CITY OF GONZALES
LEASE
THIS LEASE is made between the CITY OF GONZALES, a municipal corporation of the State of California, hereinafter called "Landlord," and David Ramirez, D.D.S. hereinafter called "Tenant" as follows:
DESCRIPTION OF PREMISES
The Landlord hereby leases to Tenant, and Tenant hires from Landlord, on the terms and conditions hereinafter set forth, those certain premises situated in the City of Gonzales, as is, and located at 421 Center Street in the City of Gonzales, Monterey County, California.
2. TERM
The term of this Lease shall commence on September 1, 2024 and shall expire on August 31, 2027. Tenant is given the option to extend the term on all provisions contained in this Lease, except for minimum monthly rent, for an additional two-year term, following expiration of the initial term. Tenant shall provide Landlord with written notice of exercise of this option at least 3 months before the expiration of the term.
3. USE
The demised premises shall be used by Tenant solely and exclusively in accordance with the rules, regulations, and licensing requirements of the State of California. It is a condition of this Lease that the Tenant shall at all times operate and maintain the premises in full compliance with State accreditation and licensing standards.
4. LEASE PAYMENTS
As for the Lease of said premises, on the date of commencement of this Lease, Tenant agrees to pay to Landlord rent for the Premises in the amount of Two Thousand Six Hundred Twenty-Two Dollars ($2,622) per month. Rent payments are due monthly on the first (1st) day of each month to the City at the address shown in Section 28 or such other place as the City may designate in writing.
In the event the Tenant fails to pay rent by the close of business by the fifth (5th) day of each month or the Tenant's check is returned by the financial institution on which it is drawn for insufficient funds, the Tenant shall pay the Agency Twenty-Five Dollars ($25) as a late fee (the "Late Payment Penalty"). The Late Payment Penalty must be included with the rent payment.
Annual Lease Adjustment. Rent for the Premises will increase on each anniversary of the Commencement Date by 3%. In addition to said annual adjustment, rent may be increased upon sixty (60) days prior notice.
MAINTENANCE AND REPAIR
Tenant shall, at its own expense, keep and maintain the demised premises in good condition at all times during the term of this Lease. With the exception below, Tenant acknowledges that said premises and all improvements thereon which are included in this Lease are now. in good order and condition, and Tenant hereby covenants and agrees to keep the same in good order and condition at all times during the term hereof, and upon the expiration of said term to surrender and yield up the said premises and improvements to the Landlord in as good condition as when received, loss or damage by fire or inevitable accident and reasonable use and wear excepted. Tenant further agrees to perform all routine maintenance and repair resulting from occupancy at its own cost, necessary to comply with federal, state, county, municipal and other governmental agencies having or claiming jurisdiction. Such maintenance includes repairs and/or damage including, but not limited to, minor plumbing, broken windows, and painting.
Landlord at its own cost shall be responsible for general building maintenance, including but not limited to maintenance of the structural portions of the building (foundations bearing and exterior walls, subflooring and roof), and Landlord installed plumbing, electrical, heating and air conditioning systems.
6. IMPROVEMENTS AND ALTERATIONS
Tenant shall not commit, nor permit to be committed, any waste of, in or about the said premises, and shall not make, nor permit to be made, any alterations or improvements of the said premises, without first obtaining written consent from Landlord. Tenant, at its own cost, agrees to pay for improvements to the demised premises and grounds, including repairs and replacements that result from normal use including, but not limited to new floor coverings, paint, and window coverings. All additions to and improvements of said premises, including locks, bolts and other fixtures, whether made by the Tenant or any other person, save and except movable furniture, fixtures and equipment installed by the Tenant upon the said premises and which can be removed therefrom without injury to the said premises, immediately when made shall become and be the property of the Landlord and shall not be removed from or changed in the said premises without first obtaining the written consent of Landlord
7. UTILITIES
Tenant shall make all arrangements for and pay for all utilities and services furnished to or used un the demised premises.
8. JANITORIAL SERVICE
Tenant agrees to provide its own janitorial services for the demised premises, including vacuuming. emptying waste, dusting and window washing, all at Tenant's cost.
DISPOSAL OF HAZARDOUS MATERIAL AND WASTES
Landlord and Tenant recognize that Tenant's use of the demised premises may include the use of toxic and/or hazardous materials requiring special care in both handling and disposal. Tenant hereby agrees that it has the sole and exclusive responsibility for proper handling and disposal of such materials in accordance with local, state, and federal regulations.
