SBC Library Lease Extension-2018-24 Contract Number
5AN BFItN,ARDINO ORIGINAL 04-427 A-5
COUNTY SAP Number
County of San Bernardino
Department Contract Representative Terry W. Thompson, Director _
Telephone Number (909) 387-5252
Contractor City of Grand_Terrace
_
Contractor Representative _G. Harold Duffey, City Manager
Telephone Number (909) 824-6621 x 240
Contract Term _611/04 —5/31/21
Original Contract Amount $250,248
Amendment Amount S65,520
Total Contract Amount S315,768
Cost Center 7810001000
IT IS HEREBY AGREED AS FOLLOWS:
WHEREAS, the County of San Bernardino ('COUNTY'-) and the City of Grand Terrace ("LANDLORD-)
have previously entered into a Lease Agreement, Contract No 04-427, as amended by the First Amendment
dated April 21, 2009, the Second Amendment dated May 17, 2011, the Third Amendment dated May 21, 2013,
and the Fourth Amendment dated April 21, 2015(collectively, the,Lease"), wherein LANDLORD agreed to lease
certain property as set forth in the Lease to the COUNTY, which Lease is current�y scheduled to expire on May
31, 2018; and
WHEREAS, the COUNTY and LANDLORD now desire to amend the Lease to reflect the COUNTY's
exercise of its second and final three-year option extending the term of the lease through May 31, 2021, to add
two (2) three-year options to extend the term of the lease, and to amend certain other terms of the Lease as set
forth in this amendment ("Fifth Amendment')
NOW, THEREFORE, in consideration of mutual covenants and conditions, the parties hereto agree the
Lease Agreement, Contract No. 04-427, is amended as follows:
1. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 1, PARTIES, and
SUBSTITUTE therefore the following as a new Paragraph 1, PARTIES:
1. PARTIES: This lease ("Lease") is made between the City of Grand Terrace
("LANDLORD"), and the County of San Bernardino ("COUNTY"), who agree on the terms and conditions
contained in this Lease. LANDLORD hereby represents and warrants to COUNTY that LANDLORD is the legal
owner with sole title to the Property (as defined below), including the Premises (as defined be!ow), and has the
Standard Contract Page 1 of 23
right to enter into this,Lease without consent or bpproval from any other parties_ In the event of a breach of the
foregoing representation and warranty, COUNTY shall have the right to terminate this Lease with immediate
effect and LANDLORD shall indemnify, defend (with counsel reasonably approved by COUNTY) and hold
harmless COUNTY and its employees, contractors, agents, and volunteers from any and all claims, actions,
losses, damages and/or liability arising out of said breach.
2. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 2, PREMISES. and
SUBSTITUTE therefore the following as a new Paragraph 2, PREMISES,
2. PREMISES:
a. LANDLORD leases to COUNTY and COUNTY leases from LANDLORD certain
premises of approximately 3,500 square feet of library space ("Premises") within a building located on the real
property commonly known 22795 Barton Road, Grand Terrace, CA 92313 ("Property"). The Premises is more
particularly depicted in Exhibit "A" attached hereto and incorporated herein by reference. The parties hereby
agree that the Premises shall not be re-measured during the term of the Lease, including any extensions thereof.
b. Along with the Premises, LANDLORD grants to COUNTY, at no additional cost,
for the term of the Lease, including any extensions thereof: (i) the right to use parking spaces, including
handicapped parking, in the common area parking lot located on the Property; (ii) the right to use any common
areas of the Property and any improvements thereon; and (iu) the right of ingress and egress to the Premises,
the parking tot at the Building, and any common areas of the Property.
3. Pursuant to the COUNTY'S exercise of its option in Paragraph 5, OPTION TO EXTEND TERM,
effective June 1, 2018 the term of the Lease is extended as provided in Paragraph 3, TERM, from June 1, 2018
through May 31, 2021 (the"Fifth Extended Term").
4. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 4, RENT, and
SUBSTITUTE therefore the following as a new Paragraph 4, RENT:
4. RENT:
a. COUNTY shall pay to LANDLORD the following monthly rental payments for the
Premises in arrears on the last day of each month, commencing when the Fifth Extended Term commences,
continuing during the Fifth Extended Term,subject to an approximate two percent(2%)annual increase as more
specifically reflected and included in the amounts set forth below:
June 1, 2018 to May 31, 2019 —monthly rental amount of $1,785.00
June 1, 2019 to May 31, 2020 —monthly rental amount of $1,820.00
June 1, 2020 to May 31, 2021 —monthly rental amount of$1,855.00
b. Rent for any partial month sha-I be prorated based on the actual number of days
of the month. LANDLORD shall accept all rent and other payments from COUNTY under this Lease via
electronic funds transfer (EFT) directly deposited into the LANDLORD's designated checking or other bank
account. LANDLORD shall promptly comply with directions and accurately complete forms provided by
COUNTY required to process EFT payments.
5. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 5, OPTION TO EXTEND
TERM, and SUBSTITUTE therefore the following as a new Paragraph 5, OPTION TO EXTEND TERM.-
5- OPTION TO EXTEND THE TERM- LANDLORD gives COUNTY the option to
extend the term of the Lease on the same provisions and conditions, except for the monthly rent, for two (2)
three-year periods("extended terms")following expiration of the Fifth Extended Term, by COUNTY giving notice
of its intention to exercise the option to LANDLORD prior to the expiration of the preceding term or during any
holding over pursuant to Paragraph 7, HOLDING OVER. The rent for the first year of any extended term shall
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be the rate paid for the preceding year plus a two percent (2%) annual increase, which rent shall thereafter be
subject to a 2% annual increase.
6. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 7, HOLDING OVER, and
SUBSTITUTE therefore the following as a new Paragraph 7, HOLDING OVER:
7 HOLDING OVER In the event the COUNTY shall hold over and continue to occupy the
Premises with the consent of the LANDLORD, expressed or implied, the tenancy shall be deemed to be a
tenancy from month-to-month upon the same terms and conditions, including rent, as existed and prevailed at
the time of the expiration of the term of this Lease_ Notwithstanding Paragraph 39, RIGHT TO TERMINATE
LEASE, either party shall have the right to terminate the Lease with not less than one hundred eighty(180)days
prior written notice to the other party during any holdover tenancy,
7. Effective June 1, 2018, DELETE in its entirety the ex°sting Paragraph 10, HEALTH, SAFETY
AND FIRE CODE REQUIREMENTS. and SUBSTITUTE therefore the following as a new Paragraphl0,
HEALTH, SAFETY AND FIRE CODE REQUIREMENTS:
10. HEALTH, SAFETY AND FIRE CODE REQUIREMENTS:
a. Compliance with Code Requirements: As a condition precedent to the existence
of this Lease, LANDLORD, at its sole expense will ensure the Property, including but not limited to the Premises,
meet the applicable requirements of all Health, Safety, Fire and Building Codes, statutes, regulations and
ordinances for public and governmental buildings, including any requirements for a notice of completion,
certificate of occupancy, California Title 24 requirements and the Americans with Disabilities Act ("ADA").
Specifically, LANDLORD must ensure there is an accessible path of travel from public transportation to the
Premises pursuant to Title 24. Additionally, LANDLORD warrants that any improvements on or in the Property,
including but not limited to the Premises, which have been constructed or installed by LANDLORD or with
LANDLORD's consent or at LANDLORD's direction shall comply with ail applicable covenants or restrictions of
record and applicable Codes, statutes. regulations and ordinances in effect on the Commencement Date_
LANDLORD also warrants to COUNTY that LANDLORD has no knowledge of any claim having been made by
any governmental agency that a violation or violations of applicable Codes, statutes, regulations, or ordinances
exist with regard to the Property, including but not limited to the Premises, as of the Commencement Date,
Should the continued occupancy of the Premises be in any way prejudiced or prevented due to changes in the
ADA or the Health, Safety, Fire and Building Codes, statutes, regulations or ordinances for public and
governmental buildings, the LANDLORD shall correct, update and comply with said changes at LANDLORD's
cost.
b. No Access Inspection: No inspection of the Property, including but not limited to
the Premises, has been performed by a Certified Access Specialist in conjunction with this Lease. For avoidance
of doubt, notwithstanding that an inspection of the Property, including but not limited to the Premises, has not
been performed by a Certified Access Specialist, LANDLORD's obligations under Paragraph 10.a. shall*remain
unchanged.
8. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 12.a, MAINTENANCE and
SUBSTITUTE therefore the following as a new Paragraph 12.a, MAINTENANCE:
12. MAINTENANCE:
a. Except as specifically provided in subparagraph 12c, below, LANDLORD shall, at
its sole cost and expense, shall perform all inspections, maintenance, repairs,and replacements for the Property,
including but not limited to the Premises, as are necessary or as reasonably requested by COUNTY to keep all
portions of the Property, including but not limited to the Premises, in good working order, condition, and repair
and safe condition: '
(1) All structural and other elements of the Premises, Building, and the
Property, inclusive of all components thereto and regardless of where situated on the Property, including, but
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not limited to, the root; foundation; slab; sub-flooring; fagade; exterior and load-bearing walls; eaves, gutters,
and downspouts; exterior windows, frames, and glass; exterior doors; lobbies, elevators, and stairs and
stairwells; in the event of water intrusion, LANDLORD shall repair any such intrusions and remediate any and all
mold or other contaminants and perform all recommended repairs in a report provided by its third-party
contractors; and,
(2) All systems of the Premises, the Building, and the Properly inclusive of all
components thereto and regardless of where situated on the Property, including, but not limited to, all
mechanical, electrical, lighting, plumbing, water, and sewage and electric generators; plumbing maintenance
shall include, but is not limited to, unclogging and repairing all drains, pipes, toilets, sinks, and other restroom
fixtures and repairing water intrusion issues and remediation of mold and other contaminants regardless of
cause; lighting maintenance shall include, but is not limited to, bulb and ballast replacements; and
(3) All heating, ventilation and air conditioning ("HVAC-) systems of the
Premises, the Building, and the Property, inclusive of all components thereto and regardless of where situated
on the Property_ HVAC maintenance shall include, but is not limited to, providing certified air balance and
maintenance service(with a copy of the certificate to be delivered to COUNTY on the Commencement Date and
on each second anniversary of the Commencement Date during the Lease Term) and replaring all filters on a
quarterly basis; and
(4) All life-safety systems of the Premises, Building, and the Property,inclusive
of all components thereto and regardless of where situated on the Property, including, but not limited to, fire
suppression; fire sprinklers; fire alarms; and exit signage, provided that servicing of fire extinguishers in the
Premises are excluded; and
(5) All grounds of the Property, inclusive of all components thereto, including,
but not limited to, parking lot, parking structures, accessible parking spaces, drive lanes, and driveways;
sidewalks; fences and gates; exterior lighting; exterior signage; and landscaping; parking maintenance shall
include, but is not limited to cleaning, repaving, re-striping, curb and pothole repairs. and replacements;
landscaping maintenance shall include, but is not limited to grass, trees, shrubbery, and flora, which shall be
kept in a green condition; and
(6) Interior non-structural elements of the Premises, the Building, and the
Property, inclusive of all components thereto and regardless of where situated on the Property, including, but
not limited to, walls and ceilings; windows, frames, and glass; doors; fixtures, restrooms, break rooms, drinking
fountains, and hallways.
9. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 17, INSURANCE and
SUBSTITUTE therefore the following as a new Paragraph 17, INSURANCE:
17, INSURANCE:
a. COUNTY is a public entity and is self-insured.
b.
LANDLORD agrees to provide insurance set forth in accordance with the requirements herein. If LANDLORD
Uses existing coverage to comply with these requirements and that coverage does not meet the specified
requirements, LANDLORD agrees to amend, supplement or endorse the existing coverage to do so. Landlord
may meet its insurance requirements through a State approved self-insurance program.
Without in anyway affecting the indemnity herein provided and in addition thereto, LANDLORD shall secure and
maintain throughout the Lease Term the following types of insurance with limits as shown:
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i
I. Workers'.__ Compensatiori/Em1)lovers Liability — A program of Workers'
Compensation insurance or a state-approved, self-insurance program in an amount and form to meet all
applicable requirements of the Labor Code of the State of California, including Employer's Liability with $250,000
limits covering all persons including volunteers providing services on behalf of LANDLORD and all risks to such
persons under the Lease,
If LANDLORD has no employees, it may certify or warrant to COUNTY that it does not currently have any
employees or individuals who are defined as "employees' under the Labor Ccde and the requirement for
Workers' Compensation coverage will be waived by COUNTY's Director of Risk Management.
If LANDLORD is a non-profit corporation, organized under California or Federal law, volunteers for LANDLORD
are required to be covered by Workers' Compensation insurance.
ii_ Commercial/General Liability Insurance—LANDLORD shall carry General Liability
Insurance covering all operations performed by or on behalf of LANDLORD providing coverage for bodily injury
and property damage with a combined single limit of not less than one million dollars ($1,000,000), per
occurrence. The policy coverage shall include:
a. Premises operations and mobile equipment.
b. Products and completed operations,
C. Broad form property damage (including completed operations).
d. Explosion, collapse and underground hazards.
e. Personal injury
f. Contractual liability.
g, $2,000,000 general aggregate limit,
iii, Commercial Property Insurance providing all risk coverage for the Premises,
Building, fixtures, equipment and all property constituting a part of the Premises. Coverage shall be sufficient to
insure One Hundred percent(100 io) of the replacement cost.
IV. _Automobile_Liability Insurance — Primary insurance coverage shall be written on
ISO Business Auto coverage form for all owned, hired and non-owned automobiles or symbol 1 (any auto). The
policy shall have a combined single limit of not less than one million dollars ($1,000,000) for bodily injury and
property damage, per occurrence.
If LANDLORD is transporting one or more non-employee passengers in relation to the Lease, the automobile
liability policy shall have a combined single limit of two million dollars ($2,000,000) for bodily injury and property
damage per occurrence.
If LANDLORD owns no autos, a non-owned auto endorsement to the General Liability policy described above is
acceptable_
v_ Umbrella Liability Insurance - An umbrella (over primary) or excess policy may be
used to comply with limits or other primary coverage requirements_ When used, the umbrella policy shall apply
to bodily injurylproperty damage, personal injury/advert-sing injury and shall include a "dropdown" provision
providing primary coverage for any liability not covered by the primary policy. The coverage shall also apply to
automobile liability.
C. If LANDLORD performs any construction of the Premises on behalf of COUNTY,
LANDLORD shall also procure and maintain coverages as follows.
i. For construction contracts for projects over One Million Dollars ($1,000,000) and
less than Three Million Dollars($3,000,000)require limits of not less than Three Million Dollars in General Liability
and Auto Liability coverage.
ii_ For construction contracts for projects over Three Million Dollars ($31000,000)and
less than Five Million Dollars ($5,000,000) require limits of not less than Five Million Dollars ($5,000,000) in
General Liability and Auto Liability coverage.
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iii. For construction contracts for projects over Five Million Dollars ($5,000,000) and
less than Ten Million Dollars ($10,000,000) require limits of not less than Ten Million Dollars (10,000,000) in
General Liability and Auto Liability coverage.
iv. LANDLORD agrees to require all parties, subcontractors, or others, including, but
not limited to, architects, it hires or contracts with in relation to the Lease to provide insurance covering the
contracted operations with the requirements in this Paragraph 20, (including, but not limited to, waiver of
subrogation rights) and naming COUNTY as an additional insured. LANDLORD agrees to monitor and review
all such coverage and assumes all responsibility ensuring that such coverage is provided as required here.
