Lease Agreement -Kern County (Behavioral Health & Recovery Services)
LEASE AGREEMENT NO. ________________
This LEASE AGREEMENT is entered into on ________________, by and between the CITY OF BAKERSFIELD, a municipal corporation (referred to herein as “CITY”), and the COUNTY OF KERN, a political subdivision of the State of California (referred to herein as “COUNTY”).
R E C I T A L S
WHEREAS, Kern Behavioral Health and Recovery Services ( referred to herein as “BHRS”) is a department of C OUNTY that provides a combination of treatment and support services to a person with substance abuse issues and mental illness; and
WHEREAS, on September 23, 2020, CITY and COUNTY entered into Lease Agreement No. 2020 -172 to allow BHRS to lease a portion of CITY property located at 1900 East Brundage Lane (herein “Property”) , where CITY operates an emergency shelter for homeless residents; and
WHEREAS, Agreement No. 2020-172 expired on September 8, 2025; and
WHEREAS, CITY has entered into a separate agreement with Mercy House, a professional shelter operator (herein “Operator”); and
WHEREAS, the parties now desire to enter into a new Lease Agreement to continue the services being provided at the aforementioned Property until July 31, 2027.
NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and COUNTY mutually agree as follows:
1. DESCRIPTION OF PREMISES . CITY hereby leases to COUNTY, and COUNTY hereby leases from CITY the exclusive right to use two (2) office spaces located within the Property whose location is more specifically defined on the map attached hereto as Exhibit “A” (“Premises”); and
1.1 Said Premises shall include the right to park up to two (2) vehicles in the adjoining parking lot in the spaces designated by CITY.
1.2 Said Property shall be operated and maintained by Operator. BHRS shall work with the Operator to address routine janitorial, maintenance, and building operation issues.
1.3 Said Premises includes nonexclusive right to use the conference rooms and congregation rooms including the cafeteria, which may be used and accessed by BHRS and must be reserved in
consultation with the Operator.
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
1.4 Said Premises includes the right to utilize the staff lounge, patio, and employee parking area in consultation with Operator.
2. TERM/EFFECTIVE DATE . Unless terminated sooner, as set forth herein, this Lease Agreement shall terminate on July 31, 2027.
3. TERMINATION. This Lease Agreement may be terminated by any party upon sixty (60) days written notice, served by mail or personal service, to all other parties.
4. HOLD OVER. If COUNTY holds over after the expiration of the Term, with the express or implied consent of CITY, such holding over shall be a tenancy only from month to month and shall be governed by the terms, covenants, and conditions contained in this Lease Agreement.
5. RENT. In consideration for providing services to the emergency shelter clients, CITY will waive rent for the primary term of this Lease Agreement.
6. TAXES AND ASSESSMENTS . COUNTY agrees to pay all taxes, fees, or other levies placed or charged to the Premises, including but not limited to, Possessory Interest Taxes during COUNTY’s tenancy.
7. PERMITTED USES . COUNTY agrees the Premises shall be used for the purpose of providing professional services in support of the emergency homeless shelter’s clients, in accordance with COUNTY’s agreement with the Operator . COUNTY shall not engage in other uses of the Premises without express written permission from CITY.
8. NO USE THAT INCREASES INSURANCE RISK. Except as permitted in this Lease Agreement, COUNTY shall not use the Premises in any manner that affects the insurability of the Premises, or to cause cancellation of insurance policy. COUNTY further agrees not to keep on the Premises any material listed as hazardous, or permit to be kept, used, or sold thereon, anything prohibited by any policy of fire insurance covering the Premises. COUNTY shall comply with all requirements of insurers necessary to keep in force any fire and liability insurance covering the Premises/Temporary Premises and Property.
9. ABATEMENT OF NUISANCE. COUNTY shall not do or permit any act or thing which constitutes a nuisance or which may disturb the quiet enjoyment of CITY or any tenant of CITY within the Property or on adjacent or neighboring property. BHRS further agrees, within seventy-two (72) hours of receiving written notice from CITY that a nuisance exists, to abate the nuisance.
