CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 5
Check Vendor # Vendor Name Issue Date Check Amount
00012256 E04949 CEDILLO PADILLA, JESSICA 09/22/2022 $646.90 00012257 E03304 CHUMACERO, DEANNA M 09/22/2022 $1,340.60 00012258 E04611 CROSS, AMANDA D 09/22/2022 $1,915.18 00012259 E04688 DELGADO CHAVEZ, MARLY 09/22/2022 $76.03 00012260 E04653 DIAZ, GABRIELA 09/22/2022 $574.68 00012261 E04794 DINH, AARON D 09/22/2022 $200.67 00012262 E04679 FREEMAN, MARK C 09/22/2022 $3,665.42 00012263 E05019 FUENTES, DIANA 09/22/2022 $345.99 00012264 E04481 GARCIA, JARED D 09/22/2022 $622.23 00012265 E04253 GARCIA, VANESSA L 09/22/2022 $165.94 00012266 E03337 GODDARD, JENNIFER DANIELLE 09/22/2022 $2,762.35 00012267 E03877 GOMEZ, STEVEN E 09/22/2022 $911.30 00012268 E04982 GONZALEZ, KATHERYN 09/22/2022 $722.64 00012269 E00940 GRANT, JACOB R 09/22/2022 $2,564.63 00012270 E04967 HASHEMI, SETAREH 09/22/2022 $593.98 00012271 E05032 LEE, JASON J 09/22/2022 $359.83 00012272 E04682 LOPEZ, KALYSTA N 09/22/2022 $76.12 00012273 E03603 MA AE, ELAINE M 09/22/2022 $3,101.93 00012274 E01552 MEDINA, JESUS 09/22/2022 $1,875.42 00012275 E00455 MEDINA, JUAN 09/22/2022 $2,424.11 00012276 E05038 MILLER, RUBY C 09/22/2022 $138.40 00012277 E02808 MONTANCHEZ, JOHN A 09/22/2022 $5,673.47 00012278 E05022 MUNOZ, JULIANNE I 09/22/2022 $114.04 00012279 E04947 NGUYEN, ALEXANDER H 09/22/2022 $408.27 00012280 E05052 NGUYEN, RYAN N 09/22/2022 $521.11 00012281 E04391 NICHOLAS, NOEL N 09/22/2022 $1,324.87 00012282 E04931 NODAL, NATALIE 09/22/2022 $179.91 00012283 E00785 OCADIZ HERNANDEZ, GABRIELA 09/22/2022 $5,272.30 00012284 E04965 ORDUNO, SAMANTHA 09/22/2022 $435.95 00012285 E03881 PANGAN, CHRISTIAN 09/22/2022 $26.03 00012286 E03361 PELAYO, JANET E 09/22/2022 $3,923.44 00012287 E04777 PHAN, EDOUARD T 09/22/2022 $172.14 00012288 E03893 PICKRELL, ARIELLE 09/22/2022 $77.81 00012289 E04463 PUAILOA, SHADY S 09/22/2022 $669.51 00012290 E02754 REYNOSO, SUGEIRY 09/22/2022 $2,661.87 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 6
Check Vendor # Vendor Name Issue Date Check Amount
00012291 E04646 RIVERA, CATIA J 09/22/2022 $211.96 00012292 E03362 ROMERO, MARINA Y 09/22/2022 $2,097.94 00012293 E04684 ROSALES, MARIA D 09/22/2022 $433.38 00012294 E04614 ROSAS, TANYA 09/22/2022 $250.88 00012295 E05025 SABGA, INGRID D 09/22/2022 $549.76 00012296 E04620 SALDIVAR, DIANA 09/22/2022 $221.88 00012297 E01893 SAUCEDO, DANA MARIE 09/22/2022 $2,054.23 00012298 E00925 SCHLUMPBERGER, EMERON J 09/22/2022 $1,071.89 00012299 E04926 SERNA, SAMANTHA M 09/22/2022 $360.61 00012300 E05016 SIERRA, AILEEN S 09/22/2022 $477.47 00012301 E04795 SIEVE, MYCHAELLA J 09/22/2022 $377.31 00012302 E03895 SMITH, REBECCA S 09/22/2022 $340.63 00012303 E05030 TRIGGS, MARY SHANNON 09/22/2022 $112.02 00012304 E04924 TU, KATHY 09/22/2022 $249.11 00012305 E01396 VALDIVIA, CLAUDIA 09/22/2022 $3,475.18 00012306 E00015 VAN SICKLE, JEFFREY 09/22/2022 $2,714.18 00012307 E04687 VARGAS, SAMANTHA B 09/22/2022 $455.01 00012308 E05046 VARGAS-CABRERA, ARMANDO 09/22/2022 $262.95 00012309 E05017 VARGAS-SERNA, KELLY 09/22/2022 $547.15 00012310 E04478 VENCES, JOSHUA 09/22/2022 $197.01 00012311 E03085 VICTORIA, PAUL E 09/22/2022 $1,513.09 00012312 E05018 VILLEGAS, MIA A 09/22/2022 $193.75 00012313 E04609 VIRAMONTES, JACOB D 09/22/2022 $315.14 00012314 E04274 WILMES, DAVID M 09/22/2022 $757.18 00012315 E04734 ACOSTA, GIOVANNI 09/22/2022 $2,762.18 00012316 E03819 ALAMILLO, MARCOS R 09/22/2022 $4,091.19 00012317 E03712 ALARCON, CLAUDIA 09/22/2022 $7,447.72 00012318 E05029 ALARID, DAVID M 09/22/2022 $1,885.69 00012319 E03616 ALCARAZ, MARIA A 09/22/2022 $2,558.37 00012320 E00121 ALLISON, WILLIAM 09/22/2022 $8,206.41 00012321 E04873 ALVARADO, MADELINE M 09/22/2022 $1,812.95 00012322 E04080 ALVAREZ BROWN, RICHARD A 09/22/2022 $3,542.71 00012323 E05028 AMAYA, JOSE J 09/22/2022 $1,886.90 00012324 E03011 ANDERSON, BOBBY B 09/22/2022 $3,804.87 00012325 E05040 ARCHULETA, ANDREW M 09/22/2022 $1,551.38 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 7
Check Vendor # Vendor Name Issue Date Check Amount
00012326 E01234 ARELLANO, PEDRO R 09/22/2022 $4,228.43 00012327 E04875 ARROYO, SANDRA M 09/22/2022 $2,051.45 00012328 E04497 ASHBAUGH, TIMOTHY R 09/22/2022 $3,535.16 00012329 E03397 ASHBY, PAUL W 09/22/2022 $3,923.02 00012330 E04719 ATWOOD, MARIA S 09/22/2022 $2,670.28 00012331 E04613 AVALOS JR, FRANCISCO 09/22/2022 $2,839.12 00012332 E04550 BAEK, SHARON S 09/22/2022 $2,297.14 00012333 E05062 BAEZ, JASMIN 09/22/2022 $480.92 00012334 E04209 BAINTO, JUDY A 09/22/2022 $564.19 00012335 E04778 BAKER, COLLIN E 09/22/2022 $3,841.72 00012336 E03005 BANKSON, JOHN F 09/22/2022 $4,409.32 00012337 E04645 BARRAZA, RENE 09/22/2022 $3,770.10 00012338 E05041 BARRIOS-ROA, JAYDE D. 09/22/2022 $1,791.77 00012339 E04432 BEHZAD, JOSHUA K 09/22/2022 $3,025.73 00012340 E04951 BELLO, ANGELICA 09/22/2022 $2,140.83 00012341 E03006 BELTHIUS, LISA A 09/22/2022 $92.87 00012342 E04976 BELTHIUS, TYLER E 09/22/2022 $484.39 00012343 E04753 BERENGER, BEAU A 09/22/2022 $5,422.53 00012344 E03296 BERESFORD, EVAN S 09/22/2022 $4,704.79 00012345 E01604 BERLETH, RYAN S 09/22/2022 $4,560.51 00012346 E03443 BLUM, JAMES A 09/22/2022 $3,525.46 00012347 E04149 BOGUE, SUMMER A 09/22/2022 $2,915.71 00012348 E03363 BOWEN, GENA M 09/22/2022 $2,118.13 00012349 E04767 BOWMAN, TROY F 09/22/2022 $2,770.65 00012350 E04963 BOYENS III, ROBERT 09/22/2022 $3,215.01 00012351 E00946 BRAME, KAREN D 09/22/2022 $2,205.63 00012352 E04803 BRANTNER, BRITTANEE N 09/22/2022 $1,765.62 00012353 E03380 BROWN, JEFFREY A 09/22/2022 $5,803.93 00012354 E03968 BRUNICK, CARISSA L 09/22/2022 $2,110.25 00012355 E02031 BURILLO, RICHARD O 09/22/2022 $6,394.55 00012356 E03972 BUSTILLOS, RYAN V 09/22/2022 $4,004.00 00012357 E03964 CAMARA, DANIEL A 09/22/2022 $3,155.23 00012358 E04074 CAMPOS, JESENIA 09/22/2022 $2,225.21 00012359 E03739 CAPPS, THOMAS A 09/22/2022 $5,187.17 00012360 E05002 CARBALLO, MILTON A 09/22/2022 $2,613.80 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 8
Check Vendor # Vendor Name Issue Date Check Amount
00012361 E02372 CENTENO, JUAN C 09/22/2022 $5,307.13 00012362 E03607 CHANG, DAVID Y H 09/22/2022 $3,715.79 00012363 E04867 CHAPPELL, SHYLER R.D. 09/22/2022 $2,193.36 00012364 E03481 CHAURAN HAIRGROVE, TAMMY L 09/22/2022 $2,470.18 00012365 E04498 CHEATHAM, JEROME L 09/22/2022 $3,555.68 00012366 E01541 CHO, HAN J 09/22/2022 $5,892.71 00012367 E03423 CHOWDHURY, JACINTA F 09/22/2022 $1,838.68 00012368 E04414 CHUNG, RANDY G 09/22/2022 $323.86 00012369 E00003 CIBOSKY, COURTNEY P 09/22/2022 $3,361.02 00012370 E04539 CLASBY JR, BRIAN M 09/22/2022 $108.65 00012371 E04062 COOPMAN, AARON J 09/22/2022 $3,370.68 00012372 E04872 CORNETT, KRISTINA L 09/22/2022 $1,607.03 00012373 E04832 CORTEZ JR, DARRYL B 09/22/2022 $2,888.12 00012374 E04666 CORTEZ, JULIO C 09/22/2022 $3,071.11 00012375 E01875 COUGHRAN, ADAM B 09/22/2022 $0.00 00012376 E01796 COULTER, GARY L 09/22/2022 $3,299.21 00012377 E04555 CRUZ, REYNA 09/22/2022 $2,124.23 00012378 E01364 DALTON, BRIAN D 09/22/2022 $4,875.63 00012379 E04874 DANG, JOHN 09/22/2022 $1,175.99 00012380 E00126 DANIELEY III, CHARLIE 09/22/2022 $41,660.39 00012381 E01951 DANIELSON, PAUL E 09/22/2022 $1,937.40 00012382 E01968 DARE, THOMAS R 09/22/2022 $10,451.46 00012383 E04503 DAVILA, ISAAC 09/22/2022 $3,234.14 00012384 E04431 DE ALMEIDA LOPES, NICHOLAS A 09/22/2022 $3,503.78 00012385 E04731 DE PADUA, TANNER C 09/22/2022 $3,708.35 00012386 E03691 DELGADO JR, JUAN L 09/22/2022 $4,690.55 00012387 E03395 DIX, JENNIFER A 09/22/2022 $3,321.37 00012388 E02313 DOSCHER, RONALD A 09/22/2022 $2,988.19 00012389 E04586 DOVEAS, CHRISTOPHER C 09/22/2022 $378.56 00012390 E04281 DRISCOLL, RUSSELL B 09/22/2022 $2,193.03 00012391 E04844 DUARTE, TAYLOR M 09/22/2022 $3,201.29 00012392 E04720 DUDLEY, BROC D 09/22/2022 $2,739.47 00012393 E03625 EARLE, CHRISTOPHER M 09/22/2022 $3,715.46 00012394 E03740 EL FARRA, AMIR A 09/22/2022 $5,263.77 00012395 E03927 ELHAMI, MICHAEL K 09/22/2022 $29,626.01 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 9
Check Vendor # Vendor Name Issue Date Check Amount
00012396 E03933 ELIZONDO, BENJAMIN M 09/22/2022 $3,697.84 00012397 E04016 ELIZONDO, FLOR DE LIS 09/22/2022 $2,726.04 00012398 E01598 ELSOUSOU, HELENA 09/22/2022 $3,409.28 00012399 E02734 ESCALANTE, OTTO J 09/22/2022 $5,623.14 00012400 E04334 ESCOBEDO, JOSHUA N 09/22/2022 $4,348.29 00012401 E02724 ESTLOW, STEPHEN C 09/22/2022 $3,711.17 00012402 E04358 ESTRADA MONSANTO, MICHELLE N 09/22/2022 $3,790.22 00012403 E04748 FAJARDO, JESUS 09/22/2022 $0.00 00012404 E04303 FERREIRA JR, HECTOR 09/22/2022 $3,345.54 00012405 E01663 FERRIN, KORY C 09/22/2022 $4,550.73 00012406 E03976 FIGUEREDO, GEORGE R 09/22/2022 $3,584.50 00012407 E02838 FISCHER, JAMES D 09/22/2022 $226.59 00012408 E04774 FLINN, PATRICIA C 09/22/2022 $2,836.74 00012409 E02887 FOSTER, VICTORIA M 09/22/2022 $1,574.75 00012410 E04033 FRANCISCO, KATHERINE M 09/22/2022 $1,999.76 00012411 E02963 FRANKS, JAMES D 09/22/2022 $5,023.11 00012412 E04747 FRESENIUS, ROBERT D 09/22/2022 $3,930.76 00012413 E00903 FRUTOS, VERONICA 09/22/2022 $2,170.93 00012414 E04729 GARCIA, JOSEPH A 09/22/2022 $2,969.84 00012415 E03086 GARCIA, PETE 09/22/2022 $4,828.98 00012416 E03659 GARNER, AMANDA B 09/22/2022 $1,229.42 00012417 E02606 GEORGE, DAVID L 09/22/2022 $2,284.40 00012418 E04351 GERDIN, MICHAEL E 09/22/2022 $3,301.74 00012419 E04542 GIFFORD, ROBERT J 09/22/2022 $3,938.58 00012420 E04658 GIRGENTI, BRIAN C 09/22/2022 $4,465.85 00012421 E04401 GLEASON, SEAN M 09/22/2022 $3,529.41 00012422 E04917 GOMEZ, JESUS 09/22/2022 $2,392.57 00012423 E04863 GONZALEZ JR, GONZALO 09/22/2022 $3,256.95 00012424 E05003 HA, DANNY 09/22/2022 $2,893.88 00012425 E04732 HADDEN, TRAVIS J 09/22/2022 $2,851.32 00012426 E04787 HALEY, KYLE N 09/22/2022 $2,670.36 00012427 E03527 HALLER, TROY 09/22/2022 $5,432.66 00012428 E03402 HEINE, STEVEN H 09/22/2022 $4,868.61 00012429 E02469 HERRERA, JOSE D 09/22/2022 $4,389.54 00012430 E04244 HINGCO, PINKY C 09/22/2022 $2,515.97 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 10
Check Vendor # Vendor Name Issue Date Check Amount
00012431 E03713 HOLLOWAY, WILLIAM T 09/22/2022 $4,095.85 00012432 E04739 HOWARD, JASON A 09/22/2022 $3,681.88 00012433 E04654 HURLEY, KIRK P 09/22/2022 $3,292.54 00012434 E04089 HUTCHINS, DONALD J 09/22/2022 $4,172.02 00012435 E03815 HUYNH, AI KELLY 09/22/2022 $2,372.50 00012436 E03559 HUYNH, THI A 09/22/2022 $3,404.47 00012437 E04915 ITURRALDE, JENNIFER L 09/22/2022 $1,146.05 00012438 E04583 JENSEN, MICHAEL J 09/22/2022 $4,811.34 00012439 E02935 JENSEN, NICKOLAS K 09/22/2022 $4,300.52 00012440 E04587 JIMENEZ JR, EFRAIN A 09/22/2022 $3,808.90 00012441 E04781 JIMENEZ TAVAREZ, SERGIO J 09/22/2022 $2,320.96 00012442 E04655 JOHNSON, CODY M 09/22/2022 $2,932.33 00012443 E03368 JOHNSON, JASON L 09/22/2022 $4,020.00 00012444 E03831 JORDAN, GERALD F 09/22/2022 $4,026.56 00012445 E04610 JORDAN, VICTORIA A 09/22/2022 $226.11 00012446 E04444 JULIENNE, PATRICK R 09/22/2022 $3,413.51 00012447 E04559 KELLEY, KRISTOFER D 09/22/2022 $5,320.47 00012448 E04353 KEUILIAN, SHELBY 09/22/2022 $3,094.17 00012449 E04663 KIM, CHAD B 09/22/2022 $2,889.60 00012450 E04538 KIMBERLY, ALLYSON L 09/22/2022 $2,016.15 00012451 E03932 KIVLER, ROBERT J 09/22/2022 $2,814.52 00012452 E03389 KOLANO, JOSEPH L 09/22/2022 $2,784.96 00012453 E03294 KOVACS, LEA K 09/22/2022 $3,916.39 00012454 E05000 KOVACS, TIMOTHY M 09/22/2022 $2,909.39 00012455 E04669 KOVACS, TIMOTHY P 09/22/2022 $5,001.35 00012456 E03484 KUNKEL, PETER M 09/22/2022 $4,272.42 00012457 E04804 LADD, LAUREN M 09/22/2022 $2,635.76 00012458 E04857 LANG, MICHAEL J 09/22/2022 $4,037.64 00012459 E03511 LAZENBY, NICHOLAS A 09/22/2022 $5,063.57 00012460 E04877 LE, BAO TINH THI 09/22/2022 $1,954.25 00012461 E04021 LEE, RAPHAEL M 09/22/2022 $3,177.76 00012462 E04970 LEIVA, EDUARDO C 09/22/2022 $5,753.38 00012463 E03488 LEYVA, ERICK 09/22/2022 $4,678.28 00012464 E04541 LINK, DEREK M 09/22/2022 $4,896.81 00012465 E00030 LOERA JR, RAFAEL 09/22/2022 $5,437.64 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 11
Check Vendor # Vendor Name Issue Date Check Amount
00012466 E05033 LOFFLER, CHARLES H 09/22/2022 $5,311.33 00012467 E02645 LOPEZ, DAVID 09/22/2022 $3,923.52 00012468 E05066 LORD, MARK A 09/22/2022 $4,741.08 00012469 E04581 LOWEN, BRADLEY A 09/22/2022 $3,521.16 00012470 E04761 LUCATERO, JESSE A 09/22/2022 $2,858.22 00012471 E00027 LUKAS, STEVEN W 09/22/2022 $2,220.23 00012472 E04048 LUX, ROBERT D 09/22/2022 $2,702.10 00012473 E03663 LUX, RYAN M 09/22/2022 $4,543.77 00012474 E04772 LY, LINDALINH THU 09/22/2022 $1,626.44 00012475 E04661 MACHUCA, ROBERTO 09/22/2022 $6,724.78 00012476 E03752 MACY, TAYLOR A 09/22/2022 $3,598.30 00012477 E04532 MANIACI, GIANLUCA F 09/22/2022 $4,456.31 00012478 E04435 MARCHAND, MATTHEW P 09/22/2022 $5,554.75 00012479 E01359 MARTINEZ JR, MARIO 09/22/2022 $5,178.25 00012480 E04974 MARTINEZ, JUANITA PATRICIA 09/22/2022 $2,063.47 00012481 E02792 MATA, RAQUEL D 09/22/2022 $954.79 00012482 E04656 MAZON, JORGE L 09/22/2022 $3,202.61 00012483 E02796 MCFARLANE, MARIA C 09/22/2022 $2,881.55 00012484 E06761 MEEKS, REBECCA S 09/22/2022 $4,198.75 00012485 E03826 MEERS, BRYAN J 09/22/2022 $4,495.31 00012486 E02655 MENDOZA CAMPOS, MELISSA 09/22/2022 $3,644.41 00012487 E04402 MERRILL, KENNETH E 09/22/2022 $624.30 00012488 E03965 MIHALIK, DANNY J 09/22/2022 $5,628.41 00012489 E04840 MONTOYA, DAWN M 09/22/2022 $1,737.97 00012490 E04865 MORIN, LINDA M 09/22/2022 $3,921.69 00012491 E04352 MORSE, JEREMY N 09/22/2022 $5,061.13 00012492 E01940 MORTON, NATHAN D 09/22/2022 $3,978.46 00012493 E04454 MOSER, MICHAEL A 09/22/2022 $3,170.74 00012494 E03929 MURILLO JR, RAUL 09/22/2022 $5,430.89 00012495 E04626 MURO, JASON M 09/22/2022 $5,853.55 00012496 E04577 MUSCHETTO, PATRICK J 09/22/2022 $2,509.51 00012497 E03422 NADOLSKI, THOMAS R 09/22/2022 $2,484.68 00012498 E04111 NEELY, JACOB J 09/22/2022 $2,326.40 00012499 E04436 NGUYEN, JEFFREY C 09/22/2022 $3,685.24 00012500 E02813 NGUYEN, TRINA T 09/22/2022 $1,965.35 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 12
Check Vendor # Vendor Name Issue Date Check Amount
00012501 E04540 NIKOLIC, ADAM C 09/22/2022 $5,253.68 00012502 E05054 NUNEZ, BREANNE S 09/22/2022 $1,648.14 00012503 E03350 OLIVO, JOSHUA T 09/22/2022 $4,409.75 00012504 E04035 ORTIZ, STEVEN TRUJILLO 09/22/2022 $4,466.36 00012505 E03427 PANELLA, JOSEPH N 09/22/2022 $2,244.21 00012506 E04910 PAQUA, BRANDON J 09/22/2022 $2,867.59 00012507 E01948 PARK, BRANDY J 09/22/2022 $3,233.97 00012508 E02995 PAYAN, CRISTINA V 09/22/2022 $2,463.89 00012509 E00824 PAYAN, LUIS A 09/22/2022 $5,147.87 00012510 E04843 PEREZ, EMMANUEL 09/22/2022 $2,961.05 00012511 E00145 PERKINS, JASON S 09/22/2022 $5,285.08 00012512 E04429 PHAM, PHILLIP H 09/22/2022 $4,089.21 00012513 E06938 PLUARD, DOUGLAS A 09/22/2022 $4,661.16 00012514 E03299 POLOPEK, COREY T 09/22/2022 $3,710.53 00012515 E05050 QUANG, DENNIS 09/22/2022 $3,437.00 00012516 E04788 QUIROZ, LUIS A 09/22/2022 $2,614.44 00012517 E03967 RAMIREZ OROZCO, SINDY 09/22/2022 $3,018.18 00012518 E04955 RAMIREZ, KAYLYN C 09/22/2022 $2,062.76 00012519 E03390 RAMIREZ, LUIS F 09/22/2022 $4,326.24 00012520 E05021 RAMIREZ, TERRA M 09/22/2022 $3,404.86 00012521 E05049 RAMOS, DAVID N 09/22/2022 $3,408.74 00012522 E04914 RAMOS, RODOLFO B 09/22/2022 $534.71 00012523 E03217 RANEY, JOHN E 09/22/2022 $4,302.47 00012524 E04941 RASMUSSEN, TRENTON L 09/22/2022 $2,474.65 00012525 E04659 REED, THOMAS S 09/22/2022 $5,701.79 00012526 E03486 REYES, RON A 09/22/2022 $4,048.30 00012527 E04911 RICHARDS, BRYANT D 09/22/2022 $2,520.09 00012528 E04437 RICHMOND, RYAN R 09/22/2022 $3,600.65 00012529 E04860 ROCHA, RUDY A 09/22/2022 $509.85 00012530 E04738 RODRIGUEZ, DANIEL 09/22/2022 $3,755.18 00012531 E04082 RODRIGUEZ, JENNIFER M 09/22/2022 $2,412.33 00012532 E05001 RODRIGUEZ, RYAN ELIJAH 09/22/2022 $2,893.42 00012533 E04438 ROGERS, CHRISTIN E 09/22/2022 $4,072.13 00012534 E04385 ROJAS, ASHLEY C 09/22/2022 $2,217.32 00012535 E04507 ROMBOUGH, JENNIFER V 09/22/2022 $2,065.35 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 13
Check Vendor # Vendor Name Issue Date Check Amount
00012536 E04552 RUZIECKI, ERIC T 09/22/2022 $4,065.86 00012537 E02845 SALAZAR, SEAN M 09/22/2022 $3,082.79 00012538 E04845 SALGADO JR., ALFREDO 09/22/2022 $2,664.65 00012539 E03297 SAMOFF, TANYA L 09/22/2022 $3,367.03 00012540 E02646 SANTANA, LINO G 09/22/2022 $10,131.48 00012541 E03035 SEYMOUR, SUSAN A I 09/22/2022 $2,609.74 00012542 E04282 SHELGREN, CHRISTOPHER M 09/22/2022 $3,278.15 00012543 E04616 SHIPLEY, AARON T 09/22/2022 $2,439.49 00012544 E02937 SHORROW, NICOLE D 09/22/2022 $3,682.09 00012545 E04864 SILVA, LEVI JOENIEL 09/22/2022 $2,886.74 00012546 E04576 SIMONS, SHAYLEN L 09/22/2022 $3,834.60 00012547 E04934 SLETTVET, HEATHER P 09/22/2022 $2,420.34 00012548 E02587 SOSEBEE, DANNY J 09/22/2022 $2,464.97 00012549 E03563 SPELLMAN, MARSHA D 09/22/2022 $2,907.61 00012550 E04500 STAAL, GAREY D 09/22/2022 $4,018.16 00012551 E03218 STARNES, CHARLES W 09/22/2022 $5,693.12 00012552 E03761 STEPHENSON III, ROBERT M 09/22/2022 $5,262.41 00012553 E04584 STROUD, BRIAN T 09/22/2022 $5,940.01 00012554 E02979 TESSIER, PAUL M 09/22/2022 $4,125.44 00012555 E04449 TRAN, SPENCER T 09/22/2022 $2,542.58 00012556 E02982 VAICARO, VINCENTE J 09/22/2022 $4,883.45 00012557 E03053 VALENCIA, EDGAR 09/22/2022 $4,188.66 00012558 E04667 VAUGHN, CALEB I 09/22/2022 $402.18 00012559 E04977 VAZQUEZ, BRIAN M 09/22/2022 $484.39 00012560 E04434 VELLANOWETH, KIMBRA S 09/22/2022 $2,797.50 00012561 E04903 VIGIL, DANIEL C 09/22/2022 $3,169.55 00012562 E03022 VU, TUONG-VAN NGUYEN 09/22/2022 $2,568.47 00012563 E04730 VU, TYLER D 09/22/2022 $646.62 00012564 E01905 WAINWRIGHT, JONATHAN B 09/22/2022 $4,319.35 00012565 E03220 WARDLE, DENNIS 09/22/2022 $4,650.68 00012566 E03213 WARDLE, SANTA 09/22/2022 $2,710.75 00012567 E04758 WEYKER, CHRYSTAL L 09/22/2022 $1,863.08 00012568 E03930 WHITNEY, CHERYL L 09/22/2022 $1,879.61 00012569 E03305 WIMMER, ROYCE C 09/22/2022 $12,657.64 00012570 E04762 WREN, DANIELLE E 09/22/2022 $5,302.10 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 14
Check Vendor # Vendor Name Issue Date Check Amount
00012571 E04763 WRIGHT, SARAH A 09/22/2022 $2,917.81 00012572 E04856 XU, DUO 09/22/2022 $3,381.21 00012573 E03543 YELENSKY, SHANNON M 09/22/2022 $1,891.27 00012574 E04156 YERGLER, JOHN J 09/22/2022 $7,001.95 00012575 E04722 YNIGUEZ, COLE A 09/22/2022 $2,581.37 00012576 E01978 ZMIJA, ADAM D 09/22/2022 $5,013.77 00012577 E04517 AGUIRRE, ALFRED J 09/22/2022 $3,358.60 00012578 E01626 AGUIRRE, ANSELMO 09/22/2022 $2,174.43 00012579 E04451 AGUIRRE, ANTHONY U 09/22/2022 $356.61 00012580 E04631 ANDREI, IOAN 09/22/2022 $1,127.29 00012581 E04678 BABINSKI IV, SYLVESTER A 09/22/2022 $2,052.24 00012582 E04336 BECERRA, RODOLPHO M 09/22/2022 $2,342.97 00012583 E04972 BECERRA-SAMANIEGO JR, GABRIEL 09/22/2022 $1,579.42 00012584 E04770 BELL, DONEISHA L 09/22/2022 $587.58 00012585 E01255 BOS, MICHAEL C 09/22/2022 $2,265.27 00012586 E04650 BUCHLER, RAYMOND A 09/22/2022 $1,630.63 00012587 E01584 CANDELARIA, DANIEL J 09/22/2022 $4,556.01 00012588 E04300 CANO, EDGAR A 09/22/2022 $2,265.75 00012589 E03828 CANTRELL, JEFFREY G 09/22/2022 $2,626.05 00012590 E05063 CARRILLO, GEORGE 09/22/2022 $1,818.70 00012591 E03811 CARRISOZA, ALBERT J 09/22/2022 $2,339.47 00012592 E00916 CARTER, PHILLIP J 09/22/2022 $3,434.91 00012593 E04869 CHAVEZ, DAMIAN JESUS 09/22/2022 $721.53 00012594 E04551 CONTRERAS, GABRIELA R 09/22/2022 $3,005.42 00012595 E03518 COTTON, JULIE T 09/22/2022 $1,860.34 00012596 E03807 DE LA ROSA, VINCENT L 09/22/2022 $3,215.79 00012597 E03736 DIBAJ, KAMYAR 09/22/2022 $3,759.52 00012598 E04989 DOCHERTY, PAUL 09/22/2022 $556.28 00012599 E02515 DUVALL, RICK L 09/22/2022 $2,673.57 00012600 E04514 ESPINOZA, ERIC M 09/22/2022 $2,052.37 00012601 E03733 ESPINOZA, JULIA 09/22/2022 $1,333.13 00012602 E05957 FERNANDEZ, ARYANA C 09/22/2022 $299.91 00012603 E03405 FERNANDEZ, CECELIA A 09/22/2022 $1,293.41 00012604 E04997 FLORES, ANTHONY 09/22/2022 $677.16 00012605 E04990 FLORES, MITCHELL C 09/22/2022 $833.54 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 15
Check Vendor # Vendor Name Issue Date Check Amount
00012606 E00558 FREGOSO, ALICE K 09/22/2022 $2,192.42 00012607 E05037 GAINES, JEFFREY S 09/22/2022 $740.66 00012608 E05010 GALVAN, EDGAR 09/22/2022 $919.39 00012609 E04754 GARCIA, ALICIA R 09/22/2022 $1,681.09 00012610 E04677 GIROUARD, CASEY G 09/22/2022 $1,811.92 00012611 E04629 GOMEZ, DIANA 09/22/2022 $957.70 00012612 E03341 GONZALEZ, JORGE 09/22/2022 $1,248.71 00012613 E04473 GOUNTOUMA, SOUMELIA K 09/22/2022 $2,485.54 00012614 E03400 GREENE, MICHAEL R 09/22/2022 $2,169.62 00012615 E03685 GUZMAN, JESSE 09/22/2022 $3,176.93 00012616 E04299 HANSEN, AARON R 09/22/2022 $1,973.07 00012617 E03523 HARO, GLORIA A 09/22/2022 $1,284.46 00012618 E03759 HERNANDEZ, HERMILO 09/22/2022 $2,771.44 00012619 E04622 HOFER, ALICIA M 09/22/2022 $2,097.90 00012620 E02874 HOLMON III, ALBERT J 09/22/2022 $3,902.15 00012621 E04347 HSIEH, NICOLAS C 09/22/2022 $3,950.24 00012622 E03588 HUYNH, HUY HOA 09/22/2022 $2,433.50 00012623 E04831 ILFELD, MATTHEW D 09/22/2022 $1,519.56 00012624 E01907 JACOT, ROSEMARIE 09/22/2022 $2,348.58 00012625 E04296 JOHNSON, ERIC W 09/22/2022 $2,007.23 00012626 E04979 JURADO, MICHAEL 09/22/2022 $1,278.69 00012627 E04470 KAYLOR, BRENT 09/22/2022 $2,498.96 00012628 E04728 KHALIL, MARK M 09/22/2022 $2,228.76 00012629 E04382 KWIATKOWSKI, BRYAN D 09/22/2022 $2,093.53 00012630 E02852 LADNEY, MARK W 09/22/2022 $4,465.87 00012631 E04769 LAMAS, LEONEL A 09/22/2022 $1,051.11 00012632 E03813 LEWIS, SHAN L 09/22/2022 $3,280.87 00012633 E03301 LEYVA, RAUL 09/22/2022 $3,188.63 00012634 E05006 MARQUEZ, STEVEN ADAM 09/22/2022 $1,349.57 00012635 E05364 MARU, NAVIN B 09/22/2022 $3,639.49 00012636 E04665 MEJIA, DIEGO A 09/22/2022 $1,986.90 00012637 E03493 MENDEZ, RIGOBERTO 09/22/2022 $2,461.10 00012638 E04998 MENDOZA, LAURA 09/22/2022 $977.73 00012639 E04724 MOORE, DOUGLAS A 09/22/2022 $2,385.39 00012640 E04827 MORELAND, ANDREW J 09/22/2022 $1,640.08 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 16
Check Vendor # Vendor Name Issue Date Check Amount
00012641 E04222 MOSS, DANIEL C 09/22/2022 $1,523.34 00012642 E01243 MURRAY JR, WILLIAM E 09/22/2022 $7,510.46 00012643 E04634 NAVARRO, JUAN C 09/22/2022 $2,869.60 00012644 E04969 ORNELLAS, MICHAEL 09/22/2022 $1,202.47 00012645 E03378 ORTIZ, STEVEN T 09/22/2022 $2,573.63 00012646 E04999 ORTUNO, ANIBAL 09/22/2022 $1,962.01 00012647 E03754 PINKSTON, RICHARD L 09/22/2022 $2,690.91 00012648 E04567 POWELL, AUSTIN H 09/22/2022 $2,356.85 00012649 E03799 QUIROZ, ROLANDO 09/22/2022 $2,426.27 00012650 E05031 RAMIREZ, AACIN 09/22/2022 $1,969.16 00012651 E04572 REED, MELVIN P 09/22/2022 $1,802.55 00012652 E02058 REYES, DELFRADO C 09/22/2022 $1,309.65 00012653 E04295 ROBLES, RAFAEL 09/22/2022 $1,949.72 00012654 E04563 RODRIGUEZ, ADRIANNA M 09/22/2022 $1,241.63 00012655 E05004 RUELAS, SERGIO 09/22/2022 $707.08 00012656 E04289 SALDIVAR, RICARDO 09/22/2022 $1,542.24 00012657 E04505 SANTOS, MICHAEL F 09/22/2022 $3,503.95 00012658 E04215 SMOUSE, TREVOR G 09/22/2022 $2,538.49 00012659 E04836 SOTO, WILLIAM A 09/22/2022 $1,848.29 00012660 E03091 SUDDUTH, STEPHEN D 09/22/2022 $2,812.36 00012661 E01625 TAPIA, LUIS A 09/22/2022 $2,779.89 00012662 E04756 TARIN, ALEXIS P 09/22/2022 $2,214.91 00012663 E03239 TAUANU U, STEVE J 09/22/2022 $2,114.30 00012664 E04773 THURMAN JR, EDWIN O 09/22/2022 $1,071.76 00012665 E08679 THURMAN, RODERICK 09/22/2022 $1,860.32 00012666 E03480 TRIMBLE, EMILY H 09/22/2022 $2,020.79 00012667 E04825 TRUJILLO, JOSEPH E 09/22/2022 $1,499.09 00012668 E02482 UPHUS, MARK P 09/22/2022 $4,573.25 00012669 E03681 VASQUEZ, JOSE A 09/22/2022 $3,165.65 00012670 E02942 VERA, EVARISTO 09/22/2022 $2,066.44 00012671 E03727 VERGARA NEAL, ANA G 09/22/2022 $3,023.32 00012672 E03670 VITALI, SUSAN 09/22/2022 $460.07 00012673 E01580 VU, DAI C 09/22/2022 $4,590.32 00012674 E04362 VU, KHANG L 09/22/2022 $3,342.67 00012675 E01619 WHITE, WILLIAM J 09/22/2022 $2,374.17 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 17
Check Vendor # Vendor Name Issue Date Check Amount
00012676 E03414 WILLIAMS, HILLARD J 09/22/2022 $211.06 00012677 E04006 WILLIAMS, RICHARD L 09/22/2022 $3,774.59 00012678 E05023 YNIGUEZ, KARISSA N 09/22/2022 $2,378.75 00012679 E03436 ZIEGLER, RICK S 09/22/2022 $1,130.85 00012680 E03917 ALLEN, CHRISTOPHER L 09/22/2022 $118.44 00012681 E04163 AMBRIZ GARCIA, EDWARD D 09/22/2022 $1,485.47 00012682 E04784 BANUELOS, ALEJANDRO 09/22/2022 $4,784.34 00012683 E04063 BERGER, JAN 09/22/2022 $2,546.34 00012684 E00651 BERMUDEZ, ROBERT P 09/22/2022 $3,439.48 00012685 E03495 BLAS, VICTOR T 09/22/2022 $2,803.56 00012686 E00070 CANNON, TIM P 09/22/2022 $6,571.40 00012687 E04365 DAN, CARINA M 09/22/2022 $2,459.90 00012688 E04440 DAVIS, RYAN H 09/22/2022 $1,921.42 00012689 E03051 DIEMERT, RONALD W 09/22/2022 $2,293.29 00012690 E02718 ESCOBAR, CHRIS N 09/22/2022 $5,689.85 00012691 E03688 GLENN, JEREMY J 09/22/2022 $1,586.99 00012692 E01618 GOMEZ, JOSE 09/22/2022 $2,160.17 00012693 E02701 GONZALEZ, ALEJANDRO 09/22/2022 $3,405.98 00012694 E03763 GRIFFIN, LARRY 09/22/2022 $3,668.39 00012695 E04828 GUERRERO, MICHAEL V 09/22/2022 $3,019.07 00012696 E04018 HAENDIGES, ROBERT A 09/22/2022 $3,536.17 00012697 E03575 HART, RYAN S 09/22/2022 $5,409.85 00012698 E03701 HAYES, WALTER B 09/22/2022 $3,540.05 00012699 E03399 HOWENSTEIN, FRANK D 09/22/2022 $2,582.32 00012700 E03406 HUY, EDWARD A 09/22/2022 $2,305.33 00012701 E04782 JIN, LIYAN 09/22/2022 $2,484.59 00012702 E03534 KIM, SAMUEL K 09/22/2022 $3,844.68 00012703 E03254 KIRZHNER, ALLEN G 09/22/2022 $5,432.28 00012704 E03988 LI, REBECCA PIK KWAN 09/22/2022 $4,085.96 00012705 E02063 MA AE, DAVID 09/22/2022 $2,228.34 00012706 E03249 MANSON, RAQUEL K 09/22/2022 $2,828.18 00012707 E04837 MARTINEZ, ALFREDO 09/22/2022 $2,048.48 00012708 E02124 MEISLAHN, TYLER 09/22/2022 $2,211.46 00012709 E04403 MONTGOMERY, JESSE K 09/22/2022 $2,646.97 00012710 E04707 MORRIS, JUSTIN M 09/22/2022 $1,857.10 Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 18
Check Vendor # Vendor Name Issue Date Check Amount
00012711 E03590 MOYA JR, STEVEN J 09/22/2022 $2,448.33 00012712 E03519 MURAD, BASIL G 09/22/2022 $2,500.88 00012713 E03144 NATLAND, KIRK L 09/22/2022 $1,524.53 00012714 E04291 NGUYEN, DUC TRUNG 09/22/2022 $2,384.98 00012715 E04904 NGUYEN, LISA 09/22/2022 $771.23 00012716 E03221 NICOLAE, CORNELIU 09/22/2022 $3,227.11 00012717 E04210 NUNES, BRANDON S 09/22/2022 $1,839.30 00012718 E03923 ORNELAS, ANDREW I 09/22/2022 $2,703.54 00012719 E03582 ORTEGA, DAVID A 09/22/2022 $2,879.89 00012720 E03578 PASILLAS, CELESTINO J 09/22/2022 $3,059.87 00012721 E03170 PEARSON, WILLIAM F 09/22/2022 $2,498.33 00012722 E04950 PHAM ADA, DYLLAN TUAN ANH 09/22/2022 $366.56 00012723 E04805 POLIDORI, JESSICA J 09/22/2022 $3,479.50 00012724 E02500 PORRAS, STEPHEN 09/22/2022 $3,187.97 00012725 E07590 RUITENSCHILD, LES A 09/22/2022 $3,537.97 00012726 E03926 RUIZ, JONATHAN 09/22/2022 $10,350.28 00012727 E07690 SANTOS, ALEXIS 09/22/2022 $2,010.74 00012728 E07692 SARMIENTO, ADRIAN M 09/22/2022 $3,097.67 00012729 E04956 SON, TOMMY T 09/22/2022 $2,296.30 00012730 E04301 TALAMANTES JR, ALBERT 09/22/2022 $2,619.27 00012731 E04121 TRAN, MINH K 09/22/2022 $2,423.98 00012732 E00151 VALENZUELA JR, ALEJANDRO 09/22/2022 $0.00 00012733 E08881 VALENZUELA, ALEJANDRO N 09/22/2022 $4,325.11 00012734 E01882 VIRAMONTES, JESSE 09/22/2022 $1,944.40 00012735 E04195 WOLLAND, RONALD J 09/22/2022 $1,982.77 00012736 E09940 YERGENSEN, VICTOR K 09/22/2022 $2,849.17 00012737 E09954 ZAVALA, JOHN 09/22/2022 $2,878.44 Check: 621 $1,750,079.75
