Cities Index.
2. Lease Agreement

Anaheim City Council
June 10, 2025

Document
2. Lease Agreement
Meeting
June 10, 2025
Body
Anaheim City Council
Original file
6.8 MB
Text extracted from the city's file for reading and search. Open the original on local.anaheim.net. That file is the official record.

• LEASE AGREEMENT

FOR OFFICE AND PROGRAM SPACE FOR THE

CHRYSALIS EMPLOYMENT PROGRAM
This LEASE AGREEMENT FOR OFFICE AND PROGRAM SPACE FOR THE CHRYSALIS EMPLOYMENT PROGRAM ("Agreement"), dated for purposes of identification only as of June 10, 2025 (the "Date of Agreement"), is entered into by and between the CITY OF ANAHEIM, a California municipal corporation and charter city ("City") and THE CHRYSALIS CENTER, a California nonprofit corporation doing business as CHRYSALIS ("Tenant").

A. On January 10, 2012, the Anaheim City Council elected to have the City of Anaheim serve as the "Successor Agency" to the Anaheim Redevelopment Agency ("Agency") upon its dissolution pursuant to Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which laws caused the dissolution and wind down of all redevelopment agencies (herein referred to as the "Dissolution Act").

B. On June 19, 2018, City, Agency, and Tenant entered into that certain Memorandum of Understanding and License Agreement for Office and Program Space for the Chrysalis Employment Program, whereby Agency, as owner of improved property located at 290 S.

Anaheim Boulevard and (i) generally located on the northeast corner of Anaheim Boulevard and Broadway Street in the City of Anaheim; (ii) commonly referred to as the Willdan Building; and (iii) depicted on the "Map of the Site" which is attached hereto as Exhibit A ("Property"), provided Tenant with a license to enter that certain portion of the Property depicted as the License Area to operate the Chrysalis Employment Program to assist homeless and low-income individuals obtain and maintain employment ("Program").

C. Pursuant to the Dissolution Act, the Successor Agency approved a Long Range Property Management Plan addressing the future disposition and use of all real property of the dissolved Agency.

D. On October 12, 2021, as set forth in the Long Range Property Management Plan, the Property was conveyed from the Agency to the City for future development purposes.

E. On June 21, 2022, City and Tenant entered into an Amended and Restated Memorandum of Understanding and License Agreement for Office and Program Space for the Chrysalis Employment Program.

F. The City and Tenant (each, a "Party" and, jointly, the "Parties") now desire to continue Tenant's use of the Property for the Program pursuant to the negotiated terms of this Agreement as provided herein.

NOW, THEREFORE, AND IN CONSIDERATION OF THE MUTUAL

PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS:

Section 1. Lease. For and in consideration of the covenants and conditions to be kept and performed by Tenant, City hereby leases to Tenant, and Tenant hereby leases from City, the Lease Area of the Property, as depicted in Exhibit C, upon the terms and conditions set forth in this Lease.

1.1 Program. This Lease is granted for the purpose of establishing the Program and providing the services described in Exhibit B attached hereto, and for no other purposes without the prior written approval of the City.

1.2. Rent. In consideration for City's grant of the Lease, Tenant shall provide community benefits to the City in the form of specific commercial corridor cleaning services pursuant to that separate Operating Agreement between the Parties, in addition to operating the Program defined herein ("Community Benefits"). Tenant also previously provided a separate check for the sum of one thousand dollars ($1,000.00) under the original Memorandum of Understanding and License Agreement, which shall be held by City as a deposit, and returned to Tenant at the termination of this Agreement so long as the Property is left free and clear of trash, debris and damage. City and Tenant hereby agree that the Community Benefits that will accrue to the public is commensurate with the value of Tenant's use of the Lease Area. Any and all costs, expenses and obligations of every kind relating to the use, operation, property management, security, maintenance, repair or occupancy of the exclusive Lease Area, Common Area, and Restrooms, as identified in Exhibit C, whether or not now customary or within the contemplation of the Parties, which may arise or become due during the Term of this Agreement shall be paid by Tenant. Any accrual of maintenance costs that exceed $10,000 per month or single occurrence shall require a meet and confer between the Parties to determine how to address the specific maintenance issues. If no agreement can be reached between the Parties on how to address or pay for the maintenance issues, either Party may immediately terminate this Agreement. Such termination shall be effective immediately upon receipt by one Party of written notice from the other Party. In such event, the Parties shall have no further rights hereunder, except that the Indemnification provisions set forth herein shall survive termination.

