Loading...
HomeMy WebLinkAbout0248.093- April 22/ 199J HONORABLE CITY COUNCIL Pale Alto, california 11 llEOUES'l' POll PROPos1t.LS -O~'r.J...Q.2:" TO LE}l.SE CITY-OWNElt _~WI.M/TENNle: ~ACI:tITIES AT 3005 J4I~P.LE:rI!Ltl R01>,D Members of the Council: Report ill Brief This report requests that Council l'wld a public hearing and transmits the Request .fer proposals (RFP) for the city-or.med s~imJtennis facilities located at 30D9 Middlefield Road (kno~n as the former Chuck Thompson site) for council app!'oval prior to solicitation of responses. Backqrou!lid: In November 1985, the citizens of Palo .~lto approved ballot measures authorizi~g the City to exchange p~blic land for a 3.74- acre site on Middlefield Road. The Middlefield Road site included the outdoor ice skating rink commonly knor"m as t,he Winter Lodgej a swimming pool, a small gym and five tennis courts, commonly known as the former Chuck Thompson slJim and tennis center si'::e; and a vacant lot at the front of the site formerly occupied by a Shell gas station (see Attachment A). T;1.e exchange of lands was completed in September 1986 and included a condition that Shell Oil COlll_paT'.y remove gasoline resich..l,=! from the soil and ',",'ater. In July of 1989, tl1€ coullcil approved a t .... er.ty-year lea.se of the winter Lodge p.?rtion of the si te to Cc;:nmuni ty Skating, Inc. The remainder of the 5i te ,former Chuck Tc.ompson site) -was leased to the Palo Alto Your.g Men's Christian Association (Yl'KA) on a one-year lease, pending a decision by the YMCA on hOI,,' this site fit into its overall plan for YMCA facilities in Palo Alto. In September 1990. the YMCA l'lotified the City that it would b~ concentrating its CMR:2~8:93 - -r-."'.'. ·;1 L. - efforts or. its Ross Road sits a.nd ter:n:r',~t.:d th.~ lease. On october 22, 1990, t.ha: Council djrected staff to prepare a request for proposal for the long-term lease ,:;.[ the :;-.. 'im and tenI".is court facility and return to Council for approval of the RFP. Staff has delayed returning to council with the PFP, pending the completion of the expansion of the Winter ~G1ge and the clea"1ing up of contamin,lticrl 0:'1. the portion of the site for:n1erly occupied by the Shell gas station. In 1992, Co:r.-::-::w.nity SY.ating, Inc. completed the expansion of t!"',e indoo::: ice skating surface and relat02d facilities, as part of its appr-oved mas.ter development program for th.;: Winter Ledge. St.i11 to be completE'.d is the paving and striping for the vacant fro~t lot for:rne,rly occup ied by the Shell statj on and the re-striping of the existing parking lots. In February 1993, Shell Oil cornpan:l completed i-cs cleanup of soil contamination. The ground 'Water cleanup, ,...hic::h ""ill continue for another ten years, has been contained 'to a sma] 1 fer,ced-in lr.P"Idscaping area near Middlefield Road~ The L5-acre swim/tennis site t.o be leased is adjacent to and behind the Winter Lodge and i~cludes-five te:-:n::'s CULorts and a pooL The gym formerly on the site was denolished in 1990 due to earthquake damage. The pool ",'as dr-ained before tr,e City tock o·wnership of the property, has not been used since, and is in poor condition~ Fou!" of the five tennis cou.r:-ts are in relatively good cQ:ndition and are currently being used by tennis players on a first-come, first-ser-ved basi~. The ac ... ::ess and parking for the site 'Will be shared ir, COr.l~cn ",ith t.he ';.;inter Lodge (see Attachment A). The attached. RFP consists of ar; lr.fcnr~ation Flyer (s\,!r;".:;,arizing the offering) and d Proposal Pa c}:~:I'~e (ir·ch.:ding Proposa I Forms, Proposal Questionnaire, option to Lease and Lease). The intent of t..he RFP is to lease the property for ten years with a five-year oi,)tion to re.r:e ... to an operator who lo.'il1 up';rade, 'maintain and operate the property as a recreational facility .. accessible to people of all abilities, '..,:hich rnay inclUde tennis and/or Swimming. The RFP is summarized i'1 Attachr.ent B. Major provtsions and requirements of the P.FP, option to Lease and Lease are as follows: Use of the Proper~y The RFP states that the City will consider proposals for either a tennis-only facility or a s~im-only faCility, or a combination of tennis and s'Winrning" However, the RFF also points out that the limited parking on t.he site is sl"1ared .... ith the adjacent Winter CMR:248:93 2 'L ,~ '. - Lodge ice 5xating facility, and that the number of parking spacE:s required for a cOl7lbination tennis and s\dm facil i ty, it peak. seasonal use and peak daily use is the same as t~e Winter Lodge, may impede the combination of beth tennis ar.d s· ... ·imrnir-.g on the sit.e. The RFP encQur.(l.ges tennis and/or s· •• :imrr.ing instruction. According to community Services staff, there is a i"leed for these services in Pal~ Alto l and the existing I-shaped pool config~ration is ideal for s'Wim.'"!'Iing lessens. Making the facilitie5 availatl.e iSnd affordable t.o the publicI in particular Palo Alto residents r is also encouraged. Palo Alto Tennis club In response to Council's request at the Octob~T 30 1 1990 Council meeting, 5taff has contacted the Palo .~lto Tennis Club to solicit its input regarding a public use of the cou.rts .. 