Services Office Commercial General Liability Coveraee
(Occurrence Focm CG 0001). Limits shall be no ]ess than one million dollars
(51,000,000) per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability Insurance or other torm with a general aggegate ]imit is
used; either the general aggregate limit shall apply to the Premises (with the ISO CG
2503, or ISO CG 2504, or insurer's equivalent endorsement provided to City) or the
general aggreeate limit shali be twice the required oecurrence limit.
Automobile Liability Insurance
Automotive Liability Insurance covervlg the liability of Lessee arising out of the use of
all o��7ted, non-owned, and hired vehicles which beaz, or are required to bear, license
plates according to the laws of Califomia and which are not covered under the Lessee
Commercial General Liability insurance. Coverage under this policy shall have limits
of liability of not less than one million dollars ($1,000,000) per occurrence, combined
single limit, for bodily injury and property damage (including loss of use) liabiliry.
Coverage shall be at least as broad as Insurance Services Office Automobile Liability
Coverage(Form CA 0001), covering 5yrrtbol 1 (any auto).
�Workers' Compensation and Emolover's Liabilitv Insurance
R'orkers' Compensation and Employer's Liability Insurance complying will the
requirements of all applicable la�vs relating to workers' compensation insurance,
co�ering or insuring all of the Lessee employees.working on or about the Premises.
Limits shall be no less than statutory limits per accident for bodily injury and disease.
By hislher signature hereunder, Lessee certifies that it is aware of the provisions of
Section 3700 of the California Labor Code which require every employer to be insured
against liability for workers' compensation or to undertake self-insurance in accordance
with the provisions of that code, and it will comply with such provisions in connection
���ith any u�ork performed on or about the Premises. Any persons providing sen-ices
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W�ith or on behalf of I.essee shali be covered by workers' compensation (or qualified
self-insurance)
b. Ali insurance companies affording coveraee to the Lessee shall be required to add the
City of Chula Vista, its officials; officers, employees, and agents as "additionai
insured(s)" under the insurance policy(s) required in accordance ���ith this A2reement.
Lessee shail fumish (or cause to be fiunished) a certificate of insurance countersigned
by an authorized agent of the insurance carrier on a form of the insurance carrier settine
forth the general pro�-isions of the insurance coverase. This countersi�ed certificate
(and endorsement) shall name the City and the Citv, their officers, aeents, employees,
and authorized volunteers as additional insured under the policy. Coveraoe pro��ded
hereunder to the City and Ciiy as additiona] insured by Lessee shali be primary
insurance and other insurance maintained by the Gify, its officials. officers; agents
and/or employees, shall be excess only and not contributing with insurance provided
pursuant this Section 4A2, and shall contain such pro�ision in the policy(ies),
certificate(s) and/or endorsement(s). The insuraoce policy or the certificate of
insurance shall contain a ���aiver of subroeation for the benefit of the City, its officials,
officers, empioyees, and agents.
c. All insurance companies affording coverage to the I,essee shall be insurance
organizations acceptabie to the City, and authorized by the Insurance Commissioner of
the State Department of Insurance to transact business of insurance in the State of
Califomia. Insurance is to be piaced u�ith insurers having a current A.D4. Bes[ rating of
no ]ess than A-, VII or equivalent or as otherwise approved by City.
d. All insurance companies affording coverage shall provide thirty' (30) days ���ritten
notice to the Cin� should the policy be cancelled before the expiration date. For the
purposes of this notice requuement, any material change in the policy prior to the
expiration shall be considered a cancellation. .
e. Lessee shall provide evidence of compliance with the insurance requiremenis listed
abo�e by providing a certificate of insurance, in a form satisfactory to the General
Counse] (City Attomey), concucrently with the submittal of this Agreement.
f. I,essee shall provide a substiiute certificate of insurance no later than thirty (30) days
prior to the policy e�piration date. Failure by the Lessee to provide such a substitution
and extend the policy expirarion date shall be considered a defauit by Lessee and may
subject the L.essee to a termination of this A�eement.
g. Maintenance of insurance by the L.essee as specified in this Agreement shall in no way
be interpreted as relie�2no the L,essee of any responsibilih� whatever and the Lessee
may cam�; at iis o�+m expense, such additional insurance as it deems necessary.
