Loading...
HomeMy WebLinkAbout2003-03-10 City Council (2)City of Palo Alto C ty Manager’s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL 3 CITY MANAGER DEPARTMENT: UTILITIES MARCH 10, 2003 CMR: 165:03 AMENDMENT NO. 1 TO LEASE AGREEMENT BETWEEN McCANDLESS LIMITED AND THE CITY OF PALO ALTO TO PROVIDE ADDITIONAL SPACE FOR THE UTILITY ENGLNEERING STAFF AT 1003 ELWELL COURT; AND AMENDMENT NO.1 TO JANITORIAL CONTRACT Cl129716 WITH C-WAY CUSTODIAN SERVICES TO COVER ADDITIONAL JANITORIAL SERVICES RECOMMENDATION Staff recommends that the City Council: Authorize the City Manager to execute a two year lease amendment to add 5,600 square feet (1003 Elwell Ct.) to the existing lease with McCandless Limited at a rental cost of $1.25 per square foot triple net (NNN), plus $0.85 per square foot for support costs (common area charges, taxes, insurance, landlord charges for common area, etc.) for a total three month (remainder of 2002-03 fiscal year) cost of approximately $47,000. Authorize the City Manager to execute amendment No. 1 to Contract C 1129716 between the City and C-Ways Custodian Services to provide janitorial services at 1003 Elwell Court at cost of $1,500 per month. NBACKGROU~ D On July 31, 1998 the City entered into a 10 year lease with McCandless Limited for 9,202 square feet of office space at 1007 Elwell Court. The purpose of the lease was to relocate the Utilities Engineering staff to address the overcrowded conditions in the Civic Center as described in CMR: 204:98. On November 13, 2000 (CMR: 419:00), Council approved additional positions to conduct the dark fiber business. These positions bring the total Electric Engineering staff added to Elwell to six. Two Water-Gas-Wastewater staff have also CMR: 165:03 Page 1 of 3 been added to update mapping associated with accelerated infrastructure development. This additional staffing has created an overcrowded condition at the Elwetl Court facility. Six employees share office space, one employee has no permanent office space, and may have to begin working from home. There is an extensive storage problem with boxes stacked in all halls and offices. These must be constantly policed to avoid the creation of safety hazards. Telecom has no secure place for customer confidential files. Plotters and copiers are located in an aisle way; when these are in use traffic passage through the aisle way is difficult. DISCUSSION The addition oftelecom staff and other engineering staff additions have exceeded the space available at 1007 Elwell Court. 5,600 square feet of space, including cubicals and furniture, is cm-rently available in the same building. It is has 13 cubicles and 11 hard wall offices, two rooms ideal for conference rooms and a large area for storage, library and layout room. The space at 1003 would meet the current space needs of Utility Engineering and Telecom. The cost of the space is $1.25 per square foot triple net rental. The per-square foot does not include charges for the convnon area, which the landlord estimates will run about $0.33 per square foot. The annual rental will be adjusted each year by 3% under the terms of the original a~-eement at 1007 Elwell Court. A survey of available space in the Bayshore area revealed the following: LOCATION 2465 E, BAYSHORE ROAD 2275 E. BAYSHORE ROAD 3400 W. BAYSHORE ROAD 1850 EMBARCADERO ROAD 1860 EMBARCADERO ROAD 1003 ELWELL COURT RENT/SQ FT/MONTH 53.75 Full Service 52.05 Full Service I $2.40 Full Service I $1.40 NNN t $2.10 Full Service f $1.25 NNN RESOURCE IMPACT The annual estimated incremental cost of the expanded lease and related expense is $141,120 with a pro-rated amount of $35,280 in FY 2002/03. There will be $25,000, in one-time setup expense. T he F Y 2 002/03 Adopted Electric Fund budget includes full funding for this amount. Additional funding may be necessary in future years if the potential expansion of the FTTH project materializes. CMR: 165:03 Page 2 of 3 POLICY IMPLICATIONS This recommendation is consistent with existing City policies. This recommendation supports the Utilities Strategic Plan; Strategy No.3: Streamline and manage business process to allow CPAU to work efficiently and cost-effectively, and