Total: 621 $1,750,079.75
Server Name: cognos.ggcity.org User Name: amyv
CITY OF GARDEN GROVE
GGFEFM001 Warrant Register
Check Dates Sep 22, 2022
Report Generated on Sep 22, 2022 11:00:12 AM Page 19
PY - Payroll
Check Vendor # Vendor Name Issue Date Check Amount
00185157 E04994 GREENUP, BREANNA C 09/22/2022 $619.67 00185158 E00977 BELAIR, DIANE 09/22/2022 $2,286.88 00185159 E05053 VU, VINNY X 09/22/2022 $1,304.11 00185160 E05043 BARRAGAN, AUDREY A 09/22/2022 $140.65 00185161 E05015 FALETOI, TERRY U 09/22/2022 $492.82 00185162 E05069 GARCIA, VERONICA 09/22/2022 $55.36 00185163 E04824 PACHECO, LAURA M 09/22/2022 $69.20 00185164 E05042 TO, THOMAS A 09/22/2022 $247.09 00185165 E05070 XOOL VARGAS, RUDY G 09/22/2022 $55.36 00185166 E05064 FOX, LUCAS 09/22/2022 $882.75 00185167 E05012 HODNETT, RYAN P 09/22/2022 $320.90 00185168 E05065 LOMELI, JONATHAN 09/22/2022 $656.00 00185169 E03529 ROCHA, MICHAEL F 09/22/2022 $2,167.58 00185170 E05067 SANCHEZ, MARTIN 09/22/2022 $730.50 00185171 E03145 DE LA ROSA, FRANK X 09/22/2022 $1,973.47 00185172 E03446 JIMENEZ, VIDAL 09/22/2022 $2,520.55 Check: 16 $14,522.89
Total: 16 $14,522.89
Server Name: cognos.ggcity.org User Name: amyv
9/22/2022
Agenda Item - 4.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Lisa L. Kim
Dept.: City Manager Dept.: Community and Economic
Development
Subject: Approval of a comprehensive
Memorandum of
Understanding with the
Cities of Fountain Valley and
Westminster for development
of the future Central Cities
Navigation Center at 13871
West Street; and approve an
interim Lease Agreement
with West St Investments
LLC. ( Action Item)
Date: 10/11/2022
OBJECTIVE
Approve a comprehensive Memorandum of Understanding with the Cities of Fountain Valley and Westminster to advance development of the future Central Cities Navigation Center at 13871 West Street; and approve an interim Lease Agreement with West St Investments LLC.
BACKGROUND
Advancing the City’s efforts in addressing homelessness incorporates implementation of the City’s 2021 Comprehensive Strategic Plan to Address Homelessness (CSPAH), which serves as a five-year roadmap to identify pathways to connect homeless individuals to resources and programs. The table below details action items implemented since approval of the initial Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster executed earlier in June 2022.
1 HOMELESSNESS
WEBSITE
Development a comprehensive website portal.
https://ggcity.org/endhomelessness
2 HOMELESS DATA
DASHBOARD
Activated a Homeless Data Dashboard conveys the
number of homeless and at-risk individuals assisted on a quarterly basis, as well as the funds expended to
administer the six (6) eligible activities (Street Outreach, Emergency Shelter, Rapid Rehousing, Homelessness
Prevention, and Workforce Development).
https://ggcity.org/endhomelessness/dashboard
3 STREET
OUTREACH
Provide Street Outreach services in coordination with the Garden Grove Police Department - Special Resource
Team (SRT) and a local non-profit to support individuals who are homeless.
https://ggcity.org/endhomelessness/street-outreach
4 BE WELL OC
Deployment of an 18-month Mobile Response Team
program address certain mental health calls for service. https://ggcity.org/be-well-oc-garden-grove
5 WEBINAR(S)
Collaborated with United Way through their United to End Homelessness Initiative to facilitate informational
webinars about Homelessness 101 and Navigation Center
101. https://ggcity.org/endhomelessness
6 TRI-CITIES
MEMORANDUM
OF
UNDERSTANDING
Approval of the Memorandum of Understanding (MOU)
with the cities of Fountain Valley and Westminster to
jointly collaborate, develop and contribute funding for a future navigation center. https://ggcity.org/navigation- center
7 NEW
NAVIGATION
CENTER
WEBPAGE
Added the Future Navigation Center resource webpage
along with an FAQ summary.
https://ggcity.org/navigation-center .
8 COMMUNITY
ENGAGEMENT
Hosted two (2) community meetings on August 17, and
30, 2022 to share information about the future navigation center.
https://ggcity.org/navigation-center
9 PROJECT
FUNDING
Secured initial funding commitment from the County of
Orange in the amount of $11.3M
10 (NEW UPDATE)
PROPERTY
ACQUISITION
Approval of a Purchase Agreement and Escrow
Instruction for the acquisition of 13871 West Street.
Accelerated escrow closing anticipated in November
2022.
11 (NEW UPDATE)
DUE DILIGENCE
WORK
Scope of work associated with preparation of the Design Development Plans and the Construction
Drawings/Technical Specifications is underway.
Preliminary Design Development Plans to be completed
in 4 weeks.
12 (NEW UPDATE)
CONSOLIDATION
ANNUAL
PERFORMANCE
AND
EVALUATION
REPORT (CAPER)
The City utilizes Federal funding to expand or preserve affordable housing opportunities, improve low-income
neighborhoods through public infrastructure
improvements, and assist special needs groups such as
senior citizens, homeless, and those who are ‘at-risk’ of becoming homeless . The CAPER provides descriptions
and financial information, and evaluates the City’s
progress toward the priority objectives addressing
housing and community needs.
13 (NEW UPDATE)
COMPREHENSIVE
MOU
Completed negotiations of a comprehensive Memorandum
of Understanding with the Cities of Fountain Valley and Westminster for a tri-cities partnership towards
development and operation of a future Central Cities
Navigation Center.
14 (NEW UPDATE)
COMMUNITY
ENGAGEMENT
City of Westminster to host a community meeting on
October 13, 2022 to share information about the future
Central Cities Navigation Center.
DISCUSSION
In June 2022, the City Council approved a Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster to jointly collaborate towards development of a navigation center. Negotiations of the comprehensive MOU by the three participating Central Service Planning Area (C-SPA) cities that include operational guidance and funding contributions are finalized and presented this evening.
For consideration, the comprehensive MOU outlines the fundamentals of a collaborative partnership that contains both programmatic, operational criteria and fiscal components that will provide substantial benefit to the three cities. This partnership will enhance regional efforts to address homelessness in Garden Grove, Fountain Valley and Westminster, collectively within the Central Service Planning Area. The comprehensive MOU, once executed by the Parties, promotes partnership in the financial and operational areas, while securing a regionally competitive priority within the Central SPA for future funding opportunities.
Serving as the Host City, Garden Grove will administer responsibilities associated with property acquisition and construction/build-out of the future Central Cities Navigation Center in partnership with Fountain Valley and Westminster. The Cost Allocation Plan outlined in the comprehensive MOU are described in two parts for (1) acquisition/construction and (2) annual operations:
PART 1 PART 2
Parties
Cost
Allocation
Plan
Estimated
Acquisition and
Construction
Program Costs
Estimated Annual
Operation Program
Costs
Garden Grove 50 beds 59% 4,893,382 1,001,103
Fountain
Valley 13 beds 15% 1,272,279 260,287
Westminster 22 beds 26% 2,153,088 440,485
Tri-Cities Total 8,318,749 1,701,875
County of Orange 5,300,000 625,000
Estimated Project Costs 13,618,749 2,326,875
Additional provisions of the comprehensive MOU incorporate the following:
Terms: The term of the MOU identifies a construction period, then a 10-year operation/program period with options for two consecutive five (5) year extensions.
Guest Capacity: The initial program anticipates guest capacity of 85 beds with capacity of up to an additional 15 Temporary Emergency Beds for a collectively total of up to 100 beds.
I I
•
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Start-up Costs : The Acquisition, Due Diligence and Administrative Program Costs would be deposited by October 31, 2022 to coincide with an anticipated escrow closing on November 1, 2022.
Annual Program Funding : The Operation Program Costs funds will deposited annually, to be administered by a Program Treasurer designated by the Parties.
Annual Report and Audit : The preparation of an Annual Report and an Annual Audit detailing: goals and objectives; guest capacity; operating plan; and review of the Cost Allocation Plan.
Real Property: Should operations of the Central Cities Navigation Center cease, the disposition of real property shall take place with proceeds to be redistributed, in the original pro-rata share to the Parties.
Termination : The termination provision by an individual party would require payment of 5X the annual Operation Program Costs.
Next steps anticipate the following:
October 2022: Release a Request for Proposal (RFP) for a Service Provider for the future Central Cities Navigation Center. The Service Provider shall oversee navigation center operations including: staffing, security, transportation, and employment and housing navigation support.
November 2022: Finalize MOU negotiations with the County of Orange.
December 2022: Complete preparation of construction (80%) drawings.
January 2022 : Release an invitation for bids for construction of the Central Cities Navigation Center.
Status of Property Acquisition
Following Council approval of the Purchase Agreement for the property in September 2022, the Seller and current property owner (West St Investment LLC) of 13871 West Street has requested an accelerated escrow closing due to identification of an available exchange property. To that end, Seller further requested a short-term leaseback of 13871 West Street for 3-6 month period to provide for transition of their business operations to the new location. Total leasable building space is 11,376 square feet and staff has negotiated market rent of $1.50 per square or total of $17,064 monthly for the temporary lease. This allows for the building to remain occupied while design work is underway.
In closing, staff is requesting Council approval of the comprehensive MOU with the Cities of Fountain Valley and Westminster to advance construction of a navigation center, and concurrently approve of an interim Lease Agreement with West St Investment LLC.
FINANCIAL IMPACT
Funds have been budgeted in the Biennial Budget for FY 2021-2022 and FY 2022- 2023 for the Navigation Center project. Proceeds from the interim Lease Rent shall be deposited into the new Escrow Account established for the Central Cities Navigation Center.
RECOMMENDATION
•
•
•
•
•
•
• •
•
It is recommended that the City Council:
Approve the comprehensive MOU with the Cities of Fountain Valley and Westminster;
Approve an interim Lease Agreement with West St Investments LLC; and Authorize the City Manager to execute all documents on behalf of the City, and make minor modifications thereto as needed.
ATTACHMENTS:
Description Upload Date Type File Name
C-SPA MOU 10/3/2022 Cover
Memo C-SPA_MOU_(Attachment_No._1).pdf
Lease
Agreement 10/5/2022 Cover
Memo Lease_Agreement_with_West_St_Investment_LLC_(Attachment_No._2).pdf
•
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1 MEMORANDUM OF UNDERSTANDING FOR THE CENTRAL
ORANGE COUNTY SERVICE PLANNING AREA CITIES OF
GARDEN GROVE, FOUNTAIN VALLEY AND WESTMINSTER
This MEMORANDUM OF UNDERSTANDING (“Agreement”) is dated as of October __, 2022 (“Effective Date”), and entered into by and among the Cities of Garden Grove, Fountain Valley, and Westminster, each of which is a municipal corporation organized and existing under California law (cumulativel y the “City Parties” or “Parties,” and at times individually a “City Party”), with reference to and in consideration of the following:
WHEREAS, like many other regions in California, the County of Orange (“Orange”) has seen a rapid and troubling growth in the homeless population over the past several years, a condition that has been difficult to address given the high cost of housing and property in
the area , and the shortage of emergency, transitional, and affordable housing available in the County to serve this population;
WHEREAS, as a result, local jurisdictions throughout the County have experienced increased incidents of unlawful camping and loitering activities in and upon portions of the public rights-of-way, parks, and other public facilities (“Public Property”) in violation of local anti - camping, anti- loitering, and/or park closure ordinances and regulations (“Anti -Camping Ordinances”);
WHEREAS, the use of Public Property in this manner creates health and safety risks to homeless persons due to traffic hazards, exposure to weather, inadequate sanitation, and other conditions detrimental to their wellbeing, and negatively impacts the health, safety, and general welfare of the community by degrading the environmental and physical condition of such Public Property, increasing
risks associated the spread of illnesses, and frustrating the public purpose for which such Public Property is dedicated;
WHEREAS, on a broader scale, the County is a complex jurisdiction of interconnected systems, many of which have been impacted by the homeless crisis in the region, including but not limited to health care, criminal justice, child welfare, public transportation, economic and social, and legislative and political systems;
WHEREAS, in efforts to address th is crisis, the County established an integrated Continuum of Care (“CoC”) to guide homeless individuals and families through a comprehensive array of services and housing designed to prevent and end homelessness;
WHEREAS,
to better coordinate access points, assessments, resources, and programs serving persons experiencing homelessness, the CoC divided the County into three (3) geographic “Service Planning Areas” (or “SPAs”), with the “Central Service Planning Area” (“Central SPA”) including the cities of Costa Mesa, Garden Grove, Fountain Valley, Santa Ana, Seal Beach, Westminster, Newport Beach, Huntington Beach, and Tustin;
2 WHEREAS, in furtherance of the health, safety, and well-being of all their residents, to return and preserve Public Property for its intended purpose, the City Parties, located within the Central SPA, have worked together cooperatively and in good-faith towards developing a regional solution to the current homeless crisis within their respective jurisdictions;
WHEREAS, as a result of such efforts, the City Parties have been awarded certain grant funds, and certain additional funds pledged to be made available through the County of Orange, towards the acquisition, construction, and operation of a new navigation center facility to be located within the boundaries of the City of Garden Grove, and intended to exclusively serve the unsheltered homeless population currently residing within the jurisdiction of the City Parties;
WHEREAS, the City Parties desire to formalize the terms and conditions by which the above-referenced funds are aggregated, and combined with additional funds provided by each City Party from alternative sources, to finance the acquisition, construction, and operation of the new navigation center facility;
WHEREAS, the City Parties additionally desire to memorialize the terms and conditions by which: the new navigation center facility will be operated; the City Parties will equitably share access to the capacity provided by such new navigation center facility, as well as the capacity provided by existing shelter facilities in located within the boundaries of the City Parties; the City Parties will equitably share the costs and responsibilities associated with the acquisition, construction, operation, and maintenance of the new navigation center facility; and other related matters
in furtherance of their common purpose;
WHEREAS, in addition to addressing the needs of homeless persons through the provision of overnight shelter, the City Parties covenant to work together, in furtherance of the CoC, towards developing and increasing the Central SPA’s inventory of long -term affordable and supportive housing units, such that homeless persons receiving services under this Agreement may transition from temporary or emergency shelter facilities, and into long-term and stable housing solutions; and
WHEREAS, each Party has caused this Agreement to be duly approved by its respective governing body, and by so doing, has found and determined that this Agreement furthers the health, safety, and general welfare of their respective
residents.
NOW THEREFORE, in consideration of the mutual covenants and conditions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
1. PURPOSE
This Agreement establishes a multi-jurisdictional memorandum of understanding for establishing, constructing, developing, maintaining, providing, operating, and facilitating the provision of overnight shelter in designated public facilities (termed “Navigation Center” below), and the
3 provision of certain services at such facility, to homeless and chronically homeless adults, children, and families located within the Central Service Planning Area of Orange County, California. This Agreement defines the respective rights and responsibilities of the Parties with respect to the financing, implementing, operating, and the provision of Services, as defined below, at the Navigation Center.
2. DEFINITIONS
In addition to the other terms and phrases defined elsewhere in this Agreement, the following key capitalized terms and phrases used
throughout this Agreement shall have the meaning assigned in this Section.
2.1. “Annual Term” shall mean the fiscal year beginning July 1 and ending on July 30 of each year during the Term of this Agreement.
2.2. “City Program Costs” shall mean and refer to that portion of the Program Costs that are not funded by an alternative funding source described in Exhibit “A”, and that will be paid by the City Parties pursuant to the Cost Allocation Plan, as such City Program Costs are further detailed in Exhibit “
C”.
2.3. “Cost Allocation Plan” shall mean and refer to the formula utilized to determine the Party Shares of the City Program Costs, as such formula is detailed in Exhibit “D”.
2.4. “Center Operator” shall mean and refer to the third -party contracted by the Host City to provide comprehensive and “turnkey” day -to-day management and operation of the Navigation Center.
2.5. “FF&E” shall have the mean and refer to furniture, fixtures and equipment including, beds, desks, mattresses, linens, indoor and outdoor storage equipment, office equipment, tables, chairs, kitchen supplies, and the like.
2.6. “Guests” shall mean and refer to homeless and chronically homeless adults, children, and families located within the Program Area.
2.7. “Guest Capacity” shall mean and refer to the number of beds provided in the Navigation Center, as detailed in Exhibit “B” [or section 4.2, see comment].
2.8. “Host City” shall mean and refer to the City of Garden Grove.
2.9. “Navigation Center” shall mean and refer to the new public facilities to be acquired, constructed, and operated in the Host City, and the Guest Capacity available at that location set forth in Exhibit “B”
under this Agreement.
2.10. “Operating Agreement” shall mean and refer to the contract between the Host City and Center Operator for the operation of the Navigation Center.
4 2.11. “Operating Plan” shall mean and refer to the plan approved by the Host City, Party Representatives, and a Center Operator, that details the terms, conditions, and standards by which Services are made available to Guests at the Navigation Center.
2.12. “Participating City” shall mean and refer to the City Parties which are not a Host City.
2.13. “Party Representative” shall mean and refer to the highest -ranking appointed executive official for each of the Parties, or his/or her duly authorized designee.
2.14. “Party Share” shall mean and refer to that portion of the City Program Costs allocated to each City Party in accordance with the Cost Allocation Plan, as detailed in Exhibit D(1) and (D)(2).
2.15. “Program” shall mean and refer to the Parties’ cooperative financing and planning for the acquisition, construction, operation and the provision of Services at the Navigation Center, and the cooperative sharing among the Parties of Guest Capacity at the Navigation Center.
2.16. “Program Area” shall mean and refer to the area within the city limits of the City Parties.
2.17. “Program Costs” shall mean and refer to the c osts incurred by the Parties in the acquisition of the Navigation Center site and the completion of modifications or capital improvements thereto, and annually to operate the Navigation Center during the Term (as defined below).
2.18. “Program Funds” shall mean and refer to all funds paid by or to the Parties under this Agreement, including but not limited to grant funds or County funds received by the Parties and contributed towards the Program.
2.19. “Program Property” shall mean and refer to all real and personal property purchased or acquired with Program Funds.
2.20. “Program Treasurer” shall mean and refer to the Party selected by the other Parties to serve as the treasurer, trustee, and manager of all Program Funds.
2.21. “Services” shall mean and refer to the provision of overnight shelter and other sanitation, nutritional, health, educational, supportive, and/or basic human services at the Navigation Center, as described in an Operating Plan.
3. TERM
3.1. General Term. This Agreement shall be effective as of the date which the last of the Parties has executed the same, which shall be inserted as the Effective Date in the first paragraph above, and shall remain in full force and effect during the construction period of a New Nav
igation Center and a full ten (10) year operation period or/ until October 31, 2033 , at which
5 point this Agreement shall automatically renew and continue in effect for two (2) consecutive five- year terms, the last of which shall expire on the date that is ten (10) years from October 3 1, 2033 (each an “Renewal Term,” and cumulatively the “Term”). Options to extend shall be implemented at least 90 days prior to the then-scheduled expiration date by mutual agreement of the Parties in writing, which extension may be approved by the authority of the City Manager of each Party; provided there is no material change of terms for such extended Term. This Agreement may be earlier terminated in accordance with the provisions of this Agreement.
3.2. Termination by City Parties.
a) Notice and Effective Date. Notwithstanding Section 3.1, any City Party, other than a Host City, may terminate its participation in this Agreement by providing one year’s written notice to all other Parties on or before the last day of any Annual Term (June 30), and following timely payment of the “Termination Fee .” This Agreement shall thereafter terminate as to the Party providing such notice at 11:59 p.m. on the last day of the immediately ensuing Annual Term.
b) Termination Fee as Liquidated Damages. The Termination Fee shall be equal to five times (5 x) the most recent Party Share paid by the terminating City Party, plus an additional five percent (5%) of the resulting factor to account for increases in the consumer price index. The Termination Fee shall be paid by the terminating City Party to the Program Treasurer not later than six (6) months before the effective date of termination. Failure to timely remit the Termination Fee shall render a City Party’s notice of termination ineffective. The Parties acknowledge and agree that the Termination Fee shall constitute liquidated damages and not penalties, and are in addition to all other rights of the Parties, including the right to call a default of this Agreement. The Parties further acknowledge that: (i) the amount of loss, costs, or damages likely to be incurred by the Parties resulting from a City Party terminating this Agreement before the end of the Term is incapable or is difficult to precisely estimate; (ii) the Termination Fee to be paid by any City Party bears a reasonable relationship to, and is not plainly or grossly disproportionate to, the probable losses or costs likely to be incurred by the other Parties by virtue of a City Party’s termination of this Agreement before the end of the Term; (iii) one of the reasons for the Parties reaching an agreement as to such amounts is the uncertainty regarding the question of actual losses, costs, or damages to be incurred by the Parties in such event; and (iv) the Parties are sophisticated business parties, have been represented by sophisticated and able legal counsel, and have negotiated this Agreement at arm's length.
c) Continuing Enforceability. Following the effective date of termination, the terminating City Party shall have no further obligations or rights with respect to this Agreement, except as expressly provided otherwise herein. Should any such terminating City Party desire to renew its participation in this Agreement in subsequent Annual Terms, such Party shall be subject to Section 3.6
.
3.3. Termination by Host City
a) Notice and Effective Date. Notwithstanding Sections 3.1 and 3.2, the Host City may terminate their participation by providing six (6) months written notice to all other Parties
6 as follows: written notice of termination shall be provided on or before January 1 of each Annual Term, and this Agreement shall thereafter terminate as to the Host City providing such notice at 11:59 p.m. on the last day of the same Annual Term; for example, notice of termination provided before January 1, 2020, shall be effective as of June 30, 2020.
b) Continued Operation of Navigation Center. As a condition precedent to the effectiveness of a Host City’s termination of this Agreement, such that a Navigation Center will no longer be operated within its jurisdiction, the Host City shall comply with all terms, conditions, and restrictions of any grant funding, County funding and any other grants or similar funding provided to the Program and/or Host City relative to the Navigation Center, and any Program Property in the possession and control of the Host City that was not acquired with such grant funds, and thus is not bound by associated grant restrictions, shall be managed and disposed of as directed by the Party Representatives . In the event of such Host Party’s termination, the City Parties shall work together cooperatively and in good faith to satisfy the shelter needs of the Program Area following the Host City’s termination. No Party shall be compelled under this Agreement
to remain or serve as a Host City.
c) Continuing Enforceability. The Host City’s notice of termination shall indicate whether the Host City is entirely terminating its participation in this Agreement, or whether it will remain a City Party. If the first, the terminating Host City shall be subject to Section 3.2(c).