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
10. HAZARDOUS MATERIALS . COUNTY shall not keep on the Premises any material, including petroleum products, that is in any way hazardous except that which is contemplated for the purposes of this Lease Agreement. All such materials shall be stored, handled, and dispensed as required by applicable government regulations and laws. Any spills of such materials shall be promptly cleaned up by COUNTY, at its expense, in accordance with industry standards and all applicable government regulations and laws. COUNTY shall have a continuous duty during the term of this Lease Agreement to keep a record of all such materials on file with the Bakersfield Fire Department along with current copies of applicable government documents relating to storage, use and handling of such materials.
11. CONDITION OF PREMISES. COUNTY has inspected the Premises and knows the extent and condition thereof and accepts same in its present condition, subject to and including all defects, latent or patent.
12. UTILITY MODIFICATION. COUNTY agrees to pay any and all expenses that may be incurred in modifying the existing utilities for BHRS’ benefit, subject to prior review and approval by CITY prior to physical modifications of the Premises. The term “utilities” shall include, but is not limited to, gas, electricity, telephone, water and trash/refuse services, and internet.
13. UTILITY AND SERVICE OPERATION . CITY and/or the Operator, as determined by CITY, shall be responsible for the ongoing reasonable operating cost of gas, electricity, water, trash/refuse, and fire sprinkler system maintenance.
COUNTY shall be responsible for the ongoing operational costs of telephone, internet, data, and any additional utilities or services obtained and/or used by COUNTY.
14. RIGHT OF INSPECTION. COUNTY agrees to permit CITY to enter and inspect the Premises after providing COUNTY with twenty -four (24) hours’ notice of intent to do so or at any time in the event of an emergency or urgent health or safety situations.
15. SECURITY. COUNTY is responsible for the security of its property on the Premises, and CITY does not guarantee the security of COUNTY’s property at the Premises.
16. COMPLIANCE WITH LAW. COUNTY agrees to comply with all federal, state, county and local laws and ordinances now in force or hereafter promulgated by any legally constituted authority.
17. SIGNS. COUNTY agrees not to place any signs, displays, advertisements, or decorations on the Premises without permission from CITY.
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
18. ASSIGNMENT/SUBLETTING. Neither this Lease Agreement nor any rights, interests, duties, liabilities, obligations or responsibilities arising out of, concerning or related in any way to this Lease Agreement (including but not limited to, accounts, actions, causes of action, claims, damages, demands, liabilities, losses, obligations, or reckonings of any kind or nature whatsoever, for compensatory or exemplary and punitive damages, or declaratory, equitable or injunctive relief, whether based on contract, equity, tort or other theories of recovery provided for by the common or statutory law) may be assigned or transferred by any party. Any such assignment is prohibited and shall be unenforceable and otherwise null and void without the need for further action by the non -assigning party or parties.
19. INSURANCE. COUNTY self-insures as a matter of normal business practice and will continue to self -insure for the duration of this Lease Agreement in at least the minimum amounts necessary to meet reasonable risks.
COUNTY, upon request of CITY, shall forward documentation to CITY that demonstrates to CITY’s satisfaction that COUNTY self -insures as a matter of normal business practice. CITY will accept reasonable proof of self - insurance comparable to the above requirements. In addition to any other insurance or bond required under this Agreement, BHRS shall procure and maintain for the duration of this Agreement the following types and limits of insurance (“basic insurance requirements” herein):
19.1 Automobile liability insurance , providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall provide coverage for owned, non-owned and hired autos.
19.2 Broad form commercial general liability insurance , unless otherwise approved by the CITY’s Risk Manager, providing coverage on an occurrence basis for bodily injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall:
19.2.1 Provide contractual liability coverage for the terms of this Lease Agreement.
19.2.2 Provide unlimited products and completed operations coverage.
19.2.3 Contain an additional insured endorsement in favor of CITY, its mayor, councils, officers, agents, employees, and
volunteers.