Strategy No.5 Attract and retain employees with critical skills and ka~owledge. TIMELINE Staff feels it is important to move expeditiously to acquire leased space, with allocation of vacated space occurring on a parallel track. The leased space is available as of April 1,2003. ENVIRONMENTAL REVIEW Leasing of office space and the associated interior renovations are exempt from California Environmental Quality Act. ATTACHMENTS A: Lease Amendment Summary 1003 Elwell Ct. B: Lease Amendment to 1007 Elwell Ct. C: Amendment No.1 to Contract No. C1129716 for Custodial Selwices PREPARED BY: BLAKE Teleconmaunicati Manager DEPARTMENT HEAD APPROVAL: ULRI ty Director CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR: 165:03 Page 3 of 3 ATTACHMENT 1 LEASE AMENDMENT SUMMARY ! 003 ELWELL COURT Lessor: Tenant: Premises: Term: Rent & Common Common Area Management Fee: Repair and Maintenance Utilities: Subletting and Assignment: McCandless Limited City of Palo Alto 1003 Elwell Court 5,692 sq.ft. 2 years Base Rent of$7,115 per month with 3 % annual increases throughout the term of the lease Tenant to pay an additional (18%) per month for its pro-rated share of the common area charges. Tenant will be responsible for janitorial, any interior repairs and maintenance. Tenant will also be responsible for repair and maintenance of the HVAC system. Tenant to pay for all utilities Tenant must have Lessor’s written permission to sublet or assign an?, portion of the leased area Attachment 2 A_M_ENDMENT TO STANDARD INDUSTRIAL LEASE THIS AMENDMENT TO STANDARD INDUSTRLa~ LEASE (hereinafter "Amendment") is made this __ day of ,2003 (the "Effective Date"), by and between McCANDLESS LIMITED, a California limited partnership (Landlord") and THE CITY OF PALO ALTO, a California municipal corporation ("Tenant"). RE.C!TAL, S This .Amendment is made with reference to the following facts: A. Tenant currently leases from Landlord @proximately nine thousand two hundred two (9,202) square feet of space located at 1007 Elwell Court, Palo Alto, California (the "1007 Premises") pursuant to that certain lease dated as of July 31, 1998 (the "Lease"). The 1007 Premises are located in a building commonly ~kno~a as 1001-1007 Elwell Court, Palo Alto, California (the "Project"). The term of the Lease expires August 31, 2008. B. Tenant wishes to lease for a two (2) year period additional space in the Project consisting of approximately five thousand six hundred ninety two (5692) square feet located at 1003 Elwell Court, Palo Alto, California (the "1003 Premises"). Included within the 1003 Premises is a utili~7 room consisting of approximately two hundred twenty five (225) square feet (the "UtiliD’ Room"). C. Landlord is willing to so amend the Lease subject to the terms and conditions set forth in this ,Amendment. ACCORDINGLY, in consideration of the above Recitals and the mutual covenants and agreements contained herein and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1.Conditions Precedent. This Amendanent is subject to the satisfaction of the conditions precedent set forth in this Paragraph 1 by no later than March 3, 2003, which conditions precedent shall be deemed to be for the benefit of both Landlord and Tenant and which may- be amended or waived only by a subsequent written agreement executed by both Landlord and Tenant. In the event the following conditions precedent are not satisfied in a timely manner, this Amendment shall be null and void and of no force and effect without notice or further documentation. 1.1 Vendavo, Inc., a Delaware corporation ("Vendavo") must vacate the 1003 Premises and surrender the 1003 Premises (but not the Utility Room) in good, clean and orderly condition free of debris and claim for possession by Vendavo and/or its subtenants at no cost to Landlord or Tenant. 1.2 Vendavo shall execute an anaendment to its lease for those premises in the Project located at 1001 Elwell Court, Palo Alto, California (the "1001 Premises") at no cost to Landlord or Tenant which provides (i) for the joint use of the UtiliD, Room for the MCJE\30288\,512180.2 -1 - benefit of both the 1001 Premises and the 1003 Premises; (it) surrender to Landlord of the FF&E located in the 1003 Premises and described in Paragraph 6.1, below; (iii) the termination of its lease for the 1003 Premises in a form and substance acceptable to Landlord; and (iv) payment of rent to Landlord for the Utility Room in an amount not less than Four Hundred Fift-y Dollars ($450.00 per month. 