'hich would be. self­ sustaining. Chuck Bradl€y~ staff's cont,';Ict ...... ith the Board of the Palo Alto Tennis Club, has be.8n very cooperative and helpful in providing staff ...... ith information conce~ning ter.nis use O~ the site. The Tennis ClI. .. b is supportive of tl1e City rs intent t.o reque'!:1t proposals for the site which could include tennis, and may submit a pr-oposal in respons~ to the R..FP. Parking The entire site, as configured and with planned paving and stripir.q, '"«ill have 115 park ir,g spaces. The required parking for the Winter Lodge facility is 104 spaces r leaving 11 surplus parking spac-es which could be used by the other facility on the site (swimming and/or tennisl ~ The operation of only the existing five tennis courts -would requ i.re 5 spaces in addition to the 104 required by the Winter Lodge I so parking would be no proble.m. A te.nnis··only facility " .. ith the additio)"'J of a 1, DOG s;quar", foot bui Iding 'Would require approxi::cately 11 parkin; spaces, the nu::":',ber of existing surplus spaczs. H01o,,'.ever, a faci 1i ty offering b'jth tennis and s·II..'imming and the addition of a building similar to the. one that Vias den.o1ished (.3,000 square feet) \oI"ould r-equire 152 parking spaces. Even if the swimming/tennis facility did not operate year-round, but only in the summer · ... hen tbe Wint_e.r Lodge is closed (Mar 1 through September 1), parkirlg ,",'Quld st.i 11 not be adequate unless addi ti ona I spaces are added on the site. One possible option \,'ot.:ld be to remove one or t1o.l0 tennis cour-ts tc add parking. [See Attach~ent A t~ Information Flyer fer ~ore detailed parking infor;r.ation.) Required Improve111ents and Estimated Costs The City-required improvements ""ill deper,d on the proposed use and developmer.~. The RFP iaentifi"=:'s the minimum required irnproveruents and estimated costs for use cf the site Ijas is" for tennis only~ The RFP emphasizes that the addition of a building en the site or CMR:248:93 ) - -~" :',' .' '~i=~--!: ., • f~~);':~:--- use of tr.e pool .... il1 involve signif ican~ costs ir. a'.:k!ition t~ those listed for an "as-is" ten.t1is-,:mlj' use of the stte. For any propvsed operation not using the pool, the city ""ill require that the pool be filled ~nd co~pacted. Costs to pave and maintain the commor. access and parking lots \odll be shared '.;ith the i<,'inter Lodge and .ill be based an the Mumber of parJ.r.ing spaces required tor the proposed use, The estimated total cost for the mini:r,.u~': required improve:ments for tl'e "as is" tenr.is-only use is S~3,800. These i~F:rove;nents and estimated costs include:: fill ing and conpactl.ng the pool ($20,000); upgrading the existi~g courts ($l<,~OO); a share of the cost to pave the front parking lot (57,500); and a share of the cost of parking lot JT!aintenance for one year ($1,800). The estimates of the proportional costs to pave the !ron~ lot and to maip.tain the par-kiw; lots are based 0:1 the number of regu ired parking spaces (5 spaces f,:)r t.ennis-cnly use c-f the site "as-is"'). Required Proposal Info!'!:1dtion and Evaluation of Proposals Proposers will be required to provide the information outlined in the City'S policy for the Leased l1se of City Land/Facilities, ar;;d considerat.ion ,\'ill be given tc this infor;:'\ation i!"l evaluating the proposals. This inforrnatior; includes: 1) the extent to -·.r,.'hl.ch the proposed use satisfies a t:ublic need; 2) the consis"Cency of tha p~oposed use with City goals and objectives, as set forth in the Comprehensive Plan and z.oning ordinance; 3) the impact of the proposed use on the neighborhood, c'J!!',,-"!lunity and ~nvironm€nt; 4) tht= degree of public access and fees to be charged to Palo Alto citizensj 5) the monetary and non~Dnetary consideratic!l to the City; and 6) the history and asse'_ssment of t..he proposer's ability to carrj~ out the constructi-:'Ii and operation of the facility and services as proposed. In addition, proposers are required to provide information concernir.g the irr,pact. of the proposed use upon the Winter Lodge operation and eviden=e of the p~opos£rls ability to Il'laintain good relations 1.d th users of the fa:::i li ty, the ... ·inter Lodge and neishbors. of the facility. proposals will Le revic .. 'ed aile evaluated for recor.u;].enaa'tion to the city Council by a proposal evah'atioil committee camp:"ised of City­ staff. Option to Lease Once a successful proposer has been selected by the City Ca~ncil ~nd the option to lease has been executed, the optionee has up to two years to meet the conditions necessary to exercise the option, During the t·.,.:o-year pe::-iod, t;,s optionee roust submit development plans to be revie ... ed and approved by the Archi tcctura 1 Revie\fri Board, Planning CQn~ission and City Council; acquire all required permits for the proposed development; and provide evidence that CMR~248:9J - sUfficient finances are available to co~plete Lhe propo~ed improvements. Lease The t~rm of the lease is ten years: with a five-year opticn to renew. Required use is recreatiDnal, swimrring and/or tennis. The minimum rent has net been established. The anol.l:lt of nonetary rent vill depend upon the nature and value of the improvell'lents and the public benefit (nor:m-monetary cor:sideration) proposed. Required improvements under the lease are those improveMe~t5 identified a~d shown in the plans approved by the City during the option-tc-lease term. It is alsO' required that the te_ilant be respons ible for a share of the annual parking lot maint~nance. Proposed Schedule for solicitation Upon approval of the RFP by Council, staff 1o.'ill advertise the RFP in l:>cal ne ... 'spap~rs and send the Infot":r.1ation Flyer to the City's surplus propert~' mailing list and t.., those persons and gz-oups who have expressed an interest in leasing the site. Proposals wjll be accepted until July 20, 1993. sealed proposals 'Will be openo:!d at 3:00 p.!::. Proposals ".'ill then be reviewed by the evaluation. committee using the criteria listed in the RFP and Proposal Package. Th~ propcsals and reco~~endations for a successful proposE-I" .... ill then be forfJarded to the Cit~· council. An environmental impact asssssmer.t, as may be required by the California Environmental Qualit), Act, 'Will be performed in cormection with the proposals that staif '..l.lti!Mtely prasents to Council. Recommenda t io_n staff recommends that CO\.Jrlcil approve the attached Request For proposals package and direct staff to solicit proposals for the leasing of the s~i~Jten~is facilities located at 3005 Middlefield Road. CJom:2413:9J 5 L '. Respectfully submitte~, 2~/~"l·-k... JAl'! E'r FREEl..".ND Senior Fil"'.ancial Analyst rt;, / , EM! ;; .• 4>.H.~~"'<.J(~- D::~ of 17()1 ~ce /JtifIE FL~! ( Cry ~nager V "Related staff reports: CMP::426:6 CMR:376:9 C~'tR: 525.: Q CMR; 5,n: 0 CMR!5U:O Attachments: Attachment A (map} Attachment B (su~marYl Request tor Froposal, inCluding: Information Flyer Proposal Package co: community Skating/Inc Palo Alto Tennis Club Paul J<ramer, President of the Mic:ldl"3!field Ho:rr:ec''''ners Association CMR:248:9) 6 .