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
19.2.4 All policies shall be written on a first -dollar coverage basis, or contain a deductible provision. Subject to advance approval by CITY, BHRS may utilize a Self -Insured Retention that the policy shall not contain language, whether added by
endorsement or contained in the Policy Conditions, that prohibits satisfaction of any Self -Insured provision or requirement by anyone other than the Named Insured, or by any means including other insurance or which is intended to defeat the intent or protection of an Additional Insured.
19.3 Workers’ compensation insurance , with statutory limits and employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall contain a waiver of subrogation in favor of CITY, its mayor, council, officers, agents, employees and designated volunteers.
19.4 Professional Liability (Errors and Omissions) Insurance appropriate to BHRS employees, with limits of no less than Two Million Dollars ($2,000,000) per occurrence or claim, $2,000,000 aggregate.
19.5 Property insurance against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision and the policy shall contain a waiver of subrogation in favor of CITY, its mayor, council, officers, agents, employees and designated volunteers.
19.6 Except for professional liability, all policies required of BHRS shall be primary insurance as to CITY, its mayor, council, officers, agents, employees and designated volunteers and any insurance or self - insurance maintained by CITY shall be excess of BHRS’s insurance and shall not contribute with it.
For claims made policies if any of the required policies provide coverage on a claims -made basis: The retroactive date must be shown and must be before the date of the contract or the beginning of contract work. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. If coverage is canceled or non-renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, BHRS must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.
19.7 Except for workers’ compensation, insurance is to be placed with insurers with a Best’s rating as approved by CITY’s Risk Manager, but in no event less than A -:VII. Any deductibles, self -insurance retentions or insurance in lesser amounts, or lack of certain types of Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
insurance otherwise required by this Lease Agreement, or insurance rated below Best’s A-:VII, must be declared prior to execution of this Lease Agreement and approved by CITY in writing.
19.8 Unless otherwise approved by CITY’s Risk Manager, all policies shall contain an endorsement providing CITY with thirty (30) days written notice of cancellation or material change in policy language or terms. All policies shall provide that there shall be continuing liability thereon, notwithstanding any recovery on any policy. Copies of policies shall be delivered to CITY on demand.
19.9 BHRS shall furnish CITY’s Risk Manager with a certificate of insurance and required endorsements evidencing the insurance required.
CITY may withdraw its offer of contract or cancel his contract if certificates of insurance and endorsements required have not been provided prior to the execution of this Lease Agreement.
19.10 Full compensation for all premiums which BHRS is required to pay on all the insurance described herein shall be considered as included in the prices paid for the various items of work to be performed under th is Lease Agreement, and no additional allowance will be made therefor or for additional premiums which may be required by extensions of the policies of insurance.
19.11 It is further understood and agreed by BHRS that its liability to CITY shall not in any way be limited to or affected by the amount of insurance obtained and carried by BHRS in connection with this Lease Agreement.
19.12 Unless otherwise approved by CITY, if any part of the work under this Lease Agreement is subcontracted, the “basic insurance
requirements” set forth above shall be provided by, or on behalf of, all subcontractors even if CITY has approved lesser insurance requirements for BHRS.
20. INDEMNIFICATION. Each party agrees to defend, hold harmless and indemnify the other Party (and the other party’s officers, employees, trustees, agents, successors, assigns, and invitees, collectively referred to as the “Indemnified Parties”) against all claims, suits, expenses (including staff time, reasonable attorneys’ fees, and fees of in -house Counsel), losses, penalties, fines, costs, and liability of any kind or nature whatsoever whether in contract, tort, or strict liability (including, but not limit ed to, personal injury, death at any time, and property damage) arising out of or made necessary by i) the indemnifying party’s breach of the terms of this Lease Agreement; ii) the negligent or willful acts or omissions of the indemnifying party and its Indemnified Parties in connection with performance of this Lease Agreement; and iii) the presence of the Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
indemnifying party and its Indemnified parties on the other party’s premises. In the event that any action or proceeding is brought against a party by reason of any claim or demand discussed in this Section 20, upon reasonable notice from the other party, the indemnifying party shall defend the action or proceeding at the other party’s expense through counsel reasonably satisfactory to the other party. The obligations to indemnify set forth in this Section 20 shall include reasonable attorneys’ fees, investigation costs, and all other reasonable costs, expenses, and liabilities from the first notice that any claim or demand is to be made. The indemnifying party’s obligations under this Section 20 shall apply regardless of whether the other party of its Indemnified Parties are actively or passively negligent, but shall not apply to any loss, liability, fine, penalty, forfeiture, cost or damage determined by an arbitrator or court of competent jurisdiction to be caused solely by the negligence or willful misconduct of the other party and its Indemnified Parties.