Section 2. Conditions to Entry. Prior to Tenant entering onto the Property, the following conditions must be satisfied ("Conditions Precedent"):

2.1 Budget. Tenant must maintain an annual operating budget not less than that identified in Exhibit D ("Annual Budget"), which is attached hereto and incorporated herein by this reference. From time to time during the Term, and no less than on an annual basis, the Parties shall meet and confer on the Annual Budget in order to evaluate whether any modifications to Exhibit D are necessary and appropriate to ensure the Program is meeting the operational expectations of the City. Any modifications to the Annual Budget shall be subject to review and approval by the Director and reflected in an amended Exhibit D.

2.2 Program Hours of Operation and Security. Tenant will have access to the Lease Area 24 hours a day, 7 days a week. However, the Parties agree and understand that the majority of Program operations and activities will take place between the hours of 7:00 am and 7:00 pm. Tenant shall make every effort to respect the uses of the surrounding properties, shall at all times maintain a quiet and orderly site; and 2 minimize loitering - of Program participants on the Property and/or on adjacent properties at all times.

2.3 Security. Tenant acknowledges that City makes no representation or warranty, express or implied, regarding the security of the Lease Area and parking area.

Tenant further acknowledges that City has no obligation whatsoever to provide guard service or other security measures, other than City's maintenance of the existing building alarm system. Tenant expressly assumes all responsibility for the protection and security of Tenant, its employees and invitees from any and all acts of any third party. Tenant shall maintain a Security Plan for City review. Tenant expressly understands and agrees that nothing in this Agreement requires the City to share in the costs associated with implementation of the Security Plan.

2.4 Parking and Access. A total of nine (9) parking spaces will be allocated for Tenant exclusively in the surface parking lot immediately adjacent to the Willdan Building ("Surface Lot"), as depicted in the map attached hereto as Exhibit E ("Parking Area"). Additional Tenant staff and Program participants shall utilize the Kramer Parking Structure located at 225 E. Center Street, north of City Hall. Tenant shall have a non-exclusive license, in common with other authorized users, to enter the Parking Area solely for the purpose of vehicular parking and for no other purpose without prior written approval. Tenant shall direct all Program staff and visitors to the Parking Area and instruct them to utilize the Parking Area. No citations will be waived for parking violations in the Surface Lot.

2.5 Insurance. Without limiting City's right to indemnification, it is agreed that Tenant shall secure, prior to commencing any activities under this Agreement, and maintain, during the term of this Agreement, insurance coverage as follows:

2.5.1 Required Insurance Coverage. Tenant shall secure and maintain the following insurance coverage:

Workers' Compensation Insurance as required by California law and Employers Liability Insurance in an amount not less than $1,000,000 and must include a Waiver of Subrogation.

Commercial General Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products/Completed Operations Liability, and Independent Contractor's Liability (if applicable), in an amount not less than $2,000,000 per occurrence, $4,000,000 annual aggregate. Any deductible or self-insured retention in excess of $10,000 must be disclosed to City, in writing, at the inception of this Agreement and is subject to the acceptance of the City's Risk Manager.

Commercial/Comprehensive Automobile Liability Coverage, including—as applicable—owned, non-owned, and hired autos, in an amount not less than $2,000,000 per occurrence, combined single limit, as required by California law. 3 Professional Liability, inclusive of Cyber Liability, in an amount not less than $2,000,000, and Tenant shall maintain such coverage for at least one (1) year from termination of this Agreement. Any deductible or self-insured retention in excess of $10,000 must be disclosed to City, in writing, at the inception of this Agreement and is subject to the acceptance of the City's Risk Manager.

Any required coverage written with primary and excess layers to satisfy the minimum requirements of this Agreement must be submitted for approval by City's Risk Manager prior to the inception of the final Agreement.

