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HomeMy WebLinkAboutCity Councildetermined that it would require a portable unit be located in the parking lot behind the Cubberley Pavilion to house and operate certain portions of its operations. The JCC will pay all costs associated with the installation and operation of the portable units. The JCC also determined that it would require the renovation and use of the girls’ locker room to accommodate two exercise rooms and the City agreed to reimburse the JCC $37,000 for a portion of the cost of renovation. The $37,000 figure is the amount of money the Children’s International School (CIS) paid the City in 2000 in response to the City’s Request for Proposals for remodeling and subleasing the girls’ locker room. The City accepted CIS’ proposal to pay $37,000 toward remodeling the girl’s locker room with the agreement that CIS could lease other space at Cubberley in lieu of developing the locker room. The funds from the CIS were deposited to the City General Fund in 2000. Staff believes that since these funds were to be spent on renovations to the girls’ locker room, it is appropriate to reimburse the JCC in the same amount. RESOURCE IMPACT The attached BAO in the amount of $37,000 to reimburse the JCC for a portion of the costs associated with refurbishing the former girls’ lock_er room at the Cubberley Con~nunity Center will be funded from the General Fund Stabilization Reserve. The appropriation is a one-time expense and there are no future-year resource needs anticipated as a result of this BAO. POLICY IMPLICATIONS The recommendation does not represent any change to City policies. ENVIRONMENTAL ASSESSMENT The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA guidelines. ATTACHMENTS Attachment A: Budget Amendment Ordinance Attachment B: General Fund Budget Stabilization Reserve Balance Attachment C: Interim Relocation Pla~for JCC Attachment D: Sublease //~’/ MARTHA MILLER Financial Analyst CMR:114:03 Page 2 of 3 DEPARTMENT HEAD APPROVAL: CARL Director,Services CITY MANAGER APPROVAL: EMILY HARRISON Assistant City ~anager cc: Jewish Conmmnity Center CMR:114:03 Page 3 of 3 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2002-03 TO PROVIDE AN APPROPRIATION OF $37,000 TO THE JEWISH COHMUNiTY CENTER FOR REFURBISHING COSTS AT THE CUBBERLEY COHMUNITY CENTER. WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Counci! on June 17, 2002 did adopt a budget for fisca! year 2002-03; and WHEREAS, on September 10,2001, the Council approved a Four- Party Memorandum of Understanding (MOU) to resolve issues relating to the transfer of the Terman Community Center from the City of Palo Alto to the Palo Alto Unified Schoo! District (PAUSD), and in turn the relocation of the Jewish Community Center (JCC) from the Terman Middle Schoo! site to the Cubberley Community Center; and WHEREAS, the Jewish Community Center made renovations to the Old Girls Locker Room to accommodate two exercise rooms at Cubberl~ey Community Center; and WHEREAS, the City agreed to reimburse the Jewish Community Center a portion of the renovation costs; and WHEREAS, the $37,000 figure was the amount of money the Children’s International Schoo! paid to the City to renovate the Girls Locker Room at Cubberley. The funds from the Children’s Internationa! School were deposited in Fisca! Year 2000-01 into the General Fund; and WHEREAS, Staff believes that since the $37,000 from the Children’s International Schoo! was intended for the renovations of the girl’s locker room that its appropriate to reimburse the Jewish Community Center the same amount; and WHEREAS, the additional appropriation of funds from the General Fund Budget Stabilization Reserve is a one-time expense and no future year resource impact to the Genera! Fund Budget Stabilization Reserve is anticipated. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as fol!ows: SECTION i. The sum of thirty seven thousand dollars ($37,000) is hereby appropriated to non-salary expenses in the Property Management Functiona! Area in the Administrative Services Department, and the Budget Stabilization Reserve is correspondingly reduced. SECTION 2. This transaction will reduce the Stabilization Reserve from $22,617,668 to $22,580,668. Budget SECTION 3. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Counci! is required to adopt this ordinance. SECTION 4. A mitigated Negative Declaration for the project was approved by Counci! on October 13, 1998. No further environmenta! review for the project is necessary under the requirements of the California Environmental Quality Act (CEQA) . SECTION 5. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Attorney City Manager Director of Administrative Services City of Palo Alto A’F[ACHMENT B General Fund Budget Stabilization Reserve Balance Balance Adopted Budget Projected Changes to BSR City’s Contribution to the Cost of the Sound Wali for the Tennis Facility at 3005 Middlefield Road Title Insurance for Terman and Cubberley Reimbursement for Jewish Community Center for refurbishing costs to Cubberley Community Center ($60,000) ($50,000) ($36,332) ($37,000) $22,764,000 ($60,000) ($50,000) ($36,332) ($37,000) BSR Balance After BAO’s 522,580,668 ! 1/7/2003 Attachment C interim Relocation Plan for JCC CPA-JCC Cubberley Sublease Terms 1. Term. Commencing August 15, 2002 and continuing until the earliest of December 31,2004 if the CPA does not extend the master lease, or August 15, 2010 if the master lease is extended, or until JCC relocates its community services programs from Cubberley. 2. Rent. $2704 per month until September 2003, provided that if the parties agree to include the Exercise Room, (the remodeled Girls’ Locker Room), the rent shall be $4779 per month until September 2003. In September 2003, the rent it increases to $8531 with addition of dedicated gym space and the Exercise Room if not previously included. Rent amounts are subject to annual inflation adjustment and a security deposit; rates and usage are subject to further discussion. 3. Premises. Dedicated space initially is Room B-5, Room B-6, B-5 Storage, Coach’s Office, M-5 Office, M-1 Office, and, at the parties’ agreement, the Exercise Room. In September 2003, premises expanded to include exclusive use of Gym A Monday through Thursday (and the Exercise Room if not initially inctuded,)and shared use of the Gym A on Friday through Sunday. JCC also has the right to regularly scheduled use of 12 hours per week of Auditorium, 6.5 hours per week of Room M-4, and 2.25 hours per week of Room A-6, subject to adjustments to best meet Cubberley and JCC scheduling requirements. In September 2003, shared uses will be increased to include 2.5 hours per week of the Dance Studio and 3.0 hours per week of the Boy’s Activity Room. Regularly scheduled use is included in the rent described above. Other use of Cubberley space by JCC will be at the non-profit regular rentalrate, but such space will be allocated on a first-come, first-serve basis and JCC wil! not have priorities over other users. 4. Access to Common Areas. JCC wil! have access to all common areas as-needed to make use of the dedicated and regularly scheduled use premises. 010905 s~m 0090974 5. Si_clna_cte. JCC will be permitted to install signage in accordance with the approved sign program for Cubberley. 010905 sF~ 0090974 December 30, 2002 ATTACHMENT D JCC CUBBERLEY SUBLEASE THIS SUBLEASE is made this ~ day of ~~, 2002 by and ~, (CTTY) andbetween the C_uy of Palo Alto, a municipal corporation - The Albert L. Shu!tz Jewish Communi<y Center, a California non- profit public benefit corporation (SUBTENANT). RECITP~S A.CITY, under a Lease and Covenant Not to Develop (Lease), dated September I, 1989 as amended on July 21, 1998 and August 13,2002, by and between the Pa!o Alto Unified Schoo! District (DISTRICT) and the City of Pa!o Alto (CITY), is leasing the former Cubber!ey High School site at 4000 Midd!efield Road (Cubberiey Site). CITY desires to provide interim space at the Cubberley site for SUBTENANT’S use pending the re!ocation of its co--unity center to a permanent site. Co SUBTENANT desires to sublease space at the Cubber!ey site for its operations and programs to avoid any disruption of its community center services pending its relocation to a permanent site. NOW THEREFORE, in consideration of these premises, hereto mutually agree as follows: the parties i.PREMISES Subject to the terms and conditions set forth in this agreement, CiTY SUBLEASES to SUBTENANT that certain property (PREMISES) consisting of a gymnasium (GYM A), two (2) fitness rooms (FITNESS ROOMS),. and a relocatable unit (RELOCATABLE UNIT), as more particularly described and shown in "EXHIBIT B" EXHIBIT B is attached to, and by this reference, made a part of this SUBLEASE. iI. PURPOSE The purpose of this SUB~EASs is to mrovide interim smace for certain of SUBLESSEE’S omerations and programs mending its re!ocation to a permanent site. ili. USES The Premises during the term of this Sublease are to be used for educational programs and related classroom activities, other than K- 12 education; teen programs; music, cheau_= and arts mrograms; non- 1 athletic recreational