('. ~ "' ~ p ~ ! '" '" "' i 2 -, , , ,. I " ~ V,;" '~(':~~~;-~:')"I -i:l:, .,-,'._ :lD·, ~ i'/E _ I ~-.. t" ·~o~~-~·,~"" .,,', .... '~~.~ . A'!r;'!nll .\/ .. '" .-;'. • .' v''· L.J '~h" Ii ''''ii.', ~-,:.: ~ .~. ~~::-~'l··;;;t~ d' . -:,~ .. '''''''10 ,tt.AIIA' tOUNT,!, .CALII'OflN ..... '_ :' , [~,~L~J·'~n~'tl'~~~JJ"~%~ lIloQk '"<)( . 127 53 ~~~-"----,-=::=-=--, ~ /\Y\ t.AYrIl( SVIJDIIII'SrON Tl'ltlr. T N!lgl>~ C""·"-T--'----r---,------.-,.".,.-_ '''1 -, • : T$ . I: • . ~ /4' At: N~t ilG~"r~ N[Ti.. • ~; Q;y /' ~ '~ I " SWilTl & T~;mis 51 te 3005 MI~dlpfield Rd (former l~hlJck Thompson ! site' ,---'" ~'C"" .-.... --- J i WinterlOdge, ,,', • ;'('" ': 0"'" I_ i, 3009 MHldle.fwl ,1 ,,_. ;0 '''> ! (ijl-,-,-..... , Rd. ,': (.,) .;1 l :f---"" --OJ!"!' 1Jl "/ I cornman :: I' ~ ~ a .-pa rU f\q ,~ .J2 I " _ ,j,: ~ ~ _ : . .: access" ;" l __ ;: '\ ~ j' .~ common DiU'king • ~8 ;'_,< _ ~ i')(;C~C;S r I _"_'.1", ,~ ~ (~) ~ >.:'-~ a ,-, '''0 @ g J I..Ommon 'Y--U" -:J i: I~ : I Ii' "'. , ~~~~!;g & + fg i': ~I i /:, §. f :; { If I I (former. fi--!: .. ~",:., She 11,:_,~.1 lej; ;:;:' ",;;;.--..L:;,;w",.,;,;;'"", '--;;;.:""'_...JL, ,I "' J • ';> " t>,~ -.. -~ MIDOLEFIE LD ---._-- -----"-1----ROAD > ' "'I • > " .. , _, :c: w < ----'-------_. --. ---- -~~::-~~~~~~;:~~:~:~~:':~?~t::~ lPJ!m In -53 -Ol~ i I I I ! i , • f r SUMMARY -SWIM/TENNIS CENTER REQUEST FOR PROPOS~L Tl'!e Rp,quest for Proposal (P:FP) consist.:: of l~) the Inforr:aticn Flyer and II.) the Propos31 Package. The Information Fly'2r sum1Tl.ari zes the offer lng and ' .. '111 be sent to interested persons or organizations. The Infor:Tlation Flyer includes the following information! A~ Minim'.2m bid (~1. OOO) and d~te the proposals are d 1je (T1.:..esday, July 20, 1993). c. General description of tt-,e pr0F-erty to be le.ased l including a location and parcel ~ap. C. Statement of Intent of the RFP and requirements for-use. D. Required improvements for minimal use of the site. E. summary of the terms of the opt ion to Lease a.nd the Lease. G. Instructions for obtaining the Proposal Package. II. Proposal package The Proposal package summarizes the proposal requirements and prof:edures and lists the valuation criteria. It includes the Proposal Forms I Proposal Questiolmaire, the. option to Lease and the. Lease. A. option to L,,=--ase -The term of the Option is 2 yea!"s, -3nd it may not be '2xercised until the Optionee hac:; fulfilled the follo" .. ;ing conditions: 1. Paid the purchase price of the Option. 2, 3 • submitted schematic i:ropI"ovemants ;"'ithin 6 the Option. plans of all proposed !!"onths of the cominenCetTient of Obta ned Architectural Review Conrr. ssior. and City Council deve opment plans. ATTACHMENT B Board, approval Planning of the - 1 - ~, 4. 5. Obtained approvals of the city Er:gineer and the Chief Building Cfficial of t.he ccnstruction dra ... in,;s. including a constructiof'! schedule. oetained any necessaz-y perm..!. ts cl~ara~ce5 for the proposed i]'!'",provements. ~nd environ);:'l€'ntal operation and 6. satisfied the Director cf Finance that sufficient funds a~e available to intplement plans approved by the City. 7. Obtained completion/performance bonds suff i cient to ensure funds to co:nplete the apprc'ved plans. 8. Paid the security deposit required by the Lease ($5 r OOO) • B. Le~se -The key provisions of the Lease are as follows: 1. Premises: The property and improvem-=.nts located at 3005 Middlefield Road and shared parking and access. 2. Required uses: Recreational use -swimming and/or tennis. 3. Term: 10 years with a 5 year option to renewa <.. Rent: A minimu2:1 rent has not been establ ished. The amount of any monetary rent will depend en the nature and value of the improvements and the pUblic benefit (non-moneta-. .) consideration) proposed. ::.. Improvements to be made by Tenant: Required improvements a~-' those improvements which are ijentifiad a~d shown in the plans approved by the city during the Option period. 6. construction or additional alteration by Tenant subsequent to the initial construction: Tenant may net make any changes to the property wi~hout prior city revie~ and approval. 7. Maintenance ar,d repairs: Tenant shall be responsible for all maintenance and r~p2.irs for the leased premises and for a share of annual parking lot maintenance based on the required number of parking spaces and the number of :months the facility is in operation~ ATT~CKMEN'I' !II - 2 - --._-_ .. _._----~-... -. .. ,.",).,., ".:," L - - -----------~------------------.----------------------------------------------.--------------------------~~--""~~~~~-'''I ---.-... ~"'" --'. s. Any assig .... 'lment or encuT:,br.a~ce of the Lca:3E! ~1Jst receive prior City approval. 9. Taxes ~nd AsseS3ments, ~tilities: Tenant shall be responsj,ble for all costs for utilities 2nd ta~es and aS5essments for t;-:e property. 10. Ins'.l.ra.T1ce; The Tenant shall ma inta in insu!-·ance providing the following limits and coverage: POLICY ( 1) WORKERS' COMPENS}, TI ON (2) COMPREHENSIVE AUTOMOBILE LIABILITY, including Owned, Hired, and Non-Owned Automobiles (3) COMMERCIAL GENERAL LIABILITY including Products and Completed Operations, Broad Form contractual, and Personal Injury~ (<\} FIRE &: EXTENDED COVERAGE (S) COURSE OF CONSTRUCTION statutory Bodily Injury $1,000,000 ea. person $1,000,000 ea. occurrenCe Property Damage $1,000,000 ea. occurrence Bodily Injury $1,000~OOD ea. person $l~OOO,OOD ea. occurrence $1,000,000 aggregete Propertj' Da-rnage $1, oao, 000 ea. occur-rence Not less than ninety percent (90'%) of the replacement cost. Completed value of the project. AT'I'ACIDfENT B - 3 - ------------ I! , \ . , I. I .• - '-.... 1 l-- , \ _J ~- '. - AMERICANS W!TH DISABI.LITIES AC'l' (JtDA) STATEMEN'l' In compliance ..... ith ths .~!!1eri.