If the Host City is to remain a City Party, following the effective date of termination the Host City will treated in all respects as a City Party under this Agreement, and subject to any adjustment to its Party Share and Cost Allocation Plan.
4. NAVIGATION CENTER
4.1 City Navigation Center. The Parties desire to work cooperatively and combine their respective resources for purposes of providing and coordinating the provision of Services to Guests at Navigation Center located in the Program Area, and to acquire, construct, develop, and operate a
Navigation Center.
4.2 Navigation Center and Guest Capacity. For purposes of this Agreement, the Navigation Center, and the anticipated Guest Capacity, are set forth in Exhibit “ B” to this Agreement.
4.3 Change in Navigation Center. The Parties may, from time to time, close a Navigation Center, construct an additional or replacement Navigation Center, or amend the Guest Capacity of any Navigation Center, and/or a Host City may terminate its participation in this Agreement. In such case, the Parties shall amend this Agreement to adjust the Cost Allocation Plan and Party Shares as appropriate.
4.4 Funding. Funding for the City Navigation Center subject to this Agreement shall be in accordance with Section 7.5(b)(1).
5. CONSTRUCTION AND MAINTENANCE OF NEW CENTER
7 5.1. Ownership. The Navigation Center shall be owned by the applicable Host City, together with any Program Property in the custody or possession of a Host City; provided the Navigation Center and Program Property shall be utilized by Host Cities exclusively for purposes consistent with this Agreement.
5.2. Design. The Host City shall have final authority over the design and construction of Navigation Center located in its jurisdiction, in accordance with each Host City’s ownership rights and plenary land use authority. Prior to a Host City’s comm encement of construction of, or significant modifications or improvements to, a Navigation Center, the Party Representatives will be provided a reasonable opportunity to review and provide input on the proposed design and amenities of the Navigation Center, and the Host Cities will, in good faith, consider the input of the Party Representatives in finalizing the same.
5.3. Host City as “Lead Agency.” The Host City for the Navigation Center shall be the “lead agency” for purposes of improvements or modifications thereto, as well for the environmental review, acquisition, development, and construction of the Navigation Center, the installation of FF&E, and operation, cleaning, maintenance, or repair of the Navigation Center.
a) Service Contracts. As approved by the Party Representatives, the Host City will be the “contracting party” to any written agreements with qualified professional(s), service providers, and/or licensed contractor(s) (“Contractor”) necessary for the development or operation of Navigation
Center consistent with this Agreement.
b) Procurement Practices. A Party’s purchase or acquisition of Program Property, or a Host City ’s retention of any Contractor, shall be governed by the procedural formalities and requirements of the Host City. The Parties agree that, to the extent practicable and not otherwise required by applicable law, Contractors should be selected after a competitive process that considers both price and capacity or qualifications to perform.
5.4. Minimum Housing Standards. The Navigation Center should comply with the building standards for emergency housing established by the California Department of Housing and Community Development, as the same may be amended from time to time, or if more stringent, and at the discretion of the Host City, the applicable building standards of the Host City (“Building Standards”).
5.5. Minimum Facilities and Amenities. The Navigation Center should be improved and equipped with the facilities and amenities commonly associated with public facilities of similar type and purpose as approved by the Party Representatives, in sufficient quantities necessary to serve the Guest Capacity for each Navigation Center.
5.6. Maintenance and Repairs. Host Cities will cause the Navigation Center to be regularly cleaned, maintained, and repaired in accordance with generally accepted standards, and as necessary to ensure compliance with the Building Standards. The Operating Agreements for the Navigation Center shall include terms and conditions requiring the Center Operators to comply with this Section.
8 5.7. Security. Each Host City will ensure that adequate security measures and policies are incorporated into the Navigation Center ’s construction and operation, including but not limited to security plans, secured entrances, on-site security personnel, video recording equipment, adequate lighting, law enforcement patrols, and neighborhood safety controls. Detailed security procedures and protocols will be included in the Operating Plan developed by the Host City, Center Operator, and the Party Representatives, as described further below.
6. USE AND OPERATION OF NAVIGATION CENTER
6.1. Exclusive Purpose of Navigation Center. A Navigation Center subject to this Agreement will be used by the Parties exclusively for the purpose of providing Services to Guests located within the Program Area. The Parties agree to work cooperatively and in good faith, and to take such reasonable action(s) or precaution(s) as deemed necessary, to effectuate the purpose of this Section.
6.2. Use and Access of Navigation Center. In consideration for the City Parties ’ payment of their respective Party Share, each City Party shall have the right to utilize an approximately equivalent percentage of its Party Share of total Guest Capacity in the Navigation Center. The Parties shall have access to and utilize the monitoring and logging system developed and operated by the County to track the real-time availability of Guest Capacity in the Navigation Center, and to make arrangements and reservations for the transportation of Guests thereto and therefrom. Parties utilizing Guest Capacity in Navigation Center shall comply with the applicable
Operating Plan.
6.3. Length of Stay and Transitional Housing. The Host City shall have the authority to establish reasonable restrictions on the maximum length of stay for any individual Guest in a Navigation Center, which restriction shall be set forth in the Operations Plan. Any restrictions adopted pursuant to this Section by a Host City shall be consistent with those generally imposed by facilities of similar type, nature and purpose. Upon expiration of any length of stay imposed by a Host City, the Party from whose jurisdiction the Guest originated from shall provide transportation and otherwise facilitate the return of the Guest to said jurisdiction, subject to restrictions imposed by applicable laws. Consistent with the purposes of this MOU to provide a long-term solution to the unsheltered homeless population within the Program Area, the City Parties agree to work cooperatively and in good-faith towards facilitating the development of supportive short-term and permanent affordable housing units within their respective jurisdictions, such that Guests may be transitioned from the temporary shelter provided by Navigation Center to long-term housing.
6.4. Annual Review of Party Usage. The Guest Capacity utilized by each Party shall be reviewed not less than once per year in conjunction with the Annual Meeting and in light of the Annual Report and Annual Audit described below, and the results of this review shall be used for making any necessary adjustments to the Party Shares or the Cost Allocation Plan to ensure the Parties’ financial obligati ons hereunder accurately reflect the benefit derived; as well as to make any necessary revisions to the Operating Plans to further the goals and objectives of this Agreement. Notwithstanding the foregoing, during the first two (2) Annual Terms, the Party Representatives shall meet not less than once per quarter to review the matters described in this
9 Section; provided that such a review shall be conducted at any time during the Term upon a request by two-thirds (2/3) of the Party Representatives.
6.5. Center Operators. The Host City will enter into an Operating Agreement with a Center Operator for comprehensive and “turnkey” day-to-day management and operation of the Navigation Center located within its jurisdiction. Except as otherwise agreed to by the Parties, Center Operators shall be a non-profit organization with demonstrated experience operating similar facilities and providing similar services as contemplated in this Agreement, and shall be selected by the Host City following a competitive process, with the selection based on cost considerations, capacity to perform to the Services, qualifications and expertise, and such other matters deemed relevant by a Host City or the Party Representatives. A Host City’s selection of a Center Operator shall be subject to approval by the Party Representatives.
6.6. Operating Plan. The Host City shall develop an Operating Plan which shall govern the day-to-day management and operation of its Navigation Center, and shall be incorporated into the Operating Agreement for the Navigation Center. The Operating Plan must be approved by the Host City, the Center Operator, and the Party Representatives, and will address such matters as are detailed in Exhibit “F”,
in addition to such other terms and conditions that may be directed by the Host City and the Party Representatives.
6.7. Operating Agreement. Prior to a Host City’s commencement of a solicitation for a Center Operator, the Party Representatives shall work cooperatively and in good faith to develop minimum experience and qualifications, as well as general standards, terms, and conditions to be included in an Operating Agreement necessary and appropriate to protect the Parties’ respective interests. In addition to any other terms or conditions that may be directed by a Host City or Party Representative, each Operating Agreement will, to the maximum extent permitted by law, require the Center Operator to defend, indemnify, and hold the Parties harmless from and against any and all claims or damage to person or property relating to or arising from the Center Operator’s management and operation of a Navigation Center. The terms and conditions of Operating Agreements shall be subject to approval by the Party Representatives.
6.8. Transportation Plan. Unless the Parties expressly agree on an alternative plan for the provision of transportation of Guests to and from the Navigation Center, Guests referred by each City Party shall separately provide for all transportation for Navigation Center Guests referred by such City Party for the duration of their stay at the Navigation Center and for their departure from the Navigation Center. The Parties shall each be responsible for maintaining contact with the Navigation Center Operator to ensure appropriate transportation for Guests originally referred from each City Party is provided in a timely manner to assist in working toward satisfaction of their
Operating Plan.
6.9. Low-Barrier Access. The Navigation Center shall be considered “low barrier” facilities for purposes of Guest access, and any entry screening, barriers, or conditions to access shall be defined in the Operating Plan, as such may be approved by the Party Representatives and reasonably necessary to accomplish the purposes of this Agreement, or as may otherwise be ordered by a court of law, or required by a settlement agreement to which the Host City is a party.
Except as required to comply with applicable law or court order, the Navigation Center shall not
10 be “no-barrier” facilities, and shall have, at a minimum, access or entry conditions for Guests that are substantially similar to those utilized by other navigation centers in Orange County, and screening for felony warrants or registration as a sex offender may be included in the Operating Plan.
6.10. Community Coordination and Communication. The Parties are committed to communication with neighbors on an ongoing basis. During the Term, the Parties and the Center Operator will work together cooperatively and in good faith to facilitate community forums, generate educational or outreach materials, and engage in similar activities to promote or further the purposes of the Program. The goal of such efforts will be to provide members of the community with opportunities to ask questions and receive information about the Navigation Center and the Program. Any printed or published materials relating to the Program shall be subject to approv al by the Party Representatives.
a) Complaints / Inquiries. Any community complaints and/or inquiries about the Program should be recorded and forwarded to the appropriate Party, or its designated point of contact, for prompt investigation. The Party Representatives and Center Operator shall work together to facilitate appropriate responses to customer service requests and prompt resolution of community complaints.
b) Visitors / Tours. Visits by members of the community and tours of the Navigation Center should be made available by the Host City, and will be coordinated by and through the Host City and the Center Operator.
c) Retention of Professional Service Providers. The Parties may retain or appoint professional service providers as necessary to provide public relations, legal, accounting, or other specialized support services for the Program. The Parties will designate the Host City to serve as the contracting agency for any such purposes, and the need for and selection of any such professional service providers will be subject to approval by the Party Representatives. Costs and expenses incurred in the retention of professional services providers shall be a Program Cost.
d) Coordination of Government Agencies. The Program will be operated for the public good, and successful implementation will require the partnership of various stakeholders including the Parties, the Center Operator, local school districts, and other local political subdivisions and community organizations. The Parties are, and the Center Operator shall be, committed to working cooperatively with numerous stakeholders to serve Guests in the Program Area. The Parties and the Center Operator will communicate and work collaboratively with local police, fire, and public safety departments through all stages of Program implementation, including but not limited to the design of Navigation Center, and the development and implementation of the Operating Plan and Operating Agreement.
6.11. Annual Report. At least once per year, to be completed contemporaneously with the Annual Audit, the Parties shall cause a third-party to review and audit the day- to-day operational affairs of the Navigation Center, and prepare an Annual Report to be presented to the Party Representatives. The Annual Report shall include such information as may be directed by the Party Representatives, but should at a minimum address such issues as: the sufficiency of the
11 Guest Capacity for the Program Area; each Party’s usage of Guest Capacity over the past year; each Party’s anticipated Guest Capacity needs for the ensuing year; funding needs and opportunities; anticipated capital improvement or operational expenses for the Program; the extent to which the Program is achieving the purposes of this Agreement; and a performance review of the Navigation Center, Center Operators, and Operating Plans.
The Parties shall designate the
Program Treasurer to serve as the contracting agent for such purposes, and the selection of a third- party to prepare the Annual Report shall be subject to approval of the Party Representatives. Costs and expenses incurred in the retention of professional services providers shall be a Program Cost.
7. FINANCIAL PROVISIONS
7.1. Program Treasurer. The Parties shall select a Party to serve as the Program Treasurer.
a) Designation. The identity of the Program Treasurer shall be memorialized in writing, and the Party Representatives may alter the identity of the Program Treasurer at any time, and the Program Treasurer may resign at any time, both without penalty, cause, or justification; provided that as much advance notice as possible shall be afforded in the case of Program Treasurer resignation. Subject to the foregoing and following completion of construction of the New Navigation Center by the Host City, the Parties ’s designation of a the Program Treasurer shall serve an initial two (2) years for program operation, or such term that mutually agreed by the Party Representatives. Thereafter, a rotation of the next Participating City to serve as Program Treasurer shall be selected at a scheduled meeting of Annual Review of Party Usage described in Section
6.4. b) Costs. The Program Treasurer shall be entitled to be recover the costs associated with serving in such capacity under this Agreement. In 2022, this amount is estimated to be $20,000 per Annual Term or up to 250 hours per Annual Term.
7.2. Program Accounts. The Program Treasurer shall establish and maintain the Program Accounts set forth in Exhibit “G”, or such other or different accounts as may be directed by the Party Representatives from time to time, with a banking institution approved by the Party Representatives, into which the Program Treasurer shall deposit all Program Funds. The Program Funds deposited into each Program Account will be used for the specific purposes of such account.
a) The Parties Representatives have collectively pre-approved US Bank as the banking institution for the Program Treasurer to establish initial Program Accounts.
b) Upon execution of this Agreement but no later than October 31, 2022, the Parties Representatives shall deposit the initial Program Funds with to complete scope of work associated with Due Diligence, Administration and Acquisition and further described in Exhibit “C”.
7.3. No Comingling of Funds. Program Funds provided by the Parties for specific purposes under this Agreement shall be deposited into the designated Program Account, and shall not be comingled with funds provided for any other purpose, nor used for any purpose other than the specific purpose so designated, absent the approval of Party Representatives.
12 7.4. Permissible Use of Funds. Each Party represents and warrants to the other Parties that the funding source for the Party Shares paid under this Agreement may be used for the purposes described herein, and their expenditure was duly authorized by the governing board of the Party. Any restriction or limitation on the use of funds contributed by a Party under this Agreement shall be so designated and disclosed by the Party making the payment and, should such restrictions or limitations frustrate or hinder the purpose or administration of this Agreement, the Parties may require the Party Share be paid from an alternative funding source; provided that the Parties shall work together cooperatively and in good faith to attribute restricted funds provided by the Parties towards authorized purposes that further the Program before requesting an alternative funding source.
7.5. Description of Party Shares; Financial Contributions by the Parties.
a) Anticipated Program Costs. As of the Effective Date, the Parties agree that Exhibit “C” represents a reasonable estimate of Program Costs anticipated to be incurred by the Parties in the acquisition of the Navigation Center site and the completion of modifications or capital improvements thereto (Exhibit C(1)), and annually to operate the Navigation Center during the Term (Exhibit C(2)). The Parties hereby approve of such Program Costs as the Program Budget, which will govern the Program Treasurer’s allocation of Program Funds to the Parties. At each Annual Meeting, a new Program Budget will be approved by the Party Representatives for the immediately ensuing Annual Term, and any such Program Budget may thereafter be modified, amended, or superseded by the Party Representatives.
b) Funding Sources and Parties’ Share of Program Costs
1. Funding Sources and Party Shares. As set forth in Exhibit D(1) and (D)(2), the Program Costs are anticipated to be paid for from a combination of funding sources:
(1) Party Shares; (2) Permanent Local Housing Allocation (PLHA) funds; (3) funds contributed by the County; (4) Housing Successor and/or Housing Authority; and (5) future Homeless Emergency Aid Program (HEAP) funds; and
, other qualified grant sources. The portion of
Program Costs to be paid from Party Shares are the City Program Costs, and each Party Share of such City Program Costs is detailed in Exhibit D(1
) and D(2). Should any of the alternative funding
sources fail, in whole or in part, then the unfunded portion of Program Costs shall be deemed City Program Costs, to be paid by the City Parties in accordance with the Cost Allocation Plan.
2. Basis for Allocation; Cost Allocation Plan. The Parties agree that each Party Share is intended to, and does, fairly represent the privileges, benefits, and burdens flowing to and imposed upon each such Party, and its respective community, in that each Party Share represents a portion of the City Program Costs that is substantially equal to each City Party’s anticipated use of the aggregate Guest Capacity of the Navigation Center, and associated burdens of the Program carried by Host Cities. The Parties agree that each Party Share is consistent with the Cost Allocation Plan under Option 3 set forth in Exhibit “E” and that the Cost Allocation Plan accurately reflects the burdens and benefits of the Parties under this Agreement.
3. Annual Meeting. No later than ninety (90) days before the commencement of each
13 Annual Term, the Parties shall review the results of the previous year’s Annual Audit, together with the Annual Report, existing Cost Allocation Plan, and Program Costs anticipated to be incurred in the current and future Annual Terms, and shall, cooperatively and in good faith:
negotiate and reach a mutual agreement as to any adjustments or revisions to the Cost Allocation Plan necessary to finance and operate the Program and the Navigation Center, and to improve,
develop or repair the Navigation Center; ensure that each Party Share fairly reflects the benefits and obligations to such
Party under this Agreement, consistent with the considerations included in the Cost Allocation Plan; and to adopt and approve a new Program Budget for the immediately ensuing Annual Term.
4. Notice of Party Shares. Not later than sixty (60) days prior to the commencement of each Annual Term, the Parties shall finalize the Party Shares for the ensuing Annual Term based on the Cost Allocation Plan, and notice of each Party’s Share shall be provided by the Program Treasurer not later than thirty (30) days immediately preceding commencement of the applicable Annual Term.
5. Timely Payment. Each Party shall pay the Party Share in consideration for its continuing right to use and access the Navigation Center. Each Pa rty’s annual obligation to remit payment of the Party Share is contingent on the Parties making the Navigation Center available to such Party for the applicable Annual Term. Each Party shall remit payment of its Party Share on or before the beginning of each Annual Term, and set forth in the notice by the Program Treasurer.
Late payments shall accrue interest at the maximum interest rate permitted by law applicable to municipal corporations.
6. Funding Shortages. Should the Program experience a shortfall in funding during any Annual Term, the Program Treasurer, with the approval of Party Representatives, shall provide written notice to the Parties of the shortage, and the City Parties shall remit payment of required amounts within thirty (30) days’ receipt of the same, with the amount of each City Party’s payment to be based on the Cost Allocation Plan.
7. Reconciliation. If, during any Annual Meeting, the Party Representatives determine that past payments made by any Party were either in excess or less than the amount fairly attributable to that Party, that Party’s Share shall be adjusted in future Annual Terms.
8. Public Benefit and Purpose. Each Party acknowledges that establishment and operation of the Program, including but not limited to development and operation of the Navigation Center, is a substantial benefit to each such Party, and the residents, business, and communities residing within their respective jurisdictional boundaries. All Parties expressly declare that this Agreement, and all expenditures of public funds hereunder for the purposes described herein, furthers legitimate public purposes of combating and remediating incidents of homelessness in their communities.
9. No Repudiation of Party Share. In the event any Party refuses to receive or take advantage of the Program benefits, or access or utilize the Navigation Center, despite the opportunity to do so as a Party to this Agreement, or in the case of a default or failure to pay its Party Share in accordance with this Agreement, each Party remains obligated to pay to the other
14 Parties, by and through the Program Treasurer, its outstanding payments hereunder as they become due and payable, and any other Party may take any legal action as appropriate to obtain such payment.
10. Results of Nonpayment by Party. All Parties acknowledge that the failure of any Party to pay any amount hereunder will result in an increase in the operational costs of the Program to be divided among all other Parties. To that end, in the event any Party fails to pay, for any reason, any amount required to be paid by that Party under this Agreement within fifteen (15) days of when such payment is due, the amount of such nonpayment will be apportioned among the remaining Parties such that the remaining Parties will be responsible to pay such unpaid amount.
Should the non-paying Party subsequently pay any portion of the amount owing, the increased cost paid pursuant to this Section by the remaining Parties will be reimbursed from such payment in a percentage equal to each Party’s Share. Each Party’s incremental increase in a contribution resulting from a Party’s nonpayment will be due with in thirty (30) days of notification by the Program Treasurer. The obligation of Parties to pay increased amounts under this paragraph is not intended to be an exclusive remedy. The Parties reserve the right to take any action as is appropriate to obtain payment from any non-paying Party. Additionally, each Party paying increased costs pursuant to this paragraph, shall have and retain the right to take any action at law or equity as is appropriate to obtain reimbursement of such increased payment amounts from the non
-paying Party.
11. No Reimbursement. Except as otherwise expressly provided herein, it is the intention of all Parties that no funds provided by any Party under this Agreement shall be reimbursed. The Parties acknowledge that the payments made or required under this Agreement represents a fair return and consideration in exchange for access and use of the Program and Navigation Center during the Annual Term to which the payment or payment(s) relate(s). If, pursuant to judicial action or threat thereof, or for any other reason, any funds are reimbursed under this Agreement to any Party, other than as expressly provided herein, the remaining Parties will be responsible for paying the reimbursed amount, with each Party’s repayment obligation equaling that used to establish the Party’s Share.
12. Budgeting Party Contributions. For each Annual Term, each Party shall make every effort to adopt all necessary budgets and make all necessary appropriations for all payments due hereunder. The covenant contained in this Section shall be deemed to be, and shall be construed to be, contingent upon the continuing offer by other Parties to participate in the Program and be a party to this Agreement. To the extent the Parties offer access and use of the Program and Navigation Center to any Party, the continued responsibility of such Party to make all payments required hereunder shall be a duty imposed by law and it shall be the duty of each and every public official of each Party to take such actions and do such things as are required by law in performance of the official duty of such officials to enable the Party to carry out and perform the covenants contained in this Section.
13. Mutual Covenant. All Parties acknowledge that the construction, maintenance and availability of Navigation Center for the provision of Services to Guests, and the division of the costs of constructing and maintaining such Navigation Center among the Parties allows for costs efficiencies and significant savings to each Party and that each Party has entered into this
-
15 Agreement in reliance on such shared costs and resulting savings. Each Party, to provide assurance of such cost efficiencies to each remaining Party, hereby expresses its commitment to fulfill its stated obligations regardless of the term of the Agreement overlapping more than one fiscal year, and acknowledges the financial burden that any breach of the terms of this Agreement will have on all other Parties.
14. Grant Funding. The Parties are encouraged to pursue local, state, federal, and other grant opportunities and funding sources in furtherance of the Program, the Navigation Shelters, or towards a Party’s financial contributions under this Agreement. To the extent possible, the Parties agree to work together cooperatively and in good faith in pursuit of funding opportunities.
7.6. Program Property. The Program Treasurer shall track and keep an accurate list of all Program Property valued at more than Five Thousand Dollars ($5,000) that is acquired with funds contributed by the Parties, including a record of which Party is in custody of such Program Property. Regardless of whether a Party holds legal title to any such Program Property, it shall be managed and utilized by the Party in custody and control of the same exclusively for purposes consistent with
this Agreement.
7.7. Disposition of Program Property. In the event any Party is in possession of any item of Program Property that is not needed or currently being utilized for purposes consistent with this Agreement, the Party in possession shall, within a reasonable time of discovering the same:
(1) provide written notice to the Parties; and (2) direct the transfer the Program Property to another Party for use in the Program, as approved by Party Representatives. In the event the transfer of Program Property is unnecessary or infeasible, the Program Property shall be sold at fair-market value within a reasonable period of time, and the proceeds immediately transferred to the Program Treasurer for deposit into Program Accounts, or for reimbursement or reduction of Party Shares, as may be directed by Party Representatives. To the extent state, federal, or grant restrictions direct the disposition or sale of Program Property acquired with any such funding source, the same shall govern and prevail over the terms of this Section.
a) For Program Property specific to real property located at13871 West Street in the City of Garden Grove has been identified as the future location of the New Navigation Center.
b) For purposes of real property disposition under Program Property, if the Parties deem the real property is unnecessary or infeasible for use in the Program, the Parties agree that the real property shall be sold at fair-market value within a reasonable period of time determined by the Parties, and the proceeds immediately transferred to the Program Treasurer for deposit into Program Accounts to closeout any and all final Program costs, then remaining net sale proceeds shall be disbursed to Parties based on pro-rata share detailed in the 2022 Cost Allocation Plan Option 3 (Exhibit “D”) and further described as follows: (i) Garden Grove (0.5882%); (ii) Fountain Valley (0.1529%); and (iii) Westminster (0.2588%).
7.8. Annual Audit. The Program Treasurer shall cause an independent financial audit of the Program Accounts to be completed for each Annual Term (June – July) during the Term, and the report shall be presented to the Parties at the Annual Meeting (“Financial Audit”). The
16 Financial Audit shall comply with Generally Accepted Government Audit Standards, and shall be distributed to all Parties upon completion. The Program Treasurer shall be the “contracting party” for purposes of any third-party contract with an independent auditor.
8. DISPUTES, DEFAULTS, AND REMEDIES
8.1. General Disputes. Should the Parties be unable to reach a mutual agreement as to any matter necessary to effectively administer and operate the Program, such as the amount of any Party Share, as an alternative to terminating this Agreement or pursuing an alternative remedy, the Parties may mutually agree to refer the dispute to a neutral arbitrator for resolution, in which case the arbitrator’s determination shall be binding unless and until this Agreement is otherwise amended by the Parties.
8.2. Defaults.
a) Notice and Time to Cure. The failure by any Party to perform any of its obligations set forth in this Agreement shall constitute a default. Except as required to protect against further damages, the non-defaulting Parties may not institute legal proceedings against the Party in default until the non-defaulting Parties have provided the defaulting Party notice of the default and the cure period has expired: The cure period for any default shall be thirty (30) days after the defaulting Party’s receipt of written notice from the non -defaulting Parties that such obligation was not performed. In the case of a default which cannot be cured within the cure periods set forth in this section, the defaulting Party shall commence efforts to cure within such time periods, and shall diligently thereafter pursue to cure the default to completion within a reasonable period of time.
b) Cooperative Resolution. During the cure period set forth in paragraph (a), and prior to pursing any remedies described in this Section, the Parties will attempt, in good faith, to find a mutually agreeable resolution through communicating with each other and attempting to resolve any substantive problems arising under this Agreement, including challenges arising from funding difficulties, and/or any difficulty with effectively implementing the responsibilities detailed in this Agreement. Communication and attempts to resolve such problems and difficulties prior to pursing remedies under this Agreement include, but are not limited to, meeting together, amending this Agreement, and/or seeking the assistance of a jointly agreed upon mediator.
c) Remedies. Upon the occurrence of any default, and following written notice and expiration of the time to cure, the non-defaulting Parties may, at their option: declare this Agreement null and void with respect to the defaulting Party, in which case the defaulting party shall not be entitled to the benefits and privileges of this Agreement or the Program; or pursue damages or specific performance or other legal and equitable remedies the injured Parties may have against the non
-defaulting Party in accordance with applicable law. Nothing herein shall be construed as the non-defaulting Parties’ exclusive remedy for the remediation of default by a Party, and the non-defaulting Parties reserve the right to pursue any and all available rights and remedies at law or in equity.
d) Non-refund of Contributions. The payments made by all Parties pursuant to this
17 Agreement shall be used for the Program in the manner described herein, and all Parties acknowledge and agree that the development, administration, and operation of the Program, including development of the Navigation Center, provides an immediate benefit to each Party and that no payments made pursuant to this Agreement shall be refunded for any reason other than as specifically authorized herein.
9. INDEMNITY AND INSURANCE
9.1. Indemnity / Hold Harmless. Each Party shall hold harmless, indemnify, and defend the other Parties, and each of them individually and jointly, and their respective officers, employees, and agents, from and against any and all claims, suits, or actions of every kind brought for or on account of injuries to or death of any person or damage to any property of any kind whatsoever and to whomsoever belonging which arise out of a Party’s failure to fulfill any payment obligations of such Party arising pursuant to the performance or nonperformance of the Party’s covenants and obligations under this Agreement, and which result from the actively negligent or wrongful acts of the Party, or its officers, employees, or agents. This provision requiring a Party to hold harmless, indemnify, and defend the other Parties shall expressly not apply to claims, losses, liabilities, or damages arising from actions or omissions, negligent or otherwise, of any independent contractor providing services pursuant to a contract with any other Party. In the event of concurrent negligence of the Parties or any other Party, its respective officers, or employees, and a Party, its officers and employees, then the liability for any and all claims for injuries or damages to persons and/or property or any other loss or cost which arises out of the terms, conditions, covenants or responsibilities of this Agreement shall be apportioned in any dispute or litigation according to the California theory of comparative negligence.
9.2. Insurance. Each Host City, and all Center Operators, shall obtain and maintain in full force and effect throughout the term of this Agreement, or the term of the Center Operator’s contract, as applicable, insurance of the types and in the amounts directed by the Party Representatives. Costs incurred by Host Cities in procuring or maintaining such insurance shall be a Program Cost.
10. MISCELLANEOUS
10.1. Approval by Party Representatives; Host City Authority. Any term or provision of this Agreement that calls for the direction, approval, or consent of the Party Representatives, shall mean and refer to the direction, approval, or consent of at least two-thirds (2/3) of the Party Representatives; provided that, notwithstanding anything contrary in this Agreement, the Host City shall have discretion to approve or disprove any such action that: directly relates to the operation, management, capacity, construction, location, design, or scale of a Navigation Center located in the Host City’s jurisdiction; results in the addition of a Navigation Party to this Agreement; or any other action that, in Host City’s reasonable discretion, will have a reasonably foreseeable negative material impact on
residents, business, or public facilities in the area surrounding the Navigation Center, materially increase the intensity of Navigation Center use or capacity, or materially increase burdens on public services provided to said area.. Except as specifically provided herein, all actions reasonably necessary to effectuate the purpose of this Agreement and the Program may be performed by the Party Representatives except as may otherwise be prohibited by state or
18 federal law.
10.2. Notice. Any notices provided to any Party in connection with this Agreement shall directed to the Party Representative of each of the Parties set forth in Exhibit “H”.
10.3. Parties as Independent Contractors. Each Party is, and at all times shall be deemed to be, an independent contract or of the other Parties. Nothing herein is intended or shall be construed as creating the relationship of employer and employee, or principal and agent, between any Party, or any Party's agents or employees. Each Party shall retain all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of the Program pursuant to this Agreement. Each Party, and its agents and employees, shall not be considered to be employees of any other Party.
10.4. Governing Law and Venue. This Agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction, located in Orange County, California, and the Parties agree to and hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the Parties specifically agree to waive any and all rights to request that an action be transferred for trial to another county.
10.5. Amendments / Entire Agreement. Amendments to this Agreement must be in writing and approved by the governing body of each Party. This Agreement, and the various Exhibits referenced herein which are incorporated fully by this reference, is the entire agreement among the Parties with respect to the subject matter hereof, and it supersedes any prior written or oral agreements with respect to the subject matter.
10.6. Severability. If any section, subsection, paragraph, term, or provision of this Agreement, or the application thereof, is held by a court of competent jurisdiction to be invalid, void or unenforceable, such section, subsection, paragraph, term, or provision, to the extent the same is valid and enforceable, and all other remaining provisions hereof, shall remain in full force and effect, to the fullest extent possible, and shall in no way be affected, impaired or invalidated thereby to the extent such are not rendered impractical to perform taking into consideration the purposes of this Agreement.
10.7. Attorneys’ Fees. In any action or proceeding to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover its reasonable costs, expenses, and attorneys’ fees incurred in such action or proceeding.
10.8. Interpretation. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with in this Agreement. In addition, each Party has been represented by experienced and knowledgeable independent legal counsel of its own choosing or has knowingly declined to seek such counsel despite being encouraged and given the opportunity to do so. Each Party further acknowledges that is has not been influenced to any extent whatsoever in executing this Agreement by the other Parties, or by any person representing the other Parties, or both. Accordingly, any rule or law (including Civil
19 Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to affect the purpose of the Parties and this Agreement.
10.9. Non-Waiver of Rights and Remedies. No term or provision of this Agreement shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the Party claimed to have waived or consented. Any consent by any Party to, or waiver of, a breach by the other, whether express or implied, shall not constitute consent to, waiver of, or excuse for any other different or subsequent breach.