V. Course of Construction/Installation(Builder's Risk l property insurance providing all
risk, including theft coverage for all property and materials to be used on the project. The insurance policy shall
not have any coinsurance penalty.
d_ Additional Insured — All policies, except for the Workers' Compensation, shall contain
endorsements naming COUNTY and its officers, employees, agents and volunteers as additional insureds with
respect to liabilities arising out of the Lease. The additional insured endorsements shall not limit the scope of
coverage for COUNTY to vicarious liability but shall al;ow coverage for COUNTY to the full extent provided by
the policy, Such additional insured coverage shall be at least as broad as Additional Insured (Form B)
endorsement form ISO, CG 2010.11 85
e. Waiver of Subrogation Rights — LANDLORD shall require the carriers of required
coverages to waive all rights of subrogation against COUNTY, its officers, employees, agents, volunteers,
contractors and subcontractors. All general or auto liability insurance coverage provided shall not prohibit
LANDLORD and LANDLORD's employees or agents from waiving the right of subrogation prior to a loss or
claim. LANDLORD hereby waives all rights of subrogation against COUNTY.
f. Policies Primary and Non-Contributory--All policies required herein are to be primary and
non-contributory with any insurance or self-insurance programs carried or administered by COUNTY.
g. Severability of Interests -- LANDLORD agrees to ensure that coverage provided to meet
these requirements is applicable separately to each insured and there will be no cross liability exclusions that
preclude coverage for suits between LANDLORD and COUNTY or between COUNTY and any other insured or
additional insured under the policy.
h. Proof of Coverage -- LANDLORD shalt furnish Certificates of Insurance to COUNTY's
RESD administering the Lease evidencing the insurance coverage at the time the Lease is executed, additional
endorsements, as required. shall be provided prior to the commencement of performance of services hereunder,
which certificates shall provide that such insurance shall not be terminated or expire without thirty (30) days
written notice to COUNTY RESD. and LANDLORD shall maintain such insurance from the time the Lease is
executed until the expiration or earlier termination of the Lease. Within fifteen (15)days of the Commencement
Date, LANDLORD shall furnish a copy of the declaration page for all applicable policies and will provide complete
certified copies of the policies and endorsements immediately upon request.
i. Acceptability of Insurance Carrier—Unless otherwise approved by COUNTY's Director of
Risk Management, insurance shall be written by insurers authorized to do business in the State of California and
with a minimum "Best' Insurance Guide rating of`A- Vlt',
j. Deductibles and Self-Insured Retention-Any and all deductibles or self-insured retentions
in excess of$10,000 shall be declared to and approved by COUNTY's Director of Risk Management.
k. Failure_to_Procure Coverage—All insurance required must be maintained in force at all times
by LANDLORD. In the event that any policy of insurance required under the Lease does not comply with the
requirements, is not procured, or is canceled and not replaced. COUNTY has the right but not the obligation or
duty to cancel the Lease or obtain insurance if it deems necessary and any premiums paid by COUNTY will be
Revised 10/18117 Page 6 of 23
i
promptly reimbursed by LANDLORD or COUNTY payments to LANDLORD will be reduced to pay for COUNTY
purchased insurance.
I. Insurance Review— Insurance requirements are subject to period c review by COUNTY.
COUNTY's Director of Risk Management or designee is authorized, but not required, to.reduce, waive or
suspend any insurance requirements whenever COUNTY's Director of Risk Management determines that any
of the required insurance is not available, is unreasonably priced, or is not needed to protect the interests of
COUNTY. In addition, if COUNTY's Director of Risk Management determines that heretofore unreasonably
priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available,
COUNTY's Director of Risk Management or designee -s authorized, but not required, to change the above
insurance requirements to require additional types of insurance coverage or higher coverage limits, provided
that any such change is reasonable in light of past claims against COUNTY, inflation, or any other item
reasonably related to COUNTY's risk.
Any change requiring additional types of insurance coverage or higher coverage limits must be made by
amendment to the Lease. LANDLORD agrees to execute any such amendment within thirty(30)days of receipt.
Any failure, actual or alleged, on the part of COUNTY RESD or COUNTY to monitor or enforce compliance with
any of the insurance and indemn'.fication requirements will not be deemed as a waiver of any rights on the part
of COUNTY RED or COUNTY.
M. COUNTY shall have no liability for any premiums charged for such coverage(s). The
inclusion of COUNTY as additional named insured is not intended to and shall not make a partner or joint venturer
with LANDLORD in IANDLORD's operations.
n. LANDLORD agrees to require all parties, subcontractors, or others it hires or contracts
with in relation to the Lease to provide insurance covering the contracted operation with the requirements in this
Paragraph 20, (including, but not limited to, waiver of subrogation rights) and naming COUNTY as an additional
insured
10. Effective June 1, 2018, DELETE in its entirety the existing Paragraph 22, LANDLORD'S
REMEDIES ON COUNTY'S DEFAULT and SUBSTITUTE therefore the following as a new Paragraph 22,
LANDLORD'S REMEDIES ON COUNTY'S DEFAULT:
22. LANDLORD'S REMEDIES ON COUNTY'S DEFAULT: Whenever any Event of Default
referred to in Paragraph 21 hereof shall have happened and be continuing, LANDLORD may, at its election,
terminate this Lease by giving COUNTY thirty (30) days written notice of terminate the Lease and thereafter it
shall be lawful for the LANDLORD to exercise any and all remedies available pursuant to law or granted pursuant
to this Lease, provided, however, that notwithstanding anything herein to the contrary, there shall be no right
under any circumstances to accelerate the Rent or otherwise declare any Rent not then in Default to be
immediately due and payable. Each and every covenant hereof to be kept and performed by the COUNTY is
expressly made a condition and upon the breach thereof the LANDLORD may, at its option, terminate this Lease
in accordance with the terms of this Lease. In the event of such Event of Default, the COUNTY shall continue
to remain liable for the payment of the Rent and/or damages for breach of this Lease and the performance of al:
conditions herein contained and, in any event such rent and/or damages shall be payable lu the LANDLORD
only at the same time and in the same manner as provided for the payment of Rent.
11. Effective June 1, 2018, DELETE in its entirety Paragraph 24, NOTICES, sub-paragraph a., and
SUBSTITUTE therefore the following as a new Paragraph 24, NOTICES, subparagraph a.:
24. NOTICES:
a. Any notice, demand, request,consent, approval or communication that either party
desires or is required to give to the other party, including but not limited to, notices required under the California
unlawful detainer statutes, or any other person shall be in writing and either served personally or sent by postage
prepaid, first-class United Slates mail, certified or registered, return receipt requested. Any notice, demand,
Revised 10118/17 Page 7 of 23
request, consent, approval or communication that either party desires or is required to give to the other party
shall be addressed to the other party at the address set forth below_ Either party may change its address by
notifying the other party of the change of address. Notices shall be deemed delivered upon the earlier of:(i)actual
receipt; or(ii)the date of delivery or refusal of the addressee to accept de!:very if such notice is sent by postage pre-
paid, first-class United States mail, certified or registered, return receipt requested.
LANDLORD's Notice Address: City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313-5295
COUNTY'S Notice Address: San Bernardino County
Rea! Estate Services Department
385 N. Arrowhead Avenue, Third Floor
San Bernardino, CA 92415-0180
12. Effect;ve June 1, 2018, DELETE in its entirety the existing Paragraph 36, VENUE and
SUBSTITUTE therefore the following as a new Paragraph 36, VENUE:
36. VENUE: The parties acknowledge and agree that this Lease was entered into and
intended to be performed in San Bernardino County, California. The parties agree that the venue for any action
or claim brought by any party to this Lease will be the Superior Court of California, San Bernardino County. Each
party hereby waives any law, statute (including but not limited to Code of Civil Procedure section 394), or rule of
court that would allow them to request or demand a change of venue. If any third party brings an action or claim
concerning this Lease, the parties hereto agree to use their best efforts to obtain a change of venue to the
Superior Court of California, San Bernardino County,
13. Effective June 1, 2018, DELETE in its entirety Paragraph 37, ATTORNEYS' FEES AND COSTS,
and SUBSTITUTE therefore the following as a new Paragraph 37, ATTORNEYS' FEES AND COSTS:
37. ATTORNEYS' FEES AND COSTS- if any legal action is instituted to enforce or declare
any party's rights hereunder, each party, including the prevailing party, must bear its own costs and attorneys'
fees. This paragraph shall not apply to those costs and attorneys' fees directly arising from any third party legal
action against the COUNTY, including such costs and attorneys' fees payable under Paragraph 16,
INDEMNIFICATION, and Paragraph 44, HAZARDOUS SUBSTANCES, and Paragraph 45, PUBLIC
RECORDS DISCLOSURE.
14. Effective June 1, 2018, DELETE in its entirety Paragraph 50, USE OF AMERICAN RECOVERY
AND REINVESTMENT ACT OF 2009 FUNDS AND REQUIREMENTS and SUBSTITUTE therefore the following
as a new Paragraph 50,:
50. RESERVED.
15. Effective June 1, 2018, DELETE in its entirety Paragraph 51, SCHEDULE OF EXPENDITURE
OF FEDERAL, AWARDS and SUBSTITUTE therefore the following as a new Paragraph 51:
51- RESERVED.
