HomeMy WebLinkAboutPD Lease 1099 D Street+ r I t - _ r .I3. II IV
Meeting Date: December i
x"
Prepared by: David Starnes, Police Captain City Manager Approval '' rF
SUBJECT: LEASE BUILDING FOR POLICE ANNEX
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING AND AUTHORIZING THE CITY
MANAGER TO EXECUTE A FIRST AMENDMENT TO LEASE, IN A FORM APPROVED BY THE
CITY ATTORNEY, WITH 1099 D STREET, LLC, FOR THE POLICE ANNEX LOCATED AT 1099 D
STREET, TO EXTEND THE TERM OF THE LEASE FOUR (4) YEARS COMMENCING ON APRIL 1,
2015, FOR $13,354.00 IN RENT PER MONTH, WITH THE APRIL 2015 RENT ABATED, AND WITH
A 3% INCREASE IN RENT EACH YEAR THEREAFTER.
• ii
Staff recommends that the City Council authorize the City Manager to extend the existing lease with
1099 D St., LLC for the Police Department Annex for four (4) years, once approved by the City
Attorney, beginning April 1, 2015 for $13,354.00 per month with a 3% increase in rent each year after.
BACKGROUND:
The main building for the San Rafael Police Department is located on the bottom floor of 1400 Fifth
Ave., San Rafael. The Police Department outgrew this space and in January 2001 leased an office
building located at 1210 Fifth Ave., San Rafael for staff and equipment. In February 2010, the Police
Department, with approval through the City Council, obtained a contract to lease 1099 D St., San
Rafael for five (5) years and two (2) months. This lease is due to expire on March 31, 201 S.
The Police Department continues to utilize the Annex building located at 1099 D St., San Rafael for
operational purposes. The total space at this location is 6070 square feet and we are currently paying
$11,255.09 per month. Beginning on April 1, 2015, the rent per square foot will be raised to $2.20,
which will make the rent $13,354.00 per month. Included with the rent is a janitorial service that is
provided by the building owner.
The following work units, which consist of 28 personnel, are currently housed at the Police Annex
building. They consist of the following:
Administrative Captain, Investigations Unit, Special Operations Unit, Professional Standards
Unit, Training Unit, Youth Services Bureau, and Volunteers.
FOR CITY CLERK ONLY
Council Meeting:-�
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT i Page: 2
The original lease had a provision to extend the lease between the City of San Rafael and 1099 D St_
LLC for five (5) years, but this was waived to four (4) years because of the passage of measure E.
With the possibility of new public safety building being constructed, the Police Department did not want
to go past four (4) years with the lease between the City of San Rafael and 1099 D St., LLC.
FISCAL IMPACT:
The City of San Rafael is currently paying $11,255.09 per month ($1.85 per square foot), which will
increase to $13,354,00 per month ($2.20 per square foot), with the first month's rent being abated.
The City Council adopt the resolution authorizing the City Manager to extend the existing lease with the
property owner of 1099 D St., LLC, located at 1099 D St., San Rafael beginning on April 1, 2015 for
$13,354.00 per month with a 3% increase in rent each year after.
ATTACHMENTS:
A. Resolution
B. Original lease between the City of San Rafael and 1099 D St., LLC
C. First amendment to lease for a four (4) year extension to the lease beginning April 1, 2015.
RESOLUTION [>FTHE SAN RAFAE[CITY COUNCIL APPROVING AND
AUTHORIZING THE CITY MANAGER T[)EXECUTE AFIRST AMENDMENT TO
LEASE, IN/\FORM APPROVED BYTHE CITY ATTORNEY, WITH 1O9SD STREET,
LLC, FOR THE POLICE ANNEX LOCATED AT1O9SDSTREET, T[]EXTEND THE
TERM OF THE LEASE FOUR /4\ YEARS COMMENCING ON APRIL 1' 2015' FOR
$13.354.00 IN RENT PER M{]NTH, WITH THE APRIL 2015 RENT /\BATE[)' AND
WITH /\396 INCREASE IN RENT EACH YEAR THEREAFTER.
WHEREAS, the City of San Rafael currently has alease with 1098DSt..LLC, San
Rafael for a 6070 square foot Police Department substation (Annex) for $11,255.09 per month
that will expire onMarch 31.2O15;and
WHEREAS. the Qty of San Rafael has averbal agreement with 1099 D St.' LLC, Gan
Rafael to extend the lease for four pA years beginning on April 1. 2015. for $13,3K54.00 per
month; and
WHEREAS, the City ofSan Rafael has a verbal agreement with 1099 D St., LUC, San
Rafael togive the City the first month rent free ofcharge for asavings of$13'8G4.OU;and
WHEREAS' 1099 [} St�' LLC, San Rafael will provide a janitorial service bzbe inc�uded
in the monthly rent.
NOW, THEREFORE' BE IT RESOLVED, that the City Council approves and authorizes
the City Manager to execute a First Amendment to lease, in u form approved by the City
Attorney, with 1099 D Street, LLC. for the Police Annex located at 1099 D Gtreet, toextend the
term ofthe lease four (4)years commencing onApril 1.2O15,for $13.354.00inrent per month,
with the April 2015 rent abated, and with a 3% increase in rent each year thereafter,
|. Esther C. Bairne. Clerk of the City of San Refao|, hereby uerbh/ that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City ofSan Refae|, held on Monday, the 15mday of December, 2014 by the
following vote, to wit:
AYES: Counci|rnmmbers: Bushey, Colin, Gamb|in, McCullough & Mayor Phillips
NOES: CouncUmembone: None
ABSENT: Counoi|mmmbgra: None
Esther C. Beirne, City Clerk
1099 D STREET
OFFICE BUILDING LEASE
L PARTIES, This Lease, dated, for reference purposes only, August 3. 2009 is made by and between 1099
D Street, LLC (herein called "Lessor") and City of San Rafael (herein called "Lessee").
2. PREMISES, Lessor does hereby lease to Lessee and Lessee hereby leases from Lessor that certain office
space (herein called "Premises") indicated on Exhibit "A" attached hereto and by reference made a part hereof, said
Premises being agreed, for the purpose of this Lease, to have an area of approximately 6,070 rentable square feet and
being situated oil the 1"&2"' floor(s) of that certain Building known as 1099 D Street, San Rafael, California.
Premises shall be known as Suite 100 & Suite 205,
Said Lease is subject to the terms, covenants and conditions herein set forth and the Lessee covenants as a
material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions
by it to be kept and performed and that this Lease is made upon the condition of said performance.
1 TERM. The term of this Lease shall be for rive (5) years and tivoJ21 months commencing on February 1,
2010 and ending March 31,2015 .
4. POSSESSION,
a, If the Lessor, for any reason whatsoever, cannot deliver possession of the said Premises to the Lessee
at the commencement of the term hereof, this Lease shall not be void or voidable, nor shall Lessor be liable to Lessee for
any loss or damage resulting therefrom, nor shall the expiration date of the above term be in any way extended, but in
that event, all Tent shall be abated during the period between the commencement of said term and the time when Lessor
delivers possession.
b. Lessor shall permit Lessee to occupy the Premises beginning January 1, 2010, for the purposes of
installing furnishings and equipment, providing Lessee does not interfere with any improvement work. Such occupancy
shall be subject to all the provisions of this Lease. Said early possession shall not advance the termination date
hereinabove provided.
HOLDING OVER. Any holding over after the expiration of the said term, with or without the expressed
consent of Lessor, shall be construed as a tenancy from month to month, and shall be on the ten -ns and conditions herein
specified, so far as applicable. Such holding over shall not constitute an extension of this Lease. During such holding
over, Lessee shall pay rent at one hundred twenty-five percent (125%) of the highest monthly rent paid during the term
of the Lease, and shall provide Lessor with written notice at least one month in advance of the date of termination of
such monthly tenancy of his intention to terminate such tenancy.