programs (e.g., discussion groups, bridge and chess); senior programs; language programs; day camp programs family and socia! services; health/fitness and wellness programs including without limitation aerobics, cardio-therapy, dance, exercise, strength training, athletics and sports programs (e.g., basketbal! and volleyball); specia! events related to the foregoing uses; and administrative offices incidenta! to the permitted use of the Premises. Subtenant shal! neither use the Premises or permit the Premises to be used for unlawful, boisterous, or hazardous purposes. The Premises shal! not be used as a place of dwelling or residence. City and Subtenant agree that the Premises shal! be used exclusively for programs that are available to persons regardless of religious affiliation. Subtenant Shal! not use the Premises for any uses not permitted hereby without the City’s written consent, which consent shal! not be unreasonably withheld, conditioned or delayed, if such uses are compatible with other uses of the Cubberley S_~e. IV. TERM The term of the Sublease ("Sublease Term")shall commence on September !, 2002 (the "Commencement Date").The Sublease Term shal! expire on the earlier of (i) August 30,2010, or (ii) the date JCC re!ocates ~[ts community service programs from the Cubberley Site; provided, however, that neither JCC’s use of the Greendell Site, nor the continuing occasiona! use of the Terman Site, nor any supplemental facility space obtained by JCC for housing of programs that cannot be located in the Cubber!ey Site o~ the Greendell Site due to size ~constraints or constraints due tofacility limitations shall be deemed use of an alternative site that results in expiration of this Sublease. V.TERMINATION OF PRIOR AGREEMENTS This Sublease supersedes any and all prior subleases or agreements entered into by CITY with SUBTENANT. All such prior subleases or agreements are nul! and void. VI. x. Expiration or Termination of Lease Between City and PAUSD. A. SUBTENANT acknowledges and agrees that (i) the LEASE expires on December 31, 2004, (ii) that as of the date hereof, CITY has not exercised its extension rights, and (i.ii) if CITY does not’~eexercise its extension rights, this SUBLEASE shall termlna~ as of December 31, 2004. .. B.SUBTENANT further acknowledges and agrees that (i)under Subsections 6.5.1(a),6.5.!(b), 6.5.!(c) of the LEASE with the DISTRICT, the CITY may under certain circumstances described therein terminate the LEASE upon 90 days written notice from CITY to DISTRICT, (or such !onger notice period as may be set forth in 2 those subsections), and (ii) if the CITY exercises its rights under those subsections, this SUBLEASE, which is subordinate to the LEASE, shall terminate upon expiration of the LEASE. C. SUBTENANT further acknowledges that DISTRICT has certain termination rights as set forth in the LEASE, including the 2001 ~mendment thereto} the exercise of which would terminate this SUBLEASE. D. Nothing in this SUBLEASE limits any rights the SUBTENANT may have to be acknowledged as a tenant by DISTRICT in the event the LEASE is terminated prior to the end of its TERM. VII. CONSIDERATION RENT FOR LEASED SPACE As consideration for SUBTENANT’S use of the PREMISES in accordance with the terms and conditions of this SUBLEASE, SUBTENANT agrees to pay to CITY rent based upon the fol!owing annua! schedule: Year Year 1 (02/03) Gym A $0 Relocatable Unit $0 (JCC to pay all relocatable costs) $0 Exercise Rooms $0 Total $0 Year 2 (03/04) $24,000 $0 $24,000 ($2,000/mo)($2,000/mo) Year 3 (04/05)$51,000 $0 $0 $51,000 ($4,250/mo)($4,250/mo) Years 4 through 8, all rents to be adjusted annuallyin accordance with Clause VIII Revision of Rentals. VIII. REVISION OF RENTALS The rental specified in Clause VII (CONSIDERATION/RENT) shall be subject to automatic annua! adjustments in proportion to changes in the Consumer Price Index, All Urban Consumers, (base years 1982-1984 = i00) for San Francisco-Oakland-San Jose CMSA published by the U.S. Department of Labor, Bureau of Labor Statistics or any replacement index published by said Bureau. Per the formula below, the adjustments shall be limited to seventy five percent (75%) of the change in the CPI index. The automatic adjustment shall be effective on each anniversary of the commencement date of this SUBLEASE and shal! be calculated in accordance with the fol!owing formula: X : P [ 1 +0.75 (A/B-! ] Where: Adjustment _en~al; Annual Rental for the previous lease Year; Average monthly index for the 12 calendar months ending with and including the index published just prior to commencement of the then current Sublease year; Average monthly index for the 12 calendar months ending with and including the index published just prior to the co_mmencement of the prec6eding Sublease year. IX. RENT PAYMENT PROCEDURE Ao On or before the first day of each month, SUBTENANT shall pay to CITY rent as set forth in Clause VII (CONSIDEKhTION/RENT). Should this SUBLEASE commence on a date other than the first of any month, rent for the first and last month of this SUBLEASE shal! be prorated assuming a 30-day month. Co Renta! payments shall be delivered to the Revenue Collections Division, 250 Hamilton Avenue, PO Box 10250, Palo Alto, CA 94303. The designated place of pa]~ent may .be changed at any time by CITY upon ten (!0) days written notice to SUBTENANT. Renta! payments may be made by check made payable to the City of Palo Alto, however, SUBTENANT assumes al! risk of !oss if payments are made by mai!. D.Acceptance of Late or Incorrect Rent:SUBTENANT specifically agrees that acceptance of any late or incorrect rentals submitted by SUBTENANT shal! not constitute an acquiescence or waiver by CITY ~and shal! not prevent CITY from enforcing Clause X (CHARGE FOR LATE PAYMENT) or any other remedy provided in this SUBLEASE. X.CHARGE FOR LATE PAYMENT If any payment of rent as specified in Clause VII (CONSIDERATION/RENT) or of any other sum due CITY is not received by CITY or postmarked within ten (I0) days after the due date, a late charge equa! to one_percent (1%) of the pa]~ent due and unpaid plus an administrative fee of $50.00 shall be added to the payment, and the tota! sum shal! become immediately due and payable to CITY. An additiona! charge equa! to one percent (1%) of the payment, excluding late charges, sha!l be added for each additional month that the payment remains unpaid. Acceptance of late charges and/or any portion of the overdue payment by CITY shal! .in no event constitute a waiver of TENANT’S default with respect to such overdue payment, nor prevent CITY from exercising any of the other rights and remedies granted hereunder or 4 by any provision of law. XI. CONSIDE.RA_TION RENT FOR HOURLY RENTAL SPACE As consideration for SUBTENANT’s use of Hourly Rental Space on the ~remises, as listed on Exhibit C, SUBTENANT agrees to pay the CiTY }ent based upon the City Council approved Cubberley Community Center Hourly Rental Fee Schedule. Rental fees shall be based upon the !owest Non-Profit, Regular User Rate for each room and any related staff costs. All such fees shall be paid to the CITY through the Cubberley Center Office. Subtenant’s Reoccurring Event use of Hourly Rental ~Space (as listed on Exhibit C) shal! be free of charge throughout the term of this agreement and their Specia! Event use of Hourly Renta! Space (as listed on Exhibit C) shall be free for the first two sublease years and thereafter standard hourly fees will he charged with respect to Special Events in accordance with the City Counci!’s Approved Municipal Fee Schedule. XII. SECURITY DEPOSIT A security deposit in the sum of ten thousand ($i0,000.00) shall be provided to CITY by SUBTENANT. The security deposit shal! take one of the forms set out be!ow and shall guarantee SUBTENANT’S ful! and faithfu! performance of al! the terms, covenants, and conditions of this SUBLEASE. A.Cash. The assignment to CITY of a savings deposit held in a financial institution in Santa Clara or San Mateo County acceptable to CITY. At a minimum, such assignment shal! be evidenced by the delivery to CITY of the origina! passbook reflecting the savings deposit and a written assignment of said deposit to CITY in a form approved by the Real Property Manager. C.A Time Certificate of Deposit from a financial institution in Santa Clara or San Mateo County wherein the principa! sum is made payable to CITY or order. Both the financia! institution and the form of the certificate must be approved by the Real Property Manager. D.A Letter of Credit or other instrument of credit from financia! institution, subject to regulation by the state or federal government, pledging that fund necessary to secure performance of the SUBLEASE terms, covenants, and conditions, are on deposit and guaranteed for payment, and agreeing that the funds shall be trust funds securing SUBTENANT’S performance and that al! or any part shall be paid to CITY or order upon demand by CITY. Both the financia! institution(s) and the form of the instrument(s) must be approved by the Rea! Property Manager. 