1.3 Active Reasoning, Inc. ("Active Reasoning"), the current tenant of that port!on of the Project located at 1005 Elwell Court, must execute a v~Mtten agreement waiving and terminating ant’ right Active Reasoning may possess under its lease to expand into the 1003 Premises at no cost to Landlord or Tenant. 1.4 at no cost to Landlord. This Amendment must be approved by the Palo Alto City Council Upon satisfaction of the conditions precedent described in Paragraphs 1.1, 1.2, 1.3 and 1.4, above, the Lesse shall be deemed to include both the 1003 Premises (but not the Utility Room) and the 1007 Premises and, except as provided herein, ant’ and all references in the L~ase to the "Premises" shall include both the 1003 Premises and the 1007 Premises. Upon termination of the Vendavo lease, the Utility Room shall become a part of the Premises. 2.Term. The term of the Lease for the 1003 Premises shall commence as of April 1 _00~. and shall extend to March 31, 2005. The term of the Lease for the 1007 Premises shall continue to August 31,2008. 3.Basic Rent. Commencing on April 1, 2003, and subject to the terms of Para~aph 4(b), below, Tenant shall pat’ monthly basic rent as described in Para~aphs 4 (a) and 5 of the Lease for the 1003 Premises in the amount of Seven Thousand One Hundred Fifteen Dollars ($7,115.00) per month. Pursuant to Para~aph 32 of the Lease, basic rent shall not be adjusted for any measurement of the 1003 Premises. Tenant shall continue to pay basic rent for the 1007 Premises in the manner described in the Lease. Tenant shall pay basic rent for April 2003 on the Effective Date. 4.Annual Adjustments to Basic Rent. (a) The amount of basic rent due and payable by Tenant under the Lease for the 1003 Premises shall be adjusted as set forth below: April 1, 2004, through March 31, 2005 $7328.45 per month (b) For that period of time prior to the expiration or earlier termination of the Vendavo lease, Tenant shall be entitled to a credit against basic rent to compensate Vendavo’s use of the Utility" Room. From April 1, 2003, to November 1, 2003, the credit shall be in the amount of Two Hundred Eighty One and 25!100ths Do!lars ($281.25). For any time after December 1, 2003, the credit shall be in the amount of Two Hundred Eighty Nine and 69/100ths Dollars ($289.69). The Venda¥o lease is scheduled to expire on December 31, 2003. 5. Security" Deposit. In addition to maintaining the security deposit described in Paragraph 4(e) of the Lease, Tenant shall deliver to Landlord on or before the Effective Date, MCJE~30288’\512180.2 -2- an additional cash security deposit in the amount of Seven Thousand One Hundred Fifteen Dollars ($7,115.00). Tenant’s failure to pay the increased security deposit on the Effective Date shall constitute a material default under the Lease. 6. No Tenant Improvement Allowance. Tenant shall not be entitled to a ~enant improvement allowance for the 1003 Premises. 6.1 Limited Landlord Obligation to Renovate: Prior to April 1, 2003, Landlord shall construct at Landlord’s sole cost and expense a demising wall between the 1001 Premises and the 1003 Premises. Landlord shall also deliver possession to the 1003 Premises to Tenant in broom clean condition with the furniture, fixatres and equipment more particularly described in Exhibit "A" attached hereto (the "FF&E"). Tenant shall not remove any of the FF&E from the 1003 Premises and, upon expiration of the term of the Lease for the 1003 Premises shall surrender the FF&E and the 1003 Premises to Landlord in good condition, reasonable wear and tear excepted. Except as expressly provided in this Paragaph 6.1, Landlord has made no promise and is not obligated to modify, alter or renovate the 1003 Premises. 