6. If Lessee fails or refuses to take out and maintain the requ'ved insurance, or fails to
provide the proof of coverage, City has ihe right to obtain the insurance. I,essee shall
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!ease Agreement
9-� �
reimburse Citv for the premiums paid with interest at the masimum allowable legal rate
then in effect in Califomia. City shall give notice af the payment of premiums within
thirty (30) days of payment stating the amount paid, names of the insurer(s), and rate
of interest. Said reimbursement and interest shall be paid by Lessee on the first (lst)
day of the month follo���ing the notice of payment by City.
i. City, at its discretion; may require the revision of amounts and co��erage at anytime
during the term of this Agreement by giving Lessee siacty (60) da)'s prior ��ritten notice.
City's requirements shall be desiened to assure protection from and against the kind
and extent of risk existing on the Premises. Lessee also ab ees to obtain any additional
insurance required by City for new improvements, in order to meet the requirements of
this Agreement.
j. I�TOtwithstanding tbe preceding provisions of this Section 4.02, any failure or refusal by
Lessee to take out or maintain insurance as requued in this-Agreement, or failure to
provide the proof of insurance, shall be deemed a default under this Agreement and in
such event, City may terminate this Agreement upon three (3) days written notice to
Lessee. For the purposes of this A�eement, the condition to provide the insurance
covera�e required under this Section 4.02 shall be in addition to rent.
4.03 Accident Reports. Lessee shall promptly report to City any accident causing any property
damage or any serious injury to persons on or about the Premises. This report shall contain
the names and addresses of the parties involved, a statement of the circumstances, the daie
and hour, the names and addresses of any witnesses and other pertinent information.
SECTION 5: TER1iS AND CONDITIOVS OF OCCUP�.NCY
5.01 Form of A�reement. This Ageement is a limited lease for the use of the Premises for
those particular purposes identified in Section 1.2. Nothing in this Ageement shall be
interpreted to gran� any interest in the Premises other than that specified in chis Agreement.
At no time shall the Lessee's limited interest i� the Premises ripen into a leasehold or fee
interest with a claim or right to exclusive possession thereof.
5.02 Risht.to Occup��. Lessee right to occupy the Premises may be terminated by City at any
time if Lessee fails to satisfactorily perform the improvement, maintenance, and upkeep
duties or responsibilities of I,essee set forth hereunder. City reserves the right to terminate
this Agreement as may be provided for elsewhere herein.
5.03 Taxes. Lessee shall pay, before delinquenc;�, all taxes; assessments, and fees assessed or
levied upon L,essee or the Premises, including the land, any buildings, structures, machines,
equipment, appliances; or other improvements or property of any nature whatsoever
erected, installed, or maintained by L,essee or levied by reason of the business or other
Lessee activities related to the Premises, including any licenses or pennits.
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Lzssee reco�izes and a�ees that this A�eement may create a possessory interest subject
to property taxation; and that I,essee may be subject to the paymen[ of taxes le�-izd on such
interest; and that Lessee shall pay all such possessory interest taxes prior to their
delinquency.
SECTIO\ 6: ID•IPRO�'ED1E\TSlAI.TER�TIONS/REPAIRS
6A1 Acceatance of Premises. The Premises is being offered to Lessee in an As-Is and W�ere-
Is condition ���ithout any warranh�, expressed or implied. Lessee represents and warrants
that it has independentiv inspected the Premises and made all tests, investigations, and
observa[ions necessary to satisfy itself of the condition of the Premises and all
improvement appurtenant thereto. Lessee acknoc��ledees it is relyine solely on such
independent inspection; tests, investigations; and obsen�ations in mal:in� this A�eement.
Lessee further acknowledges that the Premises are in the condition cailed for by this
Ageement, and that Lessee does not hold City responsible for any defects in the Premises.
6.02 �Vaste, Damaee, or Destruction. I,essee shall eive notice to City of any fue or other
damaee ihat occurs on the Premises ���ithin forty-eight (48) hours of such fire or dama�e.