5 Regardless of the form in which SUBTENANT elects to make said security deposit, all or any portion of the principal sum shall be available unconditionally to CITY for correcting any default or breach of this SUBLEASE incurred by CITY as a result of the failure by SUBTENANT, its successors or assigns, to faithfully perform al! of the terms, covenants, and conditions of this SUBLEASE. Should SUBTENANT elect to provide a Time Certificate of Deposit, Letter of Credit, or other instrument of credit, hereinafter collectively referred to as "INSTRUMENT", to fulfill the security deposit requirements of this SUBLEASE, the INSTRUHENT shall contain a provision whereby the institution issuing the !NSTRUHENT agrees to provide CITY with written notice of its intent not to renew the INSTRUHENT at least thirty (3@) days prior to expiration or termination of the INSTRUHENT. If SUBTENANT has not provided CITY with an acceptable alternate form of security deposit at least ten (!0) days prior to expiration or termination of the INSTRUMENT, CITY may demand and obtain from the institution issuing the INSTRUHENT, the amount secured by the INSTRUHENT as satisfaction of the security deposit provision of this SUBLEASE. Should SUBTENANT elect to assign the savings deposit to CiTYr or provide an alternate INSTRUHENT, to fulfill the security deposit requirements of this SUBLEASE, the assignment, or issuance of the INSTRUHENT shall have the effect of releasing the depositor or creditor therein from liability on account of the payment of any or all of the principal sum to CITY or order upon demand of CITY. The agreement entered into by SUBTENANT with a financial institution to establish the deposit necessary to permit assigm_ment or issuance of a certificate as provided above, may allow the payment of interest accruing on account of the deposit to SUBTENANT, or order. SUBTENANT shall maintain the required security deposit throughout the SUBLEASE term. Failure to do so shal! be deemed a default and may be grounds for immediate termination of this SUBLEASE. The security deposit shel! be rebated, reassigned, released, or endorsed to SUBTENANT or order, as applicable, at the end of the SUBLEASE term, except as applied by CITY to cure any instance of breach of this SUBLEASE by SUBTENANT or to compensate CITY for actua! damages incurred due to a breach of this SUBLEASE by SUBTENANT. XIII. ~LhlNTENANCE AND REPAIR SUBTENANT, at .its expense, shall perform all interior maintenance and repairs, within the Premises (Gym A and the two exercise rooms), including but not limited to painting, window glass replacement (if damage occurs from the inside), Exercise Room f!oor maintenance and replacement, bi-annual Gy~ A floor re-surfacing which meets City specifications, space heaters or any other SUBTENANT installed equipment, plumbing, heating/air conditioning systems, interior pest contro! or specia! security devises. SUBTENANT shall perform all maintenance and repair for the entire interior and exterior of all relocatable units that are part of the Premises. CITY shall be responsible for exterior maintenance and repair of the structure and main support systems, including roof repa£r, heating, air conditioning and ventilation repair, main electrica! systems, water, sewer systems repair, exterior painting and structural repairs and maintain sidewalksr driveways, parking areas, in a condition suitable to satisfy the. purpose of the SUBLEASE. In addition, the CITY shal! be solely responsible for rekeying !ocks and issuing new or additional keys (cost of rekeying and keys sha!l be billed to JCC at cost of materials and labor, and if done by C!TY an additional 15% overhead shal! be added to cost) and !ock repair. The CITY is also responsible to replace light bulbs and ballast’s, door and window hardware, repair existing basketbal! backboards and motors and repair al! exit and emergency lights. SUBTENANT expresslY agrees to maintain the PREMISES in a safe, clean, wholesome, and sanitary condition and in substantia! repair to the complete satisfaction of CITY and in compliance with all applicable laws, provided that, with respect to portions of the Premises other than the Relocatable Unit, SUBTENANT shal! have no responsibility or liability for (i) any instance of noncompliance with applicable laws existing as of the commencement of the term of this SUBLEASE, (ii) the presence of any hazardous materials or toxic substances on, under or about the Premises, except to the extent the release of any such hazardous materials on or about the Premises is caused by the-activities of SUBTENANT, or (iii) any requirement under applicable laws to make improvements or alterations to the Premises unless necessitated by SUBTENANT’s particular use of the Premises or improvements made or requested by SUBTENANT. SUBTENANT further agrees to provide approved interior containers for trash and garbage and to keep the interior of the PREMISES free and clear of rubbish and litter. CITY shall have the right to enter upon and inspect the PREMISES at any time during SUBTENANT~’s hours of operation ~for cleanliness and safety, subject to SUBTENANT’s reasonable security and safety procedures. Notwithstanding the above provisions, SUBTENANT shall be responsible for damage or repair to PREMISES or any of its support systems resulting from SUBTENANT’S use of the PREMISES and not occasioned by normal wear and tear. If SUBTENANT fails to maintain or make repairs or replacements as. required herein, CITY may notify SUBTENANT in writing of each failure. Should SUBTENANT fai! to correct the situation within a reasonable time thereafter, as established by the City Manager, the Real Property Manager may make, or cause to be made, the necessary corrections and the cost thereof, including but not limited to the cost of labor, materials, and equipment and a fifteen percent (15%) charge for administration and overhead, shall be paid by SUBTENANT within ten (i0) days of receipt of a statement of the cost from the Rea! Property Manager. CITY may, at its option, choose other 7 remedies available herein, or available by law. XIV. JANITORIAL SUBTENANT is responsible to provide any and all custodial services for the re!ocatable units, the two Exercise Rooms and Gym A. The City wil! provide most of the custodia! services for Hourly Rental Facilities used by the SUBTENANT, but will require that the SUBTENANT assist with custodial services when their uses adversely affect or impact City custodia! staff. XV.INITIAL CONSTRUCTION BY SUBTENANT A. Minimum Construction and Timing. CITY hereby acknowledges and accepts that SUBTENANT has renovated the existing Gir!’s Locker Room to provide two smal! Exercise Rooms for SUBTENANT’s use during the term of this SUBLEASE. Upon termination of the SUBLEASE, the wal! between the two Exercise Rooms must be removed and uniform flooring material installed throughout the renovated area by SUBTENANT. The two Exercise Rooms have been designed, constructed, and installed within the PREMISES, and CITY shall reimburse SUBTENANT a portion of the cost thereof in an amount equal to $37,000.00, which shall be reimbursed by CITY to SUBTENANT concurrently with the ful! execution of this SUBLEASE. The plans prepared by SUBTENANT have been approved by CITY Community Service, Facility Maintenance and Building Departments. Development Plan and Construction Standards. All design and construction shal! conform With the construction and architectura! standards required by the City’s Facilities Maintenance Division,Building Department and Community Services Department. XVI.COHSTRUCTION AND/OR ALTERATION BY TENANT CITY’S Consent. No structures,improvements, or facilities shall be constructed, erected,altered, or made within the PREMISES without the prior written consent of City Counci! if required by City of Palo Alto procedures or ordinances, or otherwise by the City Manager. Any conditions relating to the manner, method, design, and construction of the structures, improvements, or facilities established by CITY shall be conditions of this clause as though originally stated herein. SUBTENANT may, at any time and at its sole expense, instal! and place business fixtures and equipment within any building constructed by City, provided such fixtures and installation have been reviewed and approved by the City Manager. Strict Compliance with Plans and 8 Specifications.Al! improvements constructed by TENANT within the PREMISES shal! be constructed in an efficient and work~an!ike manner and in strict compliance with detailed plans and specifications approved by the City Counci! if required by City of Palo Alto procedures, or ordinances or otherwise by the City Hanager, or designee, and applicable City of Palo Alto codes and ordinances. Certificate of inspection. Upon completion of construction of any building, TENANT shal! submit to the Real Property Manager, a Certificate of Inspection, verifying that the construction was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residentia! construction. XVIi. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS Ao Total Destruction. In the event the PREMISES or a substantial portion thereof are destroyed by any cause that renders the PREMISES unfit for the purposes designated in Clause Iii (USES) and if the PREMISES are so badly damaged that they cannot be repaired within two hundred seventy (270) days from the date of such damage, either party may terminate this SUBLEASEas fol!ows. CITY shall .use commercially reasonable effortsto promptly obtain a written estimate of the time requiredto repair the damage and provide a copy of the estimateto SUBTENANT. If the estimate shows that the Premises cannotbe repaired within two hundred seventy (270) days from the dateof such damage, either party can terminate this Sublease by giving to the other party written notice within thirty (30) days of the delivery of such estimate to SUBTENANT. After such notice of termination has been given, rental (excepting percentage renta!, if any) shal! be prorated to the date SUBTENANT actually vacates the PREMISES which shall be no later than thirty (30) days from the giving of the notice of termination. Insured Partial Destruction. If the PREMISES are partially destroyed by any cause insurable under fire insurance with a standard extended coverage casualty endorsement (whether CITY actually carries such insurance or is self-insured for risk due to a cause that would have been insurable under such a policy), and the destroyed portion ’can be rebuilt or repaired within two hundred seventy (270) days from the date of destruction, CITY shall repair the damage or destruction as fol!ows. CITY shall use commercially reasonable efforts to promptly obtain a written estimate of time required to repair the damage and provide a copy of the estimate to SUBTENANT. If CiTY (a) is obligated to rebuild or repair, or (b) neither CITY nor SUBTENANT elects to terminate the SUBLEASE pursuant to this paragraph, CITY shall proceed with reasonable diligence to so rebuild or repair, and this SUBLEASE shal! remain in full force and effect; however, unti! the destroyed PREMISES are repaired, rental (excepting percentage rental, if any) paid by SUBTENANT to CITY shal! be reduced in the same proportion that SUBTENANT"s square footage is reduced by such destruction. However there shall be no rent abatement or offset should the damage or destruction be caused by SUBTENANT, its employees, agents or contractors. C.Non-insured Partial Destruction. If the PREMISES are partially destroyed by any cause not insurable by fire insurance with an extended coverage casualty endorsement but the PREMISES can still be used for the purposes designated in Clause III (USES), SUBTENANT may, at its option, terminate this SUBLEASE unless CITY commences rebuilding or repair of the destroyed portion of the PREMISES within 90 days from the date of destruction. However, there shall be no rent abatement or offset should the damage or destruction be caused by SUBTENANT, its employees, agents or contractors. Such termination by SUBTENANT shall be accomplished by giving CITY written notice of termination not sooner than ninety (90) days nor later than one hundred (i00) days after the occurrence of such damage or destruction. This SUBLEASE shal! terminate on the date such notice of termination is given to CITY. if CITY accomplishes such repair or if SUBTENANT fails to exercise its option to terminate, this SUBLEASE shall remain in full force and effect, however, until the destroyed PREMISES are repaired, renta! paid by SUBTENANT to CITY (excepting percentage rent, if any) shall be reduced in the same proportion that SUBTENANT’S SUBLEASED square footage is reduced by such destruction. However, there shal! be no rent abatement or offset should the damage or destruction be caused by SUBTENANT, its emp!oyees, agents or contractors. Glass breakage shal! not be deemed a partia! destruction within the meaning of this clause. XVIII. AS BUILT PLANS Upon completion of any major. SUBTENANT-constructed improvements, SUBTENANT shal! provide the Real Property Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the PREMISES. SUBTENANT shall also provide the Real Property Manager with a statement signed by SUBTENANT certified as to accuracy of actua! construction costs for all such improvements. XIX.OWNERSHIP OF IMPROVEMENTS All improv6ments constructed, erected or installe~ upon the PREMISES must be free and clear of all liens, claims, or liability for labor or materia! and, except for the relocatable unit, shal! become the property of CITY, at its election, ~pon expiration or earlier termination of this sublease and, upon City’s election, shall remain upon the PREMISES upon termination of this Sublease. Upon termination of the sublease, the SUBTENANT shall remove the relocatable unit including, but not limited to the foundations, and i0 _!actlonshall repair to the satis= ~’ of CITY any damage to the PREMISES caused by such remova!. Title to all equipment, furniture, furnishings and trade fixtures placed by SUBTENANT upon the PREMISES shal! remain in SUBTENANT, and repl~cements, substitutions and modifications thereof may be made by SUBTENANT throughout the term of this Lease. SUBTENANT may remove such fixtures and furnishings upon termination of this Lease if TENANT is not then in default under this Sublease, provided that SUBTENANT shal! repair to the satisfaction of CITY any damage to the PREMISES and improvements caused by such removal and provided that usua! and customary lighting, plumbing and heating fixtures shall remain upon the PREMISES upon termination of this Sublease. XX. UTILITIES SUBTENANT shall provide and pay for all telephone and electricity provided to the re!ocatable units as well as al! sewer clearing service charges that may result from use of the relocatable restroom. A separate electric meter shal! be installed at the sole cost of the SUBTENANT.CITY shal! pay for all other utilities provided to the PREMISES. Utilities for hourly renta! of rooms within the Cubberley facility shal! be paid by the CITY, except any and all telephone costs. XXI. INSURANCE e - -SUBTENANT shall maintain insurance accep~abl to CITY in full force and effect throughout the term of this Sublease. Minimum Sco~e of Insurance Coverage shall be at least as broad as: i) 2) 3) 4 Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. Course of Construction insurance form providing coverage for "al! risks" of loss, when applicable. The policy or policies of insurance maintained by SUBTENANT shall provide the fo!lowing limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY (i)WORKERS’ COMPENSATION Statutory (2)COMPREHENSIVE AUTOMOBILE Bodily Injury !I $i,000,000 ea. person $I,000,000 ea. occurrence LIABILITY,Property Damage $i,000,000 ea. occurrence including owned, hired, and non-owned automobiles (3)COMPREHENSIVE Bodily Injury $i,000,000 ea. person GENER~.L $i,000,000 ea. occurrence LIABILITY $i,000,000 aggregate including Property Damage $!,000,000 ea. occurrence products and Personal Injury $i,000,000 ea. occurrence completed operations, broad form contractual, and personal injury. (4)FIRE LEGAL LIABILITY $i,000,000 Said sum represents the estimated cost of the improvements and fixtures within the care, custody and control of SUBTENANT. Said sum shal! be subject to annual review by LESSOR’s Risk Manager to insure that coverage is’ adequate to cover changes in the replacement cost of improvements and fixtures within the care, custody and contro! of SUBTENANT. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials, emp!oyees and volunteers; or the SUBTENANT shall procure a bond guaranteeing payment of losses and related investigations, claim adm_nlstra~lon and defense expenses. insurance shall be in ful! force and effect commencing on the first day of the term of this Sublease. Each insurance policy required by this Sublease shall contain the following clauses: "Each insurance policy required by this clause shall be endorsed to state that coverage shal! not be suspended, voided, canceled by either party, reduced in coverage or in limits except after ten (!0) days’ prior written notice by certified mail, return receipt requested, has been given to the CITY." o "All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Counci! and elective or appointive officers or employees, when acting within the scope of their emp!oyment or appointment." 3. The CITY OF PALO ALTO and the PALO ALTO UNIFIED SCHOOL 12 DISTRICT are named as additional insureds. o "The CITY, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the SUBTENANT; products and completed operations of the SUBTENANT; premises owned, occupied or used by the SUBTENANT; or automobiles owned, leased, hired or borrowed by the SUBTENANT. The coverage shal! contain no special limitations on the scope of protection afforded to the CITY, its officers, officials, emp!oyees, agents or volunteers." 5."For any claims related to this Sublease, the SUBTENANT’s insurance coverage shal! be primary insurance as respects the CITY, its officers, officials, emp!oyees, agents and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents or volunteers shal! be excess of the SUBTENANT’s insurance and shal! not contribute with it." 6."The SUBTENANT’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability." Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII. XXII. INSURANCE SUBTENANT agrees to deposit with the Real Property Manager, on or before the effective date of this Sublease, certificates of insurance necessary to satisfy CITY that the insurance provisions of this Sublease have been complied with, and to keep such insurance in effect and the certificates therefore on deposit with CITY during the entire term of this Sublease. Should SUBTENANT not provide evidence of such required coverage at least three (3) days prior to the expiration of any existing insurance coverage, CITY may purchase such insurance, on behalf of and at the expense of SUBTENANT to provide six months of coverage. CITY shall retain the right at any time to ~eview the coverage, form, and amount of the insurance required hereby, if, in the opinion of the Risk Manager, the insurance provisions in this Sublease do not provide adequate protection for CITY and for members of the public using the PREMISES, the Rea! Property Manager may require SUBTENANT to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by the Risk Manager. CITY’S requirements shal! be reasonable and shal! be designed to assure protection from and against the kind and extent 13 of risk which exists at the time a change in insurance is required. The Rea! Property Manager shall notify SUBTENANT in writing of changes in the insurance requirements, if SUBTENANT does not deposit copies of acceptable insurance policies with CITY incorporating such changgs within sixty (60) days of receipt of such notice, or in the event SUBTENANT fails to maintain in effect any required insurance coverage, SUBTENANT shall be in default under this sublease without further notice to SUBTENANT. Such failure shall constitute a materia! breach and shal! be grounds for immediate termination of this Sublease at the option of CITY. The procuring of such required policy or policies of insurance shall. not be construed to limit SUBTENANT’S liability hereunder nor to fulfil! the indemnification provision and requirements of this Sublease. Notwithstanding the policy or policies of insurance, SUBTENANT shal! be obligated for the ful! and tota! amount of any damage, injury, or loss caused by or connected with this Sublease or with use or occupancy of the PREMISES. XXiII. ASSIGNING, SUBLETTING, AND ENCUMBERING PROHIBITED Since CITY has relied on the specific background and capabilities of SUBTENANT in awarding this Sublease, any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, or assignment (collectively referred to as ENCUMBRANCE) of SUBTENANT’S interest in the PREMISES, or any part or portion thereof, is prohibited. Any attempted ENCUMBKhNCE shall be null and void and shall confer no right, title, or interest in or to this Sublease. if SUBTENANT hereunder is a corporation or an unincorporated association or partnership, the ENCUMBKhNCE of any stock or interest in the corporation, association, or partnership which, in the aggregate over any consecutive two-year period, exceeds twenty-five percent (25%) shal! be deemed, an assignment within the meaning of this clause. XXIV. DEFAULT IN TE~S OF THE SUBLEASE BY SUBTENANT Should SUBTENANT defaultin the performance of any covenant, condition, or agreement contained in this SUBLEASE and such default is not corrected within .thirty (30) days of receipt of a notice of default from CITY, CITY may: ho Terminate this SUBLEASE and all rights of SUBTENANT and those who claim under SUBTENANT, stemming from this SUBLEASE, shal! end at the time of such termination; B o At CITY’S sole option, cure any such default by performance of any act, including payment of money, and the cost thereof, plus reasonable .administrative cost, shall become immediately due and payable by SUBTENANT to CITY; 14 Seek an action or suit in equity to enjoin any acts or things which may be unlawfu! or in violation of the rights of CITY; Do Seek a mandamus or other suit, action of proceeding at law or in equity to enforce its rights against SUBTENANT and any of its officers, agents, and emp!oyees and its assigns, and to compel it to perform and carry out its duties and obligations under the law and its covenants and agreements with CITY as provided herein; or m °Pursue any other remedy, available by law or specifically provided in other clauses of this SUBLEASE. However, in the event of a default which cannot reasonably be cured within thirty (30) days, SUBTENANT shall have a reasonable period of time (as determined by the City Manager) to cure the default. Each and al! of the remedies given to CITY hereunder or by any law now or hereafter enacted, are cumulative and the exercise of one right or remedy shal! not impair the right to CITY to exercise any or al! other remedies, in case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, then, and in every such case, CITY and SUBTENANT shal! be restored to its and their former position and rights and remedies as if no such suit, action or proceedings had been brought or taken. In addition to a violation or breach of any other provision of this SUBLEASE, SUBTENANT shal! be considered to be in default under this SUBLEASE should SUBTENANT: voluntarily file or have involuntarily filed against it any petition under any bankruptcy or insolvency act or law; be adjudicated a bankrupt; or attempt to make a general assignment for the benefit of its creditors. XXV.LIMITATION OF THE LEASEHOLD This SUBLEASE and the rights and privileges granted SUBTENANT in and to the PREMISES are subject to al! covenants, conditions, restrictions, and physica! or lega! encumbrances, including those which are set out in the September i, 1989 LEASE as amended July 21, 1998, by and between CITY AND DISTRICT. (A copy of the Agreement is on file at 250 Hamilton Avenue, city Hall, Rea! Estate Division, for your review.) Nothing contained in this SUBLEASE or in any document related hereto shal! be construed to imply the conveyance to SUBTENANT of rights i~ the PREMISES which exceed those owned by CITY. 15 XXVI. NOTICES All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder given by either party to the other, shall be in writing and shal! be sufficiently given and served upon the other party if (!) personally served, (2) sent by United States Certified mail, postage, prepaid, (3) sent by express delivery service, or (4) in the case of a facsimile, if sent to the telephone number(s) set forth below during normal business hours of the receiving party and fol!owed within 48 hours by delivery of hard copy of the material sent by facsimile, in accordance with (!), (2) or (3) above. Personal service shal! include, without limitation, service by delivery service and service by facsimile transmission. Delivery of notices properly addressed shal! be deemed complete when the notice is physically delivered to the Rea! Property Manager. All notices pursuant to this SUBLEASE shall be addressed as set forth be!ow or as either party may subsequently designate by wr.itten noc_ce. TO: CITY TO: SUBTENANT Real Property Manager City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 F~i: (650) 323-1741 Chief Operating Officer ALSJCC 4000 Middlefield Road Pa!o Alto, CA 94401 with a copy to: City Clerk City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (650) 328-3631 and City Attorney, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (650) 329-2646 XXVII.REPRESENTATIONS REGARDING HAZARDOUS K~TERiALS With respect to the existence or use of "Hazardous Materials" as defined in 30(A) of the Genera! Conditions, CITY represents to 16 SUBTENANT to the best of CITY’S knowledge as of the date of execution of this SUBLEASE and based on no other inquiry than (i) information received from the Palo Alto Unified School District, the master landlord of the subleased premises, and (ii) the making and examination of a study of the subleased premises undertaken by Dynamac Corporation with respect to the existence or non-existence of friable and non-friable asbestos and asbestos-containing construction materials, that the subleased premises is in compliance with al! ~laws regulating the handling, transportation, storage, treatment, use and disposition of Hazardous Materials, including asbestos and asbestos-containing construction materials. XXViI!. ATTACHMENT TO SUBLEASE This SUBLEASE includes the following exhibits, which are attached hereto and by this reference incorporated into this SUBLEASE: Exhibit A - General Conditions Exhibit B - Description of SUBLEASED Premises Exhibit C - Hourly Rental Uses The inclusion of clauses in Exhibit A (GENEKhL CONDITIONS) is not in any way intended to lessen the importance of these clauses, but is merely done to enhance the organization of various clauses and this SUBLEASE. 17 IN WITNESS WHEREOF, the parties have executed this SUBLEASE the day and year first above written. CITY: CITY OF PALO ALTO (CITY) BY: Assistant City Manager APPROVED AS TO FORM: SUBTENANT : ALBERT L.SHULTZ COMMUNITY CENTER JEWISH BZ~ Sr. Assistant City Attorney RECOMMENDED FOR APPROVAL: By: Director, Community Services 18 EXHIBIT A GENERAL CONDITIONS i.DEFINITIONS CITY shal! mean the City Counci! of the City of Palo Alto, a municipal corporation. The City Manager is hereby authorized to take any actions under this SUBLEASE on behalf of CiTY except for termination of this SUBLEASE. Clauses in this SUBLEASE refer to specific officers or employees of CITY. Should these positions be eliminated or the title changes, it is understood and agreed that such references shall be considered to be to the new title for renamed positions or to the replacement official designated with the responsibilities of any eliminated position. Any reference to a City officer or emp!oyee includes a reference to the officer’s or emp!oyee’s designated representative. 