6. RENT. Lessee agrees to pay to Lessor as rental, without prior notice or demand, the sum of Ten Thousand
Dollars and Zero Cents ($10,000.00) in advance, on or before the first (1st) day of each and every successive calendar
month thereafter during the term hereof except that the f4st pai d moatli-s reat-s���x ��
Rent for any period during the terra hereof which is for less than one (1) month shall be a prorated portion of the
monthly installment herein, based upon a thirty (30) day month. Said rental shall be legal tender at the time of payment
at the Off -ice of the Building, or to such other person or at such other place as Lessor may from time to time designate in
writing. The, address of the Office of the Building shall be deemed to be P.O. Box 355, Kentfield, CA 94914.
a. RENT ESCALATIONS
Base Rent shall be as follows:
February 1, 2010 through March 31, 2010 Free
April 1, 2010 through March 31, 2011 $10,000.00 per month
April 1, 2011 through March 31, 2012
April 1, 2012 through March 31, 2013
April 1, 2013 through March 31, 2014
April 1, 2014 through March 31, 2015
$10,300.00 per month
$10,609.00 per month
$10,927.27 per month
$11,255.09 per month
7. SECURITY DEPOSIT. Lessee -has -deposited -with -Lessor -the -sum of Zero c^;a ^,,... ^hall r h 14—
by Lessor as WGUFit)l f�ff the faithful perferrnanee by Lessee of all the terras, covenants, and senditions of tlii�o to
be kept and performed by Lessee dur�ng the tem here -of -Tf- Le --- A-4-1— -------
ineluding, but net IL-nited to the payraent ofFent-, Lessor May I"-- J- to) use, apply or ret2in- A-1-1 A-;: apty-
this See -41
Part of for the paymen of any r-ent or any other sum in del- i it, or for the p ayment of any-aniount-
loss of darnage ",luch Lessor may suffer by reason of Lessee's default- if any portion of 9—id deposit is se ffied oF
applied, Lessee shal!,Aithin five (5) days after vffitten demand
d therefor, deposit eash with Lessor Jin an amount suffkip.;#
to festefe the see—i-, depe5i' to its original affiewint and Lessee's fai -el 1 1- -
Lesse shall no, be Y -el, to keep this ate fEeffi its general funds, and Lessee shall not be art -titled
deposit sepaf
to interest on sueh depesit. if Lessee shall fully and faid4ully perform e3�,ery of this Lease t&-b��
it, the seeafity deposit or any ---------------- _ --all be returned to Lessee (or, at Lessee's st-assignee-sL
Lesn}er sser°s4nterast4R—t
Lease-L-essor shall frons€er said deposit to Lessor's or'^ ^ ceosorin interest, Intentionally Omitted.
S. OPERATING EXPENSE ADJUSTMENTS. For the purposes of this Article, the following terms are
defined as follows:
Base Year: The calendar year in which this lease term continences (provided, however, that the Base
Year shall in no event be earlier than the fust full calendar year following the date of initial occupancy by the first
occupant of said Building).
Comparison Year: Each calendar year of the term after the Base Year.
Direct Expenses: All direct costs of operation and maintenance, as determined by standard accounting
practices, and shall include the following costs by way of illustration, but not be limited to: real property taxes and
assessments; water and sewer charges; insurance premiums; utilities; janitorial services; labor; costs incurred in the
management of the Building, if any; air-conditioning and heating; elevator maintenance; supplies; materials; equipment;
and tools; including maintenance, costs, and upkeep of all parking and common areas. ("Direct Expenses" shall not
include depreciation an the Building of which the Premises are a part or equipment therein, loan payments, executive
salaries or real estate brokers' commissions.)
If the Direct Expenses paid or incurred by the Lessor for the Comparison Year on account of the operation or
maintenance of the Building of which the Premises are a part are in excess of the Direct Expenses paid or incurred for
the Base Year, then the Lessee shall pay 23.22% of the increase. This percentage is that portion of the total rentable
area of the Building occupied by the Lessee hereunder. If, at any time, less than ninety-five percent (95%) of the
rentable area of the building is occupied, Direct Expenses will be adjusted by Lessor to reasonably approximate the
Direct Expenses that would have occurred if the Building were ninety-five percent (95%) occupied. Lessor shall
endeavor to give to Lessee on or before the first day of March of each year following the respective Comparison Year a
statement of the increase in rent payable by Lessee hereunder, but failure by Lessor to give such statement by said date
shall not constitute a waiver by Lessor of its right to require an increase in rent. Upon receipt of the statement for the
first Comparison Year, Lessee shall pay in full the total amount of increases due for the first Comparison Year, and in
addition for the then current year, the amount of any such increase shall be used as an estimate for said current year and
this amount shall be divided into twelve (12) equal monthly installments and Lessee shall pay to Lessor, concurrently
with the regular monthly rent payment next due following the receipt of such statement, an amount equal to one (1)
monthly installment multiplied by the number of months from January in the calendar year in which said statement is
submitted to the month of such payment; both months inclusive. Subsequent installments shall be payable concurrently
with the regular monthly rent payTnents for the balance of that calendar year and shall continue until the next
Comparison Year's statement is rendered. If the next or any succeeding Comparison Year results in a greater increase in
Direct Expenses, then upon receipt of a statement from Lessor, Lessee shall pay a lump sum equal to such total increase
in Direct Expenses over the Base Year. The total of the monthly installments to be paid for the next year, following said
Comparison Year, shall be adjusted to reflect such increase. If in any Comparison Year the Lessee's share of Direct
Expenses be less than the preceding year, then upon receipt of Lessor's statement, any overpayment made by Lessee on
the monthly installment basis provided above shall be credited towards the next monthly rent falling due anti the
estimated monthly installments of Direct Expenses to be paid shall be adjusted to reflect such lower Direct Expenses for
the most recent Comparison Year.
Even though the term has expired and Lessee has vacated the Premises, when the final determination is made
of Lessee's share of Direct Expenses for the year in which this Lease terminates, Lessee shall numediately pay any
increase due over the estimated expenses paid and conversely any overpayment made in the event said expenses
decrease shall be immediately rebated by Lessor to Lessee.
Notwithstanding anything contained in this Article, the rental payable by Lessee shall in no event be less than
the rent specified in Article 6 hereinabove.
Lessor shall keep irric and correct records of any Direct Expenses, and within 30 days following Lessee's
receipt of any statement from Lessor under this Article 8 for payment of an increased amount of Direct Expenses, Lessee
may demand in writing to inspect Lessor's records supporting the increase requested by that statement. Within 30 days
following Lessee's written request, Lessor shall nuke its records available for Lessee's inspection and copying at a
mutually agreeable time during normal working hours. All information obtained by Lessee pursuant to this section
shall, to the extent permitted by law, be treated as confidential except in any litigation or alternative dispute resolution
proceedings between the parties.
9. USE. Lessee shall use the Premises for general office purposes of the SAN RAFAEL POLICE
DEPARTMENT and shall not use or permit the Premises to be used for any other purpose without the prior written
consent of Lessor.
Lessee shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein
which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its
contents, or cause cancellation of any insurance policy covering said Building or any part thereof or any of its contents.
Lessee shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere
with the rights of other Lessees or occupants of the Building or injury or annoy them or use or allow the Premises to be
used for any improper, immoral, unlawful or objectionable purpose, nor shall Lessee cause, maintain or pen -nit any
nuisance in, on or about the Premises. Lessee shall not corranit or suffer to be committed any waste in or upon the
Premises.
10. COMPLIANCE WITH LAW, Lessee shall not use the Premises or permit anything to be done in or about
the Premises which will in any way conflict with any law, statute, ordinance or goveirrinental rule or regulation now in
force or which may hereafter be enacted or promulgated. Lessee shall, at its sole cost and expense, promptly comply
with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may
hereafter be in force, and with the requirements of any board of fire insurance underwriters or other similar bodies now
or hereafter constituted, relating to, or affecting the condition, use or occupancy of the Premises, excluding structural
changes not related to or affected by Lessee's improvements or acts. The judgment of any court of competent
jurisdiction or the admission of Lessee in any action against Lessee, whether Lessor be a party thereto or not, that Lessee
has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact
as between the Lessor and Lessee,
11. ALTERATIONS AND ADDITIONS. Except as otherwise permitted in this Lease, Lessee shall not make or
suffer to be made any alterations, additions or improvements to or of the Premises or any part thereof without the written
consent of Lessor first had and obtained and any alterations, additions or improvements to or of said Premises,
including, but not limited to, wall covering, paneling and built-in cabinetwork, but excepting movable furniture and
trade fixtures, shall on the expiration of the term become a part of the realty and belong to the Lessor and shalt be
surrendered with the Premises. In the event Lessor consents to the making of any -alterations, additions or improvements
to the Premises by Lessee, the same shall be made by Lessee at Lessee's sole cost and expense, and any contractor or
person selected by Lessee to make the same must first be approved of in writing by the Lessor. Upon the expiration or
sooner termination of the term hereof, Lessee shall, upon written demand by Lessor, given at least thirty (30) days prior
to the end of the terra at Lessee's sole cost and expense, forthwith and with all due diligence remove any alterations,
additions, or improvements made by Lessee, designated by Lessor to be removed, and Lessee shall, forthwith and with
all due diligence at its sole cost and expen.ie, repair any damage to the Premises caused by such removal.