Lessee shali not commit or suffer to be committed any waste or injury or any public or
private nuisance, to keep the Premises, ad}oinin� sidewalks, and other public areas, clean
and clear of refuse and obstructions, and to dispose of ali earba�e; trash; and rubbish in a
manner satisfactory to City. If the Premises shall be dama2ed by any cause which puts the
Premises into a condition �;�hich is not decent, safe, healthy and sanitary, Lessee affees to
make or cause to be made full repair of said damaee and to restore the Premises to the
condition «�hich existed prior to said damaee; or, ai City's option, and upon receipt of
«•ritten demand thereof; Lessee agrees to clear and remo��e from the Premises all debris
resulting from said damage and repair the Premises in accordance �rith plans and
specifications pre�iously submiited to City and appro��ed in writinQ in order to replace in
kind and scope the improvements which existed prior to such damaee. Lessee shall be
responsible for all costs inccrred in the repair and restoration; or rebuildin�of the Premises.
L,essee shall not cause or permit any hazardous material to be used, stored, transported;
generated; or disposed in or about the Premises by L,essee, Lessee s aeents, employees;
contractors, Lessees; or in��itees. `'Hazardous ti4aterial ` means any hazardous, toaic; or
infectious substance, material, or waste; «�hich is or becomes ree lated by any ]ocal
eovemmental entiry; the State of Califomia, or the linited States eovemment under any
law, rewlation or ordinance.
6.03 1Saintenance. Lessee a�ees to assume full responsibility and cost for the operaiion and
maintenance of the Premises throuehout the term of this Affeement. Lessee will make
� customary and usual maintenance necessary to maintain and preserve the Premises, all
unprovements. including fencing, adjoinin� sidewalks, and other public areas, in a decent,
safe, healthy, and sanitary condition satisfactory to Ciry and in compliance w�ith all
applicable laws. Lessee shall remove and la�ti fullv and properly dispose of all gazbage;
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litter; trash, debris, and rubbish from or about the Premises; adjoinino sidewalks; and other
public areas, on a daily basis. All components of the fencing, including but not limited to
posts and rails, shall be mendedireplaced on an as-needed, when-needed basis, usine
material of similar type and style. Lessee shall maintain surface on the Premises in a good,
neat and orderly manner. Weeds, tree or stuvb branches, leaves, twigs, and other similaz
debris shall be removed from the Premises as needed to maintain a neat appearance at all
times. Lessee shall provide access control to the Premises to prevent access and pazking of
unauthorized vehicles. All maintenance and other Lessee duties set forth herein shall,
durine the term hereof, be done at Lessee sole cost and expense and City shall not be called
upon for any outlay or expense related thereto.
Tf at any time during the term of this Agreement, City reasonably determines that the
Premises are not in a decent; safe, healthy, and sanitazy condition, City may; at its sole
discretion and option, terminate this Ao eement upon written notice to I,essee and regain
possession of the Premises from Lessee. In the event of such tertnination, or if City elects
not to terminate, City may, upon written notice to Lessee, have any necessary maintenance
work done in order to place the Premises back to a decent, safe; healthy, and sanitary
condition at the expense of L,essee. In such e�rent, City shall provide Lessee written notice
and itemized billing showing the work performed and Lessee shall make payment to City
no later than thirty (30) days after receipt of said notice and billing. The rights reserved in
this Section 6.03 shall not create any obligations on City or increase obligations elsewhere
in this Agreement imposed on Cify. The provisions of this Section 6.03 shall survive the
expiration or eazlier ternunation of this Agreement.
6.04 Improvements/Alterations. I�To improvements, structures, or installations shall be
constructed on the Premises; and the Premises may not be altered by Lessee �i•ithout prior
written approval by the City. This provision shall not retieve Lessee of any obligation
under this Ageement to maintain the Premises in a decent, safe, healthy, and sanitary
condition, including sWctural repair and restoration of damaged or wom improvements.
City shall not called upon to or be obligated by this Ageement to make or assume any
expense for any existing improvements or alterations.
6.05 Liens. Lessee shall not, directly or indirectly, create, incur, assume or suffer to exisi any
mortgage, pledge, 1ien, chazee, encumbrance, or claim on or with respect to all or any
portion of the Premises without the prior written consent of the City's Properh� Manager.