10.10. Authority. The Parties represent and warrant that this Agreement has been duly authorized by their respective governing boards, and executed by a duly authorized representative thereof, and constitutes the legally binding obligation of their respective Party, enforceable in accordance with its terms.
10.11. Assignment. Except as otherwise expressly provided for herein, no Party shall assign any of its obligations or rights hereunder without the consent of all other Parties, and any such assignment without consent shall be null and void.
10.12. Execution in Counterparts. This Agreement may be executed in counterparts, each of which, when the Parties have signed this Agreement, shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
IN WITNESS WHEREOF , the Parties to this Agreement have caused the same to be executed by each of their duly authorized officers as follows:
[SIGNATURES]
20 CITY OF GARDEN GROVE
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
CITY OF FOUNTAIN VALLEY
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
CITY OF WESTMINSTER
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
21 Exhibit “A”
Central Service Planning Area
County of Orange
Service Planning Areas
Service Planning Areas
- N08TH REGION
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D SOUIM RECION
Milo~
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22 Exhibit “B”
Navigation Centers and Guest Capacity
*Designated Host City for Future Central Cities Navigation Center
City Facility Name Service
Provider
Current
Temporary
Shelter
Beds
Current
Permanent
Shelter
Beds
Future
Permanent
Shelter
Beds
Population
Served
Costa Mesa
Costa Mesa Bridge Shelter
https://www.costamesaca.gov/hot
-topics/costa-mesa-bridge-shelter
Mercy House 72 Single Adults
Garden Grove* Future Central Cities Navigation
Center TBD 50 Single Adults
and Couples
Fountain Valley Future Central Cities Navigation
Center TBD 13 Single Adults
and Couples
Huntington Beach
Huntington Beach
Navigation Center
https://www.hbhomelesssolutions
.com
Mercy House 174 Single Adults
Newport Beach Collaboration with Costa Mesa Mercy House Santa Ana Carnegie Site Homeless Shelter Illumination
Foundation 200 Single Adults
and Families
Seal Beach N/A
Tustin
Tustin Temporary Emergency
Shelter
https://tustintemporaryshelter.squ
arespace.com/
Orange
County
Rescue
Mission
57 Single Adults
and Families
Westminster Future Central Cities Navigation
Center TBD 22 Single Adults
and Couples
Total Central SPA Emergency Shelter Beds 57 446 85
County of Orange
Armory Emergency Shelter
https://ceo.ocgov.com/care-
coordination/homeless-
services
County of
Orange/Mercy
House
100 Single Adults
Yale Navigation Center (Santa
Ana)
https://epath.org/regions/orang
e-county/
County of
Orange
(PATH)
425 Single Adults
County of Orange Shelter Beds
located within Central SPA 525
23 Exhibit “C”
Estimated Program Costs and Budget
(1) Future Central Cities Navigation Center
2022 Construction and Acquisition Program Costs (Estimated) Due
Diligence
C-SPA
Administration
Property
Acquisition
Tenant
Improvements FF&E Estimated
Budget
Garden
Grove 231,618 44,118 3,323,529 411,765 882,353 4,893,382 Fountain
Valley 60,221 11,471 864,118 107,059 229,412 1,272,279 Westminster 101,912 19,412 1,462,353 181,176 388,235 2,153,088 Total 393,750 75,000 5,650,000 700,000 1,500,000 8,318,749 Average Cost Per Bed 97,868
(2) Future Central Cities Navigation Center
Ongoing Operation and C-SPA Administration Costs (Estimated) Navigation Center Total Cost Bed Average Cost Per Bed
Garden Grove 1,350,000 50 27,000
Fountain Valley 351,000 13 27,000
Westminster 594,000 22 27,000
C-SPA Administration 75,000 882
Total Cost 2,370,000 85*
Average Cost Per Bed 27,882
*Cost estimated assume a capacity of 85 beds at the Future Central Cities Navigation Center.
Ongoing operations and program design will explore opportunity to achieve capacity of up to 100 beds.
24 Exhibit “D”
Estimated Funding Source(s) and Party Shares
(1) Estimated Funding Source(s) for Construction and Acquisition (Estimated) Property
Acquisition
Construction
(Due Diligence/
Tenant
Improvement/
FF&E/Admin)
Party Shares Funding
Source(s)
Percent of
Total
County of Orange 5,300,000 5,300,000 General Fund,
ARPA 0.3892
Garden Grove 3,323,529 1,569,853 4,893,382
PLHA funds,
Housing
Authority,
General Fund
0.3593
Fountain Valley 864,118 408,162 1,272,279
Housing
Authority,
General Fund
0.0934
Westminster 1,462,353 690,735 2,153,088 General Fund 0.1581 Total 5,650,000 7,968,750 13,618,750
1.0000
(2) Party Shares of Ongoing Operation Program Costs (Estimated at Year 1)
C-SPA Cities
Cost Allocation
Plan *
Party Shares Funding
Source(s) Percent of Total
County of Orange 625,000 General Fund,
ARPA 0.2686
Garden Grove 0.5882 1,001,103
PLHA funds,
Housing Authority,
General Fund
0.4302
Fountain Valley 0.1529 260,287 Housing Authority,
General Fund 0.1119
Westminster 0.2588 440,485 General Fund 0.1893
Total 1.0000 2,326,875 1.0000
* Reference Exhibit ‘E” for Cost Allocation Plan
25 Exhibit “E”
2022 Cost Allocation Plan
Source
* Point In Time Count Results for the County of Orange released on May 11, 2022 ** 2020 Census Results and Data Profiles (https://www.census.gov/en.html)
2022 Cost Allocation Plan
Option 1 Option 2 Option 3
2022 Point In Time Count* 2020
Population**
% of 2020
Population Beds 2022 Cost
Allocation by Beds Unsheltered % of
Unsheltered Sheltered
Garden
Grove 278 0.5853 113 171,949 0.5375 50 0.5882
Fountain
Valley 38 0.0800 0 57,047 0.1783 13 0.1529
Westminster 159 0.3347 0 90,911 0.2842 22 0.2588
475 1.0000 113 319,907 1.0000 85 1.0000
26 Exhibit “F”
Operating Plan Considerations
In addition to other matters directed by Party Representatives, Operation Plan should address or include the following:
A. General policies and procedures that promote utmost safety for Guest, staff, volunteers, and the community, and New Navigation Center should strive to provide an atmosphere that promotes community, stays alert for signs of conflict, and confronts behaviors before they escalate.
B. Security measures including but not limited to security plans, secured entrances, on-site security personnel, video recording equipment, lighting, law enforcement patrols, and neighborhood safety and patrols.
C. Fire, earthquake, and disaster safety, including but not limited to evacuation plans, fire prevention procedures, fire drills and documentation, fire inspections and extinguishers.
D. Guest access, including but not limited to hours of operation, controlled access, transportation of Guests to and from the Navigation Center from jurisdiction of resident, overflow management, screenings procedures and criteria, identification requirements and procedures, storage of Guest property, and animal policies.
E. Guest rules of conduct and guidelines, including anti-loitering policies, the use of controlled and over the counter substances, possession of weapons or drug paraphernalia, and dispute resolution procedures.
F. Access and referral of Guest to emergency and medical care, including both on-site of New Navigation Center and coordination with local EMT providers and medical facilities.
G. Coordination with transitional housing providers to locate transition housing vacancies for Guests, and connect Guests to local service providers, with a goal of increasing the Navigation Center turnover rate as Guests are successfully matched to alternate housing opportunities.
H. Health policies designed for safety of staff and Guests, including procedures for the handling and disposal of hazardous materials, precautions in handling of laundry and cleaning, and general self-health care, wearing appropriate protective garments (i.e. gloves), use of disinfecting cleaning products, and hand-washing procedures.
I. Disease prevention protocols for prevention and treatment of diseases and conditions such as seizures, diabetic episodes, mental health episodes, lice, bed bugs, influenza, and other communicable and contagious diseases.
J. Compliance with all local, state, and federal laws, regulations, and policies, including but not limited to labor laws, non-discrimination laws and policies, the American with Disabilities Act, gender-specific programming policies, religious freedom, and sexual harassment.
27 Exhibit “G”
Program Accounts
A. Capital Improvement Fund. Monies in the CPI Fund shall be used solely and exclusively for purpose of financing costs associated with the expansion, modification, improvement, retrofitting, construction, and/or development of the New Navigation Center, including any pre or post-construction work associated with the foregoing.
B. Operating Fund. Monies in the Operating Fund shall be used solely and exclusively for purposes of financing costs associated with the day-to-day, on-site management and operation of New Navigation Center, including such expenses as insurance, personnel, consumables, disposables, refuse disposal, utility costs, professional services providers, and exclusively for
purposes of financing costs associated with the regular and routine maintenance, repair, or replacement of capital improvement associated with the New Navigation Center.
28 Exhibit “H”
Notices and Designation of Party Representative(s)
Party Representative(s) Party Representative(s)
Garden Grove
Scott C. Stiles, City Manager
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840
EMAIL: [email protected]
With Copy to:
Omar Sandoval, City Attorney
Woodruff, Spradlin & Smart
555 Anton Boulevard, Suite 1200
Costa Mesa, CA 92626
EMAIL: [email protected]
Fountain Valley
Christine Cordon, City Manager
City of Westminster
8200 Westminster Blvd
Westminster, CA 92683
EMAIL: [email protected]
With Copy to:
Colin Burns, City Attorney
Harper & Burns LLC
453 S. Glassell Street
Orange, CA 92866
EMAIL: [email protected]
Westminster
Maggie Le, City Manager
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
EMAIL: [email protected]
With Copy to:
Christian L. Bettenhausen, City Attorney
Jones & Mayer
3777 North Harbor Boulevard
Fullerton, CA 92835
EMAIL: [email protected]
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1. BasicProvisions ("BasicProvisions").
1.1 ParƟes. This Lease("Lease"), datedforreference purposesonly September 27, 2022 ,ismade byand between City of Garden Grove, and/or assignee ("Lessor")and WEST ST INVESTMENTS LLC ("Lessee"), (collecƟvelythe" ParƟes," or individuallya "Party").
1.2 Premises: That certainreal property,includingall improvementstherein ortobe providedby Lessorunderthe termsof thisLease, commonlyknownas (streetaddress, city,state, zip): 13871 West St., Garden Grove, CA 92843 ("Premises"). ThePremises arelocatedin theCounty of Orange ,andare generallydescribed as(describe briefly thenature oftheproperty and, ifapplicable, the" Project,"if theproperty islocatedwithin aProject):
An approximate 11,376 sf industrial building on an approximate 0.43 acre lot . (See alsoParagraph 2)
1.3 Term: yearsand three (3) months ("OriginalTerm")commencing the business day following the Close of Escrow on the subject Premises ("CommencementDate") andending three (3) months from Lease Commencement Date (month to month tenancy thereafter) ("ExpiraƟonDate"). (See alsoParagraph3)
1.4 Early Possession: IfthePremises areavailable Lesseemay havenon-exclusivepossession ofthe Premisescommencing ("EarlyPossession Date"). (Seealso Paragraphs3.2and 3.3)
1.5 Base Rent: $17,064.00 permonth ("BaseRent"), payableon the within five (5) days of Close of Escrow. dayof eachmonth commencing . (See alsoParagraph4) Ifthis boxis checked,thereare provisionsin thisLease fortheBase Rentto beadjusted. SeeParagraph .
1.6 Base Rentand OtherMonies PaidUpon ExecuƟon:
1.7 Agreed Use: The property shall be used for warehousing, offices and its existing permitted uses . (See alsoParagraph 6)
1.8 Insuring Party. Lessoristhe "InsuringParty". The annual"BasePremium" is . (See alsoParagraph8)
1.9 Real EstateBrokers. (Seealso Paragraph15 and25)
agency relaƟonships inthis Leasewiththe followingreal estatebrokers ("Broker(s)")and/ortheir agents("Agent(s)"):
Lessor'sBrokerage Firm LicenseNo. Is thebrokerof (checkone): the Lessor;or both theLesseeand Lessor(dual agent) .
Lessor'sAgent LicenseNo. is (checkone): the Lessor'sAgent(salesperson orbroker associate);or both theLessee's Agentand theLessor's Agent(dualagent).
Lessee'sBrokerage Firm LicenseNo. Is thebrokerof (checkone): the Lessee;or both theLesseeand Lessor(dual agent).
Lessee'sAgent LicenseNo. is(check one): theLessee'sAgent (salespersonor brokerassociate);or boththeLessee's Agentand theLessor's Agent(dualagent).
separate wriƩen agreement(or ifthereis nosuch agreement,the sumof or %ofthe totalBase Rent)forthe brokerageservices rendered bythe Brokers.
1.10 Guarantor. The obligaƟons oftheLessee underthis Leaseare tobeguaranteed by ("Guarantor"). (SeealsoParagraph 37)
1.11 AƩachments. AƩachedhereto arethefollowing, allof which consƟtute apartof thisLease:
an AddendumconsisƟngof Paragraphs through ;
a plotplan depicƟng thePremises;
a currentsetof theRules and RegulaƟons;
a WorkLeƩer;
other (specify): .
2. Premises.
2.1 Leƫng. Lessor herebyleases toLessee,and Lesseehereby leasesfromLessor, thePremises, fortheterm, atthe rental,and uponallof theterms, covenantsand condiƟonsset forthinthis Lease. Whilethe approximatesquarefootage ofthe Premisesmayhave beenused inthe markeƟng ofthe Premisesfor purposesof comparison,the BaseRentstated hereinis NOT Ɵed tosquarefootage andis notsubjectto adjustmentshould theactualsize bedetermined tobe different. NOTE: Lesseeis advisedtoverify theactual sizepriorto execuƟngthis Lease.
2.2 CondiƟon. Lessor shalldeliverthe Premisesto Lesseebroom cleanandfree ofdebris ontheCommencement Dateor theEarlyPossession Date,whichever firstoccurs ("StartDate"), and,solong asthe requiredservice contractsdescribedin Paragraph7.1(b) belowareobtained byLessee andin effect withinthirty days followingthe StartDate, warrantsthatthe exisƟngelectrical, plumbing,fire sprinkler, lighƟng, heaƟng, venƟlaƟng and aircondiƟoningsystems ("HVAC"),loading doors,sump pumps,if any,andall othersuch elementsin thePremises,other thanthose constructedbyLessee, shallbe ingood operaƟng condiƟon on saiddate, thatthe surfaceand structuralelementsof theroof, bearingwalls and foundaƟonof anybuildings onthePremises (the"Building") shallbefree ofmaterial defects, andthat theUnit doesnotcontain hazardouslevels ofany moldorfungi definedas toxicunderapplicable stateor federallaw. Ifa non-compliancewith saidwarranty existsas ofthe StartDate,or ifone ofsuch systemsorelements should malfuncƟon orfailwithin theappropriate warrantyperiod,Lessor shall,as Lessor'ssole obligaƟonwith respectto suchmaƩer,except asotherwise providedin thisLease,promptly aŌerreceipt ofwriƩen noƟce fromLessee seƫngforthwith specificity thenature andextent ofsuchnon-compliance, malfuncƟonor failure,recƟfy sameatLessor's expense. Thewarrantyperiods shallbe asfollows:(i) 6months as to theHVAC systems,and (ii)30days asto theremaining systemsandother elementsof theBuilding. IfLessee doesnotgive Lessorthe required noƟce withinthe appropriatewarranty period, correcƟon ofanysuch non-compliance, malfuncƟon orfailure shallbethe obligaƟonof LesseeatLessee's solecost andexpense,except forthe roof,foundaƟons, andbearingwalls whichare handledas providedinparagraph 7. Lessoralsowarrants, thatunless otherwise specifiedin wriƟng,Lessor is unawareof (i)any recorded NoƟcesof DefaultaffecƟng thePremise; (ii)anydelinquent amountsdue underanyloan securedby thePremises;and (iii)any bankruptcy proceeding affecƟng thePremises.
2.3 Compliance. Lessor warrantsthat tothebest ofits knowledgetheimprovements onthe Premisescomplywith thebuilding codes,applicable laws, covenantsor restricƟonsof record,regulaƟons,and ordinances("Applicable Requirements")that werein effect atthe Ɵmethateach improvement,or porƟon thereof,was constructed. Saidwarrantydoes notapply tothe usetowhich Lesseewill putthePremises, modificaƟonswhich mayberequired bythe Americanswith DisabiliƟesAct orany similarlawsas aresult ofLessee's use(seeParagraph 50),or toanyAlt eraƟons or UƟlity InstallaƟons (as defined inParagraph 7.3(a))made orto bemade byLessee. NOTE:Lessee isresponsible fordetermining whetherornot theApplicable Requirements,andespecially thezoning, areappropriatefor Lessee'sintended use,and acknowledgesthatpast usesof thePremises maynolonger beallowed. Ifthe Premisesdo notcomplywith saidwarranty, Lessorshall,
STANDARDINDUSTRIAL/COMMERCIALSINGLE-TENANT LEASE-GROSS
(DONOTUSE THISFORMFORMULTI-TENANT BUILDINGS)
(a) Base Rent: $17,064.00 for theperiod Term .
(b) SecurityDeposit: $17,064.00 ("SecurityDeposit"). (Seealso Paragraph5) (c) AssociaƟonFees: forthe period .
(d) Other: for .
(e) Total DueUpon ExecuƟonofthis Lease: $34,128.00 .
(a) RepresentaƟon: Each Partyacknowledgesreceiving aDisclosure RegardingReal EstateAgencyRe laƟonship, confirms and consentstothe following (b) Paymentto Brokers. Upon execuƟonand deliveryof thisLeaseby both ParƟes, Lessorshallpay tothe Brokersthebrokerage feeagreed toin a DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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exceptas otherwiseprovided, promptly aŌerreceipt ofwriƩen noƟce from Lesseeseƫngforth withspecificity thenatureand extentof suchnon-compliance, recƟfy thesame atLessor's expense. If Lesseedoes notgive LessorwriƩen noƟce ofa non-compliancewiththis warrantywithin 6monthsfollowing theStart Date, correcƟonof thatnon-compliance shallbethe obligaƟonof Lesseeat Lessee'ssolecost andexpense. Ifthe ApplicableRequirements are hereaŌerchanged soas to requireduring theterm ofthisLease the construcƟon ofan addiƟontoor an alteraƟon ofthePremises and/orBuilding, the remediaƟonof anyHazardous Substance, orthe reinforcementor otherphysical modificaƟon ofthe Unit,Premises and/orBuilding(" Capital Expenditure"),Lessor andLesseeshall allocatethe costofsuch workas follows:
(a) Subject toParagraph 2.3(c)below,if suchCapital Expendituresare requiredasa resultof the specificand uniqueuse ofthePremises byLessee as comparedwith usesby tenantsingeneral, Lesseeshall befully responsibleforthe costthereof, provided,however,that ifsuch CapitalExpenditureis requiredduring thelast 2years ofthisLease andthe costthereof exceeds6months' BaseRent, Lesseemayinstead terminatethis LeaseunlessLessor noƟfiesLessee, inwriƟng, within10 days aŌer receiptofLessee's terminaƟon noƟce thatLessor haselectedto paythe differencebetweenthe actualcost thereofandan amountequal to6 months'Base Rent. IfLesseeelects terminaƟon,Lessee shallimmediately ceasetheuse ofthe Premiseswhichrequires suchCapital Expenditureanddeliver toLessor wriƩen noƟce specifyinga terminaƟondateat least90 days thereaŌer. Such terminaƟon dateshall, however,inno eventbe earlierthanthe lastday thatLessee couldlegally uƟlizethe Premiseswithoutcommencing suchCapital Expenditure. (b) Ifsuch CapitalExpenditureis notthe resultof the specificand uniqueuse ofthePremises byLessee (suchas,governmentally mandatedseismic modificaƟons),then Lessorshall payforsuch CapitalExpenditure andLessee shallonlybe obligatedto pay,eachmonth duringthe remainderofthe termof thisLease orany extensionthereof, onthedate thaton whichthe BaseRentis due,an amountequalto 1/144thof the porƟonof suchcosts reasonablyaƩributable tothe Premises. Lesseeshall payInterest onthebalance butmay prepayits obligaƟonatany Ɵme. If,however,such CapitalExpenditure isrequiredduring thelast 2years ofthis Leaseor ifLessorreasonably determinesthat itis noteconomicallyfeasible topay itssharethereof, Lessorshall havethe opƟon toterminate thisLease upon 90days prior wriƩen noƟce toLessee unlessLessee noƟfiesLessor, inwriƟng,within 10days aŌerreceiptof Lessor's terminaƟon noƟce thatLessee willpay forsuch CapitalExpenditure. If Lessordoesnot electto terminate,and failstotender itsshare ofanysuch CapitalExpenditure, Lesseemayadvance suchfunds anddeduct same,with Interest,from Rent unƟlLessor's shareof suchcosts havebeenfully paid. IfLesseeis unableto financeLessor'sshare, orif thebalance oftheRent due andpayable forthe remainderofthis Leaseis not sufficient tofullyreimburse Lesseeon an offsetbasis, Lesseeshall havetheright toterminate thisLease upon30 days wriƩen noƟce to Lessor.
(c) Notwithstandingthe above,the provisionsconcerningCapital Expendituresare intendedto applyonlyto non-voluntary,unexpected, andnew ApplicableRequirements. If theCapitalExpenditures areinstead triggeredby Lesseeasa resultof anactualor proposedchange inuse,change inintensity ofuse, or modificaƟonto thePremises then,andin thatevent, Lesseeshall either:(i)immediately ceasesuch changeduseor intensityof useand/ortake suchother stepsas maybe necessaryto eliminatetherequirement forsuch CapitalExpenditure, or(ii)complete suchCapital Expenditureatits ownexpense. Lesseeshall not,however, haveany rightto terminatethisLease.
2.4 Acknowledgements. Lessee acknowledgesthat: (a)it hasbeen givenanopportunity toinspect andmeasurethe Premises,(b) ithas beenadvisedby Lessorand/or Brokersto saƟsfyitselfwith respectto thesize and condiƟonof thePremises (includingbutnot limitedto theelectrical,HVAC and fire sprinkler systems,security, environmental aspects,andcompliance withApplicable Requirementsand theAmericanswith DisabiliƟesAct), andtheirsuitability forLessee's intendeduse, (c)Lessee hasmadesuch invesƟgaƟonas itdeems necessarywithreference tosuch maƩersandassumes allresponsibility thereforasthe samerelate toits occupancyof thePremises,(d) itis notrelying onany representaƟon asto thesizeof thePremises madebyBrokers orLessor, (e)the squarefootageof the Premiseswas notmaterial toLessee'sdecision tolease thePremises andpaythe Rentstated herein,and(f) neitherLessor, Lessor'sagents,nor Brokershave made anyoral or wriƩen representaƟons or warranƟes withrespect tosaid maƩersotherthan asset forthinthis Lease. In addiƟon,Lessor acknowledgesthat: (i)Brokers havemade no representaƟons, promisesor warranƟes concerningLessee's abilityto honortheLease orsuitability tooccupythe Premises,and (ii)itis Lessor'ssole responsibilityto invesƟgatethe financialcapabilityand/or suitabilityof allproposed tenants.
2.5 Lessee asPrior Owner/Occupant. The warranƟesmade byLessor inParagraph2 shallbe ofnoforce or effect ifimmediately priortothe StartDate Lessee wasthe owneror occupantofthe Premises. Insuch event,Lesseeshall beresponsible foranynecessary correcƟvework.
3. Term.
3.1 Term. The CommencementDate, ExpiraƟonDateand OriginalTerm ofthisLease areas specifiedinParagraph 1.3.
3.2 Early Possession. Anyprovisionherein granƟngLessee EarlyPossession ofthePremises issubject toand condiƟoned uponthe Premisesbeingavailable for suchpossession priorto theCommencementDate. Any grantof EarlyPossessiononly conveysa non-exclusiverightto occupythe Premises. If Lesseetotally or parƟallyoccupies thePremises priortothe CommencementDate, the obligaƟon topayBase Rentshall beabatedfor theperiod ofsuchEarly Possession. Allother termsof thisLease (includingbutnot limitedto the obligaƟons topayReal PropertyTaxes andinsurancepremiums andto maintainthePremises) shallbe in effect duringsuch period. AnysuchEarly Possessionshall not affect the ExpiraƟonDate.
3.3 Delay InPossession. Lessor agreestouse commerciallyreasonable effortstodeliver exclusivepossession ofthePremises toLessee bythe CommencementDate. If, despitesaid efforts, Lessoris unableto deliverpossessionby suchdate, Lessorshallnot besubject toanyliability therefor,nor shallsuch failure affect thevalidity ofthisLease orchange the ExpiraƟon Date. Lessee shallnot, however,beobligated topay Rentorperform itsother obligaƟons unƟl Lessor deliverspossession ofthe Premisesandany periodof rentabatement thatLesseewould otherwisehave enjoyedshallrun fromthe dateofdelivery ofpossession and conƟnuefor aperiod equaltowhat Lesseewould otherwisehave enjoyedunderthe termshereof, butminusany daysof delaycausedby theacts oromissions of Lessee. Ifpossession isnotdelivered within60 days aŌer theCommencementDate, asthe samemaybe extendedunder thetermsof anyWork LeƩerexecuted by ParƟes,Lessee may,at itsopƟon,by noƟcein wriƟngwithin 10days aŌer theend ofsuch60 dayperiod, cancelthisLease, inwhich eventthe ParƟesshallbe dischargedfrom all obligaƟons hereunder. If suchwriƩen noƟce is notreceivedby Lessorwithin said10day period,Lessee's righttocancel shallterminate. If possessionof thePremises isnotdelivered within120 days aŌer theCommencementDate, thisLease shallterminateunless otheragreements arereachedbetween Lessorand Lessee,in wriƟng.
3.4 Lessee Compliance. Lessorshall notberequired totender possessionofthe Premisesto Lessee unƟlLessee complieswith itsobligaƟon toprovide evidenceof insurance(Paragraph 8.5). Pending deliveryof suchevidence, Lesseeshallbe requiredto performallof its obligaƟons underthisLease fromand aŌerthe StartDate, includingthe paymentofRent, notwithstandingLessor's elecƟonto withholdpossessionpending receiptof suchevidenceof insurance. Further,ifLessee isrequired toperform anyother condiƟons priorto orconcurrent withtheStart Date,the StartDateshall occurbut Lessormayelect towithhold possession unƟl such condiƟonsare saƟsfied.
4. Rent.
4.1 Rent Defined. Allmonetary obligaƟonsofLessee toLessor undertheterms ofthis Lease(exceptfor theSecurity Deposit)are deemedtobe rent(" Rent").
4.2 Payment. Lessee shallcause paymentofRent tobe receivedbyLessor inlawful moneyofthe UnitedStates, without offset or deducƟon(except as specifically permiƩed inthis Lease),onor beforethe dayon whichitis due. Allmonetaryamounts shallbe roundedtothe nearestwhole dollar. Intheevent thatany invoiceprepared byLessor isinaccuratesuch inaccuracyshall not consƟtute awaiverand Lesseeshall beobligatedto paythe amountsetforth inthis Lease. Rentfor anyperiod duringthe termhereofwhich isfor lessthan onefullcalendar monthshall beproratedbased uponthe actualnumberof daysof saidmonth. Paymentof Rentshall bemade toLessorat itsaddress statedherein ortosuch otherpersons orplaceas Lessormay from Ɵmeto Ɵmedesignate inwriƟng. Acceptanceof a paymentwhich isless thantheamount thendue shallnot beawaiver ofLessor's rightstothe balanceof suchRent,regardless ofLessor's endorsementof anycheck so staƟng. In theeventthat anycheck, draŌ,or otherinstrumentof paymentgiven byLesseeto Lessoris dishonoredforany reason,Lessee agreesto paytoLessor thesum of$25 in addiƟonto anyLate Chargeand Lessor,atits opƟon,may requireallfuture paymentsto bemadeby Lesseeto beby cashier'scheck. Paymentswill beapplied firstto accruedlatecharges and aƩorney's fees,second toaccruedinterest, thento BaseRent,Insurance andReal PropertyTaxes,and anyremaining amountto anyother outstandingchargesor costs.
4.3 AssociaƟon Fees. In addiƟonto theBase Rent,Lessee shallpayto Lessoreach monthanamount equalto anyowner's associaƟon orcondominium fees leviedor assessedagainst thePremises. Saidmonies shallbe paidatthe same Ɵme andinthe samemanner astheBase Rent.
5. SecurityDeposit. Lesseeshall depositwith Lessorupon execuƟonhereof theSecurity Depositassecurity forLessee's faithfulperformanceof its obligaƟons underthis Lease. IfLesseefails topay Rent,or otherwiseDefaultsunder thisLease, Lessormayuse, applyor retainallor any porƟon ofsaid SecurityDepositfor the paymentof anyamount alreadydueLessor, forRents whichwill beduein thefuture, and/orto reimburseor compensateLessorfor anyliability, expense,loss or
damagewhich Lessormay sufferorincur byreason thereof. IfLessoruses orapplies allorany por Ɵonof theSecurityDeposit, Lesseeshall within10 days aŌer wriƩenrequest therefordeposit monieswithLessor sufficientto restoresaid SecurityDepositto thefull amountrequiredby thisLease. Ifthe BaseRent increases duringthe termof thisLease,Lessee shall,upon wriƩenrequest fromLessor,deposit addiƟonalmonies withLessorso thatthe totalamountof theSecurity Deposit shallat all Ɵmes bearthesame proporƟonto theincreased BaseRentas the iniƟal SecurityDepositbore tothe iniƟalBaseRent. Should theAgreed Usebeamended toaccommodate amaterial changeinthe businessof Lesseeor toaccommodatea sublesseeor assignee,Lessorshall havethe righttoincrease theSecurity Deposit tothe extentnecessary, inLessor'sreasonable judgment,to accountfor anyincreasedwear andtear thatthePremises may suffer asaresult thereof. Ifa changein controlof Lesseeoccurs duringthisLease andfollowing suchchange the financial condiƟon ofLessee is,inLessor's reasonablejudgment, significantlyreduced,Lessee shalldeposit such addiƟonal monieswithLessor asshall be sufficient tocausethe SecurityDeposit tobeat acommercially reasonablelevelbased onsuch changein financial condiƟon. Lessor shallnotbe requiredto keepthe SecurityDepositseparate fromits generalaccounts. Within90 days aŌerthe expiraƟonor terminaƟon of
thisLease, Lessorshall returnthat porƟon ofthe SecurityDeposit notusedor appliedby Lessor. Lessor shallupon wriƩenrequestprovide Lesseewith an accounƟng DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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showinghow that porƟon oftheSecurity Depositthat wasnot returnedwasapplied. No partofthe SecurityDeposit shallbeconsidered tobe heldin trust,tobear interestor tobe prepaymentforany moniesto bepaid byLesseeunder thisLease. THESECURITY DEPOSITSHALL NOTBEUSED BYLESSEE INLIEU OFPAYMENTOF THELAST MONTH'SRENT.
6. Use.
6.1 Use. Lessee shalluse andoccupythe Premisesonly fortheAgreed Use,or anyotherlegal usewhich isreasonably comparablethereto,and forno other purpose. Lesseeshall notuseor permitthe useof thePremisesin amanner thatisunlawful, createsdamage, wasteora nuisance,or thatdisturbs occupantsofor causesdamage toneighboring premisesor properƟes. Other thanguide, signalandseeing eyedogs, Lesseeshallnot keepor allowinthe Premisesany pets,animals, birds, fish, or repƟles. Lessorshall notunreasonably withholdor delayitsconsent toany wriƩenrequestfor a modificaƟon oftheAgreed Use,so longas thesamewill notimpair thestructural integrityofthe improvementson thePremises orthemechanical orelectrical systemstherein,and/or isnot significantlymoreburdensome tothe Premises. IfLessorelects towithhold consent,Lessor shallwithin7 days aŌer suchrequestgive wriƩen noƟficaƟon ofsame,which noƟceshall includean explanaƟonof Lessor'sobjecƟons tothechange inthe AgreedUse.