21. DEFAULT OR BREACH . Any default by COUNTY which shall continue, uncured, following thirty (30) days’ notice of default shall be deemed a breach of this Lease Agreement.
22. PRE-JUDGMENT INTEREST . In the event of a default by any party to this Lease Agreement, the non -defaulting party shall be allowed to recover interest on all damages at the legal rate from the date of the breach.
23. WAIVER OF BREACH. The failure of any party to enforce against another a provision of this Lease Agreement shall not constitute a waiver of that party’s right to enforce such a provision at a later time and shall not serve to vary the terms of this Lease Agreement.
24. GOVERNING LAW . The laws of the State of California will govern the validity of this Lease Agreement, its interpretation and performance. Any litigation arising in any way from this Lease Agreement shall be brought in Kern County, California.
25. TIME. Time is of the essence in this Lease Agreement.
26. NOTICES. All notices relative to this Lease Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed as follows:
CITY: CITY OF BAKERSFIELD
1600 Truxtun Avenue
Bakersfield, California 93301
COUNTY: COUNTY OF KERN
BEHAVIORAL HEALTH & RECOVERY SERVICES
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
2001 28th Street
Bakersfield, California 93301
COUNTY OF KERN
PROPERTY MANAGEMENT
1115 Truxtun Avenue, 3rd Floor
Bakersfield, California 93301
27. BINDING EFFECT. The rights and obligations of this Lease Agreement shall inure to the benefit of, and be binding upon, the parties to the Lease Agreement and their heirs, administrators, executors, personal representatives, successors and assigns.
28. OTHER RIGHTS RESERVED TO CITY. CITY reserves all rights in and with respect to the Premises not inconsistent with COUNTY’s use of the Premises as in this Lease Agreement provided, including, without limiting the generality of the foregoing, the right of CITY to enter upon the Premises for the purposes of posting notices of non -responsibility and keeping the same posted thereon.
29. SUBJECT TO EXISTING RIGHTS OF OTHERS . This Lease Agreement is subject to all existing easements, servitudes, licenses, and rights -of-way for roads, highways, telephone, telegraph and electric power lines, pipelines and other purposes, whether recorded or not.
30. LIENS AND ENCUMBRANCES . COUNTY shall keep the Premises and all structures and improvements situated thereon free from any liens or encumbrances arising out of any work performed, material furnished, or obligations incurred by BHRS, or from any other cause.
30.1 COUNTY shall not suffer or permit to be enforced against the Premises, or any part thereof, any mechanics, materialmen’s, contractor’s, or subcontractor’s liens arising from any claim growing out of the work of any construction, repair, restoration, replacement, improvement, maintenance, removal or any other claim or demand whatsoever that may arise, and COUNTY shall pay or cause to be paid all such liens, claims, or demands before any action is brought to enforce the same against the Premises; and COUNTY agrees to indemnify and hold CITY and Premises free and harmless from all liability for any and all such liens, claims, and demands together with reasonable attorney’s fees and all costs and expenses in connection with any action.
30.2 If COUNTY fails to discharge such liens or furnish a bond against the foreclosure of such lien, COUNTY may, but is not obligated to, discharge the same or take such other action as COUNTY deems necessary to prevent a judgment or foreclosure upon said lien from Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
being executed against the Premises, and all cost and expenses, including reasonable attorneys’ fees incurred by COUNTY within thirty (30) days after demand, and if unpaid, said failure by COUNTY may be treated by COUNTY as a material breach of this Lease Agreement enabling COUNTY, at its option, to terminate this Lease Agreement. The remedies set forth in this section are cumulative and shall not limit COUNTY’s right to purpose other remedies.