12. REP_ M.
a. LESSEE OBLIGATIONS: By taking possession of the Premises, Lessee shall be deemed to have
accepted the Premises as being in good, sanitary order, condition and repair, , Lessee shall upon the expiration or
sooner termination of this Lease hereof surrender the Premises to the Lessor in good condition, ordinary wear and tear
and damage from causes beyond the reasonable control of Lessee excepted, Except as specifically provided in this
Lease, Lessor shall have no obligation whatsoever to alter, remodel, improve, repair, decorate or paint the Premises or
any part thereof and the parties hereto affirm that Lessor has made no representations to Lessee respecting the condition
of the Premises or the Building except as specifically herein set forth.
b, LESSOR OBLIGATIONS: Notwithstanding the provisions of Article 12.a. hereinabove, Lessor
shall repair and maintain the structural portions of the Building, including the basic plumbing, air conditioning, heating,
and electrical systems, installed or furnished by Lessor, unless such maintenance and repairs are caused in part or in
whole by the act, neglect, fault or omission of any duty by the Lessee, its agents, servants, employees or invitees, in
which case Lessee shall pay to Lessor the reasonable cost of such maintenance and repairs. Lessor shall not be liable for
any failure to make any such repairs or to perform any maintenance unless such failure shall persist for an unreasonable
time after written notice of the need of such repairs of maintenarice is given to Lessor by Lessee- Except as provided in
Article 23 hereof, there shall be no abatement of rent and no liability of Lessor by reason of any injury to or interference
with Lessee's business arising from the making of any repairs, alterations or improvements in or to any portion of the
Building or the Premises or in or to fixtures, appurtenances and equipment therein. Lessee waives the right to make
repairs at Lessor's expense under any law, statute or ordinance now or hereafter in effect.
11 LIENS. Lessee shall keep the Premises and the property in which the Premises are situated free from any liens
arising out of any work performed, materials furnished or obligations incurred by Lessee. Lessor may require, at
Lessor's sole option, that Lessee shall provide to Lessor, at Lessee's sole cost and expense, a lien and completion bond in
an amount equal to one and one-half (1.5) times any and all estimated cost of any improvements, additions, or alterations
in the Premises, to insure Lessor against any liability for mechanics' and materialmen's liens and to insure completion of
the work,
14. ASSIGNTNIENT AND SUBLETTING. Lessee shall not either voluntarily or by operation of law assign,
transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the said
Premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person (the employees,
agents, servants and invitees of Lessee excepted) to occupy or use the said Premises, or any portion thereof, without the
written consent of Lessor first had and obtained, which consent shall not be unreasonably withheld, and a consent to one
assignment, subletting, occupation or use by another person shall not be deemed to be a consent to any subsequent
assignment, subletting, occupation or use by another person. Any such assignment or subletting without such consent
shall be void, and shall, at the option of the Lessor, constitute a default under this Lease. Profits on any subletting shall
be split 50150 between Lessee and Lessor,
15, HOLD HARiNILFSS. Lessee shall indemnify and hold harmless Lessor against and from any and all cla=ims
arising from Lessee's use of Premises for the conduct of its business or from any activity, work-, or other thirig (lone,
peirnitted or suffered by the Lessee in or about the Building, and shall further indemnify, and hold hantiless Lessor
against and from any and all claims arising from any breach or default in the performance of any obligation on Lessee's
part to be performed under the terms of this Lease, or arising from any act or negligence of the Lessee, or any officer,
agent, employee, guest Or invitee of Lessee, and from all and against all cost, attorney's fees, expenses and liabilities
incurred in or about any such claim or any action or proceeding brought thereon, and, in any case, should action or
proceeding be brought against Lessor by reason of any such claim, Lessee upon notice from Lessor shall defend the
same at Lessee's expense by counsel reasonably satisfactory To Lessor. Lessee as a material part of the consideration to
Lessor hereby assumes all risk of damage to property or injury to persons, in, upon or about the Premises, from any
cause other than Lessor's negligence or willful misconduct, and Lessee hereby waives all claims in respect thereof
against Lessor.
Lessor or its agents shall not be liable for any damage to property entrusted to employees of the Building, nor
for loss or damage to any property by theft or otherwise, nor for any injury to or damage to persons or property resulting
from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any pail of the Building or
from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place
resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence of Lessor, its agents,
servants or employees. Lessor or its agents shall not be liable for interference with the light or other incorporeal
hereditament, toss of business by Lessee. Lessee shall give prompt notice to Lessor in case of fire or accidents in the
Premises or in the Building or of defects therein or in the fixtures or equipment,
16. STIBROGATION. As long as their respective insurers so permit, Lessor and Lessee hereby mutually waive
their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property
insurance policies existing for the benefit of the respective parties. Each party shall obtain any special endorsements, ii
required by their insurer to evidence compliance with the aforementioned waiver.
17. LIABILITY INSULAINCE, Lessee shall, at Lessee's expense, obtain and keep in force during the term of this
Lease a policy of Combined Single Limit Bodily Injury and Property Damage Insurance insuring Lessor and Lessee
against any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. Such insurance shall be in an amount not less than $ 1,000,000 per occurrence, and with an annual
aggregate of not less than $2,000,000. The limit of said insurance shall not, however, limit the liability of the Lessee
hereunder, Lessee may carry said insurance under a blanket policy, providing, however, said insurance by Lessee shall
have a Lessor's protective liability endorsement attached thereto. If Lessee shah fail to procure and maintain said
insurance, Lessor may but shall not be required to, procure and maintain same, but at the expense of Lessee. Insurance
required hereunder, shall be in companies rated A+, AAA or better in "Best's Insurance Guide".
Lessor acknowledges that it has been advised that, as authorized under the California Government Code,
Lessee is self-insured for general liability up to $500,000 and participates in a public entity excess liability pool
for additional liability coverage of in excess of $500,000. Accordingly, Lessee may satisfy the insurance
requirements of this section by providing Lessor with a certification of the amount for which the City is self-insured, and
a certificate of coverage under its excess liability pool evidencing the coverage required under this section. Any such
certificate of coverage shall name Lessor as an additional insured.
18. EVIDENCE OF INSURANCE. Lessee shall deliver to Lessor prior to occupancy of the Premises copies of
policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with
loss payable clauses satisfactory to Lessor. No policy shall be cancelable or subject to reduction of coverage except
after ten (10) days' prior written notice to Lessor_
19. SERVICES AND UTILITIES. Provided that Lessee is not in default hereunder, Lessor agrees to furnish to
the Premises during reasonable hours of generally recognized business days, to be determined by Lessor at his sole
discretion, and subject to the rules and regulations of the Building of which the Premises arc a part, electricity for normal
lighting and fractional horsepower office machines, heat and air conditioning required in Lessor's judgment for the
comfortable use and occupation of the Premises, and janitorial service. Lessor shall also maintain and _seep lighted the
common stairs, common entries and toilet rooms in the Building of which the Premises are a part. Lessor shall not be
liable for, and Lessee shall not be entitled to, any reduction of rental by reason of Lessor's failure to furnish any of the
foregoing when such failure is caused by accident, breakage, repairs, strikes, lockouts or other labor disturbances or
labor disputes of any character, or by any other cause, similar or dissimilar, beyond the reasonable control of Lessor.
Except where caused by negligence of Lessor, Lessor shall not be liable under any circumstances for a loss of or injury
to property, however occurring, through or in connection with or incidental to failure to furnish any of the foregoing.
Whenever heat generating machines or equipment are used in the Premises which affect the temperature otherwise
maintained by the air conditioning system, after written notice to Lessee, Lessor reserves the right to install
9
supplementary air conditioning units in the Premises and the reasonable cost thereof, including the reasonable cost of
installation, and the reasonable cost of operation and maintenance thereof shall be paid by Lessee to Lessor upon
demand by Lessor.