Lessee shall promptly, at its o�m expense, take such action as may be necessary to duly
dischazge or remove any such mortgage, pledge, lien, charge, encumbrance or claim on or
with respect to all or any portion of the Premises for which Lessee does not have the prior
written consent of the City's Property Manager.
6.06 Siens. Lessee shall not erect or display any banners, pennants, flags, posters, signs,
decorations, mazquees, aN�nings, or similaz devices or advertising on or about the Premises
without the prior written consent of City. If any such unauthorized item is found on the
Premises, L.essee shall remove the item at its expense within twenty-four (24) hours of
written notice thereof by City, or City may thereupon remove the item at Lessee's cost.
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6.07 .O«•nershia of Imdro��ements. Any and all improvements; shuctures, and installations or
additions to the Premises now existing or constructed on the Premises by Lessee shall at
Aereement expiration or termination be deemed to be part of the Premises and shall
become, at Ci[y's option; Cin�s property, free of all liens and claims except as othenvise
provided in this Ageement If the City chooses not to accept impro��emenu madz by
Lessee, during the term of this Lease, arid prefers to ha��e such improvements removed,
Lessee shall do so at its sole cost and expense.
6.08 Breach bv Lessee. Lessee's refusal or failure to meet its obGgations under this Section 6
shall be deemed a breach of this A2reement; and in such event, City ma.� terminate this
Affeement pursuant to the provision of Section 7.10 or else�chere herein.
SECTIO\ 7: DEFaULT �\� TERn11\ATION
7.01 Default. The failure; throueh any cause, of Lessee to fulfill in a tunely and proper manner
any of Lessee's obligations under ihis A�zement or the violation by L,essee of any of the
maierial covenants, agreements or stipulations of this A�eement shall be deemed a
Default.
7.02 Notice of Default. City shall provide Lessee a «�rirten notice of the Default describing the
failure or violation, requesting that Lessee cure the default, and specifyine a date; fifteen
(1�) calendaz days from the date of the Notice, by which the defauit must be cured.
a. Ectension of Time for Cure. In the event that Lessee. reasonably belie��es that the
cure cannot be accompiished�vithin the 1� days; Lessee shall immediately notify the
City in a writine explainine the reason why the cure cannot be accomplished within the
15 days, detailine the proposed cure, and specifying a date by which the cure shall be
compieted. If th�e City determines, in its sole discretion that the need for additional
time and the amount of time requested are reasonable, it shall grant tbe extension.
7.03 Remedies. In the event that L,essee fails to complete the cure within the time identified in
the Notice of Default or any extension thereof or fails to initiate the cure and dilieently
pursue the cure to completion; the City, in addition to pursuing any other remedies it may
have in law� or equity, may, but shal] not be obligated to, do either or both of the following:
a. Cure. City may choose to cure the Default and chazae aay costs or expenses it occurs
in completing the cure to I.essee.
1. Invoice. City shall submit a H�ritten invoice to Lessee requestine pa}�rnent in the
amount of the Cit1 Expenses. Pa}�ment shall be due "nzt 30." Late payments shall
be subject to the same interest and late penalties as Lease Pa;Tnents.
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b. Terminate the Contract. The City may terminate this Aereement through «�ritten
notice to Lessee.
7.04 Other Causes for Termination. City may also terminate this Agreement upon written
notice to I,essee in the e�ent that:
a. Lessee has pre��iously been notified by City of Lessee's default under this Aereement
and Lessee, after beginning to cure the default, fails to diligently pursue the cure of the
default to completion; or
b. Lessee shall voluntarily File or have in��oluntarily filed against it any petition under any
bankruptcy or insolvency act or law; or
c. Lessee shall be adjudicated a bankruptcy;nr
d. Lessee shall make a general assignment for the benefit of creditors.
'7.05.Retal:ina Possession. Upon termination; City may immediately enter and retal:e
possession of the Premises.
SECTION 8: GENERAL PROVISIONS
8A1 Notices. All notices, demands, requests, consents or other communications which this
Agreement contemplates or authorizes, or requires or pennits either party to give to the
other, shall be in u�riting and shall be personally delivered or mailed, postage prepaid, to
the respective party as follows:
To City: To Lessee:
Rick Ryals LB Civil Construction, Inc.