2. TIME Time is of the essence of this SUBLEASE. 3. ACCESS TO PREMISES SUBTENANT agrees not to obstruct the sidewalks, entry passages, or halls and will use the same only as a means of passage from its respective areas. SUBTENANT and its emp!oyees and invitees shal! have the right, in common with other persons, to use driveways and parking areas located on the property provided that such use shall be subject to such reasonable rules and regulations as may from time to time be adopted by CITY. 4. SIGNS SUBTENANT agrees not to construct, maintain, or allow any sign to be placed upon the PREMISES except as may be approved in writing by CITY. Unapproved signs, banners, etc., may be removed by CITY. All signs to be placed upon the PREMISES, must conform to the Cubberley Master Sign Program. CITY will consult with SUBTENANT, prior to installing any signs upon the portion’ of PREMISES subleased by SUBTENANT, or common areas which would directly influence SUBTENANT’S use of PREMISES in accordance with Clause IIi (Required and Optional Services and Uses). 19 SUBTENANT will reimburse CITY for the cost of fabrication of new signs (approximately $5,348) to accommodate SUBTENANT. SUBTENANT shall reimburse CiTY within 30 days of installation of the signs. New signs will include a monument sign, a vehicular directional, and two sets of JCC Building Letters, a Building Sign, two Exercise Room signs and changes to five Site Directories to include ~JCC. Signs shall conform to the Cubber!ey Master Sign Program approved by the ARB on December 3, 1992 5.PERMITS AND LICENSES SUBTENANT shall be required to obtain and pay for any and all permits and/or licenses which may berequired in connection with the operation of, and any approved SUBTENANT construction upon, the PREMISES asset forth in this SUBLEASE. 6.MECHANICS LIENS SUBTENANT shall at all times indemnify and save CITY harmless from a!l claims for labor or materials supplied in connection with construction, repair, alteration, or installation of .structures, improvements, equipment, or facilities within the PREMISES by or at the direction of SUBTENANT, and from the cost of defending against such claims, inc!ud±ng attorney fees. SUBTENANT shall provide CITY with at least ten (I0) days written notice prior to commencement of any work which could give rise to a mechanics lien or stop notice. CITY reserves the right to enter upon PREMISES for the purposes of posting Notices of Non-Responsibility. In the event a lien is imposed upon the PREMISES as a result of such construction, repair, alteration, or installation, SUBTENANT shal! either:. A.Record a valid Release of Lien; or Bo Deposit sufficient cash with CITY to cover the amount of the claim on the lien in question and authorize payment to the extent of said deposit to any subsequent judgment holder that may arise as a matter of public record from litigation with regard to lienholder claim; or Co Procure and record a bond in accordance with Section 3143 of the Civil Code, which releases the PREMISES from the claim of the lien from any action brought to foreclose the lien. Should SUBTENANT fail to accomplish one of the three optional actions within fifteen (15) days after the filing of such a lien, the SUBLEASE shal! be in default and may be subject to immediate termination. 2O 7.SUBLEASE ORGANIZATION AND RULES OF CONSTRUCTION Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context otherwise indicates, words importing the singular number shal! include the plura! number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natura! persons. The terms "hereby", "hereof", "hereto", "herein", "hereunder" and any similar terms, as used in this agreement, _e~er to this agreement. All the terms and provisi®ns hereof shal! be construed to effectuate the purposes set forth herein, and to sustain the validity hereof. The titles and headings of the sections of this agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall not in any way modify or restrict any of the terms of provisions hereof or be considered~or given any effect in construing this agreement or any provision hereof in ascertaining intent, if any question of intent shall arise. 8.AMENDMENTS This SUBLEASE sets forth all of the agreements and understandings of the parties and any modifications must be written and properly executed by both parties. 9.UNLAWFUL USE SUBTENANT agrees that no improvements shall be erected, placed upon, operated, nor maintained within the PREMISES, nor any business conducted or carried on therein or therefrom, in violation of the terms of this SUBLEASE, or of any regulation, order of law, statute, or ordinance of a governmental agency having jurisdiction over SUBTENANT’S use of the PREMISES. i0.NONDISCRIMINATION SUBTENANT and its employees shall not discriminate against any person because of race, co!or, religion,ancestry,age, sex, nationa! origin or physical handicap.SUBTENANT shall not discriminate against any emp!oyee or applicant foremployment because of race, color, religion, ancestry, sex, age, nationa! origin or physica! handicap. SUBTENANT covenants to meet al! requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in emp!oyment. If SUBTENANT is found in violation of the nondiscrimination provision of the State of California Fair 21 Employment Practices Act or similar provisions of federal law or executive order in the conduct of its activities under this SUBLEASE by the State of California Fair Emplo]~ent Practices Commission or the equivalent federal agency or officer, it shal! thereby be found in default under this SUBLEASE, and such default shall constitute amateria! breach of this SUBLEASE. CITY shall then have the power to cance! or suspend this SUBLEASE in whole or in part. !i. INSPECTION CITY’S employees and agents shall have the right at all reasonable times to inspect the PREMISES to determine if the provisions of this SUBLEASE are being complied with. 12.INDEMNIFICATION A. SUBTENANT. SUBTENANT shall indemnify, defend and hold CITY harmless from and against any and al! liabilities, claims, demands, losses, costs, and expenses, including reasonable attorneys’ fees ("Claims") incurred by CITY, arising out of injuries to any person or damage to any property occurring on the Premises or the Cubberley Site which arise from the acts or omissions of SUTENANT, its emp!oyees, agents, contractors, or invitees, except to the extent arising from the negligence of CiTY and DISTRICT (during the period that DISTRICT owns the Cubberley Site) and their respective agents, employees, invitees, tenants and permittees. SUBTENANT shal! have the right to decide and determine whether and when any such action or proceeding shall be compromised, resisted, defended, tried or appealed. B. CITY. CITY shall indemnify, defend and hold SUBTENANT harmless from and against any and al! Claims incurred by SUBTENANT, arising Out of injuries to any person or damage to any property occurring on the Premises or the Cubberley Site which arise from the negligence of CITY, its emp!oyees, agents, contractors, or invitees, except to the extent arising from the negligence of SUBTENANT or DISTRICT (during the period that DISTRICT owns the Cubberley Site) and their respective agents, employees, invitees, tenants and permittees. CITY shall further indemnify, defend and hold SUBTENANT harmless from and against any and al! Claims incurred by SUBTENANT, arising out of any failure of CITY to perform its obligations under the LEASE, except to the extent such obligations, if any, are expressly assumed by SUBTENANT hereunder. CITY shal! have the right to decide and determine whether and when any such action or proceeding shall be compromised,resisted,defended,tried or appealed. 13.TAXES AND ASSESSMENTS This SUBLEASE may create a possessory interest which is subject to 22 the payment of taxes levied on such interest. It is understood and agreed that all taxes and assessments (including but not limited to the possessory interest tax) which become due and payable upon the leasehold interest in the PREMISES or upon fixtures, equipment, or other property installed or constructed thereon by SUBTENANT, shall be the full responsibility of SUBTENANT and SUBTENANT shall pay such taxes and assessments prior to delinquency. 14.SUCCESSORS IN INTEREST Unless otherwise provided in this SUBLEASE, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of al! the parties hereto, al! of whom shal! be jointly and severally liable hereunder. 15.CIRCUMSTANCES WHICH EXCUSE PERFOR[~hNCE (FORCE H_hJEURE) If either party hereto shal!be delayed or prevented from the pe_~ormance of any act required hereunder by reason of acts of God restrictive governmenta! laws or regulations, or other cause without fault and beyond the control of the party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shal! be extended for a period equivalent to the period of such delay. 