-:ans With Disabilities A~t (JWA) of 1990~ this document mar be provided in other accessible formats. For infor~ation. contact: Dianah Neff, ADA Director city of Palo Alto 250 Hamilton Av~nue Palo Alto, CA 94301 415/329-2313 (voice) or 415/328-1199 [TOO! 1.lmT IS I"n WHERE IS IT? ------"----------~-----~ Iufor%t&tion Flyer SUKKARY O¥ LEASE O~PORTUN1T~ An opportunity to obtain a lO-year lease (.dth an option to extend the ter:rn for an additional 5 years) to operate a tennis and/or f'.w!rn facility on citY-o .... ·ned p:operty. Located at 30D5 Middlefield Roac, the leased premises is a 1.5 acre parcel ' .. 'hich was formerly trrE: site of the chuck Thompson S""im and Tennis Center. The 5 i te no\l,'. includes 5 tennis courts anc a s"Wimming pool, and is adjacent to and shares parking ~ith the Winter ~ige ice skating: facility. {see attached site " locatio:1 I:1aps., WHAT IS THE ZONING? The si~e is zoned PF (Pu~lic Facility) WHAT USE WOULD BE PERMITTED? Recreational use: tennis and/or swi~ facility. INSPECTION OF PREMISES: Access to the property is open at all t.iroes except for the pool, ",'hich is fenced and locked~ To access the pool area. call Janet Freeland at (415) 329- 2662 ,Monday through Friday, 8 a.~. to 5:00 p.m,) to 6chedul~ and appointment. WH~N ARE PROPOSALS DUe? Proposals are d~e before Tuesday JUly 20, 1993 and submitted t~: 3;00 p.m. should be IS THERE A MINIMUM BID? HOW 00 I GET THE PROPOSAL PACKAGE? J ".NET1/c"nl(~Fl' Manager, PYrch~sing & contract Administration City of Palo J..lto. First Floor P. O. B·c.-x 10250 Palo Altc, CA 34303 T~e minimum accept~ble bid for the purchase of the Option to Lease is $1000.00. If, after reaciing this flyer, you ~oulQ like to obtajn the proposal package or discuss the offering, please contact: Janet Freeland, Financial Analyst City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 (415) 329-2662 I ~. t: '.i .. ; ,-, - .. The property for lease is a 1.5 acre recreational facility (formerly Ch~ck Thompson's S'wo'im & Tennis Cl:.lb) lOI:cated at 3005 Middlefield Road in 1'!lid-to~.m Fa-Io Alto (see attached lQcation map arid si te .map). It is lccatcd adjacent to the "I/';'inter Lodge ice skating facility on a portion of a City-owned parc~l on Middlefield Read in Pale Alto. The ].74 acre site containi~g the ice rink. and swim and tennis facility .. ';:'5 acquired in 198:' as p9.rt of a voter-approved land exchange for the purpose of preserving tf1.F.: ice :;kating rink. The s' • .;i!'1 and tennis facility includes 5 tennis courts and a pool. Formerly on the site \Wa3 a building housing a gymnasium, loc:':er rooz',s and office, but this was de'1101ished in 1990 due to earthq",ake da!fi~ge. The site is adjacent to single-family r:esidential use to tlie nort.h" commercial uses to the 'West., and multiple family residential uses to the soutf1. and east, II. Sio.'IM -".ND/OR I'Er-!J~~$ CENTEP. -DESIR~JL ... OPERA-rION.s anL.RE?L'IRE:) IMPROVEMj::NT.$.. A. GENERAL STATEMENT OF INTENT OF REQUEST FOP. PROPOSALS The city is. seeking an operator for the. recreational facility who will upgrade, maint3.in and ope.:-ate the facility under long term lease. The facility currently consists of 5 tennis cou:r-ts and .a s';o.'i:::::mir.g pool. l.ne City .... ill consider proposals for either a tennis-only facility, a swim-only facility, or a combination tennis and swimming facility. However" proposers should b~ aware that parking for the facility is limited and is shared with the adjacent Winter Lodge ice skating facility_ The ",,-inter Lodge operates annually fran. mid-­ September through June. ~he nlJl':'.ber of parking spaces re~uired for a combination tennis and swim facility. if peak seasonal use and peak daily use is the same as the · ... 'inter Lc;,dge facilit':{, rna)" ir.1pede the corr.hinatio;. of both sw"imrning and tennis on tr.e site. For rr,cre infonr,ation on parking require~ents fer the site, refer to Exhibit A attached to this Infor~aticn Flyer. B. DESIRED RECREATIONAL SERVICES The City desire~ a quality" -well-managed recreational facility, accessible to people cf all abilities, which lllay incl'wde tennis and swimming or just one of t[l,ese. Tennis and/or swim...--nj ng instruction is encouraged. The existing pool configura-tion is ideal for swimming lessons, and there is a need for this type of swimming instruction facility. Making the facilities available 2 - c. and affordable to the public, in particular, P~lo Alto residents, is also encou~aged. REQUIRED IMPi\OVE?o!'ENI'S City-required irr.pro·.,rements on the site ""ill depend 0:, the proposed ... :se and developree:1t. For instancE". a tennis­ only use of the site as-is ·.ill require feiJer improvements than a swimLlirlg use or combination s'Wi1O'Jr.ing .and tennis use. For any proposed operatio!". not usin'3 the pool, the city will require that the pool be filled and compacted. The addition of a building on the site or use of the pool may involve significant costs in addition to those below. Costs of any building, renovation of the pool and related costs will he the responsibility ot the proposer to determine based on their proposed use and development. The City will reguire all facilities to be accessible to people of all abilities. The minimum required improvements (t~r tennis o~ly ~se as-is) are estimated as follows: 1. Backf.i.ll and compact s·.;imming pool 2. Upgrade existing courts Install erosion barriers Install new nets & post hardware Restore electric power to courts with timer Adjust focus of lights O~ courts J. Proporticnal share of c05t to pave front parking lot 4. Proportional share of cost of parking lot maint~nance (per year] TOTAL $20,000 7,500 700 5,000 2CC ],600 1, S 00 $43,800 III. S~"ARY OF LEASE A..'ND_mOP'[ION TO LEASE A. OPTION REQUIREMENTS The successful proposer will be a\o'arded a 24-lnonth 3 B. Option to Lease. During the option period the cptionee must obtain plan approvals and pe~~its required for the proposed upgrdding or development of the facility, and obtain City approY2'l of the proposed oper::r.tt:ng plan. rhe Option may be exercised at anytime \.,rithin the Option period that the optionee has satisfacto~ily ~et all of the Option requirements. UUTLINE OF LEll.SE' PROVISIONS Some of the Lease provisions are highlighted below. This intc:-mation is not intended to be definitive but is intended to provide a basic sUmI'r.ary of ths major lease provisions. It is the responsibility of each prospective tenant to revie"lll the proposal package and the documents contained in the package, exa:rnine the ~conomic environment, and make such further investigation a~ necessary to insure tnat he/she fully understands the nature of the undertaking and the obligatio'1s he/she ....