31. GENDER NEUTRAL. Any reference to gender in this Lease Agreement shall be deemed gender neutral.
32. MERGER AND MODIFICATION . Its terms are intended by the parties as a final expression of their agreement with respect to such terms as are included herein and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. The parties further intend this Lease Agreement constitutes the complete and exclusive statement of its terms and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding involving this Lease Agreement.
33. CORPORATE AUTHORITY. Each individual signing this Agreement on behalf of entities represents and warrants that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Lease Agreement.
34. NO MERGER OF ESTATES . The voluntary surrender of this Lease Agreement by COUNTY, or a mutual cancellation of this Lease Agreement, shall not operate as a merger, and shall, at the option of CITY, terminate all or any existing subleases or sub -tenancies or may, at the option of CITY, operate as an assignment to CITY of any or all such subleases or sub-tenancies.
35. SURVIVAL OF REPRESENTATIONS . All representations, warranties, and covenants of the parties set forth herein shall survive the termination of this Lease Agreement.
36. REMEDIES. The remedies provided in this Lease Agreement are cumulative and are in addition to any other remedies in law or equity which may be available to COUNTY. The election of one or more remedies shall not bar the use of other remedies unless the circumstances make the remedies incompatible.
37. EXECUTION. This Lease Agreement is effective upon the date first written above and is the product of negotiation and all parties are equally responsible for authorship of this Lease Agreement. Section 1654 of the California Civil Code shall not apply to the interpretation of this Lease Agreement.
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160 Lease Agreement -Kern County (Behavioral Health & Recovery Services)
38. EXHIBITS. In the event of a conflict between the terms, conditions or specifications set forth in this Lease Agreement and those in exhibits attached hereto, the terms, conditions, or specifications set forth in this Lease Agreement shall prevail. All exhibits to which reference is made in this Lease Agreement are deemed incorporated in this Lease Agreement, whether or not actually attached.
39. COUNTERPARTS. This Lease Agreement may be executed in any number of counterparts, each of which shall be considered as an original and be effective as such.
IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed as of the date first written above.
“CITY” “CONTRACTOR”
CITY OF BAKERSFIELD COUNTY OF KERN
GENERAL SERVICES DIVISION
By: ____________________________ By: ____________________________
KAREN GOH MICHELLE BURNS-LUSICH
Mayor Chief General Services Officer
APPROVED AS TO CONTENT: APPROVED AS TO CONTENT:
KERN BEHAVIORAL HEALTH
DEVELOPMENT SERVICES DEPARTMENT AND RECOVERY SERVICES
By: ____________________________ By: ____________________________
PHILLIP BURNS ALISON BURROWES
Director Director
APPROVED AS TO FORM:
City Attorney: ____________________________ Deputy County Counsel: ____________________________ VIRGINIA GENNARO JOSHUA H. RUDNICK
Insurance:____________
COUNTERSIGNED:
Finance Director: ________________________
RANDY MCKEEGAN
VG/blf
S:\Economic&CommunityDevelop\Agr\25-26\KBHRS Lease.doc
Docusign Envelope ID: 33B331F8-F6AA-84EE-82E9-089D87D29160
Certificate Of Completion
Envelope Id: 33B331F8-F6AA-84EE-82E9-089D87D29160
Status: Completed
Subject: Complete with Docusign: KBHRS Lease FY26-27.pdf Source Envelope:
Document Pages: 10
Signatures: 4
Envelope Originator:
Certificate Pages: 5
Initials: 0
City Clerk's Office
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[email protected]
IP Address: 174.46.226.5
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7/14/2026 9:17:21 AM
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Michelle Burns-Lusich
[email protected]
Chief General Services Officer
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Alison Burrowes
[email protected]
Director
Kern Behavioral Health
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Joshua H. Rudnick
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Phil Burns
[email protected]
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ID: 699c7fb4-4c8c-4032-8353-e44088825719
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ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Bakersfield (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system.
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All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 6/28/2022 10:51:05 AM Parties agreed to: Michelle Burns-Lusich, Alison Burrowes, Joshua H. Rudnick, Phil Burns Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.
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