16. Effective June 1, 2018, ADD a new Paragraph 52, LANDLORD'S IMPROVEMENTS and
SUBSTITUTE therefore the following as a new Paragraph 52, LANDLORD'S IMPROVEMENTS:
52, LANDLORD'S IMPROVEMENTS: There are no improvements being constructed by
LANDLORD as of the date of this Fifth Amendment. In the event that COUNTY desires to make improvements
in the Premises subsequent to the execution of this Fifth Amendment and the parties agree that the LANDLORD
shall contract for the construction of any portion of any future improvement on behalf of the COUNTY,
LANDLORD shall comply with the California Public Contract Code 22000 through 22045 regarding bidding
Revised 10/18/17 Page 8 of 23
procedures and Labor Code Section 1720.2 and'1770 el sea, regarding general prevailing wages as set forth in
Exhibit "C", Prevailing Wage Requirements, attached hereto and incorporated herein by reference.
LANDLORD shall indemnify and hold harmless COUNTY and its officers, employees, and agents from any
claims, actions, losses, damages andtor liability arising out of the obligations set forth in this paragraph. The
LANDLORD's indemnity obligations shall survive the COUNTY's tenancy and shall not be limited by the
existence or availability of insurance.
17. Effective June 1, 2018, ADD a new Paragraph 53, ESTOPPEL CERTIFICATE as follows and a
new Exhibit"D" attached to this Fifth Amendment and incorporated herein by reference:
53. ESTOPPEL CERTIFICATES: Each party within thirty(30)days after notice from the other
party, shall execute and deliver to other party, in recordable form, a certificate stating that this Lease is
unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The
certificate also shall state the amount of minimum monthly rent, the dates to which the rent has been paid in
advance, the amount of any security deposit or prepaid rent, and that there are no uncured defaults or specifying
in reasonable detail the nature of any uncured default claimed. Failure to deliver the certificate within thirty (30)
days shall be conclusive upon the party requesting the certificate and any successor to the party requesting the
certificate, that this Lease is in full force and effect and has not been modified except as may be represented by
the party requesting the certificate, and that there are no uncured defaults on the part of the party requesting the
certificate. The estoppel certificate shall be in the form as shown in Exhibit "D", Estoppel Certificate.
18. Effective January 1, 2018, ADD a new Paragraph 54, SUBORDIINATION AND ATTORNMENT
as follows and a new Exhibit"E" attached to this First Amendment and incorporated herein by reference:
54. SUBORDINATION AND ATTORNMENT:
a. As a condition precedent to the COUNTY's obligations under this Lease,
LANDLORD shall obtain from each holder of a lien or encumbrance on the Premises which is senior to this
Lease either an executed recordable subordination agreement which subordinates such lien or encumbrance to
this Lease, or a non-disturbance agreement which contains terms at least as favorable to the COUNTY as those
set forth in paragraph 2 ("Nondisturbance") of Exhibit "E", Subordination, Nondisturbance and Attornment
Agreement, hereto.
b. If, after execution of this Lease, a subsequent lienor requires that this Lease be
subordinate to any such encumbrance, this Lease shall be subordinate to that encumbrance if, and only if,
LANDLORD first obtains from the subsequent lienor an executed subordination, nondisturbance and attornment
agreement, the terms of which are at least as favorable to the County as those set forth in Exhibit "E",
Subordination, Nondisturbance and Attornment Agreement hereto. If the COUNTY's County Counsel approves
the form of a subordination, nondisturbance and attornment agreement pursuant to this subparagraph, and if
such agreement is executed by the subsequent lienor, then the Director of the COUNTY's Real Estate Services
Department is authorized on behalf of the COUNTY to, and shall, execute such agreement, and shall further
execute any other documents required by the lender to accomplish the purposes of this paragraph, provided
such other documents are consistent with the terms of the subordination, nondisturbance and attornment
agreement and this Lease.
19. All other provision and terms of the Lease shall remain the same and are hereby incorporated by
reference. In the event of any conflict between the Lease, and this Fifth Amendment, the terms and conditions of
this Fifth Amendment shall control.
END OF FIFTH AMENDMENT.
COUNTY OF SAN BERNARDINO CITY OF GRAND TERRACE
By 0
Robert A. Lovingood, Chairman,
Board of Supervisors
Revised 10/18/17 Page 9 of 23
Dated: MAY 2 2 2918 Name G. Harotd Duffey T
SIGNED AND CERTIFIED T COPY OF THIS
DOCUMENT HAS BEE THE
CHAIRMAN OF' I�F.kf. Title CAy Manager
j
A' �e 'sors _
f a�Gou w � � n i{la 'na Dated
k` Q
By v ATTEST City Clerk's Office
--- - -
k1.t 41)1 v)COVI BY �-
Debra Thomas
Title- City Clerk
Dated: , -1.-(- f�
Approved as to Legal Form:
City Attorney, Cit of n .1 race, California
By -- -
Title City Attorney
Date: S —[-5 "L4137
FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Comp lance Re edfApprovFj by Department
Agne.c eng.Deputy C nk Counsel m ler,Real Property Manager, RESD
Date Date Date 5XI (A
Revised 10118/17 Page 10 of 23
EXHIBIT"C"
PREVAILING WAGE REQUIREMENTS
A. All or a portion of the CITY Improvements in the Contract or Purchase Order (as applicable)
requires the payment of prevailing wages and compliance with the following requirements. As
used in this Attachment, the term "Contractor" shall include CITY or CITY's contractor and/or
subcontractors.
1. Determination of Prevailing Rates:
i Pursuant to Labor Code sections 1770, et seq., the County has obtained from the Director of the Department of
Industrial Relak-ons (DIR) pursuant to the California Labor Code, the general preva?ling rates of per diem wages
and the prevailing rates for holiday and overtime work in the locality in which the CITY Improvements is to be
performed Copies of said rakes are on file with the County, will be made available fur inspection during regular
f business hours, may be included elsewhere in the specifications for the CITY Improvements, and are also
available online at www.dir.ca.gov. The wage rate for any classification not listed, but which may be required to
execute the CITY Improvements, shall be commensurate and in accord with specified rates for similar or
comparable classifications for those performing similar or comparable duties. In accordance with Labor Code
section 1773.2, the Contractor shall post, at appropriate and conspicuous locations on the jobsite, a schedule
showing all applicable prevailing wage rates and shall comply with the requirements of Labor Code sections
1773, et seq.
2. Payment of Prevailing Rates
Each worker of the Contractor, or any subcontractor, engaged in the CITY Improvements, shall be paid not less
than the general preva!ing wage rate, regardless of any contractual relationship which may be alleged to exist
between the Contractor or any subcontractor, and such worker,
3. Prevailing Rate Penalty
The Contractor shall, as a penalty, forfeit two hundred dollars ($200.00) to the County for each calendar day or
portion thereof, for each worker paid less than the prevailing rates as determined by the Director of the DIR for
such work or craft in which such worker is employed by the Contractor or by any subcontractor in connection
with the CITY Improvements, Pursuant to California Labor Code section 1775, the difference between such
prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which
each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.
4. Ineligible Contractors:
Pursuant to the provisions of Labor Code section 1777.1, the Labor Commiss!cner publishes and distributes a
list of contractors ineligible to perform work as a contractor or subcontractor on a public works project. This list
of debarred contractors is available from the DIR website at http-//www.dir.ca gov/Public-
Works/PublicWorks_html. Any contract entered into between a contractor and a debarred subcontractor is void
as a matter of law. A debarred subcontractor may not receive any public money for performing work as a
subcontractor on a public works contract, and any public money that may have been paid to a debarred
subcontractor by a contractor on the project shall be returned to the County. The Contractor shall be responsible
for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the CITY
Improvements.