Real Property n4anager 1158� Sorrento Valley Road
� Citv of Chula Vista Suite 104
Department of Public�Vorks San Diego, CA 92121
276 Fourth Avenue
Chula Vista, CA 91910 Attention: Geoff Bohne
�'�'ith Copy to:
City of Chula Vista
City Attomey
276 Fourth Avenue
Chula Vista, CA 91910
Page 10 ioioa�zois
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Either party may chanee its address by notice ro the other party as pro��ided herein.
Communications shall be deemed to have been eiven and rzcei�ed on the fust to occw of:
(i) actual receipt at the offices of 2he party to whom the communication is to be sent. �s
desimated above; or(ii) [hree working days following the deposit in the United States Mail
of certified mail, postage prepaid, retum receipt requested, addressed to the offices of the
party to whom the communication is to be sent; as desimated abo�e; or (iii) actual receipt
if made by reco�ized reliable currier service who maintains a receipt of delivery.
8.02 Headin¢s. .�il article headin�s are for convenience onh� and shall not affect the
interpretation of this Agreement.
8.03. Gender and \'umber, �T�'henever the context requires, the use herein of (i) the neuter
eender includes the masculine and the feminine genders and (ii) the singular number
includes the plural number.
8.04 Reference to Paraoraphs. Each reference in this Agreement to a seciion refers, unless
otherwise stated, to a section of this A�eement.
SAS Incorporation of Recitals. All recitals herein aze incorporated into this Agreement and
aze made a pan hereof.
8.06 Covenants and Conditions. All provisions of this A2reement expressed as either
covenants or conditions on the part of the City or [II�TSERT�, shall be deemed to be both
co��enants and conditions.
8.07 Intearation. 11us Affeement and the Exhibits and .references incorpora�ed inio tt�is
Agreement full�� express all undentandings of li'�e Parties concerning the matters covered in
this Aereement. No change, alteration, or modification of the terms or conditions of this
Agreement; and no ��erbal understanding of the Parties, their officers, agents, or employees
shali be valid unless made in the form of a written chan�e a�eed to in writing by both
Parties or an amendment to this Affeement a�eed to by both Parties. All prior negotiations
and agreements are merged into ihis Aereement.
8.08 Se��erabilitv. The unenforceability, invalidit��, or illegality of any provision of this
Affeement shall not render any other provision of this A�reement unenforceable; in��alid,
or illeeal.
8.09 Draftina ,�.mbi�uities. The Parties aeree that they are aware that they have the right to be
advised by counsel with respect to the ne�otiations; terms and conditions of this
Agreement; and the decision of whether or not to seek ad«ce of counsel with respect io this
A2reement is a decision that is the sole responsibility of each Party. This Ao eement shall
not be cons2rued in fa��or of or aeainst either Party by reason of the extent to «�hich each
Pam�participated in the drafting of the Aereement.
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810 Conflicts Between Terms. lf an appazent conflict or inconsistency exists ben��een the
main body of this Ageement and the E�ibits, the main body of this Agreement shall
control. If a conflict exists between an applicable federal, state, or local law, rule,
reeulation, order, or code and this Agreement, the ]aw, rule, reb lation, order, or code shall
control. Varying deb ees of stringency among the main body of this Agreement, the
Exhibits, and lav✓s, rules, regulations, orders, or codes aze not deemed conflicis, and the
most strineent requirement shall control. Each Party shall notify the other immediately
upon the identification of any apparent conflict or inconsistency concerning this
Agreement.
8.11 Prompt Performance. Time is of the essence of each covenant and condition set forth in
this Agreement.
81? Good Faith Performance. The Parties shall cooperate with each other in good faith, and
assist each other in the performa�ce of the provisions of this Agreement.
813 Further Assurances. City and Lesee each agree to execute and deliver such additional
documents as may be required to effectua[e the purposes of this Agreement.