6.2 "As Is" Condition of 1003 Premises: Tenant acknowledges that prior to the Effective Date, Tenant has examined the 1003 Premises and that Tenant has determined that the !003 Premises are suitable for Tenant’s use. Tenant further agrees that upon entry onto the 1003 Premises, Tenant shall accept the 1003 Premises and the FF&E in its present "as-is" state and condition and acknowledges that the 1003 Premises are then in good and tenantable condition, ready for occupancy by Tenant and are fit for Tenant’s business purposes. 6.3 No Representations: Tenant ack_nowledges that, except as expressly contained in this Lease, neither Landlord nor anyone acting for or on behalf of Landlord has made ant; representation, warranty or promise to Tenant concerning the physical aspects or condition of any of the 1003 Premises and/or the FF&E; the feasibility, desirability or convertibility of ant’ of the 1003 Premises into any particular use; the zoning, building or land use restrictions applicable to the 1003 Premises; the projected income or expenses for any of the 1003 Premises or any business conducted thereon; or the suitability of the 1003 Premises for any particular use; and that in entering into this Amendment, Tenant has not relied on any representation, statement or warranty of Landlord or anyone acting for or on behalf of Landlord, other than as expressly contained in this Lease, and that all matters concerning the 1003 Premises shall be independently verified by Tenant and that Tenant shall enter into this Lease on Tenant’s owm examination thereof(or Tenant’s election not to do so); AND THAT TENANT, UPON ENTRY ONTO THE 1003 PREMISES, ACCEPTS THE 1003 PREMISES, THE FF&E AND ALL OTHER IMPROVEMENTS, FIXTURES, EQUIPMENT AND SYSTEMS SITUATED THEREON IN "AS IS" PHYSICAL CONDITION AND IN AN "AS IS" STATE OF REPAIR. Tenant does hereby waive, and Landlord does hereby disclaim, all warranties of any D~pe or whatsoever with respect to the 1003 Premises, express or implied, including by way of description, but not limitation, those of fitness for a particular purpose, tenantability, habitability and use. Tenant hereby expressly waives any and all claims for damages or for re_scission or cancellation of the Lease or this Amendment because of any representations made by Landlord or any agent of Landlord. -3-MCJE~30288\512180.2 6.4 Ackmowledgement of Limitation of Agent’s AuthoriD’: No person acting on behalf of Landlord is authorized to make, and by execution hereof Tenant acknowledges that no such person has made, ant, representation, warranty, guaranty, or promise except as mat’ be expressly set forth herein; and no agreement, statement, representation, guaranty or promise made by any such person which is not expressly contained herein shall be valid or binding on Landlord and Landlord’s agents, heirs, successors or assigns. The only representations or warranties outstanding with respect to the 1003 Premises, or Landlord, either express or implied by law, are expressly set forth herein. 6.5 Documentary Information: Tenant ac ~knowledges that any and all documentary information, soil reports, environmental audits, site assessments, analyses or reports, insurance policies or other information of whatever type which Tenant has received or may receive from Landlord or Landlord’s agents is furnished on the express condition that Tenant shall make Tenant’s ow-n independent verification of the accuracy and completeness of such information. Tenant a~ees that Tenant shall not attempt to assert any liability upon Landlord or Landlord’s agents for furnishing such information and Tenant does hereby release Landlord and Landlord’s agents, heirs, successors and assigns from, and does hereby a~ee to indemnify, protect, defend and hold Landlord and Landlord’s agents, heirs, successors and assigns free and harmless from and against, any and all such claims or liability. 7.Use of Premises: Tenant shall use the 1003 Premises for general office, research and development purposes and for no other purpose without the express wa’itten consent of Landlord, which consent shall not be unreasonab!y with_held. 8.Warrant3: of Authorit?’: Each signatory to this Amendment represents that he oi" she possesses full authority to exercise this Amendment and to bind the entity on whose behalf such signatory is signing. 