5. Payroll Records:
Pursuant to California Labor Code section 1776, the Contractor and each subcontractor, shall keep accurate
certified 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 them wages paid to each journeyman,
apprentice, worker or other employee employed by them in connection with the CITY Improvements. The payroll
records enumerated herein shall be verified by a written declaration made under penalty of perjury that the
information contained in the payroll record is true and correct and that the Contractor or subcontractor has
complied with the requirements of the California Labor Code sections 1771, 1811, and 1815 for any CITY
Improvements performed by his or her employees. The payroll records shall be available for inspection at all
reasonable hours at the principal office of the Contractor on the following basis-
Revised 1011 Bi 17 Page 11 of 23
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished
to such employee or his/her authorized representative on request;
(2) A certified copy of all payroll records shall be made available for inspection or furnished upon request
to the County, the Division of Labor Standards Enforcement of the DIR:
(3) A certified copy of payroll records shall be made available upon request to the public for inspection
or copies thereof made; provided, however, that a request by the public shall be made through either
the County or the Division of Labor Standards Enforcement. If the requested payro:l records have
not been previously provided to the County or the Division of Labor Standards Enforcement, the
requesting party shall, prior to being provided the records, reimburse the cost of preparation by the
Contractor, subcontractor and the entity through which the request was made, the public shall not be
given access to such records at the principal office of the Contractor;
(4) The Contractor shall file a certified copy of the payroll records with the entity that requested such
records within ten (10) days after receipt of a written request; and
(5) Copses provided to the public, by the County or the Division of Labor Standards Enforcement shall
be marked or obliterated in such a manner as to prevent disclosure of an ind,vidual's name_ address
and social security number. The name and address of the Contractor or any subcontractor,
performing a part of the CITY Improvements shall not be marked or obliterated_ The Contractor shall
inform the County of the location of payroll records, including the street address, city and county and
shall, within five (5)working days, provide a notice of a change of location and address
The Contractor shall have ten (10) days from receipt of the written notice specifying ,n what respects the
Contractor must comply with the above requirements. In the event Contractor does not comply with the
requirements of this section within the ten (10)day period, the Contractor shall, as a penalty to the County, forfeit
one-hundred dollars ($100.00)for each calendar day, or portion thereof, for each worker, until strict compliance
is effectuated. Upon the request of the Division of Labor Standards Enforcement, such penalty shall be withheld
from any portion of the payments then due or to become due to the Contractor,
6. Limits on Hours of Work:
Pursuant to California Labor Code section 1810, eight (8) hours of labor shall constitute a legal day's work_
Pursuant to California Labor Code section 1811, the time of service of any worker employed at any time by the
Contractor or by a subcontractor, upon the CITY Improvements or upon any part of the CITY Improvements, is
limited and restricted to eight(8)hours during any one calendar day and forty(40)hours during any one calendar
week, except as provided for under Labor Code section 1815. Notwithstanding the foregoing provisions, work
performed by employees of Contractor or any subcontractor, in excess of eight(8) hours per day and forty(40)
hours during any one week, shalt be permitted upon compensation for all hours worked in excess of eight (8)
hours per day at not less than one and one-half(11/2) times the basic rate of pay.
7. Penalty for Excess Hours:
The Contractor shall pay to the County a penalty of twenty-five dollars ($25.00) for each worker employed on
the CITY Improvements by the Contractor or any subcontractor, for each calendar day during which such worker
is required or permitted to work more than eight (8) hours in any calendar day and forty (40) hours in any one
calendar week, in violation of the provisions of the California Labor Code, unless compensation to the worker so
employed by the Contractor is not less than one and one-half (1Y2) times the basic rate of pay for all hours
worked in excess of eight(8) hours per day.
8. Senate Bill 854 (Chapter 28, Statutes of 2014) Requirements:
(1) Contractor shall comply with Senate Bill 854 (signed into law on June 20, 2014). The requirements
include, but are not limited to, the following:
a. No contractor or subcontractor may be listed on a bid proposal (submitted on or after March 1,
2015) for a public works project unless registered with the DIR pursuant to Labor Code section
1725.5, with limited exceptions from this requirements for bid purposes only as allowed under Labor
Code section 1771.1(a).
b. No contractor or subcontractor may be awarded a contract for public work or perform work on a
public works project(awarded on or after April 1, 2015) unless registered with the DIR pursuant to
Labor Code section 1725.5_
Revised 10/18/17 Page 12 of 23
c. This project is subject to compliance Monit6ring and enforcement by the DIR.
d. As required by the DIR, Contractor is required to post job site notices, as prescribed by regulation,
regarding compliance monitoring and enforcement by the DIR,
e. Contractors and all subcontractors must submit certified payroll records online to the labor
Commissioner for all new public works projects issued on or after April 1, 2015, and for all public
works projects, new or ongoing, on or after January 1, 2016
L The certified payroll must be submitted at least monthly to the tabor Commissioner.
ii. The County reserves the right to require Contractor and all subcontractors to submit certified
payroll records more frequently than monthly to the Labor Commissioner
iii. The certified payroll records must be in a format prescribed by the Labor Commissioner.
(2) Labor Code section 1725.5 states the following:
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any
public work contract that is subject to the requirements of this chapter. For the purposes of this section,
"contractor' includes a subcontractor as defined by Section 1722.1
(a) To qualify for registration under this section, a contractor shall do all of the following:
(1) Beginning July 1. 2014, register with the Department of Industrial Relations in the manner prescribed by the
department and pay an initial nonrefundable application fee of three hundred dollars ($300) to qualify for
registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual
renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration
and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section
1771.3.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' Compensation coverage that meets the requirements of Division 4 (commencing with Section
3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is
subject to prevailing wage requirements other than a contractor who is separately registered under this section.
Coverage may be evidenced by a current and valid certificate of workers' compensation Insurance or certification
of self-insurance required under Section 7125 of the Business and Professions Code.
(B) It applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of
the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back
wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination
by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However,
for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination
that is under appeal, provided that the contractor has secured the payment of any amount eventually found due
through a bond or other appropriate means.
(D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law
providing for the debarment of contractors from public works.
(E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the
performance of a contract for public works without being lawfully registered in accordance with this section, within
the preceding 12 months or since the effective date of the requirements set forth in subdivision (e), whichever is
earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification
shall be waived if both of the following are true:
(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within
the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000).
(b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the purposes specified in that section.
(c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before
the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the
performance of any contract for public work until once again registered pursuant to this section. If the failure to
pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an
additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due
date of the renewal fee_
Revised 10/18/17 Page 13 of 23
(d) If, after a body awarding a contract accepts the coritractor's bid or awards the contract, the work covered by
the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of a
determination by the director pursuant to'Section 1773.5 or a court decision, the requirements of this section
shall not apply, subject to the following requirements-
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify
as a public work that portion of the work that the determination or decision subsequently classifies as a public
work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of Industrial
Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in
this chapter, the contractor and any subcontractors are registered under this section or are replaced by a
contractor or subcontractors who are registered under this section.
(3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal, contract,
or work performed after the awarding body is served with notice of the determination or decision referred to in
paragraph (2) of this subdivision.
(e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, and
any contract for public work, as defined in this chapter, entered into on or after April 1, 2015
(3) Labor Code section 1771.1 states the following.
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the
requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for
public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is
authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the
Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at
the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a)shall be included in all bid invitations and public works
contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the
i contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5.
(c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid
proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided
that any of the following apply.-
(1) The subcontractor is registered prior to the bid opening.
(2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration
fee specified in subparagraph (E) of paragraph (2)of subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public
Contract Code.
i (d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be
grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding
authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in
place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to
perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shalt be subject to
cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the
failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725,5
or this section.
(g) This section shall apply to any bid proposal submitted on or after March 1, 2015_ and any contract for public
work entered into on or after April 1, 2015.
(4) Labor Code section 1771.4 states the following:
(a) All of the following are applicable to all public works projects that are otherwise subject to the requirements
of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring
and enforcement by the Department of Industrial Relations.
(2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by
regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor
Commissioner, in the following manner:
Revised 1016117 Page 14 of 23
(A) At least monthly or more frequently if specified in the contract with the awarding body.
(B) In a format prescribed by the Labor Commissioner.
(4) The department shall undertake those activities it deems necessary to monitor and enforce compliance with
prevailing wage requirements.
(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the
requirements of subdivision (a) of this section if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on
all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section
1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing
work on the project and that includes a mechanism for resolving disputes about the payment of wages.
(c)
(1) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects
awarded on or after January 1, 2015.
