AGENDA REPORT
Meeting Date: April 16, 2024
Item Number:
To: Honorable Mayor and City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: AMENDMENT OF OFFICE LEASE BY AND BETWEEN THE CITY OF BEVERLY HILLS AND THE MAPLE COUNSELING CENTER AT 1945
SOUTH LA CIENEGA BOULEVARD; AND
A ONE-TIME APPROPRIATION FROM THE CAPITAL ASSETS
FUND TOTALING $119,037.86
Attachment: 1. Amendment of Office Lease
RECOMMENDATION
Staff recommends City Council approve the Amendment of Office Lease by and between the City of Beverly Hills and The Maple Counseling Center at 1945 South La Cienega Drive. Staff also recommends City Council approve a one-time Capital Assets Fund appropriation of $119,037.86 related to the Amendment for a one-time reimbursement to The Maple Counseling Center for work performed at 1945 South La Cienega Boulevard.
INTRODUCTION
The proposed Amendment of Office Lease with The Maple Counseling Center would memorialize the term commencement date and provide a one-time reimbursement payment to The Maple Counseling Center for improvements on behalf of the City.
DISCUSSION
The City entered into a lease with The Maple Counseling Center for a portion of office space at 1945 South La Cienega in June 2019. Prior to delivering the premises to the Tenant, the City was required to complete a set of landlord improvement work at the City’s cost. The premises was delivered to the Tenant on August 16, 2021. The Tenant, at its expense, then completed certain tenant improvements prior to occupying the space. As the tenant completed its improvements, it also performed work that was required to be done by the City.
Meeting Date: April 16, 2024
The cost of most work is related to HVAC duct distribution and fire alarm system installation. With regard to the HVAC duct distribution, during the construction period, both parties determined it was more efficient for the tenant to repair and reconfigure ductwork in accordance with Tenant’s interior layout rather than for the City to pressure test and patch/repair existing ductwork, as was originally stated in the lease. With regard to installation of a fire alarm system, the City of Los Angeles (the applicable governing jurisdiction of the subject property) required the tenant to install a fire alarm system as part of the tenant construction project. While the City was required to perform all code-required upgrades to building systems, City of Los Angeles did not require a fire alarm system as part of the City landlord construction project. Both parties have agreed that because the fire alarm system provides additional safety measures and serves the entire building, including areas outside of the Tenant’s leased premises, both parties would split the costs of the fire alarm installation.
In consideration of these factors, the proposed Amendment of Office Lease includes the following key terms:
• Term Commencement Date: The term commencement date, when the premises was delivered, shall be memorialized as August 16, 2021; and • One-time Reimbursement: The City shall pay The Maple Counseling Center a one-time amount of $119,037.86 in consideration of costs incurred by the tenant for improvements performed on the City’s behalf.
FISCAL IMPACT
The proposed Amendment of Office Lease includes a one-time payment of $119,037.86 from the City to The Maple Counseling Center within 30 days of approval of the amendment.
Staff recommends City Council approve an appropriation from the Capital Assets Fund of $119,037.86 and recorded in the Capital Assets Fund 405 Capital Improvement Program account for Tenant Improvements (40505901-850400-00349).
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
B0785-0001\2935679v2.doc
AMENDMENT OF OFFICE LEASE
THIS AMENDMENT OF OFFICE LEASE (this “Amendment”) is dated as of _________, 2024 (the “Effective Date”), and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and THE MAPLE COUNSELING CENTER, a California nonprofit public benefit corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Office Lease dated June 18, 2019 (the “Lease”), pursuant to which City agreed to lease and demise to Tenant, and Tenant agreed to lease and accept from City, a portion of the building at 1945 South La Cienega Boulevard, in the City of Los Angeles, California (the “Building”), as more particularly described in the Lease (the “Initial Premises”).
B. A Memorandum of Lease dated June 18, 2019 was recorded on June 28, 2019 as Document Number 20190626700 in the Official Records of the County of Los Angeles.
C. Landlord and Tenant desire to amend the Lease.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing recitals and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
1. Term Commencement Date. The Term Commencement date is August 16, 2021 (and the Premises were delivered on that date).
2. Condition. The Premises have not been inspected by a Certified Access Specialist (CASp). A Certified Access Specialist (CASp) can inspect the Premises and determine whether the Premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the Premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the Premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.
In that regard, the parties agree that in the event Tenant requests a CASp inspection, Tenant shall pay any such inspection fees and the cost of making any such repairs.
3. Monthly Base Rent. Monthly Rent for the Premises shall be as follows:
Period Monthly Rent
2/16/2023 - 2/15/2024 $0.00
2/16/2024 - 2/15/2025 $5,888.00
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
2/16/2025 - 2/15/2026 $8,832.00
2/16/2026 - 2/15/2027 $11,776.00
2/16/2027 - 2/15/2028 $14,720.00
2/16/2028 - 2/15/2029 $17,664.00
2/16/2029 - 2/15/2033 $30,167.60
If the Term of this Lease commences on a day other than the first day of a calendar month or ends on a day other than the last day of a calendar month, then the rent for such periods shall be prorated on a daily basis in the proportion that the number of days this Lease is in effect during such period bears to the actual number of days in such month, and such rent shall be paid at the commencement of such period.