9.Brokers. Each part?" represents that it has not had any dealings with any real estate broker, finder or other person with respect to this Amendment except Cornish & Carey Commercial-Oncor International, and that there are no leasing commissions to be paid by Landlord or Tenant in connection with this transaction except those paid by Landlord to Cornish & Carey Commercial-Oncor International. Each party hereto shall hold harmless the other party from a!l damages, loss or liability resulting from any claims that may be asserted against the other part?" by any broker, finder or other person with whom such part3~ has dealt, or purportedly has dealt, in connection with this transaction. 10. Restatement of Other Lease Terms. Except as specifically modified herein, a!l other terms, covenants and conditions of the Lease, including Tenant’s obligation to pay common area charges for both the 1003 Premises and the 1007 Premises, shall remain in full force and effect. 11. Capitalized Terms. Except as expressly provided in this Amendment, all ~ ~e Lease. MCJE’,30288~,512180.2 -4- 12. Conflicts. In the event of an?, conflict between the Lease on the one hand and this _Amendment on the other, the terms of this .Amendment shall govern and control. 13. counterparts. Counterparts. This _Amendment may be executed in identical IN ~rlTNESS ~rHEREOF, the parties hereto have executed this .Amendment as of the Effective Date. LANDLORD:TENANT: McCA_NrDLES S LIMITED, a California limited partnership THE CITY OF PA_LO ALTO, a California municipal corporation By:The Jean A. McCandless Trust U/T/A 1/25/77, General Partner By: City Manager By: lean A. McCandless or Santa M. Simons; Trustee Approved as to form: By: Cib~ Attorney By: Director of Utilities By: Director of Administrative Services MCJE\30288’t512180.2 -5- EXHIBIT "A" NDESCRIPTIO OF FF&E IN 1003 PREMISES 16 Free-standing Cubicles with built-in self contained desks & selves 46 chairs within the cubicles 1-4’ round conference table with 5 chairs 4 - 12’ Long Desks with 6 chairs 10 Offices - which contain the following 23 Haworth Desks 19 Selves for books 9 Chairs 1- small metal 2 drawer file cabinet 1- metal file cabinet 10’ tall Wooden file cabinet MCJE’~30288\512180.2 -6- ATTACHMENT 3 AMENDMENT NO. ONE TO CONTP-ACT NO. CI129716 BETWEEN THE CITY OF PALO ALTO AND C-WAY CUSTODI.hN SERVICES This :~men6ment No.One to Contract No. C!!297i6 ("Contract") is entered into , by and between the CITY OF P~iO 9iTO, a chartered city and a municipa! corporation of the State of California ("CITY"), and SUK YONG CHOE, dba C-WAYCUSTODiI~\] SERVICE, a Sole Proprietorship, located at 2183 So~merton Dr., San Jose, CA 95122 ("CONTKhCTOR"). RECITALS: WHEREAS, the Contract was entered into me~wee:~ the parties for the provision of custodian services; and WHEREAS, the parties wish to amend the Contract to provide ~ha~ the Contractor wi!? perform custodian se_v_c~ :or Utilities Offices !ocated at 1003 E!we!l Court (hereafter :-=f=~e to as "Elwe!! Court")’, and NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this ~endment, the parties agree: SECTION !: read as fol!ows: Section !.i of oh= Contract is amended to "’!.I This Contract wil! commence on the date of its execution by CITY. The obligation of CONTKhCTOR to perform the Services will commence in accordance with the time schedule set forth in Exhibit "~"__ , except ~__au the services for 1003 Elwe!! Court (referred to co!lectivelv as "E!well Court")described in Exhibit "~-~’" (attached hereto and made a part hereof), shall commence !0 days after the CiTY’s project manager notifies the CONTRACTOR to commence these services or December i, 2002, whichever date is earlier. The term of the Contract shall be three years, if the City Council appropriates sufficient funds for the second and third years. --~_~ ~~-T~the City Counci! does _.o~aopromriate sufficient funds, the contract shall expire at the end of the last v=a< for which sufficient funds have been appropriated. Time is o.f the essence o{ this Contract. in the event that the Services are not completed within the specified time schedule on account of CONTBS_CTOR’s default, 02102I sdl 