Lessee will not, without written consent of Lessor, use any apparatus or device in the Premises, including, but
without limitation thereto, electronic data processing machines, punch card machines, and machines using in excess of
120 volts, which will in any way increase the amount of electricity usually furnished or supplied for the use of the
Premises as general office space; nor connect with electric current except through existing electrical outlets in the
Premises, any apparatus or device, for the purpose of using electric current. If Lessee shall require water or electric
current in excess of that usually furnished or supplied for the use of the Premises as general office space, Lessee shall
first procure the written consent of Lessor, which Lessor may reasonably refuse, to the use thereof and Lessor may cause
a water meter or electrical current meter to be installed in the Premises, so as to measure the amount of water and
electric current consumed for any such use. The cost of any such meters and of installation, maintenance and repair
thereof shall be paid for by the Lessee and Lessee agrees to pay to Lessor promptly upon demand therefor by Lessor for
all such water and electric current consumed as shown by said meters, at the rates charged for such services by the local
public utility furnishing the same, plus any additional expense incurred in keeping account of the water and electric
current so consumed. If a separate meter is not installed, such excess cost for such water and electric current will be
established by an estimate made by a utility company or electrical engineer,
20, Intentionally Omitted, NOTE: CITY IS EXEMPT FROM PERSONAL PROPERTY TAXES,
21. RULES AND REGULATIONS. Lessee shall faithfully observe and comply with the rules and regulations
that Lessor shall from time to time promulgate. Lessor reserves the right from time to time to make all reasonable
modifications to said rules. The additions and modifications to those rules shall be binding upon Lessee upon delivery
of a copy of them to Lessee. Lessor shall not be responsible for the nonperformance of any said rules by any other
Lessees or occupants; however, to the extent such non-performance by other tenants or occupants shall adversely affect
Lessee's right to quiet enjoyment of the Premises and upon notice to that effect by Lessee, Lessor shall take all steps
available to Lessor under its lease with such other tenant or occupant to restore Lessee's quiet enjoyment of the
Premises.
22. ENTRY BY LESSOR. Lessor reserves and shall at any and all reasonable times have the right .with at least
twenty-four (24) hours notice to enter the Premises, inspect the same, supply janitorial service and any other service to
be provided by Lessor to Lessee hereunder, to submitsaid Premises to inspection by prospective purchasers or Lessees,
to post notices of non -responsibility, and to alter, improve or repair the Premises and any portion of the Building of
which the Premises are a part that Lessor may deem necessary or desirable, without abatement of rent and may for that
purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be
performed, always providing that the entrance to the Premises shall not be blocked thereby, and further providing that
the business of the Lessee shall not be interfered with unreasonabiy. Lessee hereby waives any claim for damages or for
any injury or inconvenience to or interference with Lessee's business, any loss of occupancy or quiet enjoyment of the
Premises, and any other loss occasioned thereby. For each of the aforesaid purposes, Lessee shall cooperate to provide
Lessor with access to the Premises at a mutually agreeable time.
23. RECONSTRUCTION, In the event the Premises or the Building of which the Premises are a part are
damaged by fire or other perils covered by extended coverage insufairce, Lessor agrees to forthwith repair the same', and
this Lease shall remain in full force and effect, except that Lessee shall be entitled to a proportionate reduction of the
rent while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of
such repairs shall materially interfere with the business carried on by the Lessee in the Premises. If the damage is due to
the fault or neglect of Lessee or its employees, there shall be no abatement of rent.
In the event the Premises or the Building of which the Premises are a part are damaged as a result of any cause
other than the perils covered by fire and extended coverage insurance, then Lessor shall forthwith repair the same,
provided the extent of the destruction be less than ten (10%) percent of the then full replacement cost of the Premises or
the Building of which the Premises are a part. In the event the destruction of the Premises or the Building is to an extent
greater than ten (10%) percent of the full replacement cost, C -ren Lessor shall have the option; (1) to repair or restore
such damage, this Lease continuing in fall force and effect, but the rent to be proportionately reduced as hereinabove in
this Article provided; or (2) give notice to Lessee at any time within sixty (60) days after such damage terminating this
Lease as of the date specified in such notice, which date shall be no less than thirty (30) and no more than sixty (60) days
after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of the Lessee in
the Premises shall terminate on the date so specified in such notice and the Rent, reduced by a proportionate amount,
based upon the extent, if any, to which such damage materially interfered with the business carried on by the Lessee in
the Premises, shall be paid up to the time of such termination.
Notwithstanding anything to the contrary contained in this Article, Lessor shall not have any obligation
whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under
this Article occurs during the last twelve (12) months of the term of this Lease or any extension thereof.
Lessor shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or
I I
replacements of any panels, decoration, office fixtures, railings, floor covering, partitions, or any other property installed
in the Premises by Lessee.
The Lessee shall not be entitled to any compensation or damages from Lessor for loss of the use of the whole
or any part of the pren-iises,Lessee's personal property or any inconvenience or annoyance occasioned by such damage,
repair, reconstruction or restoration.
24. DEFAULT, The occurrence of any one or more of the following events shall constitute a default and breach
of this Lease by Lessee,
a. The vacating or abandonment of the Premises by Lessee.
b. The failure by Lessee to make any payment of rent or any other payment required to be made by
Lessee hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice
thereof by Lessor to Lessee.
C. The failure by Lessee to observe or perform any of the covenants, conditions or provisions of this
Lease to be observed or performed by the Lessee, other than described in Article 24.b. above, where such failure shall
continue for a period of thirty (30) days after written notice thereof by Lessor to Lessee; provided, however, that if the
nature of Lessee's default is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall
not be deemed to be in default if Lessee commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such curt to completion.
d. The making by Lessee of any general assignment or general arrangement for the benefit of creditors;
or the filing by or against Lessee of a petition to have Lessee adjudged as bankrupt, or a petition or reorganization or
arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Lessee, the same is
dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of
Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee
within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located
at the Premises or of Lessee's interests in this Lease, -where such seizure is not discharged in duity (30) days.
25, REIVEEDEES IN DEFAULT, In the event of any such material default or breach by Lessee, Lessor may at any
time thereafter, with or without notice or demand and without limiting Lessor in the exercise of a right or remedy which
Lessor may have by reason of such default or breach;
a. Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease
shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event Lessor shall
be entitled to recover from Lessee all damages incurred by necessary renovation and alteration of the Premises,
reasonable attorney's fees, any real estate commission actually paid; the worth at the time of award by the court having
jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the time of such award
exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided; that portion
of the leasing commission paid by Lessor and applicable to the unexpired terra of this Lease. Unpaid installments of
rent or other sun -is shall bear interest from the date ducat the rate often (10%) percent per annum. In the event Lessee
shall have abandoned the Premises, Lessor shall have the option of (a) taking possession of the Premises and recovering
from Lessee the amount specified in this paragraph, or (b) proceeding under the provisions of the following Article 25.b,
b. Maintain Lessee's right to possession, in which case this Lease shall continue in effect whether or not
Lessee shall have abandoned the Pretnises. In such event Lessor shall be entitled to enforce all of Lessor's right and
remedies under this Lease, including the right to recover the rent as it becomes due hereunder, subject, however, to
Lessor's obligation at law to mitigate damages.
0. Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decision of
the State in which the Premises are located.
26, EA41NENT DO -MAIN. If more than Nventy-five (25%) percent of the Premises shall be taken or appropriated
by any public or quasi -public authority under the power of eminent domain, either party hereto shall have the right, at its
option, to terminate this Lease, and Lessor shall be entitled to any and all income, rent, award, or any interest therein
whatsoever which may be paid or made in connection with such public or quasi -public use or purpose, and Lessee shall
have no claim against Lessor for the value of any unexpired terra of this Lease. If either less than or more than
twenty-five (25%) percent of the Premises is taken, and neither party elects to terminate as herein provided, the rental
thereafter to be paid shall be equitably reduced. If any part of the Building other than the Premises may be so taken or
appropriated, Lessor shall have the right at its option to terminate this Lease and shall be entitled to the entire award as
above provided,
27, OFFSET STATEMENT, Lessee shall at any time and from time to time upon not less than ten (10) days
prior written notice from Lessor execute, acknowledge and deliver to Lessor a statement in writing, (a) certifying that
this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and
certifying that Lliis Lease as so modified, is in full force and effect), and the date to which the rental and other charges are
paid in advance, if any, and (b) acknowledge that there are not, to Lessee's knowledge, any uncured defaults on the part
of the Lessor hereunder, or specifying such defaults if any are claimed. Any such statement may be relied upon by any
prospective purchaser or encumbrancer of all or any portion of the real property of which the Premises are a part.
28. PARKING, Lessee shall have the right to use fifteen (15) reserved parking places designated for 'Tenant.
29. AUTHORITY OF PARTIES.
a. Corporate Authority. If Lessee is a corporation, each individual executing this Lease on behalf of said
corporation represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said
corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance
with the by-laws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms.