10. DESTRUCTION OF PREMISES
It, during the term of this Lease, the premises or the building and other improvements in which the premises are located are totally or partially destroyed from any cause, rendering)g the premises totally or partially inaccessible or unusable, Landlord shall restore the premises or the building and other improvements in which the premises are located to substantially the same condition as they were in immediately before destruction, if the restoration can be made and completed within 30 (thirty) working days after the date of destruction. Such destruction shall not terminate this Lease. However, Tenant shall be entitled to an adjustment of rent based on the extent to which the destruction interferes with Tenant's recognized use of the premises.
If the restoration cannot be made within 30 (thirty) working days, then within 15 (fifteen) days after Landlord determines that the restoration cannot be made, Tenant can terminate this Lease immediately by giving notice to Landlord. If Tenant fails to terminate this Lease and if restoration is viable, Landlord, at its election, can either terminate this Lease or restore the premises or the building and other improvements in which the premises are located within a reasonable time and this Lease shall continue in full force and effect.
11. SIGNS
Tenant at its cost shall have the right to place, construct, and maintain a sign on the exterior of the leased premises in accordance with local rules, ordinances, and regulations. Landlord agrees to work with Tenant to have at least one sign visible to clients.
12. EXCULPATION OF LANDLORD
Landlord shall not be liable to Tenant for any damage to Tenant or Tenant's property from any cause. Tenant waives all claims against Landlord for damage to person or property, for any reason, except that Landlord shall be liable to Tenant for damage to Tenant resulting from the acts or omissions of Landlord or its authorized representatives.
13. INDEMNITY
Tenant expressly waives any and all claims for injury to person or property occurring on or about the demised premises and agrees to indemnify Landlord, its officials, officers, employees and agents from and against any and all claims, damages, causes of action, suits or damages (including costs and expenses incurred in connection therewith) on account of death or injury to persons and/or loss of or damage to property of third persons on or about the said premises, arising from Tenant's occupancy or use of said premises. Said indemnification specifically includes any injury, damage or death related to the hazardous materials referenced in Section 9.
In the event of any claims made or suits filed, Landlord shall give Tenant notice thereof and Tenant shall have the right to defend or to settle the same to the extent of its interest hereunder.
14. INSURANCE REQUIREMENTS
Tenant shall, at its own expense, maintain the following insurance at all times during the term of this Lease, or any extension of renewal thereof:
A. Public Liability and Property Damage Insurance
Tenant, at its own cost, shall maintain public liability insurance in an amount satisfactory to Landlord, but in no event less than $2,000,000.00 per occurrence, showing Landlord, its officials, officers, employees and agents as an additional insured. Should Tenant fail to obtain such insurance coverage, Landlord may obtain the same for Landlord's own protection at Tenant's expense, and the cost thereof shall be repaid by Tenant to Landlord upon demand.
B. Fire Insurance
Tenant, at its own cost, shall maintain on all its personal property, tenant's improvements, and alterations in, on, or about the premises, a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements, to the extent of at least 100% of their replacement value.
Additionally, all insurance required under this Lease shall:
a. Be issued by insurance companies authorized to do business in the State of California and meeting with the approval of the City of Gonzales.
b. Be issued as a primary policy.
C. Contain an endorsement requiring thirty (30) day written notice from the insurance company to both parties before cancellation or change in the coverage, scope, or amount of any policy. Each policy, or a certificate of the policy, together with evidence of payment of premiums, shall be deposited with the Lessor at the. commencement of the term, and on renewal of the policy not less than thirty (30) days before expiration of the term of the policy.
If, in the opinion of an insurance broker/consultant retained by the Landlord, the amount of insurance coverage at that time is not adequate, Tenant shall increase the insurance coverage as required by Landlord's insurance broker/consultant.
15. LIENS
Tenant agrees to keep said premises free from liens of every character, and in the event that any liens for labor or materials should arise during the term hereof on account of any act or omission by Tenant, Tenant agrees forthwith to discharge and pay the same.
16. COMPLIANCE WITH LAWS
The Tenant shall not do, or permit to be done, or keep, or permit to be kept, in or about the said premises, anything which shall be a nuisance or which shall be in violation of any law, ordinance, rule or regulation of any governmental authority, or of any rule or regulation of the Insurance Services Office, relating to the said premises, or which shall increase, or tend to increase, the existing rates of insurance of the said premises.