6.2 Hazardous Substances.
(a) Reportable UsesRequire Consent. The term"Hazardous Substance"as usedinthis Leaseshall meananyproduct, substance,or wastewhose presence,use, manufacture,disposal, transportaƟon,orrelease, eitherby itselfor incombi naƟonwith othermaterials expectedtobe onthe Premises,iseither: (i) potenƟallyinjurious tothe publichealth,safety orwelfare, theenvironment orthePremises, (ii)regulated ormonitoredby anygovernmental authority,or(iii) abasis for potenƟal liabilityof Lessortoany governmentalagency orthird partyunderany applicablestatute orcommonlaw theory. HazardousSubstancesshall include,but notbe limitedto, hydrocarbons,petroleum,gasoline, and/orcrude oilor anyproducts,by-products or fracƟons thereof. Lessee shallnot engageinany acƟvityin or onthe Premiseswhich consƟtutesaReportable Useof HazardousSubstances withouttheexpress prior wriƩen consentofLessor and Ɵmely compliance(atLessee's expense)with allApplicable Requirements. "Reportable Use"shall mean(i) the installaƟonor useof anyaboveor belowground storagetank,(ii) the generaƟon, possession,storage, use, transportaƟon, ordisposalof aHazardous Substancethat requiresapermit from,or withrespectto whicha report, noƟce, registraƟon or businessplan isrequired tobe filed with,any governmentalauthority, and/or(iii)the presenceat thePremisesof aHazardous Substancewithrespect towhich any ApplicableRequirements requiresthat a noƟcebe givento personsentering oroccupyingthe Premisesor neighboring properƟes. Notwithstandingthe foregoing, Lesseemay useany ordinaryandcustomary materialsreasonably requiredto beusedin thenormal courseofthe AgreedUse, ordinary officesupplies (copiertoner, liquidpaper, glue,etc.) andcommonhousehold cleaningmaterials, solong assuchuse isin compliancewithall ApplicableRequirements, isnota ReportableUse, and doesnot exposethe Premisesorneighboring propertyto anymeaningful riskof contaminaƟon ordamage orexposeLessor toany liabilitytherefor. In addiƟon, Lessormay condiƟonits consenttoany ReportableUse uponreceiving such addiƟonal assurances asLessor reasonablydeemsnecessary toprotect itself,thepublic, thePremises and/orthe environmentagainstdamage, contaminaƟon,injury and/orliability, including,butnot limitedto, the installaƟon(and removalon orbefore Lease expiraƟon or terminaƟon) of protecƟve modificaƟons (suchas concreteencasements) and/orincreasingthe SecurityDeposit. (b) Dutyto InformLessor. IfLessee knows,or hasreasonablecause tobelieve, thata HazardousSubstancehas cometo belocatedin, on,under or aboutthe Premises,other thanaspreviously consentedto byLessor, Lesseeshallimmediately give wriƩen noƟce ofsuch factto Lessor,andprovide Lessorwith a copyof anyreport, noƟce,claimor other documentaƟon whichit hasconcerningthe presenceof suchHazardousSubstance. (c) Lessee RemediaƟon. Lessee shallnotcause orpermit anyHazardous Substancetobe spilledor releasedin,on, under,or aboutthePremises (includingthrough theplumbing orsanitarysewer system)and shallpromptly, atLessee'sexpense, complywith allApplicableRequirements andtake all invesƟgatory and/orremedial acƟonreasonably recommended,whetheror notformally orderedor required,forthe cleanupof any contaminaƟonof, andfor themaintenance, securityand/or monitoringof thePremisesor neighboring properƟes, thatwas causedormaterially contributedto byLessee,or pertainingto orinvolvingany HazardousSubstance broughtonto thePremisesduring theterm ofthis Lease,byor forLessee, oranythird party. (d) Lessee IndemnificaƟon. Lessee shallindemnify,defend andhold Lessor,itsagents, employees,lenders andground lessor,ifany, harmlessfrom and againstany andall lossofrents and/ordamages, liabiliƟes,judgments, claims,expenses,pen alƟes, and aƩorneys' andconsultants'fees arisingout oforinvolving any HazardousSubstance broughtonto thePremisesby orfor Lessee,or anythirdparty (provided,however, thatLesseeshall haveno liabilityunderthis Leasewith respectto underground migraƟon ofanyHazardous Substanceunder thePremises fromadjacent properƟes notcaused orcontributedto byLessee). Lessee's obligaƟonsshall include,but notbelimited to,the effectsof anycontaminaƟonor injuryto person,propertyor theenvironment createdor suffered byLessee, and thecost of invesƟgaƟon, removal, remediaƟon, restoraƟon and/orabatement, andshall survivethe expiraƟon or terminaƟon ofthisLease. No terminaƟon, cancellaƟonor releaseagreement enteredintoby Lessorand Lesseeshall releaseLesseefrom itsob ligaƟons underthisLease withrespect toHazardous Substances,unless specificallyso agreedbyLessor in wriƟng atthe Ɵmeofsuch agreement. (e) Lessor IndemnificaƟon. Except asotherwise providedinparagraph 8.7,Lessor anditssuccessors andassigns shallindemnify, defend,reimburseand holdLessee, itsemployees andlenders,harmless fromand againstany andallenvironmental damages,including thecostof remediaƟon, whichresultfrom HazardousSubstances whichexisted onthePremises priorto Lessee'soccupancy orwhichare causedby thegrossnegligence orwillful misconductofLessor, its agentsor employees. Lessor's obligaƟons,as andwhen requiredby theApplicableRequirements, shallinclude, butnotbe limitedto, thecostof invesƟgaƟon, removal, remediaƟon, restoraƟon and/or abatement,andshall survivethe expiraƟonor terminaƟonofthis Lease. (f) InvesƟgaƟons and RemediaƟons. Lessorshall retaintheresponsibility andpay forany invesƟgaƟons or remediaƟon measuresrequired by governmental enƟƟes having jurisdicƟon withrespectto theexistence ofHazardous Substancesonthe Premisesprior toLessee'soccupancy, unlesssuch remediaƟon measureis requiredas aresultof Lessee'suse (including "AlteraƟons", as definedin paragraph7.3(a) below)ofthe Premises,in whicheventLessee shallbe responsiblefor suchpayment. Lesseeshall cooperatefully inany such acƟviƟesat therequest ofLessor,including allowingLessor andLessor'sagents tohave reasonableaccess tothe Premisesatreasonable Ɵmesin orderto carryoutLessor's invesƟgaƟveand remedialresponsibiliƟes. (g) Lessor T erminaƟon OpƟon. If aHazardousSubstance CondiƟon(see Paragraph9.1(e))occurs duringthe termofthis Lease,unless Lesseeis legally responsibletherefor (inwhich caseLesseeshall makethe invesƟgaƟonand remediaƟonthereofrequired bythe ApplicableRequirementsand thisLease shall conƟnue infull forceand effect,butsubject toLessor's rightsunder Paragraph6.2(d)and Paragraph13), Lessormay,at Lessor's opƟon, either(i) invesƟgate andremediate such HazardousSubstance CondiƟon,if required,assoon asreasonably possibleat Lessor'sexpense,in whichevent thisLeaseshall conƟnuein fullforceand effect,or (ii) if
the esƟmated costto remediatesuch condiƟon exceeds12 Ɵmesthe thenmonthlyBase Rentor $100,000,whicheveris greater,give wriƩen noƟceto Lessee,within 30days aŌerreceipt byLessorof knowledgeof theoccurrence ofsuchHazardous Substance CondiƟon, ofLessor'sdesire toterminate thisLeaseas ofthe date60 daysfollowing thedate ofsuch noƟce. In theevent Lessorelectsto givea terminaƟon noƟce, Lessee may,within 10days thereaŌer ,give wriƩen noƟce to Lessorof Lessee'scommitment topay theamountby whichthe costof the remediaƟonof suchHazardous SubstanceCondiƟonexceeds anamount equalto12 Ɵmesthe then monthlyBase Rentor $100,000,whicheveris greater. Lesseeshall provideLessorwith saidfunds or saƟsfactoryassurance thereofwithin 30daysfollowing such commitment. Insuch event,thisLease shall conƟnue infull forceand effect, andLessor shallproceedto makesuch remediaƟonassoon asreasonably possible aŌer therequired fundsare available. If Lesseedoes notgive suchnoƟceand providethe requiredfundsor assurancethereof withinthe Ɵme provided,this Leaseshall terminateas ofthe date specifiedin Lessor'snoƟce of terminaƟon.
6.3 Lessee's Compliancewith ApplicableRequirements. Exceptas otherwiseprovided inthisLease, Lesseeshall, atLessee'ssole expense,fully, diligentlyand ina Ɵmelymanner, materiallycomplywith allApplicable Requirements,the requirementsofany applicable fire insuranceunderwriteror raƟngbureau, andthe recommendaƟonsof Lessor'sengineers and/orconsultantswhich relatein anymanner tothePremises, withoutregard towhethersaid ApplicableRequirements are nowin effector becomeeffecƟve aŌer theStart Date. Lesseeshall,within 10days aŌerreceiptof Lessor's wriƩen request,provideLessor withcopies ofall permits andother documents,and other informaƟonevidencing Lessee'scompliance withany ApplicableRequirements specified byLessor, andshallimmediately upon receipt, noƟfy Lessorin wriƟng(withcopies ofany documentsinvolved) ofanythreatened oractual claim, noƟce, citaƟon, warning,complaint orreportpertaining to orinvolving thefailure ofLesseeor thePremises tocomply withanyApplicable Requirements. Likewise,Lesseeshall immediatelygive wriƩen noƟceto Lessorof: (i) anywater damageto thePremisesand anysuspected seepage,pooling, dampnessorother condiƟonconducive tothe producƟon ofmold; or(ii)any musƟnessor otherodors thatmight indicatethepresence ofmold inthe Premises. In addiƟon,Lessee shallprovideLessor withcopies ofitsbusiness license, cerƟficate of occupancyand/or anysimilar documentwithin10 daysof thereceipt ofa wriƩen requesttherefor.
6.4 InspecƟon; Compliance. Lessorand Lessor's"Lender"(as definedin Paragraph30)and consultantsauthorized byLessorshall havethe rightto enterinto Premisesat any Ɵme inthecase ofan emergency,and otherwiseatreasonable Ɵmes aŌer reasonable noƟce,for thepurpose ofinspecƟngand/or tesƟngthe condiƟonof thePremises and/orforverifying complianceby Lesseewith thisLease. Thecost ofanysuch inspecƟonsshall bepaidby Lessor,unless a violaƟon of ApplicableRequirements, ora HazardousSubstance CondiƟon (seeParagraph 9.1(e))is foundtoexist orbe imminent,orthe inspecƟonis requestedorordered bya governmentalauthority. In suchcase,Lessee shallupon requestreimburse Lessorforthe costof such inspecƟon,so longas suchinspecƟonis reasonablyrelated to the violaƟon or contaminaƟon. In addiƟon, Lesseeshall providecopies ofallrelevant materialsafety datasheets( MSDS) toLessor within10days ofthe receiptof a wriƩenrequest therefor. Lesseeacknowledgesthat anyfailure onits parttoallow such inspecƟons ortesƟngwill exposeLessor torisksand potenƟallycause Lessor toincur costsnot contemplatedbythis Lease,the extentof whichwillbe extremely difficult toascertain. Accordingly,should theLesseefail toallow such inspecƟons and/or tesƟng ina Ɵmelyfashionthe BaseRent shallbe automaƟcallyincreased,without anyrequirement for noƟceto Lessee,by anamountequal to10% ofthe then exisƟng BaseRent or$100,whichever isgreater forthe remaindertothe Lease. The ParƟesagree thatsuch increaseinBase Rentrepresents fairand reasonable compensaƟonfor theaddiƟonal risk/coststhatLessor willincur byreason ofLessee'sfailure toallow such inspecƟonand/or tesƟng. Suchincreasein BaseRent shall inno event consƟtute awaiverof Lessee'sDefault orBreach withrespectto suchfailure norpreventthe exerciseof anyofthe otherrights andremedies granted hereunder.
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7. Maintenance;Repairs; UƟlity InstallaƟons;Trade Fixturesand AlteraƟons.
7.1 Lessee's ObligaƟons.
(a) In General. Subjecttothe provisionsof Paragraph2.2 (CondiƟon), 2.3(Compliance), 6.3(Lessee's CompliancewithApplicable Requirements),7.2 (Lessor's ObligaƟons), 9(Damage or DestrucƟon),and 14(CondemnaƟon), Lesseeshall, atLessee'ssole expense,keep thePremises, UƟlity InstallaƟons (intended for Lessee'sexclusive use,no maƩerwherelocated), and AlteraƟons ingood order, condiƟonand repair(whether ornotthe porƟonof thePremisesrequiring repairs,or themeans ofrepairing thesame,are reasonablyor readilyaccessible toLessee,and whetheror nottheneed forsuch repairsoccursas aresult ofLessee's use,any prioruse, theelements ortheage ofsuch porƟonof thePremises),including, butnot limitedto,all equipmentor faciliƟes,suchas plumbing,HVAC equipment, electrical, lighƟng faciliƟes, boilers, pressurevessels, fire protecƟon system, fixtures,walls (interiorandexterior), ceilings, floors, stairs,windows,doors, plateglass, skylights,landscaping, driveways,parking lots,fences,retaining walls,signs, sidewalksand parkwayslocatedin, on,or adjacenttothe Premises. Lesseeisalso responsiblefor keepingthe roofandroof drainageclean andfree ofdebris. Lessorshall keepthesurface andstructural elementsofthe roof, foundaƟons, andbearing wallsin goodrepair (seeparagraph7.2). Lessee, inkeeping thePremisesin goodorder, condiƟonandrepair, shallexercise andperformgood maintenance pracƟces, specificallyincluding theprocurement andmaintenanceof theservice contractsrequired byParagraph7.1(b) below. Lessee's obligaƟonsshall includerestoraƟons, replacementsor renewalswhen necessarytokeep thePremises andall improvementsthereonor apart thereofingood order, condiƟon andstateof repair. Lessee shall,during theterm ofthisLease, keepthe exteriorappearance oftheBuilding ina first-class condiƟon(including, e.g.graffiƟ removal)consistentwith theexterior appearanceof othersimilar faciliƟesofcomparable ageand sizein thevicinity,including, whennecessary, theexterior repainƟng ofthe Building. (b) ServiceContracts. Lessee shall,atLessee's soleexpense, procureandmaintain contracts,with copiesto Lessor,incustomary formand substancefor, andwith contractorsspecializing andexperiencedin themaintenance ofthe followingequipmentand improvements,if any,ifand wheninstalled onthePremises: (i) HVACequipment, (ii)boiler, andpressurevessels, (iii) fire exƟnguishing systems, includingfirealarm and/orsmoke detecƟon,(iv)landscaping and irrigaƟon systems, and(v) clarifiers. However,Lessorreserves theright, upon noƟce toLessee,to procureand maintainanyor allof suchservicecontracts, andLessee shallreimburse Lessor,upon demand,for thecostthereof.
(c) Failureto Perform. IfLesseefails toperform Lessee's obligaƟons underthisParagraph 7.1,Lessor mayenterupon thePremises aŌer10days' prior wriƩen noƟce toLessee (exceptinthe caseof anemergency, inwhichcase no noƟce shallberequired), performsuch obligaƟonsonLessee's behalf,and putthe Premisesin goodorder, condiƟonandrepair, andLessee shallpromptly paytoLessor asum equalto115% ofthe costthereof. (d) Replacement. Subjectto Lessee's indemnificaƟonof Lessoras setforthin Paragraph8.7 below,and withoutrelievingLessee ofliability resulƟngfrom Lessee'sfailure toexercise andperformgood maintenance pracƟces, ifan itemdescribedin Paragraph7.1(b) cannotberepaired otherthan atacost whichis inexcess of50% ofthe costofreplacing suchitem, thensuch itemshallbe replacedby Lessor,andthe costthereof shallbeprorated betweenthe ParƟesand Lesseeshallonly beobligated topay, eachmonthduring theremainder ofthe termofthis Leaseor anyextensionthereof, onthe dateonwhich BaseRent isdue, anamountequal to theproduct of mulƟplying thecostof suchreplacement bya fracƟon,thenumerator ofwhich isone,and thedenominator ofwhichis 144(i.e. 1/144thof thecostper month). Lesseeshall payIntereston the unamorƟzed balancebut mayprepayits obligaƟonat anyƟme.
7.2 Lessor's ObligaƟons. Subjectto theprovisionsof Paragraphs2.2 (CondiƟon),2.3(Compliance), 9(Damage or DestrucƟon)and 14(CondemnaƟon), itis intendedby the ParƟes heretothatLessor haveno obligaƟon,in anymannerwhatsoever, torepair andmaintainthe Premises,or theequipmenttherein, allof which obligaƟonsare intendedto bethatof theLessee, exceptfor thesurfaceand structuralelements oftheroof, foundaƟonsand bearingwalls,the repairof whichshall be
theresponsibility ofLessor uponreceiptof wriƩen noƟce thatsuch arepairis necessary. Itisthe intenƟonof theParƟesthat theterms ofthis Leasegovernthe respecƟve obligaƟons ofthe ParƟesasto maintenanceand repairof thePremises.
7.3 UƟlity InstallaƟons; Trade Fixtures;AlteraƟons.
(a) DefiniƟons. The term"UƟlity InstallaƟons" refersto allfloor andwindowcoverings, airand/or vacuumlines,power panels,electrical distribuƟon, securityand fire protecƟon systems, communicaƟoncabling, lighƟng fixtures, HVACequipment, plumbing,andfencing inor onthePremises. The term" Trade Fixtures"shall meanLessee's machineryandequipment thatcan beremoved withoutdoingmaterial damageto thePremises. Theterm "AlteraƟons"shallmean any modificaƟonof theimprovements, otherthan UƟlity InstallaƟons or TradeFixtures, whetherbya ddiƟon or deleƟon. "LesseeOwned AlteraƟonsand/or UƟlity InstallaƟons"are definedas AlteraƟonsand/or UƟlity InstallaƟons made byLessee thatarenot yetowned byLessorpursuant toParagraph 7.4(a). (b) Consent. Lesseeshall notmakeany AlteraƟonsor UƟlity InstallaƟonsto thePremises withoutLessor's priorwriƩenconsent. Lessee may,however, makenon-structural AlteraƟonsor UƟlity InstallaƟonsto theinterior ofthe Premises(excludingthe roof)without suchconsentbut upon noƟce toLessor,as longas theyare notvisible fromtheoutside, donot involvepuncturing, relocaƟngorremoving theroof orany exisƟng walls,will not affectthe electrical,plumbing, HVAC, and/orlife safetysystems, donottrigger therequirement for addiƟonal modificaƟons and/orimprovements tothe Premises resulƟngfrom ApplicableRequirements, suchas compliancewith Title24,and the cumulaƟve costthereof duringthisLease asextended doesnotexceed asum equalto3 month'sBase Rentin theaggregate ora sumequal toonemonth's BaseRent inany oneyear. Notwithstandingthe foregoing,Lesseeshall notmake orpermitany roof penetraƟons and/orinstall anythingon theroof withouttheprior wriƩenapproval ofLessor. Lessormay, asa precondiƟonto granƟng suchapproval, requireLesseeto uƟlizea contractor chosenand/or approvedby Lessor. AnyAlteraƟonsor UƟlity InstallaƟons thatLesseeshall desireto makeandwhich requirethe consentofthe Lessorshall be presentedto Lessorin wriƩenformwith detailedplans. Consent shallbedeemed condiƟonedupon Lessee's: (i) acquiringall applicablegovernmentalpermits, (ii) furnishingLessor withcopies ofboththe permitsand theplans and specificaƟonsprior tocommencement ofthework, and(iii) compliancewithall condiƟonsof said permitsand otherApplicable Requirementsina promptand expediƟousmanner. AnyAlteraƟons or UƟlity InstallaƟonsshallbe performedin aworkmanlikemanner withgood and sufficient materials. Lessee shallpromptly uponcompleƟon furnishLessorwith as-builtplans and specificaƟons. Forwork whichcostsan amountin excessof onemonth's BaseRent,Lessor may condiƟon itsconsent uponLesseeproviding alien and compleƟonbond inan amountequalto 150%of the esƟmated costof such AlteraƟon or UƟlity InstallaƟon and/orupon Lessee's posƟng an addiƟonal Security Depositwith Lessor. (c) Liens;Bonds . Lessee shallpay,when due,all claimsfor laborormaterials furnishedor allegedtohave beenfurnished toorfor Lesseeat orfor useon thePremises, whichclaims areormay besecured byany mechanic'sormaterialmen's lienagainst thePremisesor anyinterest therein. Lessee shallgive Lessornot lessthan 10days noƟcepriorto thecommencement ofany workin,on orabout thePremises,and Lessorshall havetheright topost noƟcesof non-responsibility. If Lesseeshall contestthe validityofany suchlien, claimor demand,thenLessee shall,at itssoleexpense defendand protectitself,Lessor andthe Premisesagainst the sameand shallpay and saƟsfyany suchadverse judgmentthat mayberendered thereonbefore theenforcementthereof. If Lessorshallrequire, Lesseeshall furnish asurety bondin anamountequal to150% ofthe amountofsuch contestedlien, claimordemand, indemnifyingLessor againstliabilityfor thesame. If Lessorelects to parƟcipate inany such acƟon,Lessee shallpay Lessor'saƩorneys' feesandcosts.
7.4 Ownership; Removal;Surrender; andRestoraƟon.
(a) Ownership. Subject toLessor'sright torequire removalor electownershipas hereinaŌerprovided, allAlteraƟonsand UƟlity InstallaƟons madeby Lesseeshall bethe propertyofLessee, butconsidered apart ofthePremises. Lessor may,atany Ɵme,elect inwriƟngto bethe ownerof allorany specifiedpart of
theLessee Owned AlteraƟons and UƟlity InstallaƟons. Unless otherwiseinstructed perparagraph7.4(b) hereof,all LesseeOwned AlteraƟons and UƟlity InstallaƟons shall,at the expiraƟon or terminaƟonof thisLease, becomethe propertyofLessor andbe surrenderedbyLessee withthe Premises. (b) Removal. Bydelivery toLesseeof wriƩen noƟce fromLessornot earlierthan 90and notlaterthan 30days priortothe endof thetermof thisLease, Lessormay requirethat anyorall LesseeOwned AlteraƟonsor UƟlity InstallaƟonsbe removedby theexpiraƟonor terminaƟonof thisLease. Lessormay requirethe removalat any Ɵme ofallor anypart ofany LesseeOwned AlteraƟons or UƟlity InstallaƟons madewithout therequired consent. (c) Surrender; RestoraƟon. Lessee shallsurrenderthe Premisesby the ExpiraƟon Dateorany earlier terminaƟon date,withall ofthe improvements, partsand surfacesthereof broomcleanand freeof debris,and ingood operaƟng order, condiƟon andstateof repair,ordinary wearandtear excepted. "Ordinary wearand tear"shall notincludeany damageor deterioraƟonthat wouldhavebeen preventedby goodmaintenance pracƟce. Notwithstanding theforegoingand the provisionsof Paragraph7.1(a), iftheLessee occupiesthe Premisesfor 12monthsor less,then Lesseeshallsurrender thePremises inthesame condiƟonas delivered toLessee onthe StartDatewith NOallowance forordinary wearandtear. Lessee shallrepairany damageoccasioned bythe installaƟon, maintenanceor removalof TradeFixtures, Lesseeowned AlteraƟonsand/or UƟlity InstallaƟons, furnishings, andequipment aswellas theremoval ofanystorage tankinstalled byorfor Lessee.
Lesseeshall alsocompletely removefromthe Premisesany andall HazardousSubstancesbrought ontothe Premisesbyor forLessee, oranythird party(except HazardousSubstances whichwere depositedviaunderground migraƟonfrom areasoutside ofthePremises) tothe level specifiedin ApplicableRequirements. Trade Fixturesshall remainthe propertyofLessee andshall beremoved byLessee. Anypersonal propertyofLessee notremoved onorbefore the ExpiraƟon Dateor any earlier terminaƟon dateshall bedeemedto havebeen abandonedby Lesseeandmay bedisposed oforretained byLessor asLessormay desire. Thefailure byLessee to Ɵmely vacatethe Premisespursuantto thisParagraph 7.4(c)without theexpress wriƩen consentof Lessorshall consƟtute aholdover undertheprovisions of Paragraph26 below.
8. Insurance;Indemnity.
8.1 Payment ofPremium Increases.
(a) Lessee shallpay toLessorany insurancecost increase(" Insurance CostIncrease")occurring duringthe termofthis Lease. InsuranceCostIncrease is definedas anyincrease intheactual costof theinsurance requiredunderParagraph 8.2(b),8.3(a) and8.3(b),over andabove theBasePremium as hereinaŌer defined calculatedon anannual basis. Insurance CostIncrease shallinclude butnotbe limitedto increasesresulƟngfrom thenature ofLessee'soccupancy, anyact or omissionof Lessee,requirements oftheholder ofmortgage ordeed oftrustcovering thePremises, increased valuaƟonof thePremises and/orapremium rate increase. The parƟes areencouragedto fillin theBase PremiuminParagraph 1.8with areasonablepremium forthe RequiredInsurancebased onthe AgreedUse of
thePremises. If the parƟesfail toinsert adollar amountinParagraph 1.8,then theBasePremium shallbe thelowestannual premiumreasonably obtainablefor the DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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RequiredInsurance asof thecommencementof theOriginal Termfor theAgreedUse ofthe Premises. In noevent, however,shallLessee beresponsible forany porƟonof theincrease inthepremium cost aƩributable toliability insurancecarriedby Lessorunder Paragraph8.2(b)in excessof $2,000,000peroccurrence. (b) Lesseeshall payany suchInsuranceCost Increaseto Lessorwithin30 days aŌer receiptby Lesseeofa copyof thepremiumstatement orother reasonableevidence ofthe amountdue.If theinsurance policiesmaintained hereundercoverother propertybesides thePremises,Lessor shallalso delivertoLessee astatement ofthe amountofsuch InsuranceCost Increase aƩributable onlytothe Premisesshowing inreasonabledetail themanner inwhichsuch amountwas computed. Premiumsfor policyperiodscommencing priorto, orextending beyondtheterm ofthis Lease,shallbe proratedto correspondtothe termof thisLease.
8.2 Liability Insurance.
(a) Carried byLessee. Lesseeshall obtainand keepin forceaCommercial GeneralLiability policyofinsurance protecƟngLessee andLessoras an addiƟonalinsured againstclaims forbodilyinjury, personalinjury andproperty damagebasedupon orarising outofthe ownership,use, occupancyormaintenance of
thePremises andall areasappurtenantthereto. Such insuranceshall beonan occurrencebasis providingsinglelimit coveragein anamountnot lessthan $1,000,000 peroccurrence withan annualaggregateof notless than$2,000,000. Lesseeshall addLessor asan addiƟonal insuredby meansofan endorsementat leastas broad asthe InsuranceService OrganizaƟon's "AddiƟonalInsured-Managers orLessors ofPremises" Endorsement. The policyshall notcontainany intra-insuredexclusions asbetween insuredpersons or organizaƟons,but shallinclude coveragefor liabilityassumedunder thisLease asan" insured contract"for theperformanceof Lessee's indemnity obligaƟons underthis Lease. The limitsof saidinsurance shallnot,however, limitthe liabilityofLessee norrelieve Lesseeofany obligaƟonhereunder.
Lesseeshall providean endorsementonits liabilitypolicy(ies) whichprovides thatitsinsurance shallbe primarytoand notcontributory withanysimilar insurance carriedby Lessor,whose insuranceshallbe consideredexcess insuranceonly. (b) Carriedby Lessor. Lessorshallmaintain liabilityinsurance asdescribedin Paragraph8.2(a), in addiƟon to,andnot inlieu of,theinsurance requiredto bemaintained byLessee. Lesseeshall notbe namedas an addiƟonalinsured therein.
8.3 Property Insurance- Building,Improvements andRentalValue. (a) Building andImprovements. TheInsuring Partyshall obtainand keepinforce apolicy orpoliciesin thename ofLessor,with losspayable toLessor, anyground-lessor, andto anyLenderinsuring lossor damageto thePremises. Theamount ofsuchinsurance shallbe equaltothe fullinsurable replacementcost of thePremises, asthe sameshallexist from Ɵme to Ɵme, ortheamount requiredby anyLender,but inno eventmorethan thecommercially reasonableand available insurablevalue thereof. LesseeOwned AlteraƟons and UƟlity InstallaƟons, Trade Fixtures,andLessee's personalproperty shallbeinsured byLessee notbyLessor. If thecoverage isavailable andcommerciallyappropriate, suchpolicy orpolicies shallinsureagainst allrisks ofdirectphysical lossor damage(exceptthe perilsof flood and/orearthquake unlessrequired byaLender orincluded inthe BasePremium),including coveragefor debrisremovaland theenforcement ofanyApplicable Requirementsrequiring theupgrading, demoliƟon, reconstrucƟonor replacementof anyporƟon ofthePremises asthe resultofa coveredloss. Saidpolicy orpolicies shallalso containan agreed valuaƟonprovision inlieu ofany coinsuranceclause,waiver ofsubro gaƟon, and inflaƟonguard protecƟoncausing anincreasein the annualproperty insurancecoverage amountbya factorof notless thantheadjusted U.S.Department ofLaborConsumer PriceIndex forAllUrban Consumersfor the citynearest towhere thePremisesare located. Ifsuch insurancecoveragehas a deducƟble clause,the deducƟble amountshall notexceed$5,000 peroccurrence, andLessee shallbe liableforsuch deducƟbleamount inthe eventofan InsuredLoss. (b) RentalValue. TheInsuring Partyshall obtainand keepinforce apolicy orpoliciesin thename ofLessorwith losspayable toLessor andanyLender, insuringthe lossof thefullRent forone yearwith anextendedperiod ofindemnity foran addiƟonal 180days ("RentalValueinsurance"). Said insuranceshall contain anagreed valuaƟonprovision inlieuof anycoinsurance clause,and theamountof coverageshall beadjustedannually to reflect theprojectedRent otherwisepayable byLessee, forthe next12month period. Lesseeshall beliablefor any deducƟble amountinthe eventof suchloss. (c) AdjacentPremises. If thePremisesare partof alarger building,orof agroup ofbuildingsowned byLessor whichareadjacent tothe Premises,the Lesseeshall payfor anyincreasein thepremiums forthe propertyinsuranceof suchbuilding orbuildingsif saidincrease iscausedby Lessee'sacts, omissions,use or occupancyof thePremises.
8.4 Lessee's Property;Business InterrupƟonInsurance;Worker's CompensaƟon Insurance. (a) Property Damage. Lesseeshallobtain andmaintain insurancecoverage onallof Lessee'spersonal property,TradeFixtures, andLessee Owned AlteraƟonsand UƟlity InstallaƟons. Suchinsurance shallbe fullreplacement costcoveragewith a deducƟble ofnotto exceed$1,000 peroccurrence. Theproceeds fromany suchinsurance shallbeused byLessee forthe replacementofpersonal property,Trade FixturesandLessee Owned AlteraƟons and UƟlity InstallaƟons. (b) Business InterrupƟon. Lessee shallobtainand maintainloss ofincomeand extraexpense insurancein amountsaswill reimburseLessee fordirector indirectloss ofearnings aƩributabletoall perilscommonly insuredagainst byprudentlessees inthe businessofLessee or aƩributable to prevenƟonof accessto the Premisesas aresult ofsuchperils.
(c) Worker's CompensaƟon Insurance. Lesseeshallobtain andmaintain Worker's CompensaƟon Insuranceinsuch amountas mayberequired by ApplicableRequirements. Such policyshallinclude a'Waiver of SubrogaƟon' endorsement. Lessee shallprovide Lessorwitha copyof suchendorsementalong with the cerƟficate ofinsurance orcopyof thepolicy requiredby paragraph8.5. (d) No RepresentaƟon ofAdequate Coverage. Lessor makesno representaƟonthatthe limitsor formsof coverageofinsurance specifiedherein are adequateto coverLessee's property,business operaƟons or obligaƟons underthis Lease.
8.5 Insurance Policies. Insurancerequired hereinshallbe bycompanies maintainingduringthe policyterm a"GeneralPolicyholders RaƟng"of atleast A-,VII, asset forthin themostcurrent issueof "Best'sInsurance Guide",orsuch other raƟng asmaybe requiredby aLender. Lesseeshall notdo orpermitto bedone anythingwhich invalidatesthe requiredinsurancepolicies. Lessee shall,prior totheStart Date,deliver toLessor cerƟfied copiesof policiesofsuch insuranceor cerƟficateswith copiesof therequiredendorsements evidencingthe existenceand amountsofthe requiredinsurance. Nosuch policyshall becancelableor subject to modificaƟon except aŌer 30daysprior wriƩen noƟce toLessor. Lesseeshall, atleast 10daysprior tothe expiraƟonofsuch policies,furnish Lessorwith evidenceof renewalsor "insurancebinders" evidencingrenewalthereof, orLessor mayincrease hisliabilityinsurance coverageand chargethecost thereofto Lessee,which amountshall bepayable byLesseeto Lessorupon demand. Suchpoliciesshall befor atermof atleast oneyear,or thelength ofthe remainingtermof thisLease, whicheveris less. IfeitherParty shallfail toprocure andmaintainthe insurancerequired tobecarried byit, theotherParty may,but shallnot berequiredto, procure andmaintain thesame.