8.14 Exhibits. Each of the following Exhibits is attached hereto and incorporated herein by this
reference:
Exhibit A—
815 Governin� Law/Venue. This Agreement shall be govemed by and construed in
accordance with the laws of the State of Califomia. Any action arising under or relating to
this Aereement shall be brought only in the federal or.state courts located in San Diego
County, State of California, and if applicable, the.City of Chula Vista, or as close thereto as
possible. Venue for this Aa eement, and performance under it, shall be the City of Chula
Vista.
8.16 Attornev Fees. Should a dispute arising out of this Agreement result in litigation; it is
agreed that the prevailing party shall be entitled to a judoment against the other for an
amount equal to reasonable artorneys` fees and court costs incurred. The `prevailine party"
shall be deemed to be the party u�ho is awarded substantially the relief sought.
817 Third Parti� Relationships, Nothing in this Agreement shall crea[e a contraetual
retationship betw�een City and any third party.
8.18 Successors in Interest. This Agreement and all rights and obligations created by this
Agreement shall be in force and effect whether or not any Parties to the .4greement have
been succeeded by another entity, and all rights and obligations created, by this Agreement
shall be vested and binding on any Party's successor in interest.
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8.19 \o �Vaiver. \'o failure of either the City to insist upon the strict performance by the other
of any covenant. term or condition of this A�eement; nor any failure to exercise any right
or remedy consequent upon a breach of an}°co�renant, term, or condition of this A�eement,
shall constimte a waiver of any such breach of such co��enant, term or condition. No waiver
of any breach shali affeci or alter this Aereement, and each and e�•ery covenant, condition;
and term hereof shall continue in full force and effect to any existing or subsequent breach.
8.20 Administrative Claims Requirements. No suit or azbitration shall be brought arisine out
of this �greement; against the Ciry unless a claun has firsi been presented in wriiing and
filed with the City and acted upon by the Cit�� in accordance with the procedures set forth
in Chapter 1.34 of the Chula V'ista Municipal Code, as same may from time to time be
amended, the provisions of which are incorporated by this reference as if fuily set forth
herein, and such policies and procedures used by the City in the implementation of samz.
8.21 \ondiscrimination. Lessee a�ees not co discriminate in any manner against or
seereeation of any person or persons, on account of race, color, relieion; sex, familiaz
siatus, national ori�n, ancestry, aee; disabilih� or sexual orientation in the use, occupancy,
tenure or enjo«nent of the Premises, nor shall Lessee itself; or any person claiming under
or through it, establish or permit such practice or practices of discrimination or sea eeation
ti�ith reference to the selection, location, number; use or occupancy of the Premises.
8?2 Equal Ouaortuniti�. L.essee shall assure applicants are employed and that employees are
treated durin� emplo;znent witbout reeard to race; familiai status, color, relid on; sex or
national oriein. Lessee hereby certify to City that Lessee is in compliance and throughout
the term of this A�eement will comply with Title VII of tt�e Civil Ri�hts Act of 1964, as
amended, the California Fair Employment Practices Act; and any other applicable Federal;
State and L.ocal law, reo lation and policy (inciuding without limitation those adopted by
Ciiy) related to equal emplo,vment opporiunity and affimiative action proa ams; includin�
any such la�v, regulation, and policy hereinafrer enacted.
a. Compliance and performance by Lessee of the equal emplo�inent opportunity and
affirmative�action pro�actl pro�rision of this Aereement is an express condition hereof
and any failure by Lessee to so comply and perform shall be a default of [his
A�eement and Citv may exercise any right as provided herein and as otherwise
pro�ided by law.
813 Assi�ment and SublettinQ-No Encumbrance. This A�eement and anv portion thereof
shall not be assigned, transferred, or sublet. nor shall an� of the Lessee`s duiies be
deleeated; without the express written consent of City. Any attempt to assim or delegate
this A�eement without tbe express �vritten consent of Cih shall be void and of no force or
effect. A consent by City to one assimment, transfer; sublease, or deleeation shall not be
deemed to be a consent to any subsequen[ assi�ttment, transfer, sublease, or delegation.
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SZ4 Other Reeulafions. All use of the Premises by Lessee under this Ageement shall be in
accordance with the laws of the United States of America, the State of Califomia, the
County of San Diego, and in accordance with all applicative rules and regulations and
ordinances of the City of Chula Vista now in force, or hereinafter prescribed or
promulgated by resolution or ordinance or by L,ocal, State or Federal law.