17. TERMINATION
This Lease may be terminated by either party as of the last day of any calendar month by giving sixty (60) day prior written notice thereof to the other party.
18. DEFAULT
The occurrence of any of the following shall constitute a default by Tenant:
Failure to pay rent when due, if failure continues for 10 days after notice has been given to Tenant.
Abandonment and vacation of premises for 30 days.
3. Failure to perform any other provision of this Lease if the failure to perform is not cured within 30 days after notice has been given to Tenant. If the default cannot be reasonably cured within 30 days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within the 30- day period and diligently and in good faith continues to cure the default.
Upon default, Landlord shall have the right to terminate this Lease and take possession of. the premises. Said remedy is not exclusive and is cumulative in addition to my other remedy now or later allowed by law.
19. ASSIGNMENT AND SUBLETTING
Tenant may not assign this Lease, or any interest herein, or underlet the said premises; or any part thereof, without the prior written consent of the Landlord.
20. TAX CONSEQUENCES
Tenant's possessory interest in the property, created by the execution of this Lease, may be subject to property taxation, and the Tenant may be subject to the payment of property taxes levied on such interest pursuant to California Revenue and Taxation Code Section 107.6. Payment of all such taxes shall be the sole responsibility of Tenant.
21. COORDINATION
The parties to this Lease agree that, unless otherwise indicated in writing, the following persons have primary responsibility for liaison and coordination of activities required to carry out this agreement:
For Landlord - City Manager, 831-675-5000; For Tenant - David Ramirez.
22. WAIVER OF RIGHT OF ACTION FOR INSURED LOSSES
Each party to this Lease waives any right of action such party may later acquire against the other for the recovery of any loss or damage to any of such party's property which is insured under valid and collectible insurance policies, to the extent of any recovery collectible under such insurance.
23. INSPECTION
Landlord shall have the right to enter said premises, or any part thereof, at all reasonable times for the purpose of inspecting the same or for any other lawful purpose.
24. / NOTICE
Any notice by Landlord hereunder will be sufficiently served upon Tenant if given to Tenant personally or deposited in the United States mail, registered or certified, addressed to said Tenant at the demised premises.
25. NONDISCRIMINATION
The Tenant herein covenants by and for itself, administrators and assigns, and all persons claiming under or through them, and this Lease is made and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry or sexual preference in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the Tenant itself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants or vendees on the land herein leased
26. HOLDING OVER
Tenant shall not be entitled to any hold- over rights. If Tenant remains in possession of the Premises after the expiration or termination of this Lease, without Landlord's consent, the Tenant will be in a month-to-month tenancy, subject to all of the provisions of this Lease except for Section 2 regarding the Term of the Lease.
27. ATTORNEYS FEES ON DEFAULT
In case suit shall be brought for an unlawful detainer of the said premises, for the recovery of any rent due under the provisions of this Lease, or because of the breach of any other covenant herein contained on the part of Tenant to be kept or performed, Tenant shall pay to Landlord reasonable attorneys fees which shall be fixed by court.
28. SUCCESSORS AND ASSIGNS
Subject to the restriction on assignment hereinabove written, this Lease, and all of the terms, covenants and conditions hereof, shall be binding upon and shall insure to the benefit of the heirs, legal representatives, successors and assigns of the respective parties hereto.
29. NOTICES
Any written notice to Tenant shall be sent to:
David Ramirez, D.D.S.
P.O. Box 676
Gonzales, CA 93926
Any written notice to City shall be sent to:
Carmen Gil, City Manager
City of Gonzales
P.O Box 347
Gonzales, CA 93926
30. MODIFICATION
This Lease contains the full agreement of the parties and may not be amended or modified except by written agreement.
31. GOVERNING LAW AND VENUE
This Lease shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action to enforce or interpret this Lease shall be filed in the Superior Court of Monterey County, California.
32. ENTIRE AGREEMENT
This Lease, together with all Exhibits, contains the entire agreement between the Parties relative to the transactions covered hereby. All previous correspondence, communications, discussions, agreements; understandings or proposals and acceptances thereof between the Parties or their representatives, whether oral or written, including but not limited to the Original Lease between the Parties, are deemed to have been integrated into and superseded by this Lease and are of no further force and effect except as expressly provided in this Lease.
IN WITNESS WHEREOF, the said parties have hereunto set their hands in duplicate the 1st day of September 2024.
LESSOR LESSEE
CITY OF GONZALES, a municipal corporation
Carmen Gil, City Manager avid Ramirez, DI