8.6 Waiver ofSubrogaƟon. Without affecƟnganyother rightsor remedies,Lesseeand Lessoreach herebyreleaseand relievethe other,and waivetheir enƟre rightto recoverdamages againsttheother, forloss ofor damagetoits propertyarising outofor incidentto theperilsrequired tobe insuredagainst herein. The effectof suchreleases andwaiversis notlimited bythe amountofinsurance carriedor required,orby any deducƟbles applicablehereto. The ParƟes agreeto have their respecƟve propertydamage insurancecarrierswaive anyright to subrogaƟon thatsuchcompanies mayhave againstLessoror Lessee,as thecasemay be,so longas theinsurance isnotinvalidated thereby.
8.7 Indemnity. Except forLessor's grossnegligenceor willfulmisconduct, Lesseeshallindemnify, protect,defend andholdharmless thePremises, Lessorand itsagents, Lessor'smaster orgroundlessor, partnersand Lenders,from andagainstany andall claims,lossof rentsand/or damages,liens,judgments, penalƟes, aƩorneys'and consultants'fees, expensesand/or liabiliƟes arisingout of,involving, orinco nnecƟon with,a Breachofthe Leaseby Lesseeand/orthe useand/or occupancyof thePremises and/orProjectby Lesseeand/or byLessee's employees,contractorsor invitees. Ifany acƟon orproceeding isbroughtagainst Lessorby reasonof anyof theforegoing maƩers, Lesseeshall upon noƟce defendthesame atLessee's expensebycounsel reasonably saƟsfactory toLessorand Lessorshall cooperatewith Lesseein suchdefense. Lessorneed nothave firstpaidany suchclaim inorderto bedefended or indemnified.
8.8 ExempƟon ofLessor andits AgentsfromLiability . Notwithstanding thenegligenceor breachof thisLeaseby Lessoror itsagents, neitherLessornor its agentsshall beliable underanycircumstances for:(i) injuryor damagetothe personor goods,wares,merchandise orother propertyofLessee, Lessee'semployees, contractors,invitees, customers,or anyotherperson inor aboutthe Premises,whethersuch damageor injuryiscaused byor resultsfrom fire, steam,electricity, gas, wateror rain,indoor airquality,the presenceof moldor fromthebreakage, leakage, obstrucƟon orotherdefects ofpipes, firesprinklers,wires, appliances,plumbing, HVACor lighƟng fixtures, orfromany othercause, whetherthe saidinjuryor damageresults from condiƟonsarising uponthe Premisesorupon other porƟons ofthe buildingof whichthe Premisesarea part,or fromother sourcesorplaces, (ii)any damagesarisingfrom anyact orneglectof anyother tenantof Lessororfrom the failureof Lessoror itsagentsto enforcethe provisionsof anyotherlease inthe Project,or(iii) injuryto Lessee'sbusinessor forany lossof incomeor profit therefrom.
Instead,it isintended thatLessee'ssole recoursein theevent ofsuchdamages orinjury beto file aclaim ontheinsurance policy(ies)that Lesseeis requiredto maintainpursuant tothe provisionsofparagraph 8.
8.9 Failure toProvide Insurance. Lesseeacknowledgesthat anyfailure onitspart toobtain ormaintainthe insurancerequired hereinwill exposeLessorto risksand potenƟallycause Lessortoincur costsnot contemplatedby thisLease,the extentof whichwillbe extremely difficult toascertain. Accordingly,for anymonth or porƟon thereofthat Lesseedoesnot maintainthe requiredinsurance and/ordoesnot provideLessor withtherequired bindersor cerƟficatesevidencingthe existenceof therequired insurance,theBase Rentshall be automaƟcally increased,withoutany requirementfor noƟcetoLessee, byan amountequalto 10%of the then exisƟng BaseRent or$100,whichever isgreater. The parƟesagreethat suchincrease inBaseRent representsfair andreasonable compensaƟon forthe addiƟonalrisk/costs thatLessor willincurby reasonof Lessee'sfailure tomaintainthe requiredinsurance. Suchincrease inBase Rentshallin noevent consƟtutea waiverof Lessee'sDefault orBreachwith respectto thefailure tomaintainsuch insurance,prevent theexerciseof anyof theotherrights andremedies granted hereunder,nor relieveLessee ofits obligaƟon tomaintain theinsurance specifiedinthis Lease.
9. Damageor DestrucƟon.
9.1 DefiniƟons.
(a) " Premises ParƟalDamage" shallmeandamage or destrucƟon tothe improvementsonthe Premises,other thanLesseeOwned AlteraƟonsand UƟlity
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InstallaƟons,which canreasonably berepairedin 6months orless fromthedate ofthe damageor destrucƟon. Lessor shallnoƟfyLessee inwriƟng within30 days fromthe dateof thedamageor destrucƟonas towhether ornotthe damageis ParƟalorTotal. (b) " PremisesTotal DestrucƟon"shall meandamageor destrucƟonto thePremises,other thanLessee Owned AlteraƟons and UƟlity InstallaƟons and TradeFixtures, whichcannot reasonablyberepaired in6 monthsor lessfromthe dateof thedamageor destrucƟon. Lessorshall noƟfy Lesseein wriƟngwithin 30 daysfrom thedate ofthedamage or destrucƟon asto whetherornot thedamage is ParƟalor Total. (c) " InsuredLoss" shallmean damageor destrucƟon toimprovements onthe Premises,otherthan LesseeOwned AlteraƟonsand UƟlity InstallaƟons and TradeFixtures, whichwas causedbyan eventrequired tobe coveredbythe insurancedescribed inParagraph8.3(a), irrespecƟveof anydeducƟbleamounts or coveragelimits involved.
(d) " ReplacementCost" shallmean thecostto repairor rebuildtheimprovements ownedby Lessorat the Ɵmeof theoccurrence totheir condiƟon exisƟngimmediately priorthereto, includingdemoliƟon,debris removaland upgradingrequired bythe operaƟon ofApplicable Requirements,andwithout deducƟon for depreciaƟon.
(e) " Hazardous SubstanceCondiƟon"shall meanthe occurrenceor discoveryofa condiƟoninvolving thepresenceof, ora contaminaƟonby,a HazardousSubstance, in,on, orunderthe Premiseswhich requires restoraƟon.
9.2 ParƟal Damage- InsuredLoss. Ifa Premises ParƟal Damagethatis anInsured Lossoccurs,then Lessorshall, atLessor's expense,repairsuch damage(but notLessee's TradeFixtures orLesseeOwned AlteraƟonsand UƟlity InstallaƟons) assoonas reasonablypossible andthisLease shall conƟnue infullforce and effect; provided,however, thatLessee shall,atLessor's elecƟon,make therepair ofanydamage ordes trucƟon thetotalcost torepair ofwhichis $10,000or less,and, insuch event,Lessor shallmake anyapplicableinsurance proceedsavailable toLessee onareasonable basisfor thatpurpose. Notwithstandingthe foregoing,ifthe required insurancewas notin forceorthe insuranceproceeds arenot sufficientto effect suchrepair, theInsuringParty shallpromptly contributetheshortage inproceeds (exceptas tothe deducƟblewhichis Lessee'sresponsibility) asand whenrequiredto completesaid repairs. Inthe event,however,such shortagewas dueto thefact that,by reasonof theuniquenature ofthe improvements,full replacementcostinsurance coveragewas notcommerciallyreasonable andavailable, Lessorshallhave no obligaƟon topay fortheshortage ininsurance proceedsor tofullyrestore theunique aspectsofthe Premisesunless LesseeprovidesLessor withthe fundsto cover same,or adequateassurance thereof,within10 daysfollowing receiptof wriƩen noƟceof suchshortage andrequesttherefor. If Lessorreceivessaid fundsor adequateassurance thereofwithin said10day period,the partyresponsible formakingthe repairsshall completethemas soonas reasonablypossibleand thisLease shallremain infull forceand effect. If suchfunds orassuranceare notreceived, Lessormaynevertheless electby wriƩen noƟceto Lesseewithin 10days thereaŌer to: (i)make such restoraƟonand repairas iscommercially reasonablewithLessor payingany shortageinproceeds, inwhich casethisLease shallremain infull force and effect, or(ii) havethisLease terminate30 days thereaŌer. Lesseeshall notbe enƟtledtoreimbursement ofany fundscontributedby Lesseeto repairany such damageor destrucƟon. Premises ParƟalDamage dueto floodor earthquakeshallbe subjectto Paragraph9.3,notwithstanding thatthere maybesome insurance coverage,but thenet proceedsofany suchinsurance shallbe madeavailablefor therepairs ifmadeby eitherParty.
9.3 ParƟal Damage- UninsuredLoss. Ifa Premises ParƟal Damagethatis notan InsuredLossoccurs, unlesscaused bya negligentorwillful actof Lessee(in whichevent Lesseeshall maketherepairs atLessee's expense),Lessor mayeither: (i)repair suchdamageas soonas reasonablypossibleat Lessor'sexpense, inwhich eventthis Leaseshall conƟnueinfull forceand effect,or (ii)terminatethis Leaseby givingw riƩen noƟce toLessee within30days aŌerreceipt byLessor ofknowledge ofthe occurrenceof suchdamage. Such terminaƟon shallbe effecƟve60days followingthe dateofsuch noƟce. Intheevent Lessorelects toterminate thisLease, Lesseeshall havethe rightwithin10 days aŌer receiptof the terminaƟon noƟce togive wriƩennoƟceto Lessorof Lessee'scommitmentto payfor therepair ofsuch damagewithout reimbursementfrom Lessor. Lessee shallprovide Lessorwith saidfundsor saƟsfactoryassurance thereofwithin30 days aŌer makingsuch commitment. Insuch eventthisLease shall conƟnue infull forceand effect, andLessor shallproceedto makesuch repairsassoon asreasonably possible aŌer the requiredfunds areavailable. IfLessee doesnot makethe requiredcommitment,this Leaseshall terminateasof thedate specifiedinthe terminaƟon noƟce.
9.4 Total DestrucƟon. Notwithstandingany otherprovisionhereof, ifa PremisesTotal DestrucƟon occurs,this Leaseshallterminate 60days followingsuch DestrucƟon. Ifthe damageor destrucƟon wascaused bythe grossnegligenceor willfulmisconduct ofLessee,Lessor shallhave therightto recoverLessor's damages fromLessee, exceptas providedinParagraph 8.6.
9.5 Damage NearEnd ofTerm. Ifat any Ɵme duringthelast 6months ofthisLease thereis damagefor whichthecost torepair exceedsonemonth's Base Rent,whether ornot anInsuredLoss, Lessormay terminatethis Lease effecƟve60 daysfollowing thedateof occurrenceof suchdamageby givinga wriƩen terminaƟon noƟce toLessee within30days aŌerthe dateof occurrenceofsuch damage. Notwithstandingtheforegoing, ifLessee atthat Ɵme hasan exercisable opƟonto extendthis Leaseorto purchasethe Premises,then Lesseemaypreserve thisLease by,(a)exercising such opƟon and(b)providing Lessorwith anyshortage ininsurance proceeds(or adequateassurancethereof) neededto makethe repairsonor beforethe earlierof(i) thedate whichis10 days aŌer Lessee'sreceipt of
Lessor's wriƩen noƟce purporƟng toterminatethis Lease,or (ii)the daypriorto thedate uponwhichsuch opƟonexpires. IfLessee dulyexercises such opƟon during suchperiod andprovides Lessorwithfunds (oradequate assurancethereof) tocoverany shortagein insuranceproceeds,Lessor shall,at Lessor'scommercially reasonableexpense, repairsuch damageassoon asreasonably possibleand thisLeaseshall conƟnuein fullforceand effect. IfLesseefails toexercise such opƟon and
providesuch fundsor assuranceduringsuch period,then thisLease shallterminateon thedate spe cifiedinthe terminaƟon noƟce andLessee's opƟon shallbe exƟnguished.
9.6 Abatement ofRent; Lessee'sRemedies.
(a) Abatement. In theeventof Premises ParƟal Damageor PremisesTotal DestrucƟon ora HazardousSubstance CondiƟon forwhich Lesseeisnot responsibleunder thisLease, theRentpayable byLessee forthe periodrequiredfor therepair, r emediaƟonor restoraƟon ofsuch damageshallbe abatedin proporƟonto thedegree towhichLessee's useof thePremises isimpaired,but notto exceedtheproceeds receivedfrom theRentalValue insurance. Allother obligaƟonsof Lesseehereunder shallbeperformed byLessee, andLessor shallhaveno liabilityfor anysuchdamage, destrucƟon, remediaƟon, repairor restoraƟon exceptas providedherein.
(b) Remedies. IfLessor isobligatedto repairor restorethePremises anddoes notcommence, ina substanƟal andmeaningful way,suchrepair or restoraƟonwithin 90days aŌersuch obligaƟon shallaccrue, Lesseemay, atany Ɵme priorto thecommencementof suchrepair or restoraƟon,give wriƩen noƟce to Lessorand toany Lendersofwhich Lesseehas actual noƟce, ofLessee's elecƟon toterminate thisLeaseon adate notlessthan 60days followingthe givingofsuch noƟce. IfLessee givessuch noƟce andsuch repairor restoraƟonisnot commencedwithin 30days thereaŌer ,thisLease shallterminateas ofthe date specified insaid noƟce. Ifthe repairor restoraƟoniscommenced withinsuch 30days,this Leaseshall conƟnueinfull forceand effect. "Commence" shallmean eitherthe uncondiƟonal authorizaƟon ofthe preparaƟonofthe requiredplans, orthe beginningofthe actualwork onthePremises, whichever first occurs.
9.7 TerminaƟon;AdvancePayments. Upon terminaƟonofthis Leasepursuant toParagraph6.2(g) orParagraph 9,anequitable adjustmentshall bemade concerningadvance BaseRent andanyother advancepayments madeby LesseetoLessor. Lessor shall,in addiƟon, returnto Lesseesomuch ofLessee's Security Depositas hasnot been,oris notthen requiredto be,usedby Lessor.
10. Real PropertyTaxes.
10.1 DefiniƟon. Asused herein,the term"RealProperty Taxes"shall includeanyform ofassessment; realestate,general, special,ordinary orextraordinary, or rentallevy ortax (otherthaninheritance, personalincome orestate taxes);improvementbond; and/orlicense feeimposedupon orlevied againstanylegal or equitableinterest ofLessor inthePremises orthe Project,Lessor's righttoother incometherefrom, and/orLessor'sbusiness ofleasing, byanyauthority havingthe director indirectpower totaxand wherethe fundsare generatedwithreference tothe Buildingaddress. RealProperty Taxesshallalso includeany tax,fee, levy, assessmentor charge,or anyincreasetherein: (i)imposed byreason ofeventsoccurring duringthe termofthis Lease,including butnotlimited to,a changein the ownershipof thePremises, and(ii)levied orassessed onmachinery orequipmentprovided byLessor toLesseepursuant tothis Lease. TENANT
UNDERSTANDSTHATTHISLEASEMAYSUBJECTTENANTTOPROPERTYANDPOSSESSORYINTEREST PROPERTY TAXATIONassetoutinRevenue&TaxationCodeSection107.6etseq.
10.2 Payment ofTaxes. Lessorshall paytheReal PropertyTaxes applicabletothe Premisesprovided, however,thatLessee shallpay toLessor theamount,if any,by whichReal PropertyTaxesapplicable tothe Premisesincrease overthe fiscal taxyear duringwhichthe CommencementDate Occurs("TaxIncrease"). Payment ofany suchTax Increaseshallbe madeby Lesseeto Lessorwithin30 days aŌer receiptofLessor's wriƩenstatement seƫngforththe amountdue and computaƟon thereof. Ifany suchtaxesshall coverany periodof Ɵmepriorto or aŌer the expiraƟonor terminaƟonof thisLease,Lessee's shareof suchtaxes shallbeprorated to coveronly that porƟon ofthetax billapplicable tothe periodthatthis Leaseis in effect. Inthe eventLesseeincurs alate chargeon anyRentpayment, Lessormay esƟmatethe currentReal PropertyTaxes,and requirethat theTax Increasebepaid inadvance toLessorby Lesseemonthly inadvancewith thepayment ofthe Base Rent. Suchmonthly paymentshallbe anamount equalto theamountof the esƟmated installmentofthe TaxIncrease dividedbythe numberof monthsremaining beforethe monthin whichsaidinstallment becomesdelinquent. When theactualamount ofthe applicableTaxIncrease isknown, theamountof suchequal monthly advancepayments shallbe adjustedasrequired toprovide thefunds neededtopay theapplicable TaxIncrease. Ifthe amountcollectedby Lessoris insufficientto pay theTax Increasewhen due,Lesseeshall payLessor, upondemand, such addiƟonalsums asare necessarytopay such obligaƟons. Advancepayments maybe intermingledwith othermoneys ofLessorand shallnot bearinterest. Inthe eventof aBreachby Lesseein theperformanceof its obligaƟons underthis Lease,then anysuch advancepayments maybetreated byLessor asan addiƟonalSecurityDeposit.
10.3 AddiƟonal Improvements. Notwithstanding anythingto thecontraryin thisParagraph 10.2,Lesseeshall payto Lessorupondemand thereforthe enƟrety ofany increasein RealPropertyTaxes assessedby reasonof AlteraƟonsor UƟlity InstallaƟons placed uponthePremises byLessee oratLessee's requestor byreason ofany alteraƟonsor improvementstothe Premisesmade byLessor subsequenttothe execuƟonof thisLeaseby the ParƟes.
10.4 Joint Assessment. If thePremises arenotseparately assessed,Lessee's liabilityshallbe anequitable proporƟonofthe TaxIncrease forall oftheland and DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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improvementsincluded withinthe taxparcelassessed, such proporƟon tobe conclusivelydeterminedby Lessorfrom the respecƟve valuaƟons assignedin the assessor'swork sheetsor suchother informaƟon asmay bereasonably available.
10.5 Personal PropertyTaxes. Lesseeshall pay,priorto delinquency,all taxesassessedagainst andlevied uponLesseeOwned AlteraƟons, UƟlity InstallaƟons, TradeFixtures, furnishings,equipment andallpersonal propertyof Lessee. Whenpossible,Lessee shallcause itsLesseeOwned AlteraƟonsand UƟlity InstallaƟons, TradeFixtures, furnishings,equipment andallother personalproperty tobe assessedandbilled separatelyfrom therealproperty ofLessor. Ifany ofLessee's said propertyshall beassessed withLessor'sreal property,Lessee shallpay Lessorthetaxes aƩributableto Lessee'spropertywithin 10days aŌerreceiptof a wriƩen statement seƫng forththe taxesapplicableto Lessee'sproperty.
11. UƟliƟes andServices.
11.1 Lessee shallpayfor allwater, gas,heat,light, power,telephone, trashdisposaland other uƟliƟes andservicessupplied tothe Premises,together withany taxesthereon. If anysuchservices arenot separatelymetered orbilledto Lessee,Lessee shallpaya reasonable proporƟon, tobedetermined byLessor, ofall charges jointlymetered orbilled. Thereshall beno abatementof rentandLessor shallnot beliablein anyrespect whatsoeverforthe inadequacy,stoppage, interrupƟonor disconƟnuanceof anyuƟlity orservicedue toriot, strike,labor dispute,breakdown,accident, repairor othercausebeyond Lessor'sreasonable controlorin cooperaƟonwith governmentalrequest ordirecƟons.
11.2 Within fiŌeendaysof Lessor's wriƩen request,Lesseeagrees todeliver toLessorsuch infor maƟon,documents and/orauthorizaƟonas Lessorneeds in orderfor Lessorto complywithnew or exisƟng ApplicableRequirements relaƟngtocommercial buildingenergy usage, raƟngs,and/or thereporƟng thereof.
12. Assignment and Subleƫng.
12.1 Lessor's ConsentRequired.
(a) Lessee shallnot voluntarilyorby operaƟonof lawassign, transfer,mortgageor encumber(collecƟvely, "assignorassignment ") orsublet allorany partof Lessee'sinterest inthisLease orin thePremises withoutLessor'sprior wriƩenconsent. (b) UnlessLessee isa corporaƟonandits stockis publiclytradedon a naƟonal stockexchange, achangein thecontrol ofLesseeshall consƟtutean assignmentrequiring consent. Thetransfer,on a cumulaƟve basis,of 25%ormore ofthe voƟngcontrolof Lesseeshall consƟtuteachange incontrol forthis purpose. (c) Theinvolvement ofLessee oritsassets inany transacƟon,or seriesof transacƟons (byway ofmerger,sale, acquisiƟon, financing, transfer,leveraged buy-outor otherwise),whether ornota formalassignment or hypothecaƟon ofthisLease orLessee's assetsoccurs,which resultsor willresultin a reducƟon ofthe NetWorth ofLessee byanamount greaterthan 25%of suchNetWorth asit wasrepresentedat the Ɵme ofthe execuƟon ofthis Leaseor atthe Ɵme ofthe most recentassignment towhich Lessorhasconsented, oras itexists immediatelypriorto said transacƟon ortransacƟons consƟtuƟng such reducƟon, whicheverwasor is greater,shall beconsidered anassignmentof thisLease towhich Lessormaywithhold itsconsent. " NetWorth ofLessee" shallmeanthe networth ofLessee (excludingany guarantors)established undergenerallyaccepted accounƟngprinciples. (d) Anassignment or subleƫng withoutconsentshall, atLessor's opƟon,bea Defaultcurable aŌer noƟce perParagraph13.1(d), ora noncurableBreach withoutthe necessityof any noƟceand graceperiod. If Lessorelectsto treatsuch unapprovedassignmentor subleƫngas anoncurableBreach, Lessormay either:(i) terminatethis Lease,or (ii)upon30 days wriƩen noƟce, increase themonthlyBase Rentto 110%ofthe BaseRent thenin effect. Further, inthe eventofsuch Breach andrental adjustment,(i) thepurchaseprice ofany opƟonto purchasethePremises heldby Lesseeshallbe subjectto similaradjustmentto 110%of theprice previouslyin effect,and (ii)all fixed andnon- fixed rentaladjustments scheduledduringthe remainderof theLeaseterm shallbe increasedto110% ofthe scheduled adjustedrent.
(e) Lessee's remedyforany breachof Paragraph12.1 byLessorshall belimited tocompensatorydamages and/or injuncƟve relief. (f) Lessor mayreasonablywithhold consentto aproposedassignment or subleƫng ifLesseeis inDefault atthe Ɵmeconsentis requested. (g) Notwithstanding theforegoing, allowinga deminimis porƟon ofthe Premises,ie.20 squarefeet orless,to beused bya thirdpartyvendor in connecƟonwith theinstallaƟon ofavending machineor payphoneshall not consƟtutea subleƫng.
12.2 Terms andCondiƟonsApplicable toAssignment andSubleƫng. (a) Regardless ofLessor's consent,noassignment or subleƫng shall: (i)be effecƟvewithoutthe express wriƩen assumpƟon bysuch assigneeor sublesseeof the obligaƟons ofLesseeunder thisLease, (ii)release Lesseeofany obligaƟonshereunder, or(iii)alter theprimary liabilityofLessee forthe payment of Rentor forthe performanceofany other obligaƟons tobe performedbyLessee. (b) Lessormay acceptRent orperformanceof Lessee's obligaƟons fromanyperson otherthan Lesseepending approvalordisapproval ofan assignment.
Neithera delayin theapprovalor disapprovalof suchassignment northeacceptance ofRent orperformanceshall consƟtutea waiverorestoppel ofLessor's rightto exerciseits remediesfor Lessee'sDefaultor Breach.
(c) Lessor'sconsent toany assignmentor subleƫng shallnot consƟtutea consenttoany subsequentassignment or subleƫng. (d) Inthe eventof anyDefaultor Breachby Lessee,Lessormay proceeddirectly againstLessee, anyGuarantorsor anyoneelse responsibleforthe performanceof Lessee's obligaƟons underthisLease, includingany assigneeor sublessee,without first exhausƟng Lessor's remediesagainstany otherperson or enƟtyresponsible thereforto Lessor,orany securityheld byLessor. (e) Each requestforconsent toan assignmentor subleƫngshallbe in wriƟng, accompaniedbyin formaƟon relevantto Lessor's determinaƟonas tothe financialand operaƟonalresponsibility andappropriatenessof theproposed assigneeor sublessee,includingbut notlimited totheintended useand/or required modificaƟonof thePremises, ifany,together witha feeof $500as consideraƟon forLessor's consideringandprocessing saidrequest. Lesseeagrees toprovide Lessor withsuch otheror addiƟonal informaƟonand/or documentaƟonas maybe reasonablyrequested.(See alsoParagraph 36) (f) Any assigneeof,or sublesseeunder, thisLeaseshall, byreason of accepƟngsuch assignment,entering intosuch sublease,orentering intopossession ofthe Premisesor any porƟonthereof, bedeemed tohave assumedandagreed toconform andcomplywith eachand everyterm,covenant, condiƟonand obligaƟon hereinto beobserved orperformedby Lesseeduring theterm ofsaidassignment orsublease, otherthansuch obligaƟonsas arecontraryto orinconsistent with provisionsof anassignment orsubleaseto whichLessor has specifically consentedtoin wriƟng. (g) Lessor's consentto anyassignment or subleƫngshall nottransfer totheassignee orsublessee any OpƟongranted tothe originalLessee bythisLease unlesssuch transferis specificallyconsentedto byLessor in wriƟng. (SeeParagraph 39.2)
12.3 AddiƟonal Termsand CondiƟons Applicableto Subleƫng. The followingterms andcondiƟonsshall applyto anysubleƫngby Lesseeof allor anypartof thePremises andshall bedeemedincluded inall subleasesunder thisLeasewhether ornot expresslyincorporatedtherein:
(a) Lessee herebyassigns andtransfersto Lessorall ofLessee's interestinall Rentpayable onanysublease, andLessor maycollectsuch Rentand apply sametoward Lessee's obligaƟons underthisLease; provided,however, that unƟl aBreachshall occurin theperformanceof Lessee's obligaƟons, Lesseemaycollect saidRent. In theeventthat theamount collectedby LessorexceedsLessee's thenoutstanding oblig aƟonsanysuch excessshall berefundedto Lessee. Lessorshall not,by reasonof theforegoingor anyassignment ofsuch sublease,norby reasonof the collecƟonof Rent,be deemedliableto thesublessee forany failureofLessee toperform andcomply withanyof Lessee's obligaƟons tosuch sublessee. Lessee herebyirrevocably authorizesanddirects anysuch sublessee,uponreceipt ofa wriƩen noƟce fromLessor staƟngthata Breachexists inthe performanceofLessee's obligaƟonsunder thisLease,to payto LessorallRent dueand tobecome due underthe sublease. Sublesseeshallrely uponany such noƟce fromLessorand shallpay allRentsto Lessorwithout any obligaƟonor rightto inquireas towhether suchBreach exists,notwithstanding anyclaimfrom Lesseeto thecontrary. (b) Inthe eventof aBreachby Lessee,Lessor may,atits opƟon,require sublesseeto aƩorntoLessor, inwhich eventLessorshall undertakethe obligaƟonsof thesublessor undersuchsublease fromthe Ɵmeof theexerciseof said opƟon tothe expiraƟon ofsuch sublease;provided,however, Lessorshall notbe liablefor anyprepaid rentsorsecurity depositpaid bysuch sublesseetosuch sublessoror foranyprior Defaultsor Breachesofsuch sublessor. (c) Any maƩer requiringthe consentofthe sublessorunder asublease shallalsorequire theconsent ofLessor. (d) Nosublessee shallfurther assignorsublet allor anypartof thePremises withoutLessor's prior wriƩenconsent. (e) Lessor shalldelivera copyof any noƟce ofDefaultor Breachby Lesseetothe sublessee,who shallhavethe rightto curethe DefaultofLessee within thegrace period,if any,specifiedin suchnoƟce. The sublesseeshallhave aright ofreimbursementand offsetfrom andagainstLessee forany suchDefaults curedby thesublessee.
13. Default; Breach;Remedies.
13.1 Default; Breach. A "Default"is definedasa failureby theLesseeto complywith orperformany ofthe terms,covenants, condiƟonsorRules and RegulaƟonsunder thisLease. A"Breach" isdefined asthe occurrenceofone ormore ofthefollowing Defaults,and thefailureof Lesseeto curesuch Defaultwithin anyapplicable graceperiod:
(a) The abandonmentof thePremises;the vacaƟngof thePremises priortothe expiraƟonor terminaƟonofthis Leasewithout providingacommercially reasonablelevel ofsecurity, orwherethe coverageof theproperty insurancedescribedin Paragraph8.3 isjeopardizedas aresult thereof,orwithout providing reasonableassurances tominimize potenƟalvandalism;or failureto deliverto Lessorexclusivepossession ofthe enƟrePremisesin accordanceherewith priortothe expiraƟonor terminaƟonof thisLease.
(b) Thefailure ofLessee tomakeany paymentof Rentorany SecurityDeposit requiredto bemadeby Lesseehereunder, whethertoLessor orto athird party,when due,to providereasonableevidence ofinsurance orsurety bond,orto fulfillany obligaƟonunderthis Leasewhich endangersorthreatens lifeor property,where suchfailure conƟnuesfora periodof 3business daysfollowing wriƩen noƟce to Lessee. THE ACCEPTANCEBY LESSOROFA PARTIALPAYMENT OF
RENTOR SECURITYDEPOSIT SHALLNOTCONSTITUTE AWAIVER OFANY OFLESSOR'SRIGHTS, INCLUDINGLESSOR'S RIGHTTORECOVER POSSESSIONOF THE DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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PREMISES.
(c) Thefailure ofLessee toallowLessor and/orits agentsaccess tothePremises orthe commissionofwaste, actor acts consƟtuƟngpublic orprivate nuisance,and/or anillegal acƟvityonthe Premisesby Lessee,where such acƟons conƟnue fora periodof3 businessdays following wriƩen noƟce toLessee. In the eventthat Lesseecommits waste,anuisance oran illegal acƟvity asecond Ɵme then,the Lessormayelect totreat suchconductas anon-curable Breachrather thana Default.
(d) Thefailure byLessee toprovide(i) reasonable wriƩen evidenceofcompliance withApplicable Requirements,(ii) theservicecontracts, (iii)the rescissionof anunauthorized assignmentor subleƫng, (iv)an Estoppel CerƟficate or financialstatements, (v)a requestedsubordinaƟon,(vi) evidenceconcerning any guarantyand/or Guarantor,(vii) anydocumentrequested underParagraph 42,(viii) materialsafetydata sheets(MSDS), or(ix)any other documentaƟon or informaƟonwhich Lessormay reasonablyrequireof Lesseeunder theterms ofthisLease, whereany suchfailure conƟnues fora periodof10 daysfollowing wriƩen noƟceto Lessee.