30. GENERAL PROVISIONS.
a. Plats and Riders. Clauses, plats and riders, if any, signed by the Lessor and the Lessee and endorsed
on or affixed to this Lease are a part hereof.
b. Waiver. The waiver by Lessor of any term, covenant or condition herein contained shall not be
deemed to be a waiver of such term, covenant or condition on any subsequent breach of the same or any other term,
covenant or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to
be a waiver of any preceding breach by Lessee of any term, covenant or condition of this Lease, other than the failure of
the Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time
of the acceptance of such rent.
c. Notices. All notices and demands which may or are to be required or permitted to be given by either
party to the other hereunder shall be in writing. All notices and demands by the Lessor to the Lessee shall be sent by
United States Mail, postage prepaid, addressed to the Lessee at the Premises, or to such other places as Lessee may from
time to time designate in a notice to the Lessor. All notices and demands by the Lessee to the Lessor shall be sent by
United States Mail, postage prepaid, addressed to the Lessor at the Office of the Building, or to such other person or
place as the Lessor may from time to time designate in a notice to the Lessee.
d. Right to Relocate. Lessor reserves the right to relocate Lessee, at Lessor's expense, to comparable
space elsewhere in the building, and Lessee agrees to so relocate within sixty (60) days of receipt by Lessee of written
notice from Lessor, providing said comparable space is not less suitable for Lessee's business.
e. Joint Obligation. If there be more than one Lessee the obligations hereunder imposed upon Lessees
shall be joint and several,
f Marginal Headings, The marginal headings and Article titles to the Articles of this Lease are not a
0 0
part of this Lease and shall have no effect upon the construction or interpretation of any part hereof.
9- Time, Time is of the essence of flus Lease and each and all of its provisions in which performance is
a factor.
It, Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as
to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto,
i. Recordation, Neither Lessor nor Lessee shall record this Lease or a short form memorandum hereof
without the prior written consent of the other party,
j, Quiet Possession. Upon Lessee paying the rent reserved hereunder and observing and performing all
of the covenants, conditions and provisions on Lessee's part to be observed and performed hereunder, Lessee shall have
quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease.
k. Late Charges. Lessee hereby acknowledges that late payment by Lessee to Lessor of rent or other
sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late
charges which may be imposed upon Lessor by terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or a sum due from Lessee shall not be received by Lessor or Lessor's designee
within ten (10) days after said amount is due, then Lessee shall pay to Lessor a late charge equal to -two (2%) percent of
such overdue amount. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost
that Lessor will incur by reason of the late payment by Lessee. Acceptance of such late charges by the Lessor shall in no
event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Lessor from exercising
any of the other rights and remedies granted hereunder,
1. Guaranty. As material condition of this Lease and for valuable consideration, Lessee's performance
of the conditions embodied in this Lease is hereby guaranteed by the undersigned.
In. Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any
matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall
be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing
signed by the parties hereto or their respective successors in interest, This Lease shall not be effective or binding on any
party until fully executed by both parties hereto,
n Inability to Perform. This Lease and the obligations of the Lessee hereunder shall not be affected or
impaired because the Lessor is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability
or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of
the Lessor.
0. Attomeys'Fees. In the event of any action or proceeding brought by either party against the other
under this Lease the prevailing party shall be entitled to recover all costs and expenses including the fees of its attorneys
in such action or proceeding in such amount as the court inay adjudge reasonable as attorneys' fees.
p- Sale of Premises by Lessor. In the event of any sale of the Building, Lessor shall be and is hereby
entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from
this Lease arising out of any act, occurrence or emission occurring after the consummation of such sale; and the
purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between
the par -ties or their successors in interest or between the parties and any such purchaser to have assumed and agreed to
carry OUT any and all of the covenants and obligations of the Lessor under this lease.
q. Subordination, Attomment, Upon request of the Lessor, Less -.c will in writing subordinate its rights
hereunder to the lien of any first mortgage, or first deed of trust to any bank, insurance company or other lending
institution, now or hereafter in force against the land and Building of which the Premises are a part, and upon any
buildings hereafter placed upon the land of which the Premises are a part, and to all advances made or hereafter to be
made upon the security thereof.
In the event any proceedings are brought for foreclosure, or in the event of the exercise of power of
sale wider any mortgage or deed of trust made by the Lessor covering the Premises, the Lessee shall attoril to the
purchaser upon any such foreclosure or salt and recognize such purchaser as the Lessor under this Lease.
r. Name. Lessee shall not use the name of the Building or of the development in which the Building is
situated for any purpose other than as an address of the business to be conducted by the Lessee in the Premises.
s. Separability. Arry
provision of this Lease which shall prove to be invalid, void or illegal shall in no
way effect, impair or invalidate any other Provision hereof and such other provision shall remain in full force and effect,
t, Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies at law or in equity.
Choice of Law. This Lease shall be governed by the laws of the State of California_
v. Signs and Auctions. Lessee shall not place any sign upon the Premises or Building Or Conduct any
auction thereon without Lessor's prior written consent.
31. BROKERS. Lessor and Lessee warrant that each has had no dealings with any real estate broker or agents u
connection,Arith the negotiation of this Lease excepting only Keegan & Coppin Company, Inc., as Lessor's and Lessee
broker, and each knows of no other real estate broker or agents in connection with this Lease.
32. TENANT IMPROVElUENUS. Lessor shall complete all improvements to the Prenuses pursuant to a
mutually agreeable space plan between parties (Exhibit A), and provide the Premises in "trim -key" condition. Lessor
shall be solely responsible for the cost of the improvements, including but not limited to architectuial/design costs,
demolition costs, construction material, labor costs, and city permit costs. Lessee shall not be responsible for any cost
associated with any building common area, bathroom, or parking lot modifications required by any governmental code
requirement, even if said modifications are triggered by the improvement work to the Premises.
10
Lessee shall be solely responsible for all telephone/fax/data wiring costs and their installation. Lessee's contractors may
work with Lessor's contractors to install the wiring in an efficient and timely matter during the improvement
construction, providing Lessee's contractors do not interfere with said construction.
All Tenant briprovement work completed shall be in accordance with Lessor's standard design and specifications of
equipment and materials, and to locations of point of service determined by Lessor,
33. SIGNAGE: Lessor, at Lessor's sole cost, shall provide Lessee with standard building signage, including
lobby directory and door plaque signage. Lessee, at Lessee's sole cost, may install other window signage on the
Fifth Avenue entry doors providing Lessor has first approved the signage in writing, All signage shall meet city code
requirements,
34, OPTION TO EXTEND. Lessee is given the option to extend the term on all the provisions contained in this
Lease, except for rent, for two (2) rive (5) year periods (the "extended term(s)") following expiration of the initial term
by giving written notice of exercise of the option ("option notice") to Lessor at least six (6) months and not earlier than
nine (9) months before the expiration of the then current term; provided that, if Lessee is in default as of the date of
giving the option notice, the option notice shall he ineffective, or if Lessee is in default as of the date the extended term
is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term.
a. Rent. The minimum rent for the extended term(s) shall be 95% of the fair market rental value of the Premises as of
the date of the exercise of the option to extend, -which fair market rental value shall in no event be less than 10' K
nor more than 120%, of the minimum rent in effect during the last year of the prior term and shall be determined in
accordance with paragraph b, below. The operating expenses shall be as charged to the project as a whole on the
date ofexpiration. Rent shall escalate annually by 3% per year during the extended term(s).
b. Determination of Fair Market Rent.
i, The parties shall endeavor by good faith negotiations to agree upon the fair market rental within
fifteen (15) days after Lessor's receipt of the option notice.
ii. In the event Lessor or Lessee cannot agree on the rent within fifteen (15) days after Lessor's receipt
of the option notice, then within fifteen (15) days thereafter, each party, at its own cost and by giving notice to the
other party, shall appoint a real estate broker with at least five (5) years' full time commercial leasing experience in the
San Francisco Bay Area, to appraise and determine the fair market rental value of the Premises ("fair market rent").