(2) The requirements of paragraph (3) of subdivision (a)shall only apply to the following projects:
(A) Projects that were subject to a requirement to furnish records to the Compliance Monitoring Unit pursuant
to Section 16461 of Title 8 of the California Code of Regulations, prior to the effective date of this section.
(B) Projects for which the initial contract is awarded on or after April 1, 2015.
(C) Any other ongoing project in which the Labor Commissioner directs the contractors or subcontractors on the
project to furnish records in accordance with paragraph (3) of subdivision (a).
(D) All projects, whether new or ongoing, on or after January 1, 2016.
B. STATE PUBLIC WORKS APPRENTICESHIP REQUIREMENTS
1. State Public Works Apprenticeship Requirements:
The Contractor is responsible for compliance with Labor Code section 1777.5 and the California Code of
Regulations, title 8, sections 230 — 230.2 for all apprenticeabte occupations (denoted with "##' symbol next to
craft name in DIR Prevailing Wage Determination), whether employed by the Contractor, subcontractor, vendor
or consultant. Included in these requirements is(1)the Contractor's requirement to provide notification (i.e. DAS-
140) to the appropriate apprenticeship committees; (2) pay training fund contributions for each apprenticeable
hour employed on the Contract; and (3) utilize apprentices in a minimum ratio of not less than one apprentice
hour for each five journeyman hours by completion of Contract work (unless an exception is granted in
accordance with Labor Code section 1777.5) or request for the dispatch of apprentices.
Any apprentices employed to perform any of the CITY Improvements shall be paid the standard wage to
apprentices under the regulations of the craft or trade for which such apprentice is employed, and such individual
shall be employed only for the work of the craft or trade to which such individual is registered. Only apprentices,
as defined in California tabor Code section 3077, who are in training under apprenticeship standards and written
apprenticeship agreements under California Labor Code sections 3070 et seq. are eligible to be employed for
the CITY Improvements. The employment and training of each apprentice shall be in accordance with the
provisions of the apprenticeship standards and apprentice agreements under which such apprentice is training.
2. Compliance with California Labor Code section 1777.5 requires all public works contractors to:
Submit Contract Award Information (DAS-140)
a. Although there are a few exemptions (identified below): all Contractors, regardless of union affiliation, must
submit contract award information when performing on a California public works project.
b. The DAS-140 is a ratification -announcement" of the Contractors participation on a public works project—
it is not a request for the dispatch of an apprentice.
c. Contractors shall submit the contract award information (you may use form DAS 140)within 10 days of the
execution of the prime contract or subcontract, but in no event later than the first day in which the Contractor
has workers employed on the public work.
d. Contractors who are already approved to train apprentrces (i.e. check "Box 1" on the DAS-140) shall only
be required to submit the form to their approved program.
e. Contractors who are NOT approved to train apprentices (i.e. those that check either"Box 2" or"Box 3" on
the DAS-140) shall submit the DAS-140 TO EACH of the apprenticeship program sponsors in the area of
Revised 1008117 Page 15 of 23
your public works project. For a listing of apprenticeship programs see
http://www.dir.ca.goviDatabases/das/pwaddrstart.asp.
Employ Registered Apprentices
a. Labor Code section 1777.5 requires that a contractor performing work in an "apprenticeable" craft must
employ one (1) hour of apprentice work for every five (5) hours performed by a journeyman. This ratio shalt
be met prior to the Contractor's completion of work on the project. "Apprenticeable" crafts are denoted with
a pound symbol "#" in front of the craft name on the prevailing wage determination.
b. All Contractors who do not fall within an exemption category (see below) must request for dispatch of an
apprentice from an apprenticeship program (for each apprenticeable craft or trade) by giving the program
actual notice of at least 72 hours (business days only) before the date on which apprentices are required.
c. Contractors may use the "DAS-142" form for making a request for the dispatch of an apprentice.
d. Contractors who are participating in an approved apprenticeship training program and who did not receive
sufficient number of apprentices from their initial request must request dispatch of apprentices from ALL
OTHER apprenticeship committees in the project area in order to fulfill this requirement.
e. Contractor should maintain and submit proof(when requested)of its DAS-142 submittal to the apprenticeship
committees (e.g. fax transmittal confirmation)_ A Contractor has met its requirement to employ apprentices
only after it has successfully made a dispatch request to all apprenticeship programs in the project area.
f, Only"registered" apprentices may be paid the prevailing apprentice rates and must, at all times work under
the supervision of a Journeyman (Cal. Code Regs., tit 8, § 230.1).
Make Training Fund Contributions
a_ Contractors performing in apprenticeable crafts on public works projects, must make training fund
contributions in the amount established in the prevailing wage rate publication for journeymen and
apprentices.
b. Contractors may use-the "CAC-2" form for submittal of their training fund contributions.
c. Contractors who do not submit their training fund contributions to an approved apprenticeship training
program must submit their contnbut ons to the California Apprenticeship Council (CAC), PO Box 420603,
San Francisco, CA 94142-0603
d. Training fund contributions to the CAC are due and payable on the 15th day of the month for work performed
during the preceding month.
e. The "training" contribution amount identified on the prevailing wage determination shall not be paid to the
worker, unless the worker falls within one of the exemption categories listed below.
3. Exemptions to Apprenticeship Requirements:
The following are exempt from having to comply with California apprenticeship requirements. These types of
contractors do not need to submit a DAS-140, DAS-142, make training fund contributions, or utilize apprentices.
ak. When the Contractor holds a sole proprietor license ("Owner-Operator") and no workers were employed
by the Contractor. In other words, the contractor performed the entire work from start to finish and worked
alone.
b. Contractors performing in non-apprenticeable crafts. "Apprenticeable" crafts are denoted with a pound
symbol "#" in front of the craft name on the prevailing wage determination.
c. When the Contractor has a direct uontracl with the Public Agency that is under $30.000_
d. When the project is 100% federally-funded and the funding of the project does not contain any city,
county, and/or state monies (unless the project is administered by a state agency in which case the
apprenticeship requirements apply).
e. When the project is a private project not covered by the definition of public works as found in Labor Code
section 1720.
4. Exemption from Apprenticeship Ratios:
The Joint Apprenticeship Committee shall have the discretion to grant a certificate, which shall be subject to the
approval of the Administrator of Apprenticeship, exempting the Contractor from the 1-to-5 ratio set forth in this
Section when it finds that any one of the following conditions are met:
a. Unemployment for the previous three-month period in such area exceeds an average of fifteen percent
(15%); or
b The number of apprentices in training in such area exceeds a ratio of 140-5 in relation to
journeymen; or
Revised 10118/17 Page 16 of 23
c. The Apprenticeable Craft or Trade is replacing at least one-thirtieth (1130) of its journeymen annually
through apprenticeship training, either on a statewide basis or on a local basis; or
d. If assignment of an apprentice to any work performed under the Contract Documents would create a
condition which would jeopardize such apprentice's life or the life, safety or property of fellow employees or the
public at large, or if the specific task to which the apprentice is to be assigned is of such a nature that training
cannot be provided by a journeyman.
When such exemptions from the 1-to-5 ratio between apprentices and journeymen are granted to an organization
which represents contractors in a specific trade on a local or statewide basis, the member contractors will not be
required to submit individual applications for approval to local Joint Apprenticeship Committees, provided they
are already covered by the local apprenticeship standards.
5. Contractor's Compliance:
The responsibility of compliance with this Section for all Apprenticeable Trades or Crafts is solely and exclusively
that of the Contractor. All decisions of the Joint Apprenticeship Committee(s) under this Section are subject to
the provisions of California Labor Code section 3081 and penalties are pursuant to Labor Code section 1777.7
and the determination of the Labor Commissioner.
i
Revised 10±18)17 Page 17 of 23
• I XHIBIT "D" - EST6PPEL CERTIFICATE
Date:
To,
Re:
(address) (city)
The undersigned ("County") hereby certifies as follows,
1. County is in possession of -
California(the"Premises"). County lenses the f r6nniscs under a k%rltten Lease agreement dated
, 20 , Lease Agreement No. (the "Lease"), wherein County is the
lessee or tenant, and . ("O%viler") is the lessor or CITY.
? The Lease is in full force and effect and has not been amended, supplemented
or changed, except as follows:
F 3. The tenn of the Lease commenced oil 20 and is
scheduled to expire _. 20 COWIN has nu right or option to renew or crtClid the
term of the Lease except as to the following. {�-) -y'e ar options-
4. County's current monthly rental is —_— ' payable oil the last day o each
month.