(e) A DefaultbyLessee asto theterms, covenants, condiƟonsor provisionsof thisLease,or ofthe rulesadoptedunder Paragraph40 hereof,other than thosedescribed insubparagraphs 13.1(a),(b),(c) or(d), above,where suchDefault conƟnues fora periodof30 days aŌer wriƩen noƟce; provided, however,that if thenature ofLessee's Defaultissuch thatmore than30 daysarereasonably requiredfor itscure,then itshall notbedeemed tobe aBreach ifLesseecommences suchcure withinsaid 30dayperiod and thereaŌer diligentlyprosecutes suchcureto compleƟon. (f) The occurrenceofany ofthe followingevents: (i)the makingofany generalarrangement orassignment forthe benefit ofcreditors; (ii)becominga "debtor"as definedin 11U.S.C.§ 101or anysuccessor statutethereto(unless, inthe caseofa peƟƟon filed againstLessee,the sameis dismissedwithin 60days);(iii) theappointment ofa trusteeorreceiver totake possessionof substanƟallyallof Lessee'sassets locatedatthe Premisesor ofLessee'sinterest inthis Lease,where possessionis notrestored toLesseewithin 30days; or(iv) the aƩachment, execuƟon orother judicialseizureof substanƟallyall ofLessee'sassets locatedat the Premisesor ofLessee's interestinthis Lease,where suchseizure isnotdischarged within30 days;provided,however, inthe eventthatany provisionof this subparagraphis contraryto anyapplicablelaw, suchprovision shallbe ofnoforce or effect, andnot affect thevalidity oftheremaining provisions. (g) The discoverythat any financial statementofLessee orof anyGuarantorgiven toLessor wasmateriallyfalse. (h) Ifthe performanceof Lessee's obligaƟonsunder thisLease isguaranteed: (i)the deathof aGuarantor,(ii) the terminaƟon ofaGuarantor's liability withrespect tothis Leaseotherthan inaccordance withthe termsofsuch guaranty,(iii) aGuarantor'sbecoming insolventor thesubjectof abankruptcy filing,(iv) a Guarantor'srefusal tohonor theguaranty,or (v)a Guarantor'sbreach ofitsguaranty obligaƟonon ananƟcipatorybasis, andLessee's failure,within60 daysfollowing wriƩen noƟce ofany suchevent,to provide wriƩen alternaƟve assurance orsecurity,which, whencoupled withthethen exisƟngresources ofLessee,equals or exceedsthe combined financial resourcesofLessee andthe Guarantorsthat existedatthe Ɵmeof execuƟonofthis Lease.
13.2 Remedies. IfLessee failsto performanyof its affirmaƟve duƟes or obligaƟons, within10 days aŌer wriƩen noƟce (or incase ofanemergency, without noƟce),Lessor may,at itsopƟon,perform suchduty orobligaƟon onLessee'sbehalf, includingbut notlimitedto theobtaining ofreasonablyrequired bonds, insurancepolicies, orgovernmental licenses,permitsor approvals. Lesseeshall paytoLessor anamount equalto115% ofthe costsandexpenses incurredby Lessor insuch performanceupon receiptofan invoicetherefor. In theeventof aBreach, Lessormay,with orwithout further noƟceor demand,and withoutlimiƟng Lessor inthe exerciseof anyrightor remedywhich Lessormay havebyreason ofsuch Breach:
(a) Terminate Lessee'sright topossessionof thePremises byany lawfulmeans,in whichcase thisLeaseshall terminateand Lesseeshallimmediately surrenderpossession toLessor. Insuch eventLessor shallbe enƟtledtorecover fromLessee: (i)the unpaidRent whichhadbeen earnedat the Ɵme of terminaƟon; (ii)the worthat the Ɵmeof awardof theamount bywhichthe unpaidrent whichwouldhave beenearned aŌer terminaƟon unƟl the Ɵme ofaward exceedsthe amountof suchrental lossthatthe Lesseeproves couldhave beenreasonablyavoided; (iii)the worthatthe Ɵmeof awardofthe amountby whichthe unpaidrentfor thebalance ofthe term aŌerthe Ɵmeof awardexceeds theamountof suchrental lossthatthe Lesseeproves couldbereasonably avoided;and (iv)any otheramount necessaryto compensateLessor forallthe detrimentproximately causedby theLessee'sfailure toperform its obligaƟonsunder thisLease orwhichin theordinary courseof thingswould belikelyto resulttherefrom, includingbut notlimitedto thecost ofrecoveringpossession ofthe Premises,expensesof releƫng,including necessary renovaƟon and alteraƟon ofthePremises, reasonable aƩorneys' fees,and that porƟonof anyleasing commissionpaidby Lessorin connecƟonwiththis Leaseapplicable tothe unexpiredtermof thisLease. The worthatthe Ɵmeof awardofthe amountreferred toinprovision (iii)of theimmediately preceding sentenceshall becomputed by discounƟngsuch amountat thediscount rateofthe FederalReserve Bankofthe Districtwithin whichthePremises arelocated atthe Ɵmeof awardplus onepercent. Effortsby Lessorto miƟgatedamagescaused byLessee's Breachofthis Leaseshall notwaiveLessor's rightto recoverany damagesto whichLessor isotherwise enƟtled. If terminaƟonof thisLease isobtainedthrough theprovisional remedyofunlawful detainer,Lessor shallhavethe rightto recover insuch proceedingany unpaidRentand damagesas arerecoverable therein,orLessor mayreserve therightto recoverall oranypart thereofin aseparate suit. If a noƟceand graceperiod requiredunderParagraph 13.1was notpreviously given,a noƟce topay rentorquit, orto performorquit givento Lesseeunder theunlawful detainerstatute shallalso consƟtutethe noƟce requiredby Paragraph13.1. Insuch case,the applicablegraceperiod requiredby Paragraph13.1and theunlawful detainerstatute shallrun concurrently,andthe failureof Lesseeto curetheDefault withinthe greaterofthe twosuch graceperiodsshall consƟtuteboth anunlawful detainerand aBreach ofthisLease enƟtlingLessor tothe remediesprovidedfor inthis Leaseand/orby saidstatute. (b) ConƟnuethe Leaseand Lessee'srightto possessionand recovertheRent asit becomesdue, inwhichevent Lesseemay subletorassign, subjectonly toreasonable limitaƟons. Actsofmaintenance, effortsto relet,and/or theappointmentof areceiver toprotectthe Lessor'sinterests, shallnot consƟtute a terminaƟonof theLessee's righttopossession.
(c) Pursueany otherremedy nowor hereaŌer availableunder thelaws orjudicialdecisions ofthe statewhereinthe Premisesare located. The expiraƟon or terminaƟon ofthis Leaseand/orthe terminaƟonof Lessee'sright topossessionshall notrelieve Lesseefromliability underany indemnityprovisionsof thisLease asto maƩersoccurring oraccruingduring theterm hereofor byreasonof Lessee'soccupancy ofthePremises.
13.3 InducementRecapture. Any agreementforfree orabated rentor othercharges,the costof tenantimprovementsfor Lesseepaid fororperformed by Lessor,or forthe givingorpaying byLessor toor forLesseeof anycash orotherbonus, inducementor consideraƟonforLessee's enteringinto thisLease, allofwhich concessionsare hereinaŌerreferred toas"Inducement Provisions,"shall bedeemed condiƟoneduponLessee's fulland faithfulperformanceof allof theterms, covenantsand condiƟonsof thisLease. UponBreach ofthis LeasebyLessee, anysuch InducementProvisionshall automaƟcallybe deemeddeletedfrom thisLease andof nofurther forceor effect, andany rent,other charge,bonus,inducement or consideraƟon theretoforeabated,given orpaid byLessorunder suchan InducementProvision shallbe immediatelydueand payableby Lesseeto Lessor,notwithstandingany subsequentcure ofsaidBreach byLessee. Theacceptance by Lessorof rentor thecureof theBreach which iniƟated the operaƟonof thisparagraph shallnotbe deemeda waiverbyLessor ofthe provisionsof thisparagraph unless specifically sostated in wriƟngby Lessorat theƟme ofsuchacceptance.
13.4 Late Charges. Lessee herebyacknowledges thatlatepayment byLessee ofRentwill causeLessor toincurcosts notcontemplated bythis Lease,theexact amountof whichwill beextremely difficult toascertain. Such costsinclude,but arenot limitedto,processing and accounƟng charges,andlate chargeswhich maybe imposedupon Lessorby anyLender. Accordingly,if anyRent shallnotbe receivedby Lessorwithin5 days aŌer suchamountshall bedue, then,without any requirementfor noƟceto Lessee,Lesseeshall immediatelypay toLessor aone- Ɵmelate chargeequal to10%of eachsuch overdueamountor $100,whichever is greater. TheParƟes herebyagreethat suchlate chargerepresents afairand reasonable esƟmate ofthecosts Lessorwill incurbyreason ofsuch latepayment.
Acceptanceof suchlate chargebyLessor shallin noevent consƟtuteawaiver ofLessee's DefaultorBreach withrespect tosuchoverdue amount,nor preventthe exerciseof anyof theotherrights andremedies grantedhereunder. Inthe eventthat alatecharge ispayable hereunder,whetheror notcollected, for3 consecuƟve installmentsof BaseRent, thennotwithstandingany provisionof thisLease tothecontrary, BaseRent shall,atLessor's opƟon,become dueandpayable quarterlyin advance.
13.5 Interest. Anymonetary paymentdue Lessorhereunder,other thanlate charges,notreceived byLessor, whendueshall bearinterest fromthe 31stday aŌerit wasdue. Theinterest ("Interest")charged shallbe computedatthe rateof 10%perannum butshall notexceedthe maximumrate allowedby law. Interest is payablein addiƟonto thepotenƟallate chargeprovided forin Paragraph13.4.
13.6 Breach byLessor.
(a) NoƟce ofBreach. Lessorshall notbe deemedin breachofthis Leaseunless Lessorfailswithin areasonable Ɵmetoperform an obligaƟon requiredto beperformed byLessor. Forpurposes ofthis Paragraph,a reasonable Ɵmeshall inno eventbeless than30 days aŌerreceipt byLessor, andany Lenderwhosename andaddress shallhave beenfurnishedto Lesseein wriƟngfor suchpurpose,of wriƩen noƟce specifyingwhereinsuch obligaƟonof Lessorhasnot beenperformed; provided,however, thatif thenatureof Lessor's obligaƟon issuch thatmorethan 30days arereasonablyrequired forits performance,thenLessor shallnot bein breachif performanceis commencedwithinsuch 30day periodand thereaŌerdiligentlypursued toco mpleƟon. (b) Performanceby Lesseeon BehalfofLessor . In theeventthat neitherLessor norLender curessaidbreach within30 days aŌerreceipt ofsaid noƟce, orif havingcommenced saidcurethey donot diligentlypursue itto compleƟon, thenLessee mayelectto curesaid breachatLessee's expenseand offsetfrom Rent theactual andreasonable costtoperform suchcure, providedhowever, thatsuch offset shallnot exceedanamount equalto thegreaterof onemonth's BaseRent or theSecurity Deposit,reserving Lessee'srightto seekreimbursement fromLessor foranysuch expensein excessofsuch offset. Lesseeshalldocument thecost ofsaid cureand supplysaid documentaƟontoLessor.
14. CondemnaƟon. If thePremisesor any porƟon thereofaretaken underthe powerof eminentdomainor soldunder thethreatof theexercise ofsaidpower (collecƟvely"CondemnaƟon"), thisLease shallterminateas tothe parttaken asofthe datethe condemningauthoritytakes Ɵtleor possession,whichever first occurs.
Ifmore than10% oftheBuilding, ormore than25% ofthat porƟon ofthe Premisesnotoccupied byany building,istaken by CondemnaƟon, Lesseemay, atLessee's opƟon,to beexercised inwriƟngwithin 10days aŌerLessor shallhavegiven Lessee wriƩen noƟceofsuch taking(or intheabsence ofsuch noƟce,within 10days DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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aŌerthe condemningauthority shallhavetaken possession)terminate thisLease asofthe datethe condemningauthoritytakes suchpossession. IfLessee doesnot terminatethis Leasein accordancewiththe foregoing,this Leaseshall remaininfull forceand effectasto the porƟon ofthePremises remaining,except thatthe Base Rentshall bereduced in proporƟonto thereducƟon in uƟlity ofthePremises causedby suchConde mnaƟon. CondemnaƟon awards and/orpaymentsshall bethe propertyof Lessor,whether suchawardshall bemade as compensaƟon for diminuƟon in valueof theleasehold,the valueof theparttaken, orfor severance damages;provided, however,that Lesseeshallbe enƟtledto anycompensaƟon paidbythe condemnorfor Lessee's relocaƟonexpenses, lossof businessgoodwill and/orTrade Fixtures,without regardtowhether ornot thisLease isterminatedpursuant tothe provisionsofthis Paragraph. All AlteraƟonsand UƟlity InstallaƟons madeto thePremises byLessee,for purposesof CondemnaƟononly, shallbeconsidered theproperty oftheLessee andLessee shallbe enƟtled toany andall compensaƟonwhich ispayable therefor. In theevent thatthis Leaseisnot terminatedby reasonofthe CondemnaƟon,Lessor shallrepairany damageto the Premisescaused bysuch CondemnaƟon.
15. Brokerage Fees.
15.1 AddiƟonal Commission. In addiƟonto thepaymentsowed pursuantto Paragraph1.9above, Lessoragrees that: (a) ifLessee exercisesany OpƟon,(b)if Lesseeor anyone affiliated withLesseeacquires anyrights tothe Premisesorother premisesowned byLessorand locatedwithin thesameProject, ifany, within whichthe Premisesis located,(c)if Lesseeremains inpossession ofthePremises, withthe consentofLessor, aŌerthe expiraƟonofthis Lease,or (d)if BaseRentis increased,whether byagreement or operaƟonof anescalaƟon clauseherein, then,Lessorshall payBrokers afeein accordancewith thefeeschedule ofthe Brokersin effectat theƟme theLeasewas executed. Theprovisions ofthisparagraph areintended tosupersedethe provisionsof anyearlieragreement tothe contrary.
15.2 AssumpƟon of ObligaƟons. Anybuyer ortransfereeof Lessor'sinterest inthisLease shallbe deemedtohave assumedLessor's obligaƟonhereunder.
Brokersshall bethird party beneficiariesof theprovisions ofParagraphs 1.9,15,22 and31. IfLessor failsto paytoBrokers anyamounts dueas andforbrokerage fees pertainingto thisLease whendue,then suchamounts shallaccrue Interest. In addiƟon,if Lessorfailsto payany amountstoLessee's Brokerwhen due,Lessee's Brokermay send wriƩen noƟce toLessor andLessee ofsuch failureandif Lessorfails topaysuch amountswithin 10days aŌer said noƟce, Lesseeshall paysaid moniesto itsBroker and offsetsuch amountsagainst Rent. InaddiƟon,Lessee's Brokershall bedeemedto bea thirdparty beneficiary ofany commissionagreement enteredinto byand/or betweenLessorand Lessor'sBroker forthe limitedpurposeof collecƟngany brokeragefeeowed.
15.3 RepresentaƟons and IndemniƟesof BrokerRelaƟonships. Lesseeand Lessoreach representandwarrant tothe otherthatit hashad nodealings withany person, firm, broker,agent orfinder(other thanthe Brokersand Agents,ifany) in connecƟon withthisLease, andthat nooneother thansaid namedBrokers and Agentsis enƟtledto anycommissionor finder'sfee inconnecƟon herewith. Lessee andLessor doeachhereby agreeto indemnify,protect,defend andhold theother harmlessfrom andagainst liabilityfor compensaƟon orcharges whichmay beclaimedby anysuch unnamedbroker, finder orother similarpartyby reasonof any dealingsor acƟonsof theindemnifyingParty, includingany costs,expenses, aƩorneys'feesreasonably incurredwith respectthereto.
16. Estoppel CerƟficates.
(a) Each Party(as " RespondingParty")shall within10 days aŌer wriƩen noƟce from theother Party(the" RequesƟng Party")execute, acknowledgeand deliverto the RequesƟng Partyastatement in wriƟng inform similartothe thenmost current" Estoppel CerƟficate" formpublished byAIRCRE, plussuch addiƟonal informaƟon, confirmaƟon and/orstatements asmaybe reasonablyrequested bythe RequesƟngParty. (b) Ifthe RespondingParty shallfailto executeor delivertheEstoppel CerƟficatewithin such10 dayperiod,the RequesƟngParty mayexecutean Estoppel CerƟficate staƟng that: (i)theLease isin fullforce and effectwithout modificaƟonexcept asmaybe representedby the RequesƟngParty, (ii)there areno uncureddefaults inthe RequesƟngParty'sperformance, and(iii) ifLessor isthe RequesƟng Party,not morethanone month'srent hasbeenpaid inadvance.
ProspecƟvepurchasers andencumbrancers mayrelyupon the RequesƟng Party'sEstoppel CerƟficate,andthe RespondingParty shallbeestopped fromdenying the truthof thefacts containedinsaid CerƟficate. In addiƟon, Lesseeacknowledgesthat anyfailure onitspart toprovide suchanEstoppel CerƟficatewill exposeLessor torisks and potenƟally causeLessorto incurcosts notcontemplated bythisLease, theextent ofwhichwill beextremely difficulttoascertain. Accordingly, shouldthe Lesseefail toexecute and/ordelivera requestedEstoppel CerƟficatein aƟmelyfashion themonthly BaseRentshall be automaƟcally increased,withoutany requirementfor noƟceto Lessee,byan amountequal to10% ofthethen exisƟngBase Rentor$100, whicheveris greaterforremainder ofthe Lease. The ParƟes agreethat suchincrease inBaseRent representsfair andreasonable compensaƟonforthe addiƟonalrisk/costs thatLessorwill incurby reasonofLessee's failureto providethe Estoppel CerƟficate. Suchincrease inBase Rentshall innoevent consƟtutea waiverofLessee's Defaultor Breachwithrespect tothe failureto provide theEstoppel CerƟficatenor preventtheexercise ofany ofthe otherrightsand remediesgranted hereunder. (c) IfLessor desiresto finance, refinance,or sellthe Premises,or anypartthereof, Lesseeand allGuarantorsshall within10 days aŌer wriƩen noƟce fromLessor deliverto any potenƟallender orpurchaser designatedby Lessorsuch financial statementsas maybereasonably requiredby suchlenderor purchaser, includingbut notlimited toLessee's financial statementsfor thepast 3years. Allsuch financialstatementsshall bereceived byLessorand suchlender orpurchaser in confidenceand shallbe usedonlyfor thepurposes hereinset forth.
17. DefiniƟon ofLessor. Theterm "Lessor"as usedhereinshall meanthe owneror ownersatthe Ɵmein quesƟonofthe fee Ɵtle tothePremises, or,if thisis a sublease,of theLessee's interestinthe priorlease. In theeventof atransfer ofLessor's Ɵtle orinterest inthePremises orthis Lease,Lessor shalldeliverto the transfereeor assignee(in cashorby credit)any unusedSecurity Depositheldby Lessor. Uponsuchtransfer orassignment anddeliveryof theSecurity Deposit,as aforesaid,the priorLessor shallberelieved ofall liabilitywith respecttothe obligaƟonsand/or covenantsunderthis Lease thereaŌer tobeperformed bythe Lessor.
Subjectto theforegoing, the obligaƟonsand/or covenantsin thisLease tobeperformed bythe Lessorshallbe bindingonly upontheLessor ashereinabove defined.
18. Severability. The invalidityofany provisionof thisLease,as determinedby acourt ofcompetent jurisdicƟon, shallin noway affect thevalidity ofanyother provisionhereof.
19. Days. Unless otherwisespecificallyindicated tothe contrary,theword "days"as usedin thisLeaseshall meanand refertocalendar days.
20. LimitaƟon onLiability. The obligaƟons ofLessor underthisLease shallnot consƟtutepersonal obligaƟonsofLessor, orits partners,members,directors, officers orshareholders, andLessee shalllookto thePremises, andto nootherassets ofLessor, forthe saƟsfacƟon ofany liabilityofLessor withrespect tothis Lease,and shallnot seekrecourse againstLessor'spartners, members,directors, officersor shareholders,orany oftheir personalassetsfor such saƟsfacƟon.
21. Time ofEssence. Timeis ofthe essencewithrespect tothe performanceof all obligaƟonsto beperformed orobservedby the ParƟes underthisLease.
22. No Prioror OtherAgreements;Broker Disclaimer . ThisLeasecontains allagreements betweenthe ParƟeswithrespect toany maƩer menƟonedherein, andno otherprior orcontemporaneous agreementorunderstanding shallbe effecƟve. LessorandLessee eachrepresents andwarrantsto theBrokers thatithas made,and isrelying solelyupon, itsown invesƟgaƟon asto thenature, quality,characterand financialresponsibility oftheother Partyto thisLeaseand asto theuse, nature, qualityand characterof thePremises. Brokershave noresponsibility withrespectthereto orwith respecttoany defaultor breachhereofby eitherParty.
23. NoƟces.
23.1 NoƟce Requirements. All noƟcesrequired orpermiƩedby thisLease orapplicablelaw shallbe in wriƟngand maybe deliveredin person(byhand orby courier)or maybe sentbyregular, cerƟfiedor registeredmail orU.S.Postal ServiceExpress Mail,withpostage prepaid,or byfacsimiletransmission, orby email,and shallbe deemed sufficiently givenifserved ina manner specified inthisParagraph 23. Theaddressesnoted adjacentto aParty'ssignature onthis Leaseshall bethat Party'saddress fordelivery ormailingof noƟces. EitherParty mayby wriƩen noƟce to theotherspecify a different addressfor noƟce, exceptthat uponLessee's takingpossession ofthe Premises,thePremises shall consƟtute Lessee'saddress for noƟce. Acopy ofall noƟces toLessor shallbeconcurrently transmiƩedto such partyor parƟesat suchaddressesas Lessormay from Ɵme to Ɵme hereaŌer designatein wriƟng.
23.2 Date ofNoƟce. Any noƟce sentbyregistered or cerƟfied mail,returnreceipt requested,shall bedeemedgiven onthe dateof deliveryshownon the receiptcard, orif nodeliverydate isshown, thepostmark thereon. If sentby regularmailthe noƟceshall bedeemedgiven 72hours aŌerthe sameisaddressed as requiredherein andmailed withpostageprepaid. NoƟces deliveredby UnitedStatesExpress Mailor overnightcourierthat guaranteesnext daydeliveryshall be deemedgiven 24hours aŌerdeliveryof thesame tothe PostalServiceor courier. NoƟcesdeliveredby hand,or transmiƩedbyfacsimile transmissionor byemail shallbe deemeddelivered uponactualreceipt. If noƟceis receivedona Saturday,Sunday orlegalholiday, itshall bedeemedreceived onthe nextbusiness day.
23.3 OpƟons. Notwithstandingthe foregoing,in ordertoexercise any OpƟons (seeparagraph39), the NoƟce mustbesent by CerƟfied Mail(return receipt requested),Express Mail(signature required),courier(signature required)or someother methodologythatprovides areceipt establishingthedate the noƟce was receivedby theLessor.
24. Waivers.
(a) No waiverby Lessorofthe Defaultor Breachof anyterm,covenant or condiƟon hereofbyLessee, shallbe deemedawaiver ofany otherterm, covenantor condiƟonhereof, orofany subsequentDefault orBreach byLesseeof thesame orofany otherterm, covenantor condiƟon hereof. Lessor'sconsent to, orapproval of,any actshallnot bedeemed torender unnecessarytheobtaining ofLessor's consentto,or approvalof, anysubsequentor similaract byLessee, orbe construedas thebasis ofanestoppel toenforce theprovision orprovisionsof thisLease requiringsuchconsent. (b) Theacceptance ofRent byLessorshall notbe awaiverof anyDefault orBreach byLessee. Anypayment byLesseemay beaccepted byLessoron accountof moniesor damagesdueLessor, notwithstandingany qualifyingstatements or condiƟonsmade byLessee inconnecƟontherewith, whichsuch statements DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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and/or condiƟons shallbe ofnoforce or effect whatsoeverunless specificallyagreedto in wriƟng byLessorat orbefore the Ɵmeof depositof suchpayment. (c) THEPARTIES AGREETHAT THETERMSOF THISLEASE SHALLGOVERN WITHREGARDTO ALLMATTERS RELATEDTHERETOAND HEREBYWAIVE THE PROVISIONSOF ANYPRESENT ORFUTURESTATUTE TOTHE EXTENTTHAT SUCHSTATUTEIS INCONSISTENTWITH THISLEASE.
25. Disclosures RegardingThe Natureofa RealEstate Agency RelaƟonship. (a) When enteringinto adiscussionwith areal estateagent regardingareal estate transacƟon, aLessoror Lesseeshould fromtheoutset understand whattype ofagency relaƟonshipor representaƟon ithas withthe agentoragents inthe transacƟon. Lessor andLessee acknowledgebeingadvised bythe Brokersin this transacƟon, asfollows:
(i) Lessor'sAgent . A Lessor'sagent undera lisƟng agreementwith theLessoracts asthe agentforthe Lessoronly. A Lessor'sagentor subagent hasthe following affirmaƟve obligaƟons: To theLessor: A fiduciarydutyof utmostcare, integrity,honesty,and loyaltyin dealingswiththe Lessor. Tothe Lesseeand theLessor: (a) Diligentexerciseof reasonableskills andcare inperformanceof theagent's duƟes. (b) Aduty ofhonestand fairdealing andgood faith. (c) Aduty to discloseall factsknown totheagent materially affecƟng thevalue ordesirabilityof theproperty thatarenot knownto, orwithinthe diligent aƩenƟon and observaƟonof, theParƟes. Anagent isnot obligatedto revealtoeither Partyany confidenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe affirmaƟve duƟes setforth above.
(ii) Lessee'sAgent. Anagent canagree toactas agentfor theLesseeonly. In these situaƟons,the agentis notthe Lessor'sagent,even ifby agreementthe agentmay receive compensaƟonfor servicesrendered, eitherin fullorin partfrom theLessor. Anagent acƟngonlyfor aLessee hasthe following affirmaƟve obligaƟons. To theLessee: A fiduciary dutyof utmostcare,integrity, honesty,and loyaltyindealings withthe Lessee. To theLessee andthe Lessor: (a) Diligentexercise ofreasonable skillsandcare inperformance ofthe agent's duƟes. (b)A dutyofhonest andfair dealingandgood faith. (c)A dutytodisclose allfacts knownto theagent materially affecƟngthe valueor desirabilityof thepropertythat arenot knownto,or withinthe diligent aƩenƟonand observaƟonof, theParƟes.
Anagent isnot obligatedtoreveal toeither Partyany confidenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe affirmaƟve duƟes set forth above.
(iii) Agent RepresenƟng BothLessor andLessee. Areal estateagent, either acƟngdirectly orthrough oneormore associatelicensees, canlegally be theagent ofboth theLessorand theLessee ina transacƟon,butonly withthe knowledgeandconsent ofboth theLessorand theLessee. In adualagency situaƟon, theagent hasthe following affirmaƟve obligaƟons toboth theLessor andtheLessee: (a)A fiduciarydutyof utmostcare, integrity,honestyand loyaltyin thedealings witheither Lessoror theLessee. (b)Other duƟesto theLessorand theLessee asstatedabove insubparagraphs (i)or(ii). In represenƟngboth LessorandLessee, the agentmay not,without theexpresspermission ofthe respecƟveParty, disclosetothe otherParty confidenƟal informaƟon,including, butnot limitedto,facts relaƟng toeither Lessee'sor Lessor's financial posiƟon, moƟvaƟons, bargaining posiƟon,or otherpersonal informaƟon thatmay impactrent,including Lessor'swillingness to accepta rentless thanthe lisƟng rentor Lessee'swillingness topayrent greaterthan therento ffered. The aboveduƟesof theagent ina realestate transacƟon do notrelieve aLessor orLesseefrom theresponsibility toprotect theirowninterests. Lessor andLesseeshould carefullyread allagreementsto assurethat they adequatelyexpress theirunderstanding ofthe transacƟon. A realestate agentisa person qualified toadviseabout realestate. Iflegal ortax adviceis desired,consult acompetent professional. BothLessorand Lesseeshould stronglyconsider obtainingtaxadvice froma competentprofessionalbecause thefederal andstatetax consequencesof a transacƟon canbecomplex andsubject tochange. (b) Brokershave noresponsibility with respectto anydefault orbreachhereof byeither Party. The ParƟesagree thatnolawsuit orother legal proceedinginvolving anybreach ofduty,error oromission relaƟngto thisLeasemay bebrought againstBrokermore thanone year aŌerthe StartDate andthat the liability(including courtcosts and aƩorneys'fees), ofany Brokerwith respecttoany suchlawsuit and/orlegalproceeding shallnot exceedthefee receivedby such Brokerpursuant tothis Lease;provided,however, thatthe foregoing limitaƟon oneachBroker's liabilityshall notbeapplicable toany grossnegligenceor willful misconductof suchBroker.
(c) Lessorand Lesseeagree to idenƟfyto Brokersas "ConfidenƟal"any communicaƟonor informaƟon givenBrokers thatisconsidered bysuch Partyto be confidenƟal.
26. No RightTo Holdover. Lessee hasno righttoretain possessionof thePremises oranypart thereofbeyond the expiraƟonor terminaƟonof thisLease. Ator priorto the expiraƟon or terminaƟonof thisLease Lesseeshall deliverexclusivepossession ofthe PremisestoLessor. For purposesofthis provisionand Paragraph
13.1(a),exclusive possessionshall meanthatLessee shallhave vacatedthe Premises,removedall ofits personalpropertytherefrom andthat thePremiseshave been returnedin the condiƟon specified inthis Lease. Inthe eventthatLessee doesnot deliverexclusivepossession toLessor as specifiedabove, thenLessor's damages duringany holdoverperiod shallbecomputed atthe amountof theRent(as definedin Paragraph4.1)due duringthe lastfullmonth beforethe expiraƟonor terminaƟonof thisLease (disregardinganytemporary abatementof Rentthat mayhavebeen in effect), butwithBase Rentbeing 150%ofthe BaseRent payable duringsuch lastfull month. Nothing containedherein shallbe construedasconsent byLessor toanyholding overby Lessee.
27. CumulaƟve Remedies. Noremedyor elecƟonhereunder shallbedeemed exclusivebut shall,wherever possible,be cumulaƟve withall otherremediesat lawor inequity.
28. Covenants and CondiƟons; ConstrucƟon ofAgreement. All provisionsofthis Leaseto beobserved orperformedby Lesseeare bothcovenantsand condiƟons.
Inconstruing thisLease, allheadingsand Ɵtlesare forthe convenienceofthe ParƟesonly andshallnot beconsidered apartof thisLease. Whenever requiredbythe context,the singularshall includetheplural andvice versa. ThisLeaseshall notbe construedasif preparedby oneofthe ParƟes,but ratheraccording toitsfair meaningas awhole, asifboth ParƟeshad preparedit.
29. Binding Effect;Choice ofLaw. ThisLease shallbebinding uponthe ParƟes,their personalrepresentaƟves,successors andassigns andbegoverned bythe laws ofthe Statein whichthePremises arelocated. Any liƟgaƟonbetweenthe ParƟeshereto concerningthisLease shallbe iniƟatedinthe countyin whichthe Premises arelocated. Signatures tothisLease accomplishedby meansof electronicsignatureor similartechnology shallbelegal andbinding.
30. SubordinaƟon; AƩornment; Non-Disturbance.
30.1 SubordinaƟon. ThisLease andany OpƟongrantedhereby shallbe subjectandsubordinate toany groundlease,mortgage, deedof trust,or other hypothecaƟonor securitydevice (collecƟvely,"SecurityDevice"), nowor hereaŌerplaced uponthePremises, toany andalladvances madeon thesecuritythereof, andto allrenewals, modificaƟons,andextensions thereof. Lesseeagrees thattheholders ofany suchSecurityDevices (inthis Leasetogetherreferred toas " Lender") shallhave noliability or obligaƟonto performany ofthe obligaƟonsofLessor underthis Lease. Any Lendermay electtohave thisLease and/orany OpƟongranted herebysuperior tothe lienofits SecurityDevice bygiving wriƩen noƟcethereof toLessee, whereuponthisLease andsuch OpƟonsshallbe deemedprior tosuch SecurityDevice, notwithstandingthe relaƟvedatesof the documentaƟon or recordaƟon thereof.
30.2 AƩornment. Inthe eventthat Lessortransfers Ɵtle tothe Premises,orthe Premisesare acquiredbyanother uponthe foreclosureor terminaƟonofa SecurityDevice towhich thisLeaseis subordinated(i) Lesseeshall, subjecttothe non-disturbanceprovisions ofParagraph30.3, aƩornto suchnewowner, andupon request,enter intoa newlease,containing allof theterms andprovisionsof thisLease, withsuchnew ownerfor theremainderof theterm hereof,or, atthe elecƟon ofthe newowner, thisLeasewill automaƟcallybecome anew leasebetweenLessee andsuch newowner,and (ii)Lessor shall thereaŌerbe relievedof anyfurther obligaƟonshereunder andsuch newownershall assumeall ofLessor's obligaƟons,exceptthat suchnew ownershallnot: (a)be liableforany actor omissionof any
priorlessor orwith respecttoevents occurringprior to acquisiƟon ofownership;(b) besubject toany offsets ordefenses whichLesseemight haveagainst anyprior lessor, (c)be boundbyprepayment ofmore thanone month'srent,or (d)be liableforthe returnof anysecuritydeposit paidto anyprior lessorwhichwas notpaid or creditedto suchnew owner.