2.5.2 Cancellation Notice. Tenant agrees that each insurance policy required by this Agreement shall not be voluntarily cancelled or otherwise limited in scope or coverage, until after thirty (30) days prior written notice has been given to the City Clerk, City of Anaheim, 200 S. Anaheim Blvd., Anaheim, CA 92805, except in the event of cancellation for non-payment of premium which shall provide for not less than ten (10) days' notice.

2.5.3 Required Clauses in Policies. Each insurance policy required by this Agreement, excepting policies for Professional Liability and Workers' Compensation, shall contain the following clauses or shall otherwise provide for the following conditions:
"It is agreed that any insurance maintained by Tenant, pursuant to this Agreement, shall be primary to, and not contribute with, any insurance or self-insurance maintained by the City of Anaheim."
"The City of Anaheim, its officers, agents, employees, representatives and City - designated volunteers are added as additional insureds as respects the acts, omissions, operations and activities of, or on behalf of; the named insured, in regard to products supplied to, or work or services performed for, or related to, the City of Anaheim."

2.5.4 Required Certificates and Endorsements. Prior to commencing any work under this Agreement, Tenant shall deliver to City insurance certificates confirming the existence of the insurance required under this Agreement, and including the applicable clauses referenced above. Also, within thirty (30) days of the execution date of this Agreement, Tenant shall provide City: (i) endorsements to the insurance policies which add to these policies the applicable clauses referenced above; or (ii) in lieu of said endorsements, documentation acceptable to City evidencing that the coverage, terms, and conditions set forth in the above-referenced clauses are otherwise included in said insurance policies. Insurance required hereunder shall be placed with insurers: (i) admitted to write insurance in California; (ii) possessing an A. M. Best's rating of A VII or higher; or (iii) otherwise acceptable to City, with prior written permission from City. In the event that a claim or other legal action is filed against City, and if City, in its good faith opinion, believes it may have coverage under any of the insurance required herein, then City has the right to demand, and to receive within a reasonable time period, copies of the insurance policies related to such required insurance; provided, however, that this provision shall not apply if the Parties agree that Tenant shall fully defend, hold harmless, and indemnify City against any such claim or other legal action.
4 2.5.5 Remedies for Default Re: Insurance. In addition to other remedies City may have if Tenant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:

Order Tenant to stop use of the Property under this Agreement until Tenant demonstrates compliance with the requirements hereof; or; Terminate this Agreement.

Exercise of any of the above remedies, however, is an alternative to other remedies City may have and is not the exclusive remedy for Tenant's failure to maintain insurance or secure appropriate endorsements.

In the event Tenant hires other persons or firms to perform some of the work related to this Agreement, Tenant shall ensure, and certify to City in writing that: (i) the acts or omissions of such persons or firms are covered under the above-referenced liability insurance; or (ii) such firms maintain insurance equal to or better than, and subject to the same limits, terms and conditions as, the insurance required of Tenant under this Agreement (except for firms which are not performing professional services-such firms shall not be required to carry the above-referenced professional liability insurance); and in either instance, Tenant shall provide, or cause to be provided, evidence of such insurance coverage, reasonably acceptable to City.

City's Risk Manager is hereby authorized to amend or reduce the requirements set forth herein in the event such reduction is in City's best interest.

Section 3. Term of Agreement. The term of this Agreement shall commence on July 1, 2025 and shall terminate July 1, 2027, unless sooner terminated as provided herein ("Initial Term").

The Director is hereby authorized to renew this Agreement upon the same terms and conditions for no more than one (1) additional one-year term following the expiration of the Initial Term ("Renewal Term"). The Initial Term and Renewal Term shall be collectively referred to as the "Term."

Section 4. Terms of Lease. Pursuant to the following terms and for the purposes stated herein, the City hereby leases to Tenant the Lease Area for its exclusive use:

4.1 "As-Is" Condition. Tenant acknowledges that the Lease Area is being provided to Tenant on an "as-is" basis, and Tenant takes and occupies the Lease Area without reliance upon any representation by City, or any of its officers, employees, agents or representatives, or any other person, concerning the Lease Area or its fitness for Tenant's intended use or any other particular purpose of use, or any other promise, representation or inducement. All persons entering the Lease Area do so at their own risk.