-ill assume if the proposal is ~ccepted. 1. Term of Lease: 10 years -with 5-year option to reneW'. :2. Minimult rent: A miniDlU.c'l rent has not been established and will depend on the specific nature of the use and improvements. 3. Improvements to be made by tenant: Ci ty-required irnprovemer,ts will depend on the proposed use and development and ~ill be those which are identified and show-n in the plans approved by the City during the op~ion period~ Minimum city-required ittprovements for tennis-only use are identified above u~dl?r Section 11, Paraqraph c. 4. Ins'J.;r-ancz: The tenant shall rna ir.tain the follo ..... ing insurancE acceptable to the City throughout the terms of the Lease. The policy or policies of insurance -rnaintained by the tenant shall provide the following limits and coverage:, ... ith the City being named as additional insured under the policy or policies: MINIMUM LIMITS OF LIAB)':.k!:.T'i a. WORKERS~ COMPENSATION Statutory JAN~UICIillQlJlFP 4 . I I - b. c. --------------------------- COMPREHENSIVE Bodily Injury AUTOMOBILE LIABILIT'i ;':r-cperty Damage including, o-.. ·ned, Hired, and No!'l- OVned Automobiles COMMERCIAL Bodily Injury GENERAL LIABILITY including Pr~perty Damage Products and Completed Operations, Broad Form Contractual and Pez'sonal Injury $1,000,000 ea person $1/ ODD, 000 ea occurrence $1) 000,000 ea occurrence: $1,000,000 ea person $1,000, ODe ea occurrence $1,000,000 ea aggregate $1,000,000 ea occurrence d. FIRE AND EXTENDED COVERAGE Net less than 90% cf re:placement cost. e. COURSE OF CONSTRUCTIO"N COr.'.pleted value of tl:e project. L 5. As.siqnments: Any assiqnmel'lt or encumbrance of the lease !rust receiYe prior City approval. 6. Utilities: The 't.enant shall be responsible for all utilities supplied to the premises. 7. Maintenance and Re_pair: The tenant shall be responsible fer all maintenance and repairs. s. Taxes and .As:;essments: The tenant shall be respo~sible f~r all taxes and assessrner.ts (including but not Ijmited to possessory interest tax). 5 - EXHIBIT A The entire site .3.5 co .. figured and with planned paving and s.triping ~ill h~ve 115 parking spaces. The required parking for the winte~ Lodge facility is ::'04 spaces, leaving 11 surplus parking spaces \Io'hi.ch could be used cy the other facility on tr:.e site (s~imming and/or tennis). The operat.ion of only the existin':J five ten."lis co~r~s would require 5 spaces in addition to the 104 reguir~d by the Winter Lodge, so parkir.g would be no problem. .ll" tennis-onlr fac.ility 'With the additiol': of a 1000 square foot nuilding 'IoI'ould require approximatelr 11 parking space5~ the number of existing surplus spaces. bo .... ever, a facility offering hoth tenr.is and swimming and t.he addition of a building similar to the one that I,r{as demolished '\IIould reqllire 152 pa.rking spaces. EVen if the sw::'mming/ten.nis facility did nat operate rear rOund, but only in the summer 'When the Winter L~dge is clased (May 1st through Septe.mber 1st) / p~_l'king · ... ould still not be adequate unless parking is added on the site. One possible cpt ion would be to re::-,ove one or two tennis courts to add parking~ parkinq requiremects tor the existinq imprOV3ments on the for~er chuck Thompson site: Area Actual Square Feet Required Maxilt!;ut:! ~;;J:. Ft. ~ ___ Person Par;!sing 9_c C u Qa n c¥: Pool 3/544 50 17 .. 72 70.Se Sun Area 5,292 15 38.20 352.80 Te.nnis Cts. 5 cts 5.00 ..].0.00 No. of spaees req..:ired (SUBTo-T1.L) 110.912 4.4.3.68 If improvements similar to the former Chuck Tho:pscn facility were a4ded, the parking requirement for tb¢se improvements would be a~ tollows: G)'lll Storage 135 300 .11 .44 Gyro. Floor 2,049 15 34.15 136~60 Office 35 100 .08 .32 Locker R.:'"1'1 496 50 2.48 9.92 Lobby 172 15 2.86 11. 42 Pool Office Area 120 100 1. ;;:0 ~Jt __ Q No. of Pi1rJting spaoes Required (TOTM.) ! 151.80 607.18 6 L - LOCATLOlj Ht.,P ~~~0;t~~*ti~~~l---":---------SW;:il & T E'fJn isS He ~ 3005 ~iddlefield R( ---.-F=" .... O ,.10,:-.0 C'T ..... '-'-....... ,T~ S,t.,j-,,"""AC~· ~ NvI>,-"'E.O CO'..JHIY '-IN!: t, -~t:-;';'j.r*t1:( @ Jo -,,' '''-:'' ,,'" 'CI'~I-'t'l!' I to· , ., . "';., (~ -.. :-, ... -~-~'~ -COull" __ !.r:~!lOIl .,' ,'- -"A,HA " ,"""'-L<] '." '~;'~U-:">-':'_~-"~-_-:;'_~'~.;:;:;. ,eL.,. .. I COI/IITr, ,;(;A.UIOO""'.IA,.-. .-' LA'I't;F" SUBI)'v'510N T~jl.r r !'4",!Jt;$ -t',~ , '~.;' .', J~~~~~i~~~i-i~ ---"'-' -,' " " .. ' I~ b3:DlslJ" \ (9.'<,' , , /\ ,,'" -,--. "'-r'" T'" --"'",.,.--', . .,--- , 7'1! • I ~ , ;". I I 'I, Swim & T~hnis site :W05 Mlfdlefield 1M • iL41I\CI~F.T I!G")At:NU:I'~ , r.~ r <>1 V , ~~- C'" '"''''~'''r'' ':.~' ,,"'""" I '" \' 'f';:' , ;"l'~ fo.,..", • "I[ •• > ,~ ' ... " : ;' ~ --,,--.-----,--~ d; !--'! 'j' 0-'ll ~. a~u:. :-, >, ~ 6 _ _ , ~ 1 l' U ' , I Winterlodge e :; , )009 Middlefiel (~ /1 Rd, ,: ,",) common ~I ~/' pd rk 1 nq .\ _t!! =1' "' access / ' ~( .t, , COlllmon Pi! rkl Tl I I , r-'" '-'-j & .CCO" "I "CLA ~ :1 g (i;) ~ , , " p i ;:If·~~~j -1·-:7;;---k~_0;:-,,,; -~ ! I II, ~om",o" i I' : ! P2 ~ park.lng &, !!_' " ! ,", , " OCCPo.':. :'1 """" ...... I~--1 ro.. In., ~ ~ ;:!i. ~ 'Ie M!OOI.EFlE LD 1 " I' ,; " ,< w < ROAD ---!- ,c0:i. ~!;" ·;~~:o~~":'l~:":;;t~: .. • -'=.iUiiiaU22&&tii&&!iM~ 121 ~ 53 -019 ! '\ , ,j 1 J , ."/ ! ' ~ ; 4 .' ~1 . r- -.- .. I • \ I " ----.. '.,~ . ( ---:T~ ~'§'~_:P_~OPOS"L PACD.GE l:UNIS and lor SWIJi. __ J'~CIL!T1f AT lOOS ~_U:)J;)_,t.EJ'IELD ROAD '[his Request for Propcs.3.1s a.nd Pl-oposal Package includes a summary of the proposal requireiTler.ts and procedu:tes, and the Prop,~sal Fo:rn1s (Froposal, Questionnaire and option to Leas~ and Lease). Th<: In!orrnatiol"J F lye!' attacD.ed to this Request for P:roposals (The nlnformation flyer") is hereby incorporated by r€fere!"