30.3 Non-Disturbance. Withrespect toSecurity Devicesenteredinto byLessor aŌerthe execuƟon ofthis Lease,Lessee's subordinaƟon ofthis Leaseshall be subjectto receivinga commerciallyreasonablenon-disturbance agreement(a "Non-DisturbanceAgreement ") fromtheLender whichNon-Disturbance Agreement providesthat Lessee'spossession ofthePremises, andthis Lease,including any opƟonsto extendthe termhereof,will notbe disturbedsolong asLessee isnot in Breachhereof and aƩorns totherecord ownerof thePremises. Further,within 60days aŌerthee xecuƟon ofthis Lease,Lessorshall, ifrequested byLessee, useits commerciallyreasonable effortsto obtainaNon-Disturbance Agreementfrom theholder ofanypre-exi sƟng SecurityDevice whichissecured bythe Premises. In the eventthat Lessoris unabletoprovide theNon-Disturbance Agreementwithin said60days, thenLessee may,atLessee's opƟon,directly contactLenderand aƩempt to negoƟate forthe execuƟonanddelivery ofa Non-DisturbanceAgreement.
30.4 Self-ExecuƟng. Theagreements containedin thisParagraph30 shallbe effecƟvewithoutthe execuƟonof anyfurtherdocuments; provided,however, that, upon wriƩen requestfrom Lessorora Lenderin connecƟonwith asale, financing or refinancing ofthePremises, Lesseeand Lessorshallexecute suchfurther wriƟngs asmay bereasonably requiredtoseparately documentany subordinaƟon, aƩornment and/orNon-DisturbanceAgreement providedfor herein.
31. AƩorneys' Fees. IfanyParty orBroker bringsan acƟon orproceeding involvingthe Premiseswhetherfounded intort, contractorequity, orto declarerights hereunder,the PrevailingParty (ashereaŌer defined) inany suchproceeding, acƟon,orappeal thereon,shall be enƟtledto reasonableaƩorneys' fees. Such feesmay beawarded inthe samesuitor recoveredin aseparate suit,whetheror notsuch acƟonorproceeding ispursued todecisionor judgment. Theterm, "Prevailing Party"shall include,without limitaƟon,aParty orBroker who substanƟally obtainsordefeats therelief sought,asthe casemay be,whetherby compromise, seƩlement,judgment, orthe abandonmentbythe otherParty orBroker ofitsclaim ordefense. The aƩorneys' feesaward shallnotbe computedin accordancewith anycourt feeschedule, butshallbe suchas tofully reimburseall aƩorneys' feesreasonably incurred. In addiƟon,Lessor shallbe enƟtled to aƩorneys' fees,costs and DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
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expensesincurred inthe preparaƟonandservice of noƟces ofDefault and consultaƟonsin connecƟontherewith, whetherornot alegal acƟonissubsequently commencedin connecƟonwith suchDefaultor resulƟngBreach ($200is areasonableminimum peroccurrence forsuchservices and consultaƟon).
32. Lessor's Access;Showing Premises;Repairs. Lessorand Lessor'sagentsshall havethe rightto enterthePremises atany Ɵme,inthe caseof anemergency,and otherwiseat reasonable Ɵmes aŌer reasonableprior noƟcefor thepurpose ofshowingthe sameto prospecƟvepurchasers,lenders, ortenants, andmakingsuch alteraƟons,repairs, improvementsor addiƟonstothe Premisesas Lessormay deemnecessaryor desirableand the erecƟng,using andmaintaining ofuƟliƟes, services,pipes andconduits throughthePremises and/orother premisesas longasthere isno materialadverse effect onLessee's useofthe Premises. Allsuch acƟviƟesshall bewithout abatementofrent orliability toLessee.
33. AucƟons. Lessee shallnotconduct, norpermit tobeconducted, any aucƟon uponthe PremiseswithoutLessor's prior wriƩen consent. Lessor shallnot be obligatedto exerciseany standardofreasonableness indetermining whetherto permitan aucƟon.
34. Signs. Lessor mayplaceon thePremises ordinary"ForSale" signsat any Ɵme andordinary"For Lease"signs duringthelast 6months oftheterm hereof. Except forordinary "forsublease" signs,Lesseeshall notplace anysign uponthePremises withoutLessor's prior wriƩenconsent. All signsmustcomply withall Applicable Requirements.
35. TerminaƟon; Merger. Unless specificallystated otherwisein wriƟngbyLessor, thevoluntary orother surrenderofthis Leaseby Lessee,themutual terminaƟon or cancellaƟon hereof,or a terminaƟonhereof byLessor forBreach byLessee,shall automaƟcallyterminate anysubleaseor lesserestate inthePremises; provided, however,that Lessormay electto conƟnue anyone orall exisƟngsubtenancies. Lessor'sfailure within10days followingany sucheventto electto thecontrary by wriƩen noƟce tothe holderofany suchlesser interest,shall consƟtuteLessor's elecƟon tohave suchevent consƟtute the terminaƟon ofsuchinterest.
36. Consents. All requestsforconsent shallbe in wriƟng. Exceptas otherwiseprovided herein,whereverin thisLease theconsentof aParty isrequiredto anact by orfor theother Party,suchconsent shallnot beunreasonably withheldordelayed. Lessor's actualreasonablecosts andexpenses (includingbutnot limitedto architects', aƩorneys', engineers'and otherconsultants'fees) incurredin the consideraƟon of,orresponse to,a requestbyLessee forany Lessorconsent,including butnot limitedto consentstoan assignment,a subleƫngor thepresenceor useof aHazardousSubstance, shallbe paidbyLessee uponreceipt ofan invoiceand supporƟng documentaƟon therefor. Lessor'sconsentto anyact, assignmentor subleƫngshallnot consƟtutean acknowledgmentthatno Defaultor BreachbyLessee ofthis Leaseexists, norshallsuch consentbe deemeda waiverofany then exisƟng DefaultorBreach, exceptas maybeotherwise specificallystated inwriƟng by Lessorat the Ɵme ofsuchconsent. The failureto specifyhereinany parƟcular condiƟon toLessor'sconsent shallnot precludethe imposiƟon byLessor atthe Ɵmeof consentof suchfurther orother condiƟons asare thenreasonable withreferenceto the parƟcular maƩer forwhich consentis beinggiven. Inthe eventthat either Partydisagrees withany determinaƟonmadeby theother hereunderand reasonablyrequeststhe reasonsfor such determinaƟon,the determiningparty shallfurnish itsreasons in wriƟng andinreasonable detailwithin 10business daysfollowingsuch request.
37. Guarantor.
37.1 ExecuƟon. TheGuarantors, ifany, shalleachexecute aguaranty intheform mostrecently publishedbyAIR CRE.
37.2 Default. Itshall consƟtutea Defaultofthe Lesseeif anyGuarantorfails orrefuses, uponrequestto provide: (a)evidence ofthe execuƟon ofthe guaranty, includingthe authorityof thepartysigning onGuarantor's behalfto obligateGuarantor,and inthe caseofa corporateGuarantor, a cerƟfiedcopy ofa resoluƟonof its boardof directorsauthorizing themakingof suchguaranty, (b)current financialstatements,(c) anEstoppel CerƟficate,or(d) wriƩen confirmaƟon thattheguaranty is sƟllin effect.
38. Quiet Possession. Subjecttopayment byLessee oftheRent andperformance ofall ofthecovenants, condiƟonsand provisionsonLessee's partto beobserved andperformed underthis Lease,Lesseeshall havequiet possessionand quietenjoymentof thePremises duringtheterm hereof.
39. OpƟons. If Lesseeisgranted any OpƟon, as definedbelow, thenthe followingprovisions shallapply.
39.1 DefiniƟon. "OpƟon"shall mean: (a)theright toextend orreducethe termof orrenewthis Leaseor toextend orreducethe termof orrenewany lease thatLessee hason otherpropertyof Lessor;(b) theright of firstrefusal orfirst offertolease eitherthe Premisesorother propertyof Lessor;(c) therightto purchase, theright of first offertopurchase orthe rightof firstrefusalto purchasethe Premisesorother propertyof Lessor.
39.2 OpƟons PersonalToOriginal Lessee. Any OpƟongranted toLessee inthisLease ispersonal totheoriginal Lessee,and cannotbe assignedorexercised by anyoneother thansaid originalLesseeand onlywhile theoriginal Lesseeisin fullpossession ofthePremises and,if requestedbyLessor, withLessee cerƟfyingthat Lesseehas no intenƟon of thereaŌerassigning orsubleƫng.
39.3 MulƟple OpƟons. In theevent thatLesseehas anymulƟple OpƟons toextend orrenew thisLease,a later OpƟon cannotbe exercisedunlessthe prior OpƟonshave beenvalidly exercised.
39.4 Effect ofDefaulton OpƟons.
(a) Lessee shallhave norightto exercisean OpƟon: (i)duringthe periodcommencing withthegiving ofany noƟceofDefault and conƟnuing unƟl said Defaultis cured,(ii) duringtheperiod of Ɵme anyRent isunpaid(without regardto whetherno Ɵcethereof isgiven Lessee),(iii)during the Ɵme Lesseeis inBreach of thisLease, or(iv) intheevent thatLessee hasbeen given3or more noƟces ofseparateDefault, whetheror nottheDefaults arecured, duringthe 12monthperiod immediatelypreceding theexercise ofthe OpƟon.
(b) Theperiod of Ɵme withinwhichan OpƟonmay beexercisedshall notbe extendedor enlargedbyreason ofLessee's inabilitytoexercise an OpƟon becauseof theprovisions ofParagraph39.4(a).
(c) An OpƟon shallterminate andbeof nofurther forceor effect,notwithstandingLessee's dueand Ɵmelyexerciseof the OpƟon, if, aŌersuch exercise andprior tothe commencementofthe extendedterm or compleƟon ofthepurchase, (i)Lessee failstopay Rentfor aperiodof 30days aŌersuch Rentbecomesdue (withoutany necessityof Lessortogive noƟcethereof), or(ii) ifLesseecommits aBreach ofthisLease.
40. MulƟple Buildings. IfthePremises area partofa groupof buildingscontrolled byLessor,Lessee agreesthat itwillabide byand conformtoall reasonablerules and regulaƟons whichLessor maymakefrom Ɵmeto Ɵmefor themanagement,safety, andcare ofsaid properƟes, includingthe careandcleanliness ofthe grounds andincluding theparking, loadingandunloading ofvehicles, andto causeitsemployees, suppliers,shippers, customers,contractorsand inviteesto soabideand conform. Lesseealso agreestopay itsfair shareof commonexpensesincurred in connecƟon withsuchrules and regulaƟons.
41. Security Measures. Lesseeherebyacknowledges thatthe Rentpayableto Lessorhereunder doesnot includethecost ofguard serviceorother security measures,and thatLessor shallhaveno obligaƟonwhatsoever toprovide same. Lessee assumesall responsibility fortheprotecƟonof thePremises,Lessee, its agentsand inviteesand theirpropertyfrom theacts ofthird parƟes.
42. ReservaƟons. Lessor reservestoitself theright, from Ɵmeto Ɵme,to grant,without theconsentor joinderof Lessee,sucheasements, rightsand dedicaƟons thatLessor deemsnecessary, andtocause the recordaƟon ofparcel mapsand restricƟons, solong assucheasements, rights, dedicaƟons, mapsand restricƟons do notunreasonably interferewith theuseof thePremises byLessee. Lesseeagrees tosign anydocumentsreasonably requestedby Lessorto effectuateanysuch easementrights, dedicaƟon,map orrestricƟons.
43. Performance UnderProtest. Ifat any Ɵme adisputeshall ariseas toany amountorsum ofmoney tobepaid byone Partytothe otherunder theprovisions hereof,the Partyagainst whomthe obligaƟon topay themoney isassertedshall havethe righttomake payment"under protest"andsuch paymentshall notbe regardedas avoluntary paymentandthere shallsurvive theright onthepart ofsaid Partyto insƟtute suitfor recoveryofsuch sum. Ifit shallbeadjudged thatthere wasno legal obligaƟon onthepart ofsaid Partyto paysuchsum orany partthereof,said Partyshall be enƟtledto recoversuch sumor somuchthereof asit wasnot legallyrequired topay. AParty whodoes not iniƟate suitforthe recoveryof sumspaid"under protest"within 6monthsshall bedeemed tohave waiveditsright to protestsuch payment.
44. Authority; MulƟple ParƟes; ExecuƟon.
(a) If eitherParty heretoisa corporaƟon,trust, limitedliability company,partnership,or similar enƟty,eachindividual execuƟng thisLease onbehalfof such enƟty representsand warrantsthathe orshe isduly authorizedtoexecute anddeliver thisLeaseon itsbehalf. EachParty shall,within 30days aŌerrequest, deliverto theother Party saƟsfactoryevidence ofsuch authority. (b) Ifthis Leaseis executedbymore thanone personor enƟty as"Lessee", eachsuch personore nƟty shallbe jointlyandseverally liablehereunder. Itis agreedthat anyone ofthenamed Lesseesshall beempowered toexecuteany amendmentto thisLease,or otherdocument ancillarytheretoand bindall ofthe namedLessees, andLessor mayrelyon thesame asif allofthe namedLessees hadexecutedsuch document. (c) ThisLease maybe executedbythe ParƟesin counterparts,each ofwhichshall bedeemed anoriginaland allof whichtogethershall consƟtuteone andthe sameinstrument.
45. Conflict. Any conflictbetweenthe printedprovisions ofthisLease andthe typewriƩenor handwriƩenprovisionsshall becontrolled bythe typewriƩen or handwriƩenprovisions.
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46. Offer. PreparaƟon ofthisLease byeither Partyortheir agentand submissionof sametothe otherParty shallnotbe deemedan offertolease tothe other Party. ThisLease isnotintended tobe binding unƟl executedanddelivered byall ParƟeshereto.
47. Amendments. This Leasemaybe modifiedonly inwriƟng,signed bythe ParƟesin interestatthe Ɵmeof themodificaƟon. Aslong astheydo notmaterially changeLessee's obligaƟonshereunder, Lesseeagreesto makesuch reasonablenon-monetary modificaƟonstothis Leaseas maybereasonably requiredby aLender in connecƟon withthe obtainingofnormal financingor refinancingof thePremises.
48. Waiver ofJury Trial. THE PARTIESHEREBY WAIVETHEIRRESPECTIVE RIGHTSTO TRIALBY JURYINANY ACTIONOR PROCEEDINGINVOLVINGTHE PROPERTY ORARISING OUTOF THISLEASE.
49. ArbitraƟon ofDisputes. AnAddendum requiringthe ArbitraƟonofall disputesbetween thePar Ɵes and/orBrokersarising outof thisLease is isnot aƩachedto thisLease.
50. Accessibility; Americanswith DisabiliƟesAct.
(a) The Premises:
have notundergone aninspecƟonby aCerƟfied AccessSpecialist (CASp). Note: ACerƟfied AccessSpecialist(CASp) caninspect thesubjectpremises and determinewhether thesubject premisescomplywith allof theapplicable construcƟon-relatedaccessibilitystandards understate law.Althoughstate lawdoes not requirea CASp inspecƟon ofthesubject premises,the commercialproperty ownerorlessor maynot prohibitthelessee ortenant fromobtaininga CASp inspecƟon of thesubject premisesfor theoccupancyor potenƟaloccupancy ofthe lesseeortenant, ifrequested bythelessee ortenant. The parƟesshall mutuallyagree onthe arrangementsfor the Ɵme andmannerof theCASp inspecƟon,the paymentofthe feefor theCASpin specƟon, andthe costofmaking anyrepairs necessaryto correct violaƟons of construcƟon-related accessibilitystandardswithin thepremises. have undergonean inspecƟonbya CerƟfiedAccess Specialist(CASp) anditwas determinedthat thePremisesmet allapplicable construcƟon-related accessibilitystandards pursuantto CaliforniaCivilCode §55.51et seq. Lesseeacknowledgesthat itreceived acopyof the inspecƟon reportatleast 48hours priorto execuƟngthis Leaseand agreestokeep suchreport confidenƟal. have undergonean inspecƟonbya CerƟfiedAccess Specialist(CASp) anditwas determinedthat thePremisesdid notmeet allapplicable construcƟon-related accessibilitystandards pursuantto CaliforniaCivilCode §55.51et seq. Lesseeacknowledgesthat itreceived acopyof the inspecƟon reportatleast 48hours priorto execuƟngthis Leaseand agreestokeep suchreport confidenƟalexcept asnecessaryto completerepairs and correcƟonsof violaƟonsof construcƟonrelated accessibilitystandards.
Inthe eventthat thePremiseshave beenissued an inspecƟon reportbya CASpthe Lessorshallprovide acopy ofthedisability access inspecƟon cerƟficate to Lessee within7 daysof the execuƟonof thisLease.
(b) Sincecompliance withthe Americanswith DisabiliƟes Act(ADA) andotherstate andlocal accessibilitystatutes aredependentupon Lessee's specific useof thePremises, Lessormakesno warrantyor representaƟonas towhetheror notthe Premisescomplywith ADAor anysimilar legislaƟon. In theevent that Lessee'suse ofthe Premisesrequires modificaƟons or addiƟons tothe Premisesinorder tobe incompliancewith ADAor otheraccessibilitystatutes, Lesseeagrees to makeany suchnecessary modificaƟonsand/or addiƟons atLessee's expense.
LESSORAND LESSEEHAVE CAREFULLYREADAND REVIEWEDTHIS LEASEAND EACHTERMAND PROVISIONCONTAINED HEREIN,ANDBY THEEXECUTION OFTHIS LEASESHOW THEIRINFORMED ANDVOLUNTARYCONSENT THERETO. THEPARTIES HEREBYAGREETHAT, ATTHE TIMETHISLEASE ISEXECUTED, THETERMSOF THISLEASE ARECOMMERCIALLY REASONABLEANDEFFECTUATE THEINTENT ANDPURPOSE OFLESSORAND LESSEEWITH RESPECTTOTHE PREMISES.
ATTENTION: NOREPRESENTATION ORRECOMMENDATIONIS MADEBY AIRCRE ORBYANY BROKERAS TOTHELEGAL SUFFICIENCY,LEGAL EFFECT,ORTAX CONSEQUENCESOF THISLEASE ORTHETRANSACTION TOWHICH ITRELATES. THEPARTIES AREURGED TO:
1. SEEKADVICE OFCOUNSELAS TOTHE LEGALANDTAX CONSEQUENCESOF THISLEASE.
2. RETAINAPPROPRIATE CONSULTANTSTOREVIEW ANDINVESTIGATE THECONDITIONOF THEPREMISES. SAID INVESTIGATIONSHOULDINCLUDE BUTNOT BE LIMITEDTO: THEPOSSIBLE PRESENCEOFHAZARDOUS SUBSTANCES,THE ZONINGOF THEPREMISES,THE STRUCTURALINTEGRITY, THECONDITIONOF THEROOF ANDOPERATING SYSTEMS,AND THESUITABILITYOF THEPREMISES FORLESSEE'S INTENDEDUSE.
WARNING: IFTHE PREMISESARELOCATED INA STATEOTHER THANCALIFORNIA,CERTAIN PROVISIONSOF THELEASEMAY NEEDTO BEREVISEDTO COMPLYWITH THELAWS OFTHE STATEINWHICH THEPREMISES ARELOCATED.
The parƟes heretohave executedthisLease atthe placeand onthedates specifiedabove theirrespecƟvesignatures.
Executedat:
On:
ByLESSOR:
City of Garden Grove, and/or assignee
By:
NamePrinted: _______________________
Title: __________________
Phone: __________________________
Fax: ___________________
Email: __________________________
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
FederalID No.:
Executedat:
On:
ByLESSEE:
WEST ST INVESTMENTS LLC
By:
NamePrinted: Loc Tran
Title: CEO
Phone: 214-682-5559
Fax:
Email: [email protected]
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address:
FederalID No.:
BROKER
AƩn:
Title:
Address:
Phone:
Fax:
Email:
FederalID No.:
BROKER
AƩn:
Title:
Address:
Phone:
Fax:
Email:
FederalID No.:
DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D 10/4/2022
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BQB?D24353E442C
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INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. Last Edited:10/3/20228:21PM STG-27.40,Revised10-22-2020 Page13of13
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AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.
DocuSign Envelope ID: 7C813525-C74A-4829-B121-FC791F2D9C6D
Agenda Item - 4.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: William E. Murray
Dept.: City Manager Dept.: Public Works
Subject: Award a contract to R.J.
Noble Company for City
Project No. CP1316000,
Garden Grove Boulevard
Rehabilitation. (Cost:
$2,049,175) (Action Item)
Date: 10/11/2022
OBJECTIVE
For City Council to award a contract to R.J. Noble Company for Garden Grove Boulevard Rehabilitation from Harbor Boulevard to Fairview Street (City Project No.
CP1316000, Federal Project No. CRAL-5328 (088)).
BACKGROUND
T h e Garden Grove Boulevard Rehabilitation project will include removal and replacement of failed pavement areas, cold milling, installation of asphalt-rubber aggregate membrane, asphalt paving, repair of damaged sidewalk, curb & gutter, cross gutter, bus pads, upgrade of access ramps, catch basin connector pipe screen, adjustment of utility covers to finish grade, restoration of traffic signing, striping, pavement markings and reestablishment of centerline ties and monuments.
DISCUSSION
Staff solicited bids for this project pursuant to Municipal Code Section 2.50.100. Two (2) qualified bids were received at the City Clerk's office by 11:00 a.m. on September 21, 2022. The lowest qualified bidder was R.J. Noble Company, with a total bid of $2,049,175 . This bid amount is within the current project budget. The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order.
The anticipated contract schedule is as follows:
Award Contract October 11, 2022 Begin Construction (estimated) February 14, 2023 Complete Construction (estimated) June 2, 2023
FINANCIAL IMPACT
There is no impact to the General Fund. These improvements were included in the Fiscal Year 2022-23 Capital Improvement Plan and are funded by Measure "M2 Local Fair Share," Coronavirus Response and Relief Supplemental Appropriation Federal Grant and Gas Tax.
RECOMMENDATION
Award a contract to R.J. Noble Company in the amount of $2,049,175 for Garden Grove Boulevard Rehabilitation from Harbor Boulevard to Fairview Street; and
Authorize the City Manager to execute an agreement with R.J. Noble Company, and make minor modifications as appropriate thereto, on behalf of the City.
By: Navin Maru, Associate Engineer
ATTACHMENTS:
Description Upload Date Type File Name
BID SUMMARY 9/22/2022 Backup Material 10-11-22_Bid_Summary.docx AGREEMENT 9/26/2022 Cover Memo RJNOBLE_Construction_Agreement_(1).pdf
•
•
H://Navinm/navin/CP1316000 Garden Grove Blvd Rehab/Council/Bid Summary
CITY OF GARDEN GROVE
PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
BID SUMMARY SHEET
FOR
GARDEN GROVE BOULEVARD REHABILITATION
HARBOR BOULEVARD TO FAIRVIEW STREET
BID OPENING: DATE: SEPTEMBER 21, 2022 TIME: 11:00 A.M.
ENGINEER’S ESTIMATE: $ 2,000,000.00
Bidder’s Name Total Bid
% Under/Over
Engrs. Est
R.J. Noble Company, Orange $2,049,175.00 +02.46% Over
Hardy and Harper Inc., Lake Forest $2,152,000.00 +07.60% Over
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C O N S T R U C T I O N A G R E E M E N T
R J NOBLE COMPANY
THIS AGREEMENT is made this 11th day of October, 2022 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and R J Noble Company ., hereinafter referred to as ("CONTRACTOR").
RECITALS:
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove City Council Authorization dated October 11, 2022.
2. CITY desires to utilize the services of CONTRACTOR to furnish material, equipment, and labor for the GARDEN GROVE BOULEVARD REHABILITATION, CITY PROJECT NO.
CP – 1316000, FEDERAL PROJECT NO. CRAL-5328 (088).
3 . CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way relying upon any opinions or representations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications, and CONTRACTOR's Proposal, are incorporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the work covered by this Contract.
"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR'S own risk and expense. The decision of the Engineer shall be final.
SECTION 5 - AGREEMENT (Continued)
- 50 –
5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claims, CITY may settle them directly and deduct the amount of payments from the Contract price and any amounts due to CONTRACTOR. In the event CITY receives a stop notice from any laborer or material supplier alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees.
5.3 Project. The PROJECT is described as: GARDEN GROVE BOULEVARD REHABILITATION, CITY PROJECT NO. CP - 1316000, FEDERAL PROJECT NO. CRAL- 5328 (088)
5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: GARDEN GROVE BOULEVARD REHABILITATION, CITY PROJECT NO. CP - 1316000, FEDERAL PROJECT NO. CRAL-5328 (088). Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, Standard Specifications and Standard Plans of the CITY, which are also incorporated herein and referred to by, reference.
5.5 Time of Commencement and Completion. CONTRACTOR shall have ten (10) working days from the award of the Contract to execute the Contract and supply the CITY with all the documents and information required by the Instructions to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to provide the required documents and information within the ten (10) city working days, the CITY may then rescind the award of the Contract and then award the Contract to the next lowest responsive and responsible bidder.
The Contract time shall commence on the fifteenth (15 th) calendar day following the N
otice to Proceed issued by the City and the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed, the CONTRACTOR shall diligently prosecute the work within 75 (Seventy Five) working days to completion as required per the plans and specifications excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.
5.6 Time is of the Essence. Time is of the essence of this Contract.
Contractor shall have fourteen (14) calendar days from the award of the Contract to execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the fourteen (14) calendar days, the CITY may then rescind the award
SECTION 5 - AGREEMENT (Continued)
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of the Contract and then award the Contract to the next lowest responsible and responsive bidder.
As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, subcontractors and of the CITY, in a manner that will facilitate the efficient completion of the entire work in accordance with Section 5.5 herein. CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other subcontractors, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.
5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weather; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; combined action of the workers in no way caused by or resulting from default or collusion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR'S reasonable control.
CITY shall extend the time fixed in Section 5.5 herein for completion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension within fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.
No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CONTRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determined in accordance with SPECIAL PROVISIONS and Section 3-3 of the Standard Specifications for Public Works Construction 2020 Edition (GREEN BOOK). The CITY’S decision will be conclusive on all parties to this Contract.
5.8 Extra Work. The Contract price includes compensation for all work performed by CONTRACTOR, unless CONTRACTOR obtains a written change order signed by a designated representative of CITY specifying the exact nature of the extra work and the amount of extra compensation to be paid all as more particularly set forth in Section 5.9 hereof.
CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.
SECTION 5 - AGREEMENT (Continued)
- 52 –
5.9 Changes in Project.
5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work within the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.
If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall submit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request.
Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failure to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change.
The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.2 A change may also be any other conflict, difficulty or issue which the CONTRACTOR believes caused any change to the CONTRACTOR’S costs or project schedule, provided CONTRACTOR gives the CITY written notice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regards the issue as a change order. Said written notice shall be delivered to the CITY via certified mail within twenty (20) days of CONTRACTOR’S first notice of the issue. CONTRACTOR’S failure to submit the notice, which includes the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.3 Except as provided in this Section 5.9, no order, statement or conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.
5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs 5.9.1 and 5.9.2. In the case of defective specifications for which the CITY is responsible, the equitable adjustment shall include any increased direct cost CONTRACTOR reasonably incurred in attempting to comply with those defective specifications.
5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjustment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement to
SECTION 5 - AGREEMENT (Continued)
- 53 –
the CITY setting forth the general nature and monetary extent of such claim. The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.
5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be allowed if made after final payment under this Agreement.
5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY may require without nullifying this Contract.
CONTRACTOR shall adhere strictly to the Plans and Specifications unless a change there from is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Project, either in additions or deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. CONTRACTOR shall submit immediately to the CITY written copies of its firm's cost or credit proposal for change in the work. Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefore shall be submitted without delay by CONTRACTOR to CITY.
5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or extensions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefore agree that CONTRACTOR will pay to CITY the sum of Four Thousand Dollars ($4,000.00) per day for each and every calendar day during which completion of the Project is so delayed. CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due CONTRACTOR under the Contract.
5.11 Contract Price and Method of Payment. CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Two Million Forty Nine Thousand One Hundred and Seventy Five Dollars and No Cents ($ $2,049,175.00) as itemized in the bid proposal.
5Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent (5%) of the amount of each such progress estimate and material cost until 30 days after the recordation of the Notice of Completion.
Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial payments of the Contract price shall not be considered as an acceptance of any part of the work.
5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to California Public Works Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities
SECTION 5 - AGREEMENT (Continued)
- 54 –
with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.
5.13 Completion. Within 10 days after the contract completion date of the Project, CONTRACTOR shall file with the CITY’S Engineer its affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY may require affidavits or certificates of payment and/or releases from any subcontractor, laborer or material supplier.
5.14 CONTRACTOR 's Employees Compensation
5.14.1 General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicable requirements of Division 2, Part 7, Chapter 1 of the California Labor Code and all applicable federal requirements respecting the payment of prevailing wages. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the prevailing wage rates determined by the Director of the Department of Industrial Relations (DIR) for similar classifications of labor, the CONTRACTOR and its Subcontractors shall pay not less than the higher wage rate. The DIR will not accept lower State wage rates not specifically included in the Federal minimum wage determinations. This includes "helper" (or other classifications based on hours of experience) or any other classification not appearing in the Federal Wage determinations. Where Federal wage determinations do not contain the State wage rate determination otherwise available for use by the CONTRACTOR and Subcontractors, the CONTRACTOR and its Subcontractors shall pay not less than the Federal Minimum wage rate which most closely approximates the duties of the employees in question."
5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California.
5.14.3 Apprentices. Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith; provided, however, that this requirement shall not apply if and/or to the extent that the Contract of the general CONTRACTOR, or the contracts of specialty contractors not bidding for work through a general or prime contractor involve less than thirty thousand dollars ($30,000.00).
5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3,
SECTION 5 - AGREEMENT (Continued)
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Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California and shall forfeit to the CITY as a penalty, the sum of twenty-five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.
5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its subcontractors does the same. The applicable CONTRACTOR or subcontractor or its agent having authority over such matters shall certify all payroll records as accurate. CONTRACTOR further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all of the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks for labors, every two weeks to the Engineer. Certified payroll and cancelled checks submittals are due one month after start of construction and every two weeks thereafter. If the certified payroll and cancelled checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply. Work shall be ceased in an orderly, safe fashion with all vehicle access restored. Should this not occur, CITY will correct the deficiencies and deduct the cost from funds due to the CONTRACTOR. In addition, no progress payment shall be made until the copies of certified payroll reports and cancelled checks are submitted.
5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective until CONTRACTOR provides proof of registration to the CITY.
5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or other regulation promulgated pursuant to Labor Code Section 1771.4(a) (2).
5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.
5.15 Surety Bonds. CONTRACTOR shall, prior to entering into performance of this Agreement, furnish a performance bond, on the CITY's bond form in the amount of one hundred percent
SECTION 5 - AGREEMENT (Continued)
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(100%) of the Contract price, to guarantee the faithful performance of the work, and a payment bond, on the CITY's form in the amount of one hundred percent (100%) of the Contract price, to guarantee payment of all claims for labor and materials furnished. Bonds submitted on any form other than the CITY's form will be rejected. The required bonds shall be from a surety licensed to do business in the State of California and with a current A.M.
Best's rating of A-, VII. This Contract shall not become effective until such bonds are supplied and approved by the CITY."
5.16 Insurance.
5.16.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the CITY. All insurance required by this Agreement shall contain a statement of obligation on the part of the carrier to notify the city of any material change, cancellation, or termination at least thirty (30) days in advance. A waiver of subrogation shall be provided by the insurer for each policy waiving subrogation against CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, Claims made and modified occurrence policies shall not be accepted for any policy, unless otherwise indicated. All Subcontractors shall be required to provide and maintain the same insurances as required of CONTRACTOR under this contract. CONTRACTOR shall be required to collect and maintain all required insurances from all Subcontractors.
5.16.2 CONTRACTOR is aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the work of this Contract.
5.16.3 CONTRACTOR and all Subcontractors shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, and shall issue a waiver of subrogation.
5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
Additional Insured Endorsements, ongoing and products-completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU and on the Contractors’ Pollution Liability policy, if available. Endorsements shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 28; and CG 20 37 forms if later revisions used). Insurance companies must be acceptable to CITY