4.2 Tenant's Obligations. Tenant shall be solely responsible for the complete operation of the Program, as well as the commercial corridor cleaning services as outlined in that separate Operating Agreement between the Parties, and shall be solely responsible for all services offered or rendered and for the conduct of all of its employees and other 5 persons under Tenant's supervision or control while on the Property and providing services within the City.

4.3. Keys. Keys to the Lease Area will be assigned to Tenant. Tenant shall safeguard all keys assigned to it, shall permit the keys to be used only by responsible persons employed by Tenant and shall not allow any assigned keys to be duplicated without first obtaining the express, written authorization of City.

4.4 Furniture and Equipment. Tenant may use furniture and equipment, if any, located in the Lease Area as of the Effective Date. Upon termination of this Agreement, Tenant shall ensure that any such furniture and equipment is returned to its same condition as of the Effective Date, reasonable wear and tear excepted. Tenant shall be responsible for set-up and clean-up of all equipment, furnishings, materials and supplies used in the operation of the Program and the commercial corridor cleaning services.

4.5 Alterations. Tenant shall not alter the Lease Area or perform any work that requires issuance of a building permit without first obtaining written approval from the City.

City shall have sole authority to approve all alterations, modifications, renovations, or construction to the Lease Area. With the prior written approval of City, Tenant may make improvements to the Lease Area including, but not limited to, the installation of fixtures, partitions, counters, shelving, computer equipment and cabling, and other equipment if deemed necessary by City. It is agreed that any such fixtures, partitions, counters, shelving, computer equipment and cabling attached to or placed upon the Lease Area shall be considered the personal property of Tenant, who shall have the right to remove the same.

4.6 Signage. Tenant will confer with the City to identify reasonable signage locations to provide public awareness and accessibility subject to Tenant's obtaining all necessary permits and approvals for such signage.

Tenant shall permit City to install placemaking, lifestyle and/or public art images on the ground floor windows to support the City of Anaheim's economic development efforts and branding of the Center City area. City shall obtain approval of Tenant in advance of entering the Lease Area to install said images, and materials shall consist of a perforated screen graphic that is translucent and allows natural light to occupy the Lease Area. City further agrees to maintain said images in good condition and replace them as may be needed so as not to detract from the appearance of the Property.

Section 5. Assignment and Subletting. Tenant shall not, directly or indirectly, nor by operation of law, assign this Lease, or any interest herein, and shall not sublet the Property or any part thereof, nor permit any other person or entity (the agents, servants and invitees of Tenant excepted) to occupy or use the Property, or any portion thereof, without first obtaining the written consent of the City, which consent shall be granted or withheld in the City's sole and absolute discretion. Any assignment or subletting without the prior written consent of City shall be voidable at the election of City. City's consent to any assignment or subletting shall not relieve Tenant from each and all of Tenant's obligations hereunder, and Tenant shall remain jointly and severally liable hereunder with such assignee or subtenant.
6 Section 6. Reservation of City's Right to Access Lease Area. It is expressly understood and acknowledged by Tenant that throughout the Term City will comply with (i) the Dissolution Act in all respects including, but not limited to, implementing the Long Range Property Management Plan, and disposing of the Property and distributing proceeds to affected taxing entities; and (ii) all applicable property disposition laws including, but not limited to, California Government Code § 54220 et seq. ("Surplus Land Act"). In furtherance of these obligations, City, its agents, employees and representatives shall, upon providing prior notice to Tenant, have a continuing right of access to the Property throughout the Term for the purpose of conducting surveys, engineering, geotechnical, and environmental inspections and tests and any other inspections, studies, or tests deemed necessary by City, in its sole and absolute discretion, to engage in discussions and/or negotiations with third parties relating to the sale and/or development of the Property.