16.PARTIAL INVALI.DITY If any term, covenant, condition, or provision of this SUBLEASE is determined to be invalid, void, or unenforceable, by a court of competent jurisdiction, the remainder of the provisions hereof shall remain in full force and effect and shal! in no way be affected, impaired, or invalidated thereby. 17.WAIVER OF RIGHTS The failure of CITY or SUBTENANT to insist upon strict performance of any of the terms, covenants, or conditions of this SUBLEASE shal! not be deemed a waiver of any right or remedy that CITY or SUBTENANT may have, and shal! not be deemed a waiver of the right to require strict performance of al! the terms, covenants, and conditions of the SUBLEASE thereafter, nor a waiver of any remedy for the subsequent breach or default of any term, covenant, or condition of the SUBLEASE. 18.COSTS. OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT In the event either CITY or SUBTENANT commences legal action against the other claiming a breach or default of this SUBLEASE, the prevailing party in such litigation shall be entitled to recover from the other reasonable cost of sustaining such action, including reasonable attorney fees, as may be fixed by the Court. 19.RESERVATIONS TO CITY The PREMISES are accepted "as is" (as defined by the terms of paragraph IB) and "where is" by SUBTENANT subject to any and all existing easements, and encumbrances. CITY reserves the right to instal!, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oi!, and gas pipelines; telephone and telegraph power lines; and the applications and appurtenances necessary or convenient for connection therewith, in, over, upon, through, across and along the PREMISES or any part thereof, and to enter the PREMISES for any and al! such purposes. CITY also reserves the right to grant franchises, easements, rights of way, and permits, in, over, upon, through, across, and a!ong any and al! portions of the PREMISES. No right reserved by CITY in this clause shall be so exercised as to interfere unreasonably with SUBTENANT’S operation hereunder. CITY agrees that rights granted to third parties by reason of this clause shal! contain provisions that the surface of the land shall be restored as nearly as practicable to the origina! condition upon the completion of any construction. 20.HOLDING OVER in the event SUBTENANT shal! continue in possession of the PREMISES after the term of the SUBLEASE, such possession shall not be considered a renewa! of this SUBLEASE but a tenancy from month to month and shall be governed by the conditions,and covenants contained in this SUBLEASE. 21.CONDITION OF PREMISES AT THE TiME OF SUBLEASE At the commencement of the SUBLEASE, SUBTENANT shall accept the buildings and improvements and any equipment in their existing condition and state of repair, and SUBTENANT agrees that no representations, statements, or warranties, express or implied, have been made by or on behalf of CITY in respect thereto except as contained in the provisions of this sublease., and CITY shal! in no event be liable for any latent defects. 22. CONDITION OF PREMISES UPON TERMINATION Upon termination of this SUBLEASE, except as otherwise agreed to herein, SUBTENANT shall redeliver possession of the PREMISES to CITY in substantially the same condition that existed immediately prior 24 to SUBTENANT’S occupancy, reasonable wear earthquake, war, and any act of war excepted. and tear, flood, Upon termination of this SUBLEASE, CITY may require SUBTENANT to remove interior structures/modifications constructed by SUBTENANT including remova! of the center wal! between the two Exercise Rooms and the installation of consistent f!ooring throughout the space. 23. DISPOSITION OF ABANDONED PERSONAL PROPERTY if SUBTENANT abandons the PREMISES or is dispossessed thereof by process of law or otherwise, title to any persona! property be!onging to SUBTENANT and left on the PREMISES forty-five (45) days after such abandonment or dispossession shal! be deemed to have been transferred to CITY. CiTY shall have the right to remove and to dispose of such property without liability therefor to SUBTENANT or to any person claiming under SUBTENANT, and shal! have no need to account therefor. 24.CITY’S RIGHT TO RE-ENTER SUBTENANT agrees to yield and peaceably deliver possession of the PREMISES to CITY on the date of termination of this SUBLEASE, whatsoever the reason for such termination. Upon giving written notice of termination to SUBTENANT, CITY shall have the right to re-enter and take possession of the PREMISES on the date such termination becomes effective without further notice of any kind and without institution of regular lega! proceedings. Termination of the SUBLEASE and re-entry of the PREMISES by CITY shall in no way alter or diminish any obligation of SUBTENANT under the SUBLEASE terms and shall constitute an acceptance or surrender. SUBTENANT waives any and all rights of redemption under any existing or future law or statute in the event of eviction from or dispossession of the PREMISES for any reason or in the event CITY re-enters and lawfully re-takes possession of the PREMISES. 25.CONFLICT OF INTEREST SUBTENANT warrants and covenants that no official or employee of CITY nor any business entity in which any officia! or employee of CITY is interested: (i) has been emp!oyed or retained to solicit or aid in the procuring of this agreement; or (2) wil! be employed in the performance of this agreement without the divulgence of such fact to CITY. In the event that CITY determines that the employment of any such official, employee or business entity is not compatible with such official’s or employee’s duties as an officia! or employee of CITY, SUBTENANT upon request of CITY shal! immediately terminate such employment. Violation of this provision constitutes a serious breach of this SUBLEASE and CITY may terminate this SUBLEASE as a 25 result of such violation. 26.EMINENT DOMAIN In the event the whole or any part of the PREMISES are condemned by a public entity in the lawfu! exercise of its power of eminent domain, this SUBLEASE shall cease as to the part condemned. The date of such termination shal! be the effective date of possession of the whole or part of the PREMISES by the condemning public entity. If only a part is condemned and the condemnation of that part does not substantially impair the capacity of the remainder to be used for the purposes required by this SUBLEASE, SUBTENANT shall continue to be bound by the terms, covenants and conditions of this SUBLEASE. However, the then current minimum annual rent shall be reduced in proportion to the relationship that the compensation paid by the condemning public entity for the portion condemned bears to the value of the entire PREMISES as of the date of possession of the part condemned. If the condemnation of a part of the PREMISES substantially impairs the capacity of the remainder to be used for the purposes required by this SUBLEASE, SUBTENANT may: Terminate this SUBLEASE and thereby be absolved of obligations under this SUBLEASE which have not accrued as of the date of possession by the condemning public entity; or Continue to occupy the remaining PREMISES and thereby continue to be bound by the terms, covenants and conditions of this SUBLEASE. If SUBTENANT elects to continue in possession of the remainder of the PREMISES, the then current annual minimum rental shall be reduced in proportion to the relationship that the compensation paid by the condemning public entity for the part condemned bears to the value of the entire SUBLEASED PREMISES as of the date of possession by the condemning public entity. SUBTENANT shal! provide CITY with written notice advising CITY of SUBTENANT’S choice within thirty (30) days of possession of the part condemned by the condemning public entity. CITY shall be entitled to and shall receive all compensation related to the condemnation of all or part of the PREMISES by the exercise of eminent domain except that SUBTENANT shal! be entitled to that portion of the compensation which represents th6 value of the SUBTENANT constructed improvements for the remainder of the SUBLEASE term. The amount to which SUBTENANT shal! be entitled shal! not exceed the actua! cost of improvements constructed by SUBTENANT reduced in proportion to the relationship of the remaining SUBLEASE term to the original SUBLEASE term, using a straight line approach. 26 27.CHANGES IN PRICE INDICES Clauses contained in this SUBLEASE may provide for adjustment based on the Consumer Price Index, component indices, or other indices. Should these indices be changed, altered or cease to be published, the fol!owing conditions shal! apply: o If the subject index is changed so that the base year differs from that used as of the month in which the term commences, the subject index shal! be converted in accordance with the conversion factor published by the publisher of that index; If the subject index is discontinued or revised during the SUBLEASE term, such index shal! be replaced by another government index or computation which wil! obtain substantially the same result as would be obtained if the subject index had not been discontinued or revised. 