!ce into this Request for Proposals anc proposal package. A. HOW TO SUBMIT A PROPOSAL In order to sublliit your proposal you 1'!1LoSt: 1. Provide a ~ritten description of the project as indicated in the PRO}~5ED DEVELOPMENT OF PROPERTY (Attachment A). proposed USE A.~D :2. Complete ar.d sign the at'tached PROPOSAL P~.CKAGE, PROPOSERtS QUESTIONNAIRE (Attachment B) and attach the OPTION TO LE~SE AND LEASE documents (Attachment C) • 3. Complete and sign the attached PROPOSED PHYSICAL CHANGES TO PROPERTY and ENVLP.ONMENTAL ASSESSMErlT WORXSHEET (Attachment D) ~ 4. Attach a $1,000.00 PROPOSAL DEPOSIT in the form of a cashier's check, or certified check ~ade payable to: City of Falo Alto. 5. Return the completed prcposal in .a sealed -envelope before the due date and til!"~e to: Manager, Purchasing/Contract Administration City of Palo Alto, First FloQr 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 6. Mark the envelope! "Tenr.is/s....,irn facility -openir~g 7/20/93, 3:00 p.m.n Proposals will be opened Tuesday, July 20, 1993 at 3:00 p.ID. in the City Council Conference Room, 250 Hamilton Avenue, Palo Alto, CA. To be considered, all proposals must be received prior to this time. 1 ''';~~f;;;L - -- B. REQUIRED PROPOSAL INf'OR .. ""..ATION JdW EVA!..t;ATION OF PROPOSALS Proposal documents wi 11 be revie\,:.;d and evaluated by a committ.ee made up of representativ€;s of Cit:lt staff from the d~partrr,ents of Finance, P!annir,g, Co'::'munity Se=vices 2nd public ~orks. Review of proposals shall consider rna~y factors, including but not limit~d to the following information "IIlhich must be provided in eact"l. proposal. 1. The proposer's experie:1ce and knowledge of the proposed recreat,ional operations. 2. Th~ proposer's financial capability. business expertise and the history and assessm"~nt of the proposer's ability to carry out the proposed iroprove~ents, operate t.he facility ar.d provide the recreational service. 3. Advantages of the Pl"oposal to the Cit--J' {can be in terms of monetary returns to the Ci tj.-" or in terms of benefits and services offered to che public, in particular, Palo .Alto residents~ or ~th). 4 ~ Extent to .... hich the proposed use and/or services satisfies a public need. 5. The consistency of the propos€'d use -with existing City goals and objectives Cas set forth in the Co~prehensive Plan, Zoning Ordinance~ and Municipal Code and this request for proposals). 6. Impact of the proposed use l.'pon the Winter Lodge oper3tion, inur.ediate neighborhood and the cO!:'.1l1unity generally (in terms ~t cQmpatible services and uses, traffic impacts, noise i~pacts, etc.). 7 _ Evidence of the proposer's ability to maintain r'Elati~ns 'iIrI'ith users, th-e Winter Lodge, neighbors of the facility. good and 8. The consideration (monetary and nOTl-mDnet~r)o) to be provided to the City, including the purchase price offered for t~e optio~ to lease. 9. 'I'he d€gree of public acce5s~ i.e:., the numbers of people, ~specially City reside.nts and taxpayers, that w"ill be served by the proposed usc. 10. The fees that will be charged to Palo Alto citizens, if any. 2 ----~----~------------'-------. ....... 11. The ~ive-}'ear pre-forma analysi::; ot use, setting forth the proj~ct eypens~s for that p~riod of time. the proposed revenue::; aj"l.d 12. Evidence of the proposer's ability to finance or to obtain fin.~ncin.g for the required improvements. All prcposals, together with the evaluation committee's recommendation for a successf'..!l p.roposer -wi 11 then be for .... arded to the Ci ti" Council for its selection of the successful pr·':)"pcscr. The City Council reserves the right to reject any and all propos~ls~ for any reason or for no reas?n at all, or to accept that proposal which, in its opinion. -will bes~ serve the public interest. C. MINIMIJM PURCHASE PRICE OF OPTION TO LEASE The !rLinimum bid for t.he purchase price of the Optiorl is $1,000. 00. J -..' / . __ ' ..• .-: __ "" Qti JG#di~~~'''''-~-'"''' ',.--;--... ~"--'" ,- PROJECT: 3QQi11iddill_leld PROJECT NO: PROPOSAL PACKASE (With Optlon to Lease) TKIS IS A PROPOSAL TO ACQUIRE AN ODTlON TO LEASE FOR PROPOSER Name: Address: Phone No. t!!2DlTIm""J.i _...L ____ '!I!_or'll: _~!_....J. ___ _ The undersigned ("PROPO$ER~). bereby submits a. propv~a1 to the City of P .. lo Alto, l~ClTY"} to acquire a lease more fully described in the Optior. to Lease Agr'eement (AITACHMENT C) and its exhibit!.. in accordance with the terms, cOVEnants, and co~ditions contained in thls PROPOSAL and in the Option to lease Agreeme~t. A. PROPOSEf{ HERtEl' PF:OPD~ES THE FOLLOWING: 1. ~on~tary Bid It~ms: aJ PROPOSER agreei to pay to CIT~ is t~e purchase price of the option, as set forth in Clause 3 (PURCH,~SE PRICE OF OPTION) of the attached Option to Lease Agreem2-nt: ------------(Amount in Words) {AlflOL:nt in Numbers} b) Additional monetary bid items (including proposed rental during lease term): - , . 2. N~~hlolonetary Sid [tems. (including pub"JiC beneflts E5pecially to cjtizens of Palo Alto}: 1. PROPDSER has .carefully read a~<l fto 11 .. ,.. ur.derstar.ds thi s PROPOSAL document ~nd the Optia~ to Lease Aqreeme~t attached to thls PROPOSAL, including its pxh,bits. - 2. The Option to lease Agree~ent, ~nd its exhibits, is an integral pai"t of this PROPOSAL and must be attached to this PROPOSAL. 3. PROPOSER warrants that it has the capability to successfully undertake ",nd comrl ete the respans i bt1 it ies and obi igat ions of OPTIONEE and TENANT contained in the Option to l~ase Agreement and its exhibits. 4. 4 PROPOSER's Deposit in the sum of OfiE Thousand Dollars (S],OOO.OO), in the form of a Cashier's or Certified Check made payable to t~e City of Paro A.lto, must be submitted ..... ittl thls PROPOSAL and is attached hereto. s. The PROPOSER's Oe~sit wili be held by CITY as a guarantee securing the obligations PROPOSER agrees to assume in this PROPOSAL. In the event this PROPOSAL is accepted by CITY and PROPOSER falls to meet the terms hereof, PROPOSER agrees that said sum represents i! fair an~ reasonable estimate of CITY's cost in pr~parjng and soliciting this offerlng, and PROPOSER further agre;:.:; tl1at said sum sMall be retained b)' CIT'! :.s compeD~atiDn fDr t.