Section 7. Termination

7.1 Events of Default. For purposes of this Section 7, the word "Default" shall mean the failure of Tenant to perform any of Tenant's duties or obligations or the breach by Tenant of any of the terms and conditions set forth in this Agreement. In addition, Tenant shall be deemed to be in Default upon Tenant's (i) application for, consent to, or suffering of, the appointment of a receiver, trustee or liquidator for all or a substantial portion of its assets, (ii) making a general assignment for the benefit of creditors, (iii) being adjudged bankrupt, (iv) filing a voluntary petition or suffering an involuntary petition under any bankruptcy, arrangement, reorganization or insolvency law (unless in the case of an involuntary petition, the same is dismissed within thirty (30) days of such filing), or (v) suffering or permitting to continue unstayed and in effect for fifteen (15) consecutive days any attachment, levy, execution or seizure of all or a substantial portion of Tenant's assets or of Tenant's interests hereunder.

City shall not be deemed to be in Default in the performance of any obligation required to be performed by City hereunder unless and until City has failed to perform such obligation for a period of thirty (30) days after receipt of written notice from Tenant specifying in reasonable detail the nature and extent of any such failure; provided, however, that if the nature of City's obligation is such that more than thirty (30) days are required for its performance, then City shall not be deemed to be in Default if City shall commence to cure such performance within such thirty (30) day period and thereafter diligently prosecute the same to completion.

7.2 Immediate Termination for Tenant's Default. In the event of any default by Tenant or any determination that this Agreement or any provision thereof is invalid or otherwise conflicts with the Dissolution Law, which dissolved the Anaheim Redevelopment Agency, City may immediately terminate this Agreement. Such termination shall be effective immediately upon receipt by Tenant of written notice from City. In such event, the Parties shall have no further rights hereunder, except that the Indemnification provisions set forth herein shall survive termination.
7 7.3 Termination without Cause. Either City or Tenant may terminate this Agreement at any time without the necessity of cause or Default by the other Party by giving ninety (90) days prior notice in writing to the other Party. In the event of termination without cause, the Parties shall have no further rights hereunder.

Section 8. Certain Definitions. For the purposes of this Agreement, the following terms shall have the meanings herein specified:
"Environmental Law" means (i) Sections 25115, 25117, 25122.7 or 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) Section 25316 of the California Health and Safety Code, Division 20, Chapter

6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) Article 9 or Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (vi) Section 311 of the Clean Water Act (33 U.S.C. §1317), (vii) Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (viii) Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §6901 et seq. "Hazardous Materials" means any substance, material or waste which is or becomes, prior to the Closing, regulated by any local governmental authority, the State of California or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter Presley-Tanner Hazardous Substance Account Act). (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article I 1 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (xi) defined as "hazardous substances" pursuant to Section I OI of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §6901 et seq.

Section 9. Compliance with Laws/Permits. Tenant shall, in all activities undertaken pursuant to this Agreement, comply and cause its contractors, agents and employees to comply with all 8 federal, state and local laws, statutes, orders, ordinances, rules, regulations, plans, policies and decrees, including, but not limited to, all applicable federal, state and local occupation, safety and health laws, rules, regulations and standards, applicable state and labor standards, applicable prevailing wage requirements and all environmental laws. Without limiting the generality of the foregoing, the Tenant, at its sole cost and expense, shall obtain any and all permits, licenses and approvals which may be required for any activities the Tenant desires to conduct or have conducted pursuant to this Agreement. Tenants shall not deposit or permit others to deposit and Hazardous Materials on the site. In the event the Tenant or its agents or employees discover any substance on the Lease Area which they suspect might be Hazardous Materials, Tenant shall immediately notify or cause notice to be given to City, and the Tenant and its agents and employees shall immediately stop all work upon the Lease Area until notified by City that work may be resumed.

Section 10. Indemnification. Tenant hereby agrees to indemnify, defend, assume all liability for and hold harmless City and its officers, employees, agents and representatives from all actions, claims, suits, penalties, obligations, liabilities, damages to property, environmental claims or injuries to persons (collectively "Claims") arising out of or in connection with Tenant's activities pursuant to this Agreement. Tenant's indemnity given under this Section 10 shall apply whether such activities are by the Tenant or anyone directly or indirectly employed or under contract with Tenant, and whether such Claims shall accrue or be discovered before or after the termination of this Agreement. The indemnity and other rights afforded City by this Section 10 shall survive after the revocation or termination of this Agreement. Notwithstanding the foregoing, Tenant's indemnity shall not apply to the extent claims are caused by, arise out of, or in connections with, any breach of City's representations or covenants in Section 21 hereof or to the extent City has indemnified Tenant pursuant to the terms of this Agreement.