0100029 1 CITY’s city manager will have the option of extending the time schedule for any period of time. This provision wil! not preclude the recovery of damages for delay caused by CONTRACTOR." SECTION 2: read as follows: Section 2.1 of the Contract is amended to "2.1 In consideration of the full performance of the Services by CONTRACTOR, CITY wil! pay CONTRACTOR the sum of Twenty-six thousand nine hundred fifty dollars ($26,950) per month, payable within thirty (30) days of submission by CONTRACTOR of its itemized billings, based on the schedule attached hereto as Exhibit "B-l". Commencing on the date that the CONTRACTOR begins performing services at Elwell Court, the monthly compensation shall increase to Twenty-eight thousand four hundred fifty dollars ($28,450), based on the schedule attached hereto as Exhibit "B-I" The increase shal! be pro-rated if the CONTRACTOR commences providing services on Elwell Court other than on the first day of a month." SECTION 3. Exhibit "A" to the contract is hereby amended to include the scope of services and schedule for custodia! services to be performed by CONTRACTOR at Elwell Court, a copy of which is attached hereto as Exhibit // // // // // // // 021021 sdl 0100029 2 Facility: Location: Utilities Offices 1003 Elwell Ct. Facilities Management Division’s Responsibilities Ser~4cing Frequency: Five Days per Week, (Monday through Friday) Type of Service: Frequency: Type of Service: Frequency: Type of Service: Frequency: Type of Service: Frequency: Type of Ser~4ce: Restrooms / Showers - Complete servicing. Empty all trash and waste containers in all restrooms. All waste containers to be kept lined with proper liners which must be replaced immediately when needed. Empty and replace with new liners all sanitao, napkin receptacles. Replace and refill as needed all dispensers and containers. All soap dispensers require an anti-bacterial hand soap. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixX-ures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, toilet bowls ~and urinals with brush and disinfectant cleaner. All shower areas are tO be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Pour one gallon of water do~ each floor drain. Monday through Friday Entire Facility, Empty all trash receptacles and replace liner with proper size and depth. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from walls and ceilings. Refill towel dispensers. Clean marks from glass on entry doors. Secure facility and set alarm. Monday through Friday Entire Facility, Wash all windows, interior and exterior. Tw-ice Annually Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Four Times Annually Entire Facility SprayBuff with a high speed buffer all tried, linoleum and wood floor areas. EXHIBIT "A-I" ~requency;.Monthly _TTvpe of Service: Frequenc’¢_: Type of Service_." Frequency2. _Type of Service,;, Frequencv__: Entire Facility Clean all counters and tabletop surfaces removing all ~affiti, pen and pencil mar~, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs: etc. from wall and floor surfaces. Four Times Annually Entire Facility Carpet Shampooing .Annually Entire Facility Upholstery and Furniture Cleaning Annually Type of Service:Entire Facility Spot Carpet Cleaning Frequency:Monthly, (or as requested by users) o EXHIBIT "B-l" SECT!ON 4:Except as herein modified, all other provisions of the contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS k~EREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk Mayor APPROVED AS TO FORM: Assistant City Attorney C-WAY SERVICI By Its: APPROVED: City Manager Director of Public Works Director of Administrative Services Risk Manager Attachments: Exhibit "A-I": Scope and Schedule of Services at Elwell Court Exhibit "B-I": Revised Rate Schedule 021021 sdl 0100029 3 CERTIFICATE OF ACKNOWLEDGMENT (civil Code § 1189) aS. On /~’~/ ~7~ ......2002, before me, a Notary Public in and for said County and State, personally appeared ~{~ ~0/~~ C-~°~~-- ......... personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ~ ~,~ Notary Public-California .SA rAC AP, A co® --Signature of Notary Public Notary Public-California SANTA C~ COU~ 021021 sdl 0100029 4