~e::;e costs. iJDon executior, of the OpUon to Lease Agreement, said sum shall, CIt PRDPOSER'S cption, be returned to PROPOSER or shall be eredi t.€d toward the Security D{':posit required under tile Option to Lease P.greement. PROPOSER's Dep~sit will be returned to each proposer not selected by the City upon City's execution of an Option to lease Agre€ment ill'ith the succ€ssful prcposer. 5. This PROPOSAL may be withdrawn at any time prior to the time set for ope-ning the proposals but ma.y not be -.witr.drawn after the time s-:t for such open~r.g, i.e., Tuesday. Ju.ly 20, 1993 at 3;00 p.m. 1 jf{~r'J -- .;-: --~---~-~----.-------------- - __ "}",."",,,_.~.; 0" _~ ___ '-'>-x' 7. Jlithin ten (10) days a.ft~r Mtificatioil of the acceptance of this PROPOSAL bj CIH, P?,DPDSE~ ... il1 e-.c:ecutt! c-op1es C'f the Optian ta lease ,Aqrc-ement in d1JDI L:ate iind de-live:--to C!U the Executed copies of said·agreement, n'lO required Security DepOSit ard the balance of the purchase prjcs of the option as set forth i~ the Option to Lease A~reement . 8. PROPCSEF. has fullj completed the Proposed Use ilnd Deve10pment of Pr'Jperty (Attachment A}. Proposer's QuestiOrlnajrE {Atta(hment 8,1 and the Proposed Physical Changes to Pl-openy a:'":d En,,"iron.mental ;'ssessmer.t ~arkshee-t (Attac,hment DJ. Attac nr;,ent A. the compl eted Questicnnaire and the Option to lease A9reeme~t ~jth its exhibits. including the lease (Attachment C). a~d the PrDpcsed Pnysical (.r~nges to P(operty and EnYironmental Asses.sment WcrKsheet {.i. _tachrnent DJ, are atta<:hed to this PROr:>OSAl t:Jgetner with any approp ... jate 0(' r€qlJes;ted stJpplemental material. 9. PROPOSER represents that all of the information contained in or supplementing said Questionnaire is tru~ and correct to the best of PROPOSER's knc~l.dge. 10. CITY reserves the righ~ to reject any or all PROPOSALS and to accept that PROPOSAL which will. in its opinion. best serwe the public interest. ll. By submission of U1is proposa1. PROPOSER ad.nowled9~s and agrees that the CITY has tneo right to make any inquiry or i,n\'/e~tigation 1t deems appropriate tc· substantiate or supplement information contained in this Questionnaire. and authorizes the release to CITY of any ar.d all irformatior, sought in such inquir..Y or investigation. 12. ATTACHMENT A (Proposed Use and Development of Propert)). ATTACHMENT B (Proposer's QueStionnaire), ATTACHMENT C (Option to lea.se Agreement) and ATTACHMENT D (Proposed Physical Changes to Property and Environm~ntal Assessment Worksheet) are attached to and by this referen;:e made a part of this PROPOS.~l. i3. PROPOSER acknowledges and agrees that t~E-Optiorl to Leas.e t.greemrnt and its exhibits, includir!g the Leise, m~y be subject to change and further negotfati\:'n witn the City, based. em the prop.osed use by the successful PROPOSER for the prop~rly. TCorpcrate seal} Date 3 . t. -., PROPOSED USE AND DEVBLOPMENT Of PROFEP.TY " PROPOSEP USE AN~DEVELOPMENT OF PROPERTY Prc .... ide a. property. included as include the description of your proposed use and improvement of the This description can be of any length and must be Attachmant A to the proposal. The description must following information: 1. The extent to .... hich the proposed use and/or services satisfies ~ public:: need. 2. 3. 4. 5. The impact of the propoEed Use upon the winter Lodge operation, im.."'f.ediate neighborhood and the community gener-ally (in terms of compatible services and uses, traffic impacts, noise impacts, etc.) Evidence of the proposer~s ability to maintain good relations with users; the Winter Lodge; and neighbors of the facility. The degree of public access, especially City residents and by the proposed use. i.e., the numbers of people~ taxpayers, that will be served The fees that ~ill be charged to Palo Alto citizens, if any. ATTACHMENT A 1 -------. .. -- 'J , i ! ATTACIDfENT B PROPOSER'S QUESTIONNAIRE - PROPOSER'S QUESTIQIINAjRE Ai 1 information. requested i(l this questionnaire MUS'! be furr:i shed by PIe PROPOSER. ilnd MUST be ~ubmitted with tt'l~ PROPOSAL. Statements must be cornp:ete and' ac.curate. Omi.$sion~ inaccuracy. or misstatement MA'I' be cause (Dr rejHtion of thi, PROPOSAL. How did you 1earn of thi s PROPDS/I.L offering? 1. Received City airect mail nyer ( 1. \!ford of mouth 3. ~ead about offering in following newspaper? magazine or newsletter; I. PROPOSf; Name of PRO~JSER exactly illS it appears on the PROPOSAL and as it will appeat on any pr~po~ed a9reeme~t ~ith the City: Ad~ress Gf PROPOSER for purposes of not~ce$ or other communication relating to the PROPOSAL: Telephone Number of PROPOSER: PROPOSER intends to operate as a So1e Proprietorship Corporation ( ); Joint Venture ( ); or ~TTACtlllENT e I ); Partnership ( J; " ~~--~-----------------------:-~ II. SOLE PROP1.IETORSHIP STATEMENT If a Sole Proprieto~shlp. furnish the fol1o~ing: 1. Name in fun: 2. Address; ---------~------~-- 6irthdate: Pl ace of Si rth: -------- 4. California Ortverrs lit. No. ------------------- Is pr-opriet{)r doing blJsiness under a fictttious bwsl:1ess name? If so, furnish evfde~cE that proprietor is a~thorized to do business under such fictitious business na~e (e.g.) notice published in newspaper of g€neral Circulation; no. Gf filing with. County Clerk). ._---------- III. PARTNERSHIP STATEMENT If a Partnership, furnish the following: J. Date of Organization? 2. General Partnership ( Limited Partnerstii p ( 3. Statement of Partnership recc.rded? Yes No Dat. Book pag. County 4. Has the partnership done t;usir~ess in Santa Clara (ounty? Yes No When? ATIACHHENT B 2 i ! j Name, addre-ss, and partnership share of each genera1 pa"rtner. Address s. Furnish the birth date, place of b1rth~ and California Driver's license number Df ~ach person shown above. IV. tQRPORATIO~ STATE~Errr If • corporation, furnisn the following: I. When incorpo'!"'ated? __________ _ 2~ Where incorporated? ____________ _ 3. Ager.t for service: ----- 4. ]s the corporation authorized to do bUSiness in California? Yes No fr so, as of wnat date: s. The corporation is held: Publicly Privately 6. If publicly held, how and where is the stoc, traded? ATIACHlIEMT B 3 : i 7. List the following: ~ __ uthorized Outs.tanding <. Number of vot 1ng shares: ------- b. Number of non-voti!1g shares: --'--' c. Number of shareholders: d. Value per share of COlmlon st"Jck : Par S Book $, _____ _ Market $ ____ _ 8. Furnish the name, title, address, and t~e number of voting and non-voting s.hare-s of stock he1d by each officer, <lirector,and principal shar!holder. 