Section 11. Maintenance Plan. Tenant shall maintain the Lease Area in a clean, orderly, well- maintained condition and perform all routine maintenance, minor repairs, trash removal, and cleaning. Tenant shall maintain a Maintenance Plan for review and approval by the City.

Tenant shall submit an annual supplement to the Maintenance Plan for review and approval by the City, which shall identify repair and restoration efforts of the Lease Area to be completed by Tenant.

Upon termination of the Agreement, Tenant will restore the site to its original condition (except alterations approved by the City) and remove any debris and trash at the conclusion of the Term.

Section 12. Risk of Loss/Interference/Maintenance Responsibilities. Tenant acknowledges and agrees that Tenant bears all risk of loss or damage to the Lease Area, Surface Lot, and Parking Area. Tenant shall immediately notify City if any portion of the Lease Area (i) is not in a state of good repair; (ii) is unsightly; (iii) has been damaged, destroyed or defaced; or (iv) is otherwise injured and in need of repair. Upon such notification, City and Tenant shall confer in good faith as to the costs of repair or maintenance including, but not limited to, cost sharing. If the Parties cannot agree as to the extent of repairs, maintenance and/or cost sharing, the City may, in its sole and absolute discretion, elect to terminate this Agreement. 9 Section 13. No Real Property Interest. It is expressly understood that this Agreement does not in any way whatsoever grant or convey any permanent casement, fee or other interest in the Lease Area to Tenant.

Section 14. Waiver of Relocation Costs. Tenant warrants and represents that the acceptance of this Lease is voluntary and that, in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) and California Government Code § 7260, upon termination of the Agreement, with or without cause, are not eligible for relocation assistance as displaced persons and will not receive relocation assistance associated with moving a business, farm, non-profit organization, residence or personal property from the Property.

Section 15. Utilities. Tenant shall arrange and pay to the City the cost of utility serviced to the Lease Area during the Term. City and Tenant agree to meet and confer, as necessary, to evaluate and confirm that Tenant's monthly utility payment reflects the actual cost of utilities to the Lease Area.

Section 16. Good Faith. The Parties agree that each is operating in good faith and in consideration of their mutual and respective goals and objectives. The Parties agree to cooperate with each other to complete the tasks contemplated by this Agreement.

Section 17. Notices. Any notices, requests or approvals given under this Agreement from one party to another shall be in writing and shall be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, by certified mail, return receipt requested, to the addresses of the other party as stated in this Section, and shall be deemed to have been received at the time of personal delivery or three (3) days after the date of deposit for mailing. Notices shall be sent to:

If to City:

With a copy to:

If to Tenant:

Sergio M. Ramirez, Director
Economic Development Department
200 S. Anaheim Boulevard, 7th Floor
Anaheim, California 92805
City Clerk
City of Anaheim
200 S. Anaheim Boulevard, 2nd Floor
Anaheim, California 92805
Mark Loranger, Chief Executive Officer
Chrysalis
522 S. Main St.

Los Angeles, CA 90013
Section 17. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court 10 of Orange County, State of California, in an appropriate court in that county, or in the Federal District Court in the Central District of California.

Section 18. Interpretation. This Agreement shall be interpreted as a whole and in accordance with its fair meaning and as if each party participated in its drafting. Captions are for reference only and are not to be used in construing meaning.

Section 19. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by City and Tenant.

Section 20. Attorneys' Fees. In the event of a dispute between the parties with respect to the terms or conditions of this Agreement, the prevailing party shall be entitled to collect from the other its reasonable attorneys' fees as established by the judge or arbitrator presiding over such dispute.

Section 21. Agency Representations, Indemnities and Covenants. City makes no representations or warranties with respect to the Lease Area.