S. County currently has no security deposit with Owner.
G. County is not in default under the terms of the Lease and no condition exists
which,with the passage of time or the giving of notice,or both, would constitute such a default.
To the best of County's knowledge, Owner is ;lot in default under the tcnns of the Lease. and
no condition exists-which, "itl the passage of time or the giving notice, or both. would
constitute such a default.
7- County hereby-certifies that the foregoing is true and correct.
By:
Director
Real Estate Ser%ices Department
Revised 10/18/17 Page 18 of 23
EXHIBIT "t "
RECORDED AT REQUEST OF
AND TO BE RETURNED TO,
Attn,
SUBORDINATION. NONDISTURBANCE AND ATTORNMENT AGREELMENT
THIS SUBORDINATION, NONDISTURBANCE AND ATTORNINIENT
AGREEMENT ("Agreement") is entered into by and bet-,een tits County of San Bernardino
("Tenant").
("CITY")and. _ ("Lender").
(Name and type of"entity)
Recitals
A. Tenant entered into it certain Lease Agreement,County Contract No.
dated as of _ , 20__ (the "Lease"). between Tenant, as lessee, and CITY. as
lessor, pertaining to that certain premises commonly known as
,California (zip code),as more particularly dewrtbe:d in the Lease
("Premises"). located on that certain real property located in the County of San Bernardino,
State of" California, as more particularly described to Exhibit "A", attached hereto and
incorporated herein (the "Property"). CITY ntay also be referred to as "Borro%ter",
B. Borrower made, executed and delivered, or is about to make, execute and deliver
to Lender it certain promissory note, dated substantially contemporaneously herewith ("the
Note"), in the original principal sum of S , Tile obligations et tcicnced by
the Note shall be referred to as the"Loan". The Note is executed pursuant to the terms ol'a certain
Construction Loan Agreement, dated substantially contemporaneously herewith (the '-Loan
Agreement"), between Lender and CITY-
C. Borrower has executed and delivered.or is about to execute and deliver to Lender,
a certain Deed of Trust and Assignment of Rents,dated substantially contemporaneously herewith
(the"Deed of Trust"), encumbering the Property to secure:the Loan.
D. 11 is a condition precedent to the Loan that the Deed of Trust sliall unconditionally
be and remain at all times a lien or charge upon the Property, prior and superior to the Lease.
E. It is a condition precedent to the Loan that Tenant will specifically and
unconditionally subordinate and subject the Lease, together tvith all rights and privileges of
Tenant thereunder, to the lien or charge of the Deed of Trust.
Revised 10/18/17 Page 19 of 23
F. •It is to the mutual benefit of the parties hereto that Lender and Borrower enter into
the Loan.
Covenants
In consideration of the recitals set Inrth above and the covenants and agreements contained
herein, the parties agree as follows:
1. Subordination: Tenant hereby subordinates all of Tenant's right, title, interest and
leasehold estate in and to the Preinise.s to the lien, operation, and effect ol'the Deed of Trust.
.'. Nondisturbance; Tenant's peaceful and quiet possession of the Premises shall
not be disturbed and Tenant's rights and privileges under the Lease, including but not limited
to the provisions of the Lease set fiuth under the headings "TERM," "EXPANSION OF
RENTAL SPACE," "OPTION TO EXTEND TERNI," "INSURANCE REQUIREMENTS
AND SPECIFICATIONS," "DESTRUCTION OF PREMISES," "COUNTY'S RIGHT TO
TERMINATE LEASE," and "CONDEMNATION," shall not be diminished by Lender's
foreclosure,acceptance o f a deed in lieu of-lorcclosure,or any other exercise of Lender's rights
or remedies under the Deed of Trust, the Note, the Loan Agreement, any other loan document,
or the la«s governing secured loans. All of the provisions of the Lease shall prevail over any
conflicting provisions in the Deed of Trust, the Vote, the Loan Agreement, any other loan
document. or the laws governing secured loans. Tenant shall not be named or joined in any
foreclosure, trustee's sale,or other proceeding or action to enforce the Deed ofTrust, the Note,
f the Loan Agreement, any other loan document. unless such joinder shall he legally required to
perfect such foreclosure. trustee's sale, or other proceeding or action.
3. Attor nzient: If tite Deed of Trust is foreclosed kir any reason, or CITY deeds the
Property to Lender in lieu of foreclosure, the Lease shall not be crtinguished and Tenant shall be
bound to Lender under al l the terms,covenants, and conditions of the Lease for the balance of the
tern of the Lease with the same force and effect as if Lender was the lessor under the Lease.
Tenant shall attoni to Lender as Tenant's Lessor,and agrees to recognise Lender as the new owner
and promises to pay the rent to Lender as CITY. This ationinient shall be effective and sell=
operative, without the execution of any other instruments on the part ofany of the parties to this
Agreement, immediately upon Lender succeeding to the interest of CITY under the Lease.
4. Disbursements: Lender is under no obligation or due} to monitor the application
of tiie proceeds of the Loan. Any application of such proceeds for purposes other than those
I provided for in the Loan Agreement or any of the other Loan Documents shall not defeat the effect
of this Agreement in whole or in part.
5. Acknowledgment of Assignment, Tenant acknowledges and consents to the
assignment ofCITY's rights under the Lease to Lender pursuant to a certain Assignment of Leases
(the "Assignment"). Tenant shall pay rent to Lender upon receipt of written notice from Lender
that Lender has revoked the waiver of CITY's right to receive the rents from the Premises pursuant
to the Assignment, notwithstanding the fact that Lender has not foreclosed the Deed of Trust. nor
succeeded to the interest 01'CITY under the Lease Tenant shall not be liable to CITY for an,,.
payments made to Lender hereunder.
G. Assignment or Sublease: Tenant may assign or sublease all or any portion of the
Property in accordance with the Lease,but no such assignment, transfer,or subletting shall relieve
Tenant of any of its obligations under the Lease. Tenant shall not voluntarily subordinate or
subject the Lease or any interest therein to any lien or encumbrance without the prior written
Revised 1018/17 Page 20 of 23
consenrof Lender, unless said hen or encumbrance sliall relate to personal property that can be
removed %vithout damage to the Premises, or unless such subordination is required by the Lease.
7. Notices: Tenant shall deliver to Lender a copy of all notices, requests,or demands
delivered by Tenant to CITY in accordance with this Paragraph. Tenant shall also deliver to
Lender any and all notices, demands. or requests received by"Tenant from CITY relating to any
ofthe aforesaid. Lender shall deliver to Tenant all notices, requests or demands in accordance
with this Paragraph. All notices required hereunder or pertaining hereto shall be in writing and
shall be deemed delivered and effcett%e upon the earlier of(i) actual receipt; or (ii) the date of
delivery or refusal of the addressee to accept delivcry if such notice is sent by express courier
sen-ice or United States mail, postage prepaid, certified or registered, return receipt rcquested; in
each case. to the applicable address as follows:
to Tenant: County ofSun Bernardino
Real Estate Services Department
345 North Arrowhead Avenuc,Third Floor
San Bernardino. Calltiornia 92417-OINO
to CITY:
Alta,
to Lender:
Attn:
Notwithstanding the Foregoing, anv notice under or pertaining to this Agreement, given and
effective in accordance with applicable law,shall be effective fir purposes herLof. Any party may
change the address at which it is to receive notices hereunder to another business address within
the United States (but not a post office box or similar mail receptacle) by giving notice ol"such
change of address in accordance here%vith.
S. CITY's Default: Tenant hereby agrees that Tcnant %%,ill notify Lender in writing,
in accordance with Paragraph 7, Notices, above, of any default by CITY under the terms of the
Lease and Tenant sliall not cancel or ternhinate,or acquiesce to the cancellation or tennination of
the Lease without giving Lender a reasonable period (not less than 30(lays)after delivery ot'such
notice to cure the delault; Lender's rights and remedies under the Loan Agreement or any of the
Loan Documents (as defined in the Loan Agreement) shall not be prejudiced by its exercise or
failure to exercise the right to cure described above. Except for CITY's defaults under Paragraph
3, TERM, of the Lease, relating to CITY's failure to meet the Critical Completion Dates as set
forth in Paragraph 41, CITY'S IMPROVEMENTS. Schedule of Completion if Lender elects
within such thirty (30) day period to foreclose on the Deed of Trust, such time period shall be
Revised 10/18/17 Page 21 of 23
extended so that Lender shall have a reas)nable period within which to foreclose the Deed of
Trust and shall have an additional thirty (30) days from the time Lender becomes owner of the
Property through foreclosure within which to cure such default. if any default by CITY is cured
within the time periods described above, Tenant shall have no right to terminate the [.ease by
virtue of such default.