If, in the time provided, only one party shall notice appointment of a broker, the single broker appointed shall
determine the fair market rent. If two brokers are appointed by the parties, the two brokers shall independently, and
without consultation between them, prepare an appraisal of the fair market rent within five (5) days. Eachbroker shall
seal its respective appraisal after completion. After both appraisals are completed, the resulting estimates of the fair
market rent shall be opened by Lessor and Lessee in the presence of each other and compared. If the value of the
appraisals differs by no more than ten percent (10%) of the value of the higher appraisal, then the fair market rent shall
be the average of the two appraisals.
iii. If the values of the appraisals differ by more than ten percent (10%) of the value of the higher
appraisal, the two brokers shall designate a third broker meeting the qualifications set forth in subparagraph (ii),
above. If the two brokers have not agreed on a third broker after ten (10) days, either Lessor or Lessee, by giving five
(5) days' notice to the other party, may apply to the then Presiding Judge of the Superior Court for the county in which
the Building is located for the selection of a third broker who meets the qualifications set forth in subparagraph (ii),
above. The third broker, however selected, shall be a person who has not previously acted in any capacity for either
party. The third broker shall make an appraisal of the fair market rent within five (5) days after selection and without
consultation with the first two brokers. The three appraisals shall then be added together and their total divided by
three, and the resulting quotient shall be the fair market rent. If, however, the low appraisal andjor the high appraisal
11
are/is more than fifteen percent (15%) lower and/or higher than the middle appraisal, the low appraisal and/or the high
appraisal shall be disregarded. If one appraisal is disregarded, the remaining hvo appraisals shall be added together
and their total divided by two, and the resulting quotient shall be the fair market rent. If both the low appraisal and the
high appraisal are disregarded as provided in this subparagraph, the middle appraisal shall be the fair market rent.
c. Delay. If the determination of the rent is delayed beyond the commencement of the extended teran, Lessee shall pay
rent based on the average of the appraisals received under subparagraphs b (i) and (ii), above, as of the extended
term commencement until the first day of the month following the determination of the rent. On the first day of the
month following the determination of the rent, there shall be an adjustment made to the rent payment then due for
the difference between the amount of rent Lessee has paid to Lessor since the extended team commencement and
the amount that Lessee would have paid if the rent as adjusted pursuant to this subparagraph had been in effect as of
the extended term commencement.
d. Costs. Each party shall pay the fees and expenses of their ovin broker related to the appraisal, and 5010 of the fees
and expenses of the third broker.
e, Criteria. The brokers shall determine the fair market rent using the "market comparison approach," with the
relevant market being that for comparable office space in the central Marin area. The brokers shall use their best efforts
to fairly and reasonably appraise and determine the fair market rental value of the Premises in accordance with the terms
of the Lease, and shall not act as advocates for either Lessor or Lessee.
f. No Further Extension. Lessee shall have no further option to extend the term of this Lease,
35, ATTACHMENTS: The following attachments are a part of this Lease:
a. Rules and Regulations
b� Exhibit A: Floor Plata
c. Addendum 1: Standard Lease Conditions
d. Addendum 2: Standard Lease Disclosure
e. Addendum 3: Leasing Disclosure Regarding Real Estate Agency Relationship
36. CONTINGENCY: This Lease is expressly contingent upon Lessor's ability to successfully negotiate a
termination of the existing Lease encumbering the Premises between Lessor and Countrywide Home Loans, Inc.
within thirty (3 0) days after execution hereof.
The parties hereto have executed this Lease at the place and on the dates specified immediately adjacent to their
respective signatures.
If this Lease has been filled in it has been prepared for submission to your attorney for approval. No representation
or recommendation is made by the real estate broker or its agents o; employees as to the legal sufficiency, legal
effect, or tax consequences of this Lease or the transactions relating thereto.
LESSOR —1099 D Street, LLC
20
Signed on
01F
J
at
By r
... .......
T. Max Kniesche, III & Nancy A. Kniesche
12
LESSEE — City of San Rafael
Signed on AUGUST 31 2009
SAN RAFAEL. CALIFORNIA
Its:
Attest:
City Manager
", t2,4z-,, 4:1 - &-t f,-- ,
ESTHER C. BEIRNE, City Clerk
Approved As To Form:
ROBERT F. EPSTE�,4CiAttomey
13
RULES AND REGULATIONS
1 No sign, placard, picture, advertisement, name or notice shall be inscribed, displayed or printed or affixed on or
to any part of the outside or inside of the Building without the written consent of Lessor first had and obtained and
Lessor shall have the right to remove any such sign, placard, picture, advertisement, name or notice without notice to
and at the expense of Lessee.
All approved signs or lettering on doors shall be printed, painted, affixed or inscribed at the expense of Lessee
by a person approved of by Lessor.
Lessee shall not place anything or allow anything to be placed near the glass of any window, door, pal'11111011 or
,wall which may appear unsightly from outside the Premises; provided, however, that Lessor may furnish and install a
Building standard window covering at all exterior windows. Lessee shall not without prior written consent of Lessor
cause or otherwise sunscreen any window.
I The sidewalks, halls, passages, exits, entrances, elevators and stair -ways shall not be obstructed by any of the
Lessees or used by them for any purpose other than for ingress and egress from their respective Premises.
Intentionally Otni Lied,
4, The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for
which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein and the expense of
any breakage, stoppage, or damage resulting from the violation of this rule shall be borne by the Lessee who, or whose
employees or invitees shall have caused it.
Lessee shall not overload the floor of the Premises or in any way deface the Premises or any part thereof,
6. No furniture, freight or equipment of any kind shall be brought into the Building without the prior notice to
Lessor and all moving of the same into or out of the Building shall be done at such time and in such manner as Lessor
shall designate. Lessor shall have the right to prescribe the weight, size and position of all safes and other heavy
equipment brought into the Building and also the times and manner of moving the same in and out of the Building.
Safes or other heavy objects shall, if considered necessary by Lessor, stand on supports of such thickness as is necessary
to properly distribute the weight. Lessor -Mll not be responsible for loss of or damage to any such safe or property from
any cause and all damage done to the Building by moving or maintaining any such safe or other property shall be
repaired at the expense of the Lessee.
7. Lessee shall not use, keep or pen -nit to be used or kept any foul or noxious gas or substance in the Premises, or
permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to the Lessor or other
occupants of the Building by reason of noise, odors, electromagnetic radiation, an&or vibrations, or interfere in any way
with other Lessees or those having business therein, nor shall any animals or birds be brought in or kept in or about the
Premises or the Building.
& No cooking appliances shall be used or permitted by any Lessee on the Premises, excepting only coffee makers
and microwave ovens, nor shall the Premises be used for the storage of merchandise, for washing clothes, for lodging, or
for any improper, objectionable or immoral purpose.
9. Lessee shall not use or keep in the Premises of the Building any kerosene, gasoline, or inflammable or
combustible fluid or material, or use any method of heating or air conditioning other than that supplied by Lessor.
10. Lessor will direct electricians as to where and how telephone and telegraph wires are to be introduced. No
boring or cutting for wires A411 be allowed without the consent of the Lessor. The location of telephones, call boxes and
other office equipment affixed to the Premises shall be subject to the approval of Lessor.
if. On Sundays and legal holidays, Saturdays before 8:00 a.m. and after 1:00 p.m., and on other days between the
hours of 7:00 p.m. and 7:00 a.m- the following day, access to the Building, or to the halls, corridors, elevators or
14
stairways in the Building, or to the Premises may be refused unless the person seeking access is known to the person or
employee of the Building in charge and has a pass or is properly identified. The Lessor shall in no case be liable for
damages for any error with regard to the admission to or exclusion from the Building of any person. In case of invasion,
mob, riot, public excitement, or other commotion, the Lessor reserves the right to prevent access to the Building during
the continuance of the same by closing of the doors or otherwise, for the safety of the Lessees and protection of property
in the Building and the Building.
12. Lessor reserves the right to exclude or expel from the Building any person who, in the judgment of Lessor, is
intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of the
rules and regulations of the Building.
13, No vending machine or machines of any description shall be installed, maintained or operated upon. the
Premises without the written consent of the Lessor.
14. Lessor shall have the right, exercisable without notice and without liability to Lessee, to change the name and
street address of the Building of which the Premises are a part.
15. Lessee shall not disturb, solicit, or canvass any occupant of the Building and shall cooperate to prevent same.
16. Without the written consent of Lessor, Lessee shall not use the name of the Building in connection with or in
promoting or advertising the business of Lessee except as Lessee's address,
17. Lessor shall have the right to control and operate the public portions of the Building, and the public facilities,
and heating and air conditioning, as well as facilities furnished for the common use of the Lessees, in such manner as it
deems best for the benefit of the Lessees generally.
18. All entrance doors in the Premises shall be left locked when the Premises are not in use, and all doors opening
to public corridors shall be kept closed except for normal ingress and egress from the Prertuses,
19, No smoking will be permitted within the building of which Premises is a part at any time.
15
ADDENDUM 2
STANDARD LEASE DISCLOSURE ADDENDUM
Nonce to Owners, Buyers. and Tenants Regarding Hazardous Wastes or Substances and Linderffround Storage
Tanks
Comprehensive federal and state laws and regulations have been enacted in the last few years in an effort to
develop controls over the use, storage, handling, cleanup, removal and disposal of hazardous wastes or substances.