Section 22. Exhibits. All exhibits, including attachments thereto, are incorporated in this Agreement in their entirety by this reference.

Section 23. Effective Date of this Agreement. This Agreement shall take effect upon approval by the City Council of the City of Anaheim (the "Effective Date"). [SIGNATURES BEGIN ON NEXT PAGE]
11 IN WITNESS WHEREOF, the Parties enter into this Agreement -on the year and day first above written.
"CITY"
CITY OF ANAHEIM, a California
municipal corporation and charter city
Dated: By:

Sergio M. Ramirez
Director, Economic Development
Department
ATTEST:

THERESA BASS, CITY CLERK
By:

APPROVED AS TO FORM:

ROBERT FABELA, CITY ATTORNEY
By:

Ryan 0. Hodge
Deputy City Attorney
"TENANT"
CHRYSALIS, a California nonprofit
corporation
Dated: By:

Mark Loranger
Chief Executive Officer
12 EXHIBIT A

MAP OF PROPERTY
Site Property
APN 037-014-34.

The site is 1.16 acres
EXHIBIT 11

SCOPE OP SERVICES / DESCRIPTION OF PROGRAM
Chrysalis Employmvxt Program

1.0 Overview
As part of* City of Anshelm's effort to provide rcsountes and support to individuals experiencing hernelcsinsers, as well RS those who arn urkstshly housed, and lmv-inonme.„ Chrysalis will provia employment services focused on MERiSiljng local nesideols bceomc ready for a job, secure a joh, and retain a job, Chrysalis will work eollsboratively with City of Anal3eim staff, as well as Orange County's Continuum of Care (CoC) agencies, to support regine2I1 eflbas to address homelessness
The fol lowing describes the scopc of services and the employment program in be provided at 290 S. Anaheim 131vd. (the "Agency Property").
2-0 Chrysalis Employment Proven'
Chrysalis' smplo3enent worli.slsops., resources, businesses and support groups are designed to improve clients' job search skills, self-confidence and entployability. We instill in Our clients good work habits — thc soft skills that are criteisl t in any work =vim:in/tent — and Olir stet-provide MICOLtragenicnt end boost self-mem.

Chrysalis employment program —and particularly our transition.al employment program Chrralia Enteprises — has Become a rectrindzed and proven best practice model for serving individnels experiencini;bornelesumess, as well es those fcrrmerly incarverated, to help them reenter the main. stream worIckce and achieve elf-sufficiency.

There are three primary components to Chrysalis' Employment Program:

2.1 Job Readiness. Preparadon
All incoming clients enter cur self-directed pros-ram, based on la selitsufficieneyinedel, wherein they nooelve intensive support as they search for work for themselves. Clients frgt mend an orictnation and subsccpcot jobqvcparation classes designed to reacquaint them with the working world.

Classes cover basic instruction for pursuing, securinf. and telaining employment all well BR employmern-reiated life skills tailored to our clients' specirbo needs. Our services include:
▪ Assessment /Case lidanagerrient: One-on-me meetings with an Employmond Specialist to develop career .goatis sod proptariob seerrh **stogies. • Sob Search Workshops: Joh preparation tools including applications, resume writing, practice interview sessions, ass well as computer skills trainiom. ▪ Rineurms: Phone banks. papicis cornputer access, and job leads. Pmfeasional einthing for interviews, bus tokens, Iwgiene items. work
• Transitioaal Job Opportunities: Paid transitional employment 0PPortmaties through Chrysalie Works, Staffing, and Roads—busincas divisions of Chrysalis Enterprises. in tandem with class instruction, elients begirt ci.se msatagemect mad carver commeling with an assigned Ereploymera Specielist. F.mpinyrucit Specialists are trained to formulate practical weer plans with clients, hone their work habits, and offer valuable encesuagranent to cultivate success on the job. They else refer dims to feB0111COS and services, within Chrysalis. as well as nocessary services pnwided brPattner agencies, such 115 tOn1P9nTrY 111311611#1 SlillbidanCe abuse and health services, and education.