8.25 Non-liabilih� of Officials. No member, official or employee of the City shall be personally
liable to Lessee, its assigns or successors in interest, in the eeent of any default or breach
by the City, for any amount which may become due to Lessee is assigns or successors, or in
any obligations under the terms of this Agreement.
8.26 Rela6onshia between Citv and Lessee. It is hereby acknoc�-ledged that the relationship
betueen City and Lessee is that of landoumer and tenant at will and �ot that of a
partnership or joint venture and that City and Lessee shall not be deemed or construed for
any purpose to be the agent of the other. Accordingly, except as expressly provided herein,
the City shall have no duties or obligations with respect to the improvement, maintenance
or upkeep of the Premises.
8.27 Caoacitv of Parties. Each signatory and party to this Agreement warrants and represents
to the other party that it has legal authority and capacity and direction from its principal to
enter into this A�eement, and that all necessary resolutions or other actions have been
taken so as to enable it to enter into this Agreement.
REMAIhDER OF PAGE LEFT BI..9NK INTENTIONALLY
[Signatures on Followi�g Page]
Page 14
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9-2�
Si�ature Paee
To
Aereemen[between City of Chula Vista and
LB Civil Construction. Inc. for
lise of Real Propem
I�'' ���ITIvESS ��%HEREOF, Cih� and L,essee havz executed this Agreement, indicatina
that they ha��e read and understood same. and indicate their full and complete consent to iu
terms:
Date: CITY:
Citv of Chula Vista
Bv:
APPROVED AS TO FORM:
CIT1'ATTOR\'EY'S OFFICE
B v:
Date: LESSEE:
LB Civil Construction. Inc.
Bv: � �'_�_
�a�aFr c3a,�n/C� �/P
\OTARI' ACKNO�VLEDGME\TS OF LESSEE'S SIGNATURE(S) 1iUST BE 9TTACHED
Page 15
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RESOLUTION NO 2013-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING A LEASE
AGREEMEI�TT W"ITH LB CIVIL CONSTRUCTION, II�TC.
FOR A CITY OWNED BUILDING AND
APPURTAI�'A1�TCES LOCATED AT 610 BAY
BOULEVARD AND APPROPRIATING LEASE
REVENiJES TO OFFSET UTILITY COSTS
WHEREAS, in Februazy, 2013 the City purchased a bank building and lot located
at 610 Bay Boulevazd for use as a fire station needed to facilitate the development of the
Bay Front; and
WHEREAS, the Port of San Diego, as a part of the Bay Front development, has
entered into an Agreement with the City to construct the H Street extension; and
WHEREAS, to facilitate this construction, the Port needs office space for their
personnel and for their contractor, LB Civil Construction, Inc. ("Contractor') during the
term of the construction contract: and
WHEREAS, the construction is anticipated to begin in November, 2013 and
continue for approximately one year; and
V��I3EREAS. following discussions with the Port, the City has agreed to consider
leasing 1000 square feet of space at 610 Bay Blvd to the Contractor at a rate of$1.00 per
square foot for the duration of the construction.
WHEREAS, the City would pay for utilities, estimated at $800.00 to $1000.00 per
month for the term of the lease; and
WHEREAS, this site is currently vacant, is not needed for any City uses, and if
leased would generate revenue for the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista hereby approves the Lease Agreement with LB Civil Construction, Inc. on
the terms set forth in the Lease Agreement attached hereto and authorizes the City Real
Property Manager to execute said Agreement on the City's behalf.
J:Attornep/final resos/610 Bac Bh•d Lease dm edits 10-10 final cap 12:17 pm
9-22
BE IT FUTHER RESOLVED that the Citv Council of the Ciri� of Chula Vista
does hereb�� appropriate lease re��enues to the non-depanmental budget for utilin•costs.
Presented b� Approved as to form b��
Richard A. Hopkins Glen R. Googms
Director of Public Works Cit�• Attornev
J:Attorneylfinal resos/610 Bay Blvd Lease dm edits 10-10 final cap 12:1 i pm �
9-23