3. Payment by Landlord; Indemnity by Tenant. Within thirty (30) days after the date of this Amendment, Landlord shall pay to Tenant the sum of One hundred Nineteen Thousand Thirty-Seven and 86/100 Dollars ($119,037.86) as reimbursements for costs incurred by Tenant to make improvements heretofore approved by Landlord.
Tenant shall indemnify, defend and hold Landlord harmless from and against any and all claims, liabilities, damages, losses, and expenses (including attorneys’ fees) caused by, or relating to, or arising by reason of any failure by Tenant to pay prevailing wages and otherwise comply with California Labor Code Sections 1720 et seq. with respect to any improvements made by Tenant.
4. Counterparts. This Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. This Amendment must be executed through the e-signature application known as DocuSign, and such electronic signatures shall be considered binding upon the parties.
5. City Manager Authority. The City Manager of Landlord shall have the authority to execute this Amendment of Memorandum of Lease.
6. Recordable Amendment of Memorandum of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver to Landlord a duly acknowledged recordable original counterpart of an Amendment of Memorandum of Lease in the form attached to this Amendment as Exhibit “A”.
7. Brokers. Each party represents to the other that no brokers were involved in connection with this Amendment. Landlord shall defend, indemnify and hold Tenant harmless from any claims, costs, expenses or liabilities for any compensation, commission or charges to realtors, brokers or agents claiming by, through or on behalf of Landlord with respect to this Amendment and/or the negotiation hereof. Tenant shall defend, indemnify and hold Landlord harmless from any claims, costs, expenses or liabilities for any compensation, commission or charges to realtors, brokers or agents claiming by, through or on behalf of Tenant with respect to this Amendment and/or the negotiation hereof.
8. Time of Essence. Time is of the essence of every provision of this Amendment in which time is a factor.
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
LANDLORD: CITY OF BEVERLY HILLS
By:
Lester J. Friedman, Mayor
ATTEST:
____________________________
Huma Ahmed, City Clerk
APPROVED AS TO FORM:
______________________________
Laurence S. Wiener, City Attorney
APPROVED AS TO CONTENT:
______________________________
Nancy Hunt-Coffey, City Manager
TENANT: THE MAPLE COUNSELING CENTER
By:
Varina Bleil, Chief Executive Officer
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
EXHIBIT “A”
FORM OF AMENDMENT OF MEMORANDUM OF LEASE
(Attached.)
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
City of Beverly Hills
455 North Rexford Drive
Beverly Hills, California 90210
Attn: City Clerk
(Space Above Line For Recorder’s Use)
Exempt from Recording Fees under California Government Code 27383.
AMENDMENT OF MEMORANDUM OF LEASE
THIS AMENDMENT OF MEMORANDUM OF LEASE (this “Memorandum Amendment”) is dated as of _________, 2024, and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and THE MAPLE COUNSELING CENTER, a California nonprofit public benefit corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Office Lease dated June 18, 2019 (the “Lease”), pursuant to which City agreed to lease and demise to Tenant, and Tenant agreed to lease and accept from City, a portion of the building at 1945 South La Cienega Boulevard, in the City of Los Angeles, California (the “Building”), as more particularly described in the Lease (the “Premises”).
B. A Memorandum of Lease dated June 18, 2019 was recorded on June 28, 2019 as Document Number 20190626700 in the Official Records of the County of Los Angeles.
C. Landlord and Tenant have entered into an Amendment of Office Lease (“Amendment”) dated substantially concurrently herewith.
D. Landlord and Tenant desire to record this Memorandum Amendment in order to amend the existing Memorandum, and comply with California law as to the recording of municipal leases.
A G R E E M E N T
The existing Memorandum is hereby amended to reflect that the Lease has been as amended by the Amendment, which is incorporated herein by this reference.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum Amendment.
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
LANDLORD: CITY OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, City Manager
TENANT: THE MAPLE COUNSELING CENTER
By:
Varina Bleil, Chief Executive Officer
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 B0785-0001\2935679v2.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
DocuSign Envelope ID: 88A19A58-F10B-4BB5-AEC6-65F1D4613748 Certificate Of Completion
Envelope Id: 88A19A58F10B4BB5AEC665F1D4613748 Status: Sent Subject: Complete with DocuSign: Amendment of Office Lease - The Maple Counseling Center.pdf Source Envelope:
Document Pages: 8 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
3/28/2024 1:47:24 PM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Varina Bleil
[email protected]
Executive Director
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 209.214.209.2
Sent: 3/28/2024 1:56:14 PM
Viewed: 3/29/2024 6:42:48 PM
Signed: 3/29/2024 6:42:54 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Bruce Galloway for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.235.180
Sent: 3/29/2024 6:42:56 PM
Viewed: 3/30/2024 9:17:01 AM
Signed: 3/30/2024 9:17:08 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 3/30/2024 9:17:10 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lester J. Friedman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Signer Events Signature Timestamp
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
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Carbon Copy Events Status Timestamp
John Jameson
[email protected]
President
The Jameson Group
Security Level: Email, Account Authentication
(None)
Sent: 3/28/2024 1:56:14 PM
Viewed: 3/28/2024 3:04:01 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 3/28/2024 1:56:15 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Myra Lurie
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 3/28/2024 1:56:15 PM
Viewed: 3/29/2024 5:34:32 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jessika Vasquez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Keith Sterling
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Carbon Copy Events Status Timestamp
Megan Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 3/28/2024 1:56:15 PM
Payment Events Status Timestamps