2.2 Chryealis Enierprisee
Its those clients who arc unable to find employment through our self-directed program, chrism/is Wm paid ramitientil employment with 0,11r in-house Chrysalis Enterpriaes businesses to get them started °tithe road to permanent, outside Employment, transitionaljobs deliver meakafahde eva de.= and job sic& and /Nevi& a elosety supervised, supportive working auvhenracit that allows clients to prove themselvet as reliable, capable workers. • Chrysalis Works: a professional street maintenance company, providing work mi,,Ninnee in hush and eseyoling pick-up, landscaping, graffiti removal, hauling, and street sweeping.
• Chrysalis Rends: a lithe- abatement and freeway maintcnanue business offering transitional emplaymerrt hi individuals re-entering from the criminal justice system. • Chrysalis Staffing: a tempormy stalling agency that allows clients to re-eater the job merkst dusugh aliorwm, fall-dinc, and patt-time work assigrunarts in administrative office support: properly management, anti janitorial *evoker, emosig others. The ultimate goal for staffing assignments is that they will lead to long-term and permanent employment with the customer's company.

Nom that, as the program is launched in Anaheim, Chrysalis will work to build up contreeta acmes these Three businesses to support the program and tbc clients solved at the Madera) location_ The number ofjob slots and wark nppononities will depend on the scale of business development we Olt MAW over doe.
13 Job Retention
Finally, ooco clients have Rammed emplossnaut. Chryselis pinvides tingeing job-retention assistance for dab to ',gem how to manage and maintain a joh and move up the career ladder.

It begins as soon as clients enter our doors because we understand the value of maintaining employment in the trajectory of a pawn's career and pathway out of poverty. Additimudly, Employment Speefeases Dices enc-on-ene with new and employed clients to for.mulatc career goals and develop siralegjea for atiaining them_ Through this program, clients are nide (0 pin long-tom stability and make permanent personal and lifeetyk changes.

3.0 Hours of Operation
Program hours a operation will ini:narily he 1:0Clern to 5:00pm, Mondays through Fridays. bepending on funare eintirantri and proirarrmting offend and the tentin a the IAmmo Agreement, activities may include earlier morning and tater evening hums. as neoded.

CO Personnel
A9 described above: Chrysalis program involves a number of penainnol working toggher to sieve olicign. Titles of these personnel include Site Director, Employment Specialism, Client Services Coordinator, Clime Sureices Annie/tan; Volunteer & Program Coordinator, Business Development Manager, among others.

Theme statTmembers based in Anaheim will be support hy, and win* in col I olorrgoonwith, staff at Chrysalis' other offices. Mao complemerdary staff include personnel providing 2 imngo of nowt functions including. program gramagement. administrative (HR. IT, payroll, finance, ete.), fundraising, connounicsaions„ business development. and external relations. Many of ihese staff members will piniodleal ty visit the Anaheim off= for meetings and TO provide support.

Exclusive Lease Area

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MUM D

PROGRAM EVD(ET
Chrysalis Employment Program
Funding
- rnaholm
Budget
711118
iineiseke
Budgret
Y/1/10 - 540120
Government Grants 300,000 88% 300,000
Unrestricted Private Funding 211.210 421 22A26.1 62%
Total Funding 111.211 ULM
Expanse
Staff 205.320 65% 341,660 66%
PacililieS Maintenance 11,027 2% 14,997 2%
Office Equipment Leese 5,210 1% I 6,376 1%
Computer Equipment, Suppfres, and Service 21,355 41% 15,443 2% 16,640 3% 20.367 3%
Telephone 14,994 3% 18,340 3%
Insizenoe 7,2B6 1% 8,017 1%
Postage & Mailings 1,716 0% 1.167 0%
Publicity. Thwet, and Bniartalement 11,570 2% 13425 2% Program Eripe1ner5 - Client Awaialerrje 43,582 8% 70%436 11% Depreciation 62,500 12% 83,333 13%
Serninars 6. Training 3,029 1% 6,178 1%
Oftioe Supplies 2212 AN &OA a Total Expense nem mos fizaza jai Surp0:4130That

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EXHIBIT E

PARKING AREA
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= Council Mem ber
= ADA Parking
= 23 City Spaces
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