9. Furnish the birth date, place of birth. and Califol"'nia Driver's license number of each pers~n shown under Item 7 above. 10. Attach a copy of Certificate of Good Standing obtalnable from Cal;f~rnia Secretary of State. V. NON-PROFIT CORPORATION STAT<M,HT J. Jf a non-profit corporation, furnis~ on! copy of the followir.g; a. Art; cles of 1nC{lrCoration b. Bylaws c. A letter from the Int.Ernal Re ... ·enlJe Service stating that the organization is tax exempt under S~ction SOl(c)(3} or lOl{b) of the IRS Code. A tax-exempt status under Section 170(b) or S09(a) lS a1 sc accepta.ble. The JRS 1atter must cor.tain the proper name and address of the organization, or a c~py of the change notice ""nid has been forwarded to them. d. A letter from tn€ State of Galifornia stating th~t the organization ; s tiX: exempt. 2. State the mission of the organization: A IT ACH.~ENT B 4 -, , 3. Please itta~h an organizatiDn chart showing Soard of Dlrpctcrs, members, if iny, manage:m<!nt a.hd ,;;taffjng levels. 4. Please include a membersh~p list of your Scat"d of DHE:!ctCrs.. the;:-city of r~side~ce, cccupat~cns, and d4tes of sei¥ice on the Boa~d. 5. Haw ofto!n does your Beard meet? 6. What was the average .attendance of Board members at Boar~ meetings last year? V!. JOINT VENTURE SiATEMENT If a JDint Vent.ure, answer the following: 1. Date of Organization z. Joint Venture Agreament recorded? Yes No J. Has the Joint Ventur~ done business in Santa Clara Cour.ty? Yes No lrf1;en? 4~ N~ and address of each Joint Venturer: Address 5. Furnish the birth date, place of birth, and California Driverls license number of each person or prir.cipa1s or officers of any entity shown under Item 4 abov.: 6. Attach a complete copy of the Joint Venture Agreement and an)' amendments. JAli[T2I~!COA ATIAl:HH!:NT B 5 . , , '; ~ I ,I ! B. VII. FINANCIAL DATA Attach complete audited f'inancial state!;,ents, pre~ared i:l accordal"ce 'W1th generally icce~ted accounting principles, reflecting your current financial condition and that of the previous n ... e years. TI1;:. repel't i1lust ir..c1udi! a balance she2t and income stitemerit and must be iiJdited by a licensed auditor. You must be prepared t~ substantia.te all information shown . SURETY !NFOR~T!ON Have you ever applied for and obtained a bond? If so, provid~ details of most rec~nt bond. Have you eve. had a bOf1d or surety denied, canceled or forfeited? res , No If yes, attach i. statement nilming ttle bonding company. date, amount of bond, and reason fer sucn r~~~~llatio~ or forfeiture. c. a.~NKRUPTCY INFOB~T!CN HaVE you ever filed bankruptcy or been declared bankrupt? Yes, ) No, ) If yes, give detlil'i, state date(s), court jurisdictiun(s" case docket numbef(S), amount of liabilities, and amount of assets. ATTACHMENT B 6 I i , .j , , " D. PROPOSED METHOD Of FINANCING REPAliSIIMPPOYEMENTS/USElOP(M.DOfl The development .and operation to wtJich this proposal relates Shill be financed in the fo11owing manner; E. FELON! iNFO~~TIQN Have you or any principals or ~~f;cers of the partnership or officers or directors of the corporation, as app'! icable, ever been convlcted of oil feTony? Yes ( No ( If ye~. pleas! state dati{s), court location(s) a~d details of conviction. ATTACHMENT B 7 '---"---"'--~--''''''-'- • , , "-'- ~-~~----------~-~-------------------::--:----::~'""'III V!!!. EIPER!fHCE STAT~~ENT Describe 'fn aetai1 the dl1ratiol"l ana e.xtent of your expe;-i-ence with special emphasis upon exp-erience directly related teo develcpment and/or mal)agement of the t_rp~ of ope.rati.on propo~ed f.or this project. ATso describe, in detail, the pertinent exp!rience of the per-sons who .ill be directly involved in operation and/or man~gement cf the nperiti~n proposed for this project. JM[T2/M[C;).A ATIACHHOO B 8 • "t" .. , ";L li"st at '-ea.st four perso('l.$ or firms with whom you t'la\le <.on,dl!cted bus~ness transacthl'l"i5 during the past tnre-e .1'ears. At least tfiO n:fe:ren:~s named should have ,lmow1edge of your ability t{; fin2:l'lce the proposed project and your debt payment history. ,t:.t least two references should have knowledge of your abilities to operate tt'o . .e proposed fad H ty. BEFERE~C£ NO.1 ~irro: Title: Address: ------------ Zip __ _ Telephone: Nature and ~a9nitud~ of purchase, sJle~ loan, business association J etc.: REFERENCE NO.2 Harne, Fi.",: Title: Address: Telephone: Zip _____ _ ~atur! and magnitude of purchase, sale, loan, buslne~s associat.on, etc. JMET2/Nl[lD"l, ATTACIIHENT B 9 , , .. List it least four pel"'sons or fi~ms with whom you have ccnducted bU:iiness transac.tions during the past thre-e years, At 1'!i!ost two references roamed should have knowl edge of your abi 1 ity to fi nance the proposed project and your debt pa)'!tE!nt history_ At least t;,o references stlou7d have knowledge of your abilities to ~perate the proposed faciltty. REFrBENCE NO. , ~.me: Fi~: 1itle: Address ; 1elephone: ----.---- Nature and magnitude of purchase. sale, loan~ business association, etc.: REF£RE~CE NQ, ! Same: Firm: Tit,. : Addre" : -_.----- Zip __ _ Telephone: Natijre and magnitude of purchase, sale, loan, business association, etc. JAl(ETVMJ OOA ATIACHMEN1' B 10 :! ~-------~----------------- X. ~ETH.QJL!IF OPERAII ON [}escT"ibe yc;ur specific plan for de .... elopment and/or operat1on of the propcsed faciHty. Discuss any optional sen"ices and uses whic" you JIIilT seek permission to provide. ATIACHKEPIT a II • A. • XI. fiNANCIAL INFORNATION ESTIMATE OF GBOSS RECEIPTS -Provide your estimate of the "axpe~tl2-d io'f~ra.9.e. annua1 gross rec!ipts to be derived duri~g the first