28.POST-ACQUISITION TENANCY SUBTENANT understands and agrees that SUBTENANT is not eligible and furthermore waives al! claims for re!ocation assistance and ben~_Ls under federa!, state or !ocal law. 29.HAZARDOUS SUBSTANCES Definition. As used herein, the term "Hazardous Materials" means any substance or materia! which has been determined by any state, federa! or loca! governmenta! authority to be capable of posing risk of injury to health, safety, and mproperty, including petroleum and peLroleu products and all of those materials and substances designated as hazardous or toxic by the U.S. Environmenta! Protection Agency, the California Water Quality Control Board, the U.S. Department of Labor, the California Department of Industria! Relations, the California Department of Health Services, the California Health and Welfare Agency in connection with the Safe Water and Toxic Enforcement Act of 1986, the U.S. Department of Transportation, the U.S. Department of Agriculture, the U.S. Consumer Product Safety Commission, the U.S. Department of Health and Human Services, the U.S. Food and Drug Administration or any other governmenta! agency now or hereafter authorized to regulate materials and substances in the environment. Without l_miLlng the generality of the foregoing, the term "Hazardous Materials" shall include al! of those materials and substances defined as "toxic materials" in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, as the same may be amended from time to time. 27 B o SUBTENANT’S Use of PREMISES. During the term of this SUBLEASE, SUBTENANT shal! abide and be bound by al! of the following requirements: SUBTENANT shall comply with all laws now or hereafter in effect relating to the use of Hazardous Materials On, under or about the PREMISES, and SUBTENANT shal!not contaminate the PREMISES, or its subsurfaces, with any Hazardous Materials. ii.SUBTENANT shall restrict its use of Hazardous Materials at the PREMISES to those kinds of materials that are normally used in constructing the Project. Disposal of any Hazardous Materials at the Premises are strictly prohibited.Storage of such permissible Hazardous Materials is allowed only in accordance with al! applicable laws now or hereafter in effect. Al! safety and monitoring features of any storage facilities shall be approved by CITY’S Fire Chief in accordance with all laws. Notwithstanding the foregoing, SUBTENANT shall be allowed to use at the Premises janitorial, cleaning and office supplies commonly used in an office or classroom setting, provided such use shall b6 in compliance with applicable laws. iii. SUBTENANT shal! be solely and fully responsible for the reporting of al! Hazardous Materials releases tothe appropriate public agencies, when such releases are caused by or result from SUBTENANT’S activities onthe PREMISES. SUBTENANT shal! immediately inform CITY ofany release of. Hazardous Materials, whether or not the release is in quantities that would otherwise be reportable to a public agency. iv.SUBTENANT shall be solely and fully responsible and liable for such releases at the Premises, or into CITY’S sewage or storm drainage systems. SUBTENANT shal! take all necessary precautions to prevent any of its Hazardous Materials from entering into any storm or sewage drain system or from being released on the Premises. SUBTENANT shall remove releases of its Hazardous Materials in accordance .with al! laws. In addition to al! other rights and remedies of CITY hereunder, if the release, of Hazardous Materials caused by SUBTENANT is not removed by SUBTENANT within ninety (90) days after discovery by SUBTENANT, CITY or any other third party, CITY may pay to have the same removed and SUBTENANT shal! reimburse CITY for such costs within five (5) days of CITY’S demand for payment. 28 vi. SUBTENANT shall protect, defend, indemnify and hold harmless CITY from and against all loss, damage, or liability (including al! foreseeable and unforeseeable consequential damages) and expenses (including, without limitation, the cost of any cleanup and remediation of Hazardous Materials) which CITY may sustain as a result of the presence or cleanup of Hazardous Materials on the PREMISES, that result from SUBTENANT’.s use or release of Hazardous Materials. SUBTENANT’S obligation under this Clause shall survive the expiration or earlier termination of this SUBLEASE. 30.ALL COVENANTS ARE CONDITIONS All provisions of the SUBLEASE are expressly made conditions. 31.PARTIES OF INTEREST Nothing in this agreement, expressed or implied, is intended to, or shall be construed to, confer upon or to give to any person or party other than CITY and SUBTENANT the covenants, condition or . ~~., stipulations, promises andsr_pulaLlons hereof. Al! covenants agreements in this SUBLEASE shal! be for the sole and exclusive bene~’~_¯~iL of CITY and SUBTENANT 32.RECORDATION OF SUBLEASE Neither CITY nor SUBTENANT shal! record this SUBLEASE; however, a short-form memorandum of SUBLEASE may be recorded at CITY’S request. 33.CALIFORNIA LAW This Sublease shal! be construed and interpreted under the laws of the State of California. 34.ATTORNEYS’ FEES In any action or proceeding to enforce the terms of this Sublease, the prevailing party shall be entitled to attorneys’ fees and court costs, as deemed reasonable by the court or arbitrator. 35.ENTIRE AGREEMENT This Sublease together with any exhibits and attachments constitutes the entire agreement between SUBTENANT and CITY with regard to the Cubber!ey Site. This Sublease may be altered, amended or revoked onl.y by an instrument in writing signed by both parties. CITY and SUBTENANT agree that al! prior or contemporaneous oral or written 29 agreements between and among themselves and their agents and representatives relative to the use of the Cubber!ey Site are merged or revoked by this Sublease. 36.NON-DISTURBANCE Provided SUBTENANT is not in default under the SUBLEASE, the possession of the Premises by SUBTENANT and SUBTENANT’s rights hereunder shal! not be affected or disturbed by CITY or any of its successors in interest. 3O Exhibit Cubberley Community Center 4000 MIDD E FIE LD ROAD PAY TELEPHONE ED PARKING OOMS ]ERE AREFIRE ~ERS ROOM GREENDELL/~y SCHOOL@ PAVILION AUDITORIUM CHARLESTON SHOPPING CENTER to EAST CHARLESTON RD. I~ d to SAN ANTONIO RD. ~Cubberley Community Center 4000 Middlefield Road, T2 Palo Alto, California, 94303 Office" 650- JCC Special .Events -Event I Date HOURLY RENTAL USES ITime IRoom 9121/0216:00-10:00 pm )AUD 9/21/0217:00-10:00 pm 9/15/0216:00-9:00 pm iGym B I Exhi.bit C Set Up I Notes September ~ussian Concert " BBC College Bowl October I Russian Concert.10120/0216:00-10:00 pm !AUD Cultural Gala 1012610216:00 -10:00 pm tTheater Senior Program ** WE 10/27102 I2:30 -5:00 pm AIDD Piano qovember Senior Program 111310212:30 - 5:00 pm AUD Piano Russian Concert 11/9/0216:00 -10:00 pm AU D t Piano .Senior Program 11110/0212:30 - 5:00 pm Theater ILecture Senior Program 11/17/0215:00 - 7:00 pm AUD 1 Lecture College Bowl I 11/1.710216:00-9:00 pm Theater Russian Actors Studio I 11/19/0216:00 - 10:00 pm lAUD ~ook Fair 11/23/02!12:00 - 4:00 pm I M4 . ! December I Chanukah Celebration 12/1/0212:30 - 6:00 pm IPaviiion otta Dance Performance 12/15/0213:00- 6:00 pm tAUD Senior Program 12/15/0212:30 - 5:00 pm College Bowl 12/15/0216:00-9:00 pm tAUD I Lectu re ]January BBC Senior Program Piano College Bowl February Senior Program College Bowl Senior Program I 1/11/03!7:00- 10:00 pm IM4 1/12/0312:30 - 5:00 I~m lAUD -1119103!6:00~9:00 pm I 2/2/03.t2:30 - 5:00 pm lAUD 2/16/0316:00-9:00 pm tAUD 2123/0312:30 - 5:00 pm IAUD I I 3/16/0312:30 - 5:Q0 pm lAUD 31!610315:00 - 9:00 pm ITheater 3/16/0316:00-9:00 pm tAUD 3/2910317:00 - 10:00 pm 3130/0312:30 - 5:00 pm lAUD ! !i 4/6/0312:30 - 5:00 pm tAUD 4/13/0312:30-5:00pm-lAUD 4116/0314:00- 10:00.pro lAUD 4120/03 !6:00-9:00 pm lAUD Piano " Lecture I Piano. March Senior Program Celbration of Yiddish College Bowl BBC . Senior Program Lecture April Senior Program Senior Program Community seder College Bowl Piano Lecture 8/12/02 JCC Special Events Exhibit C May Victory Day Celebration ~ussian Actors Studio College,Bowl ,otta Dance PeFformance Senior Program Israel Independence Day June ~,ussian Fair 51910314:00 - 9:00 pm 5/9/03 5/17/03 5/18/02 5/18/02 5/25/03 5/14103 7:00- 10:00 pm 7:00 - 10:00 pm 6:00-9:00 pm 3-7.-.-.-.-.-.-.-.~-’ 6:00 pm 2:30- 5:00 pm 6:00 - 9:00 pm I 6/8/0216:00-10:00 pm i lAUD lAUD IM4 fAUD lAUD lAUD lAUD lAUD IPiano 8/12/02 JCC Reocurring Events Event I Frequency Bridge Bridge Bridge Lotta Lotta Fencing Fencing Sports Skills Sports Skills :olk Dancing Weekly Weeldy Weekly Weekly Weekly Weekly lWeekly I Weekly " IWeekly Weekly IDay ! tMonday lWednesday IThursday ITuesday IThursday IMonday. I Wednesday ITuesday Friday Monday tTime Room 9:45 -1:00 pm IM4 5:30-9:00 pm AUD 1:00-4:00 pm. M4 14:00-6:00 pm lAUD I4:45-6:30 pm lAUD 14:00-5:00 pm lAUD 14:00-5:00 pm AUD 14:00-5:00 pm Outside/Amp f4:00- 5:00 pm IOutsidelAmp 17:00- 10:00 pm IAUD Exhibit C 8/12102