9, Bindrniz, Effect: This Agreement shall be binding upon the parties and their
respective heirs, personal representatives, successors, and assigns.
10. Law: This Agreement shall be construed and interpreted in accordance with the
laws of the State of California.
11 Reserved-
12. Attorneys' Fees and Costs: If any legal action is m%tituted to enforce or declare
any party's rights hereunder, each party, regardless of'which party is the prevailing party. must
bear its own costs and attomeys' tees. '[his paragraph shall nut apply to those costs and attorneys'
fees directly arising from any third party legal action agam';t a party hereto and payable under
Lease Paragraph 17. "INDEMNIFICATION", Paragraph 48, HAZARDOUS SUBSTANCES:
and Paragraph 49. PUBLIC RECORDS DISCLOSURE. CONE IDENTIALITY.
13_ Venue: The parties acknowledge and agree that this.Agreement was entered
into and intended to be perfonned in San Beniardino County, California. The parties agree
that the venue for any action or claim brought by any party to this Agreement will be the
Superior Court of California, County of'San Bernardino. Each party hereby waives any luw,
statute(including but not limited to Code ofCi%it Procedure section 394), or rule ufcourt that
would allo%� them to request or demand a change of venue. If any third party brings an action
or claim concerning this Agicement, the parties hereto agree to use their best effiorts to obtain a
change of venue to the Superior Court of California_ County of San Bernardino.
IN WITNESS WHEREOF. the parties have executed this Agreement as of the day and year
written below.
Tenant: Lender:
SAN BERNARDINO COUNTY:
Bv:
Board of Supervisors (Name)
Date:
Title:
SIGNED AND CERTIFIED THAT
A COPY OF THIS DOCUMENT
HAS BEEN DELIVERED TO THE Date:
Revised 10/18/17 Page 22 of 23
CHAIRMAN OF THE BOARD '
, Clcrk of the
Board of Supervisors CITY-
By.—
By--
Deputy
Date:
Title:
Approved as to Legal Form_
-,County Counsel Date:
San Bernardino County, California
s
By:
Deputy
Date:
Revised 10/18/17 Page 23 of 23
1 '
REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY, CALIFORNIA
AND RECORD OF ACTION
May 22, 2018
FROM: TERRY W. THOMPSON, Director
Real Estate Services Department
MICHAEL JIMENEZ, County Librarian
County Library
SUBJECT. AMENDMENT NO. 5 TO LEASE AGREEMENT WITH THE CITY OF GRAND
TERRACE FOR LIBRARY SPACE FOR THE COUNTY LIBRARY IN GRAND
TERRACE
RECOMMENDATION(S)
Approve Amendment No. 5 to Lease Agreement No. 04427 with the City of Grand Terrace to
extend the term of the lease three years by exercising an option, for the period of June 1, 2018
through May 31, 2021, add two three-year options to extend the term of the lease. and update
standard lease agreement language for 3,500 square feet of library and office space for the
County Library in Grand Terrace in the amount of$65,520.
(Presenter- Terry W. Thompson, Director, 387-5252)
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS AND OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
EFINANCIAL IMPACT
Approval of this item will not require Discretionary General Funding (Net County Cost). The total
cost of this three-year amendment is $65 520. Lease payments will be made from the Rents
budget (7810001000) and reimbursed from the County Library (Library) budget (6400002600).
Sufficient appropriation is included in both the 2017-18 Rents and Library budgets and will be
included in future recommended budgets. Annual lease costs are as follows:
Year Annual Lease Cost
June 1, 2018—May 31, 2019 $21,420
June 1. 2019—May 31, 2020 $21,840
June 1, 2020—May 31, 2021 2�, 2,260
Total Cost $65,520
Page 1 of 3
cc RESD Thompson w!agree Record of rd of Supervisors
Contractor cto RESD wl agree �� ��
Library-Jimenez APP ��� _ LENDAR)
Library-Raughley OF � DINO
Purchasing-Candelaria garef�Su a iflh
CAO-Mai % ";k% """
CAO-Lange MOTION A E 152c N ABSENT
File-wt agree 7 Q 4 5
mb 05130/18 LAURA H. E tiYt�
ITEM 111 BY
t)1
�,� DATED: May 22, 2018
i
1 AMENDMENT NO. 5 TO LEASE AGREEMENT WITH THE CITY OF GRAND
TERRACE FOR LIBRARY SPACE FOR THE COUNTY LIBRARY IN
GRAND TERRACE
MAY 22, 2018
PAGE 2 OF 3
k BACKGROUND INFORMATION
The recommended action will amend an existing lease with the City of Grand Terrace (City) by
exercising an option to extend the term of the lease for the period of June 1, 2018 through May
31, 2021, add two three-year options to extend the term of the lease, and update standard lease
agreement language because of the continuing need to provide library services in Grand Terrace.
On May 25, 2004 (item No. 42), the Board of Supervisors (Board) approved a five-year lease
agreement. No_ 04-427, with three two-year options to extend the term of the lease for 3.500
square feet of library and office space for the County Library in Grand Terrace. The original term
of the lease was for the period of ,tune 1, 2004 through May 31, 2009. In the 14 years since the
i ?ease was originally approved, the Board has approved four amendments to exercise the initial
options to extend the term, add two three-year options to extend the term, and exercise one of
the two additional options to extend the term.
Amendment No. Approval Date Item No,
1 April 21, 2009 42
2 May 17, 2011 60
3 May 21, 2013 50
4 April 21, 2015 52
There continues to be a need to provide library services in the Grand Terrace area and this
location meets the needs of the Library, The Library requested the Real Estate Services
Department (RESD) exercise its second and final three-year option to extend the term of the
lease, update standard lease agreement language, and, because of the continuing need to
provide library services in Grand Terrace, add two three-year options to extend the term. The
monthly rent for the first year of the extended term is also increased by $0.01 per square foot,
subject to approximately 2% annual escalations thereafter. All other terms and conditions of the
lease remain unchanged.
Summary of Lease Terms
Lessor: City of Grand Terrace
(G. Harold Duffy, City Manager)
Location: 22795 Barton Road, Grand Terrace
Size: 3,500 square feet
Term: Three years, commencing June 1, 2018
Options: Two three-year options to extend the term of the lease
05/22/18 #111
AMENDMENT NO. 5 TO LEASE AGREEMENT WITH THE CITY OF GRAND
TERRACE FOR LIBRARY SPACE FOR THE COUNTY LIBRARY IN
GRAND TERRACE
MAY 22, 2018
PAGE 3OF3
Summary of Lease Terms
Cost per sq. ft. per month Monthly Annual
Rent: (old) $0.50 $1,750 $21,000
(new) $0.51 modified gross' $1,785 $21.420
'Law-range for comparable facilities in the Grand Terrace area per
supporting lease comparables on file
Annual Increases Approximately 2%
Maintenance: Provided by Lessor
Custodial: Provided by County
Utilities'. Provided by Lessor
Insurance: Both parties are self-insured pubic entities
Right to Terminate: Either party may terminate this lease with 180-days' notice
Parking: Sufficient for County needs
PROCUREMENT
In accordance with County Policy 12-02 — Leasing Privately Owned Real Property for County Use
(Policy), this amendment is exempt from the Policy as it is with another governmental agency.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, 387-
5455) on April 25, 2018; Library (Steven Raughley, Finance and Operations Chief, 387-5531) on
April 24, 2018; Purchasing (Michael Candelaria, Buyer III, 387-0321) on April 24, 2018; Finance
(Wen Mai, Administrative Analyst, 387-4020 and Chris Lange, Administrative Analyst, 387-5404)
on May 1, 2018; and County Finance and Administration (Valerie Clay, Deputy Executive Officer,
387-5423) on May 1, 2018.
(BJO: 5694676)
05/22/18#111