Some of these laws and regulations, such as, for example, the so-called "Super Fund Act", provide for broad
liability schemes wherein an owner, tenant or other user of the property may be liable for cleanup costs and
damages regardless of fault. Other laws and regulations set standards for the handling of asbestos or establish
requirements for the use, modification, abandonment, or closing of underground storage tanks.
It is not practical or possible to list all such laws and regulations in this Notice. Therefore, lessors and lessees are
urged to consult legal counsel to determine their respective rights and liabilities with respect to the issues described
in this Notice as well as other aspects of the proposed transaction. If various materials that have been or may be in
the future determined to be toxic, hazardous or undesirable, or are going to be used, stored, handled or disposed of
on the property, or if the property has or may have underground storage tanks for storage of such hazardous
materials, or that such materials may be in the equipment, improvements or soil, it is essential that legal and
technical advice be obtained to determine, among other things, what permits and approvals have been or may be
required, if any, the estimated costs and expenses associated with the use, storage, handling, cleanup, removal or
disposal of the hazardous wastes or substances and what contractual provisions and protection are necessary or
desirable. It may also be important to obtain expert assistance for site investigations and building inspections. The
past uses of the property may provide valuable information as to the likelihood of hazardous wastes or substances,
or underground storage tanks being on the property.
The term "hazardous wastes or substances" is used in this Notice in its very broadest sense and includes, but is not
limited to, all those listed tinder Proposition 65, petroleLml base products, paints and solvents, lead, cyanide, DDT,
printing inks, acids, pesticides, ammonium compounds; asbestos, PCBs and other chemical products. Hazardous
wastes or substances and underground storage tanks may be present on all types of real property- This Notice is,
therefore, meant to apply to any transaction involving any type of real property, whether improved or unimproved.
Although Keegan & Coppin Co., Inc. or its salespeople, will disclose any knowledge it actually possesses with
respect to the existence of hazardous wastes or substances, or underground storage tanks on the property, Keegan
& Coppin Co,, Inc. has not made investigations or obtained reports regarding the subject matter of this Notice,
except as may be described in a separate written document, studies or investigation by experts. Therefore, unless
there are additional documents or studies attached to this notice, lease or contract, this will serve as notification
that Keegan & Coppin Co., Inc. or its salespeople make no representation regarding the existence or non-existence
of hazardous wastes or substances, or underground storage tanks on the property. You should contact a
professional, such as a civil engineer, geologist, industrial hygienist or other persons with experience in these
matters to advise _you concerning the property.
Americans with Disabilities Act (ADA) On July 26, 1991, President Bush signed the federal legislation known
as the Americans with Disabilities Act (ADA) into law. The purpose of the ADA is to integrate persons with
disabilities into the economic and social mainstream of American life. Title M of the ADA applies to Lessors and
Lessees of "places of public accommodation" and "commercial facilities", and requires that places of public
accommodation undertake "readily achievable" removal of communication and access barriers to the disabled.
This requirement of Title IIJ of the .ADA is effective January 26, 1992,
It is important that building owners identify and undertake "readily achievable" removal of any such barriers in the
common areas, sidewalks, parking lots and other areas of the building under their control.
The lessor and lessee are responsible for compliance with .ADA relating to removal of barriers within the
workplace i.e., arrangement of interior furnishings and access within the premises, and any improvements installed
by lessor and lessee.
Keegan & Coppin Company, Inc. recommends that both parties seek expert advice regarding the implications of
Page 1 of 2
the Act as it affects this agreen.
Natural Hazards Disclosure Act:
"The property which is the subject of this contract may be situated in a Special Study Zone as designated under the
Natural Hazards Disclosure Act, inclusive, of the California Public Resources Code; and, as such, the construction
or development on this property of any structure for human occupancy may be subject to the findings of a geologic
report 91
-t prepared by a geologist registered in the State of California, unless such report is waived by the City or
County tinder the terms of that act. No representations on the subject are made by the lessor or agent, and the
lessee should make his own inquiry or investigation".
Flood Hazard Area Disclosure:
The subject property may be situated in a "Special Flood Hazard Area" as set forth on a Federal Emergency
Management Agency (FEMA) "Flood Insurance Rate Map" (FIRM) or "Flood Hazard Boundary Map" (FHBM).
The law provides that, as a condition of obtaining financing on most structures located in a "Special Floods Hazard
Area", lender requires flood insurance where the property or its attachments are security for a loan. Lessee should
consult with experts concerning the possible risk of flooding.
Toxic Mold Disclosure (Pursuant to the Toxic Mold Protection Act of 2001)
The Toxic Mold Protection Act of 2001 requires any person who sells, transfers or rents residential, commercial or
industrial property to disclose if they have ACTUAL KNOWLEDGE of a mold condition on the property. The
law also requires the California Department of Health Services to identify tolerable exposure limits and develop
guidelines for toxic mold identification and remediation. Property owners will be required to provide a more
detailed disclosure on toxic mold once the Department of Health Services develops and adopts standards for
identifying, measuring and remediating toxic mold.
The Toxic Mold Protection Act of 2001 does NOT require that a property owner have their property tested for
toxic mold. It also does NOT require that an agent investigate a property for toxic mold. Property owners only
need to disclose any ACTUAL KNOWLEDGE of a mold condition on their property until the above mentioned
guidelines are developed and approved. This disclosure can be made on the Real Estate Transfer Disclosure
Statement (TDS 11) Form. A chapter -discussing Mold has also been added to the Environmental Hazards: A
Guide for Homeowners, Buyers, Landlords and Tenants booklet that must be provided to a buyer or tenant in the
transaction. The chapter contains descriptions of mold, symptoms of mold exposure, and information on testing
and cleanup procedures. The chapter also lists other publications available that discuss mold and indoor air
quality. For local assistance, contact your county or city Department of Health, Housing, or Environmental Health,
Explanation of Mold Conditions on Property: (to be completed by Transfer or if they have ACTUAL
KNONVLEDGE of a mold condition on the property.)
Acknowledgment:
Lessee: to,1 Date:
Lessor Date:
Page 2 of 2
To Lease dated -_A by and between
Lessor 1099 D Street. LLC and Lessee City of San Rafael
A. Tenant Improvement Scope
Lessor and Lessee to approve plans and specifications covering the layout of the premises and the scope of responsibility
of the Tenant Improvements between Lessor and Lessee as stipulated in the Lease. Said approval shall be forthcoming
within fifteen (15) days after acceptance hereof.
Lessor to install Tenant Improvements in a quality, good workmanlike manner in accordance with approved plans and
specifications prior to the Commencement Date.
Lessee shall inspect said prerruses within three (3) days of completion to ascertain that Tenant Improvements have been
installed in accordance ),rift plans and specifications. Lessee shall provide a "punch list" of items not in accordance with
plans and specification or not installed in a good workmanlike manner. Lessor shall have thirty (30) days to correct said
"punch ligf'items,
If Lessee installs any portion of the Tenant Improvements, Lessee shall have the same responsibility as indicated above for
Lessor. Additionally, Lessee shall remove all mechanic's liens to satisfy all claims, and meet all contract requirements
with suppliers, contractors and employees; arising out of said installation of improvements. Lessee shall have workman
compensation and liability insurance with a minimum $500,000 per occurrence for said installation and shall name Lessor
additional insured under the policy. Lessee shall indemnify and hold harmless Lessor for all claims of employees,
invitees, materialmen, andJor suppliers arising out of said installation,
B, Financial Information
Lessor has reviewed and approves financial statements and credit reports regarding Lessee.
1�
Lessor may deliver such financial information in Lessor's possession to lending institutions, mortgage brokers, investors in
J the subject property, or prospective purchasers.
Keegan & Coppin Company, Inc. is authorized to release deposits and first month's rent to Lessor upon receipt of a fully
executed Lease,
C. Permits
Lessee will obtain a use permit and a wastewater discharge pen -nit (if required) from the appropriate municipality within
thirty (30) days after acceptance hereof. Lessee shall use due diligence in pursuing such permits and pay all costs
associated with them. Lessee shall have the responsibility to maintain any use permits and to comply with all terms and
conditions of said use permits during the term of this Lease. If Lessee's application for a use permit is denied, Lessor or
Lessee may declare this Lease, void, in which event all deposits and prepaid rent shall be returned to Lessee,
D, I lazardous Waste
"If Lessee uses, stores, or becomes aware of any hazardous waste or substances as listed by Proposition 65, Lessee will
advise Lessor ,vithin three (3) days of such existence, and either obtain approval from Lessor and the appropriate
governing agencies within thirty (30) days from notice or remove and clean up said hazardous waste to standards required
by the Lessor and the appropriate governing agencies within sixty (60) days from notice."'
"If Lessee, its invitees, employees, agents or associates cause or allow a spill or contamination of the premises, common
area, soil or surrounding area, then it will be the responsibility of Lessee to clean up said hazard to the degree required and
within the time frame set by any public entity which has jurisdiction and particularly in response to the Super Fund Act
and Proposition 65,"
Page I of 2
Lessor is responsible for E, iazardous waste violations, occurrences or clea i required prior to Lease commencement
or caused by Lessor or other tenants during the Lease term without reirnbinsement from Lessee.
E. Area Measurement
Lessee has reviewed and approves the system of measurement, the usable and rentable square footage amounts of the
subject premises.
F Associations and Expenses
Lessee sha'I review and approve any CC&R's, common area association dues, budgets, rules, and use conditions
pertaining thereto within ten (10) days after acceptance hereof.
Lessee shall review and approve the scope and delineation of Lessee's and Lessor's responsibilities for Lease expenses,
including common area expenses, repairs and maintenance, taxes, insurance, capital replacements, base year expenses, or
other assessments, including past experienced costs or future estimates under the subject Lease within. ten (10) days or
upon receipt from Lessor a summary of such responsibility. Lessor shall provide such information within five (5) days
after mutual signing of this Lease, if applicable.
G. Lessee shall review and approve the physical condition of all systems that Lessee is responsible for maintaining, or
replacements under the Lease, and as stipulated in the above scope of responsibilities including HVAC, electrical
equipment, lighting, road surfaces, landscaping, sprinkler andlor other mechanical or electrical systems within ten (10)
days after acceptance hereof.
Agreed by:
LESSOR —1099 D Street, LLC
Signed on 2dQ?
T. Max Kniesche, III & Nancy A. Kniesche
LESSEE — City of San Rafael
Signed on AUGUST 31
at SAN RAFAEL, CALIFORNIA
NORDHOFF
Its:
City Manager
Attest:
ESTHER C. BEIRNE, City Clerk
2009
Page 2 of 2
Approved As To Form:
ROBERT F. EPSAIN, City Attorney
LEASING DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
When you enter into a discussion with areal estate agent regarding a real estate transaction, you should from the outset understand what type of
agency relationship or representation you wish to have with the agent in the transaction.
LANDLORD'S AGENT
A Landlord's agent under a listing agreement with the Landlord acts as the agent for the Landlord. A Landlord's agent or a subagent of that agent
has the following affirmative obligations:
To the Landlord:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in dealing with the Landlord.
To the Tenant and the Landlord:
(a) Diligent exercise of reasonable skill and care in performance of the agent's duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve the
affirmative duties set forth above.
TENANT'S AGENT
A Tenant's agent can, with a Tenant's consent, agree to act as agent for the Tenant only. In these situations, the agent is not the Landlord's agent,
even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Landlord. An agent acting only
for a Tenant has the following affirmative obligations.
To the Tenant:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Tenant.
To the Tenant and the Landlord:
(a) Diligent exercise Of reasonable skill and care in performance of the agent's duties.
(b) A duty of honest and fair dealing and good faith.
(t) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve the
affirmative duties set forth above.
AGENT REPRESENTING BOTH LANDLORD AND TENANT
A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Landlord and the Tenant
in a transaction, but only with the knowledge and consent of both the Landlord and the Tenant.
In a dual agency situation, the agent has the following affirmative obligations to both the Landlord and the Tenant.
(a) A fiduciary duty of utmost care, integrity, honest and loyalty in the dealings with either Landlord orTcriant.
(b) Other duties to the Landlord and the Tenant as stated above in their respective sections.
In representing both Landlord and Tenant, the agent may not, without the express perimssiun of the respective party, disclose to the other party
that the Landlord will accept a rent less than the listed rent or that the Tenant will pay a rent greater than the rent offered.
The above duties of the agent in a real estate transaction do not relieve a Landlord or Tenant from the responsibility to protect their own interests.
You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a
person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific
transaction.
We acknowledge receipt of a copy of this disclosure.
Lardlor,I,--57— Date I 1,5Ao 9
17
Tenant 7 Date UcJ
Nordhoff. Cif a4
City of SNKafael, by Ken �Allager
Page I of 2
SIGN BELOW TO AUTHORIZE TYPE OF AGENCY
Keegan & CoWin Co.. Inc. is the agent of (check one):
(Name of Listing Agent)
The Landlord exclusively; or
X Both the Tenant and Landlord
CONFIRMED AND AUTHOR17FD:
Landlord: Date:
Agent: VCgll, + 60. 111 By: Date:
Kee gn & Co Tj, is the agent of (check one):
,a _ppt Co...Cq
(Name of Tenant's agent)
The Tenant exclusively; or
X Both the Tenant and Landlord
CONFIRMED AND AUTHORIZED:
C -77
Tenant:
Date:
Agent- 1' 6ee,&ZA + 64"10".-A By: Date:—
Page 2 of 2
FIRST AMENDMENT TO LEASE
dated August 3, 2009
By and Between
1099 D Street, LLC, "Lessor"
And
City of San Rafael "Lessee"
The parties agree to amend the Lease as follows:
1. TERM. The term of the Lease shall be extended for a period of four (4) years commencing on
April 1, 2015 and expiring on March 31, 2019. Thereafter, the Lease shall be construed as a
tenancy from month to month, and shall be on the terms and conditions specified in the Lease.
2. RENT. Rent for the extended term shall be as follows, payable on the first (I") day of each
month:
April 1, 2015 —April 30, 2015:
Abated
May 1, 2015 -March 31, 2016:
$13,354.00 per month
April 1, 2016 — March 31, 2017:
$13,755.00 per month
April 1, 2017 — March 31, 2018:
$14,167.00 per month
April 1, 2018 —March 31, 2019:
$14,592.00 per month
3. TENANT IMPROVEMENTS. Notwithstanding Lessor's work described below, Lessee agrees to
occupy the Premises in "as -is" condition as of execution of this First Amendment.
Lessor, at Lessor's sole expense, shall professionally clean all interior carpet and vinyl flooring
within the Premises prior to April 30, 2015. Lessor shall also touch up the interior paint, as needed,
prior to April 30, 2015.
4. OPTION TO EXTEND. Lessee shall have no option to extend the Lease.
5. BROKER. Lessee and Lessor warrant that each has had no dealings with any real estate broker or
agents in connection with the negotiation of this First Amendment excepting only Keegan & Coppin
Company, Inc. as both Lessor's and Lessee's broker, and each knows of no other real estate broker
or agents in connection with this First Amendment. Lessor, and not Lessee, shall pay the broker's
commission due in connection with this First Amendment.
All other terms of the Lease (and all Addenda thereto), where unmodified by this First Amendment, shall
remain unchanged and are incorporated herein by reference.
AGREED AND APPROVED:
LESSOR —1099 D Street, LLC
Signed on 24p 2014
at im"Df;' _C AC
14 f
By:
T. Max Kniesche, III & Nancy A. Kniesche
Page 1 of 2
LESSEE — City of San Rafael
Signed on
DECEMBER 22ND 2014
]3y:—:1AAt- LO
NA'CY MACKLF/
Its:
City Manager
Attest:
ESTHER C. BEIRNE, City Clerk
Approved As To Form:
Page 2 of 2
INSTRUCTIONS
FROM:
DEPARTMENT:
DATE:
CITY OF SAN RAFAEL
USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL /AGENCY.
David Starnes
TITLE OF DOCUMENT:
olice
SRRA i SRCC AGENDA ITEM NO. 3. h
DATE OF MEETING: December. 15, 2014
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING AND AUTHORIZING THE
CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO LEASE, IN A FORM APPROVED
BY THE CITY ATTORNEY, WITH 1099 D STREET, LLC, FOR THE POLICE ANNEX LOCATED
AT 1099 D STREET, TO EXTEND THE TERM OF THE LEASE FOUR (4) YEARS
COMMENCING ON APRIL 1, 2015, FOR $13,354.00 IN RENT PER MONTH, WITH THE APRIL
2015 RENT ABATED, AND WITH A 3% INCREASE IN RENT EACH YEAR THEREAFTER.
CAL PlI
Department Head (signature)
APPROVED AS • / AGENCY
AGENDA ITEM:
City Manager (signature)
NOT APPROVED
REMARKS:
111 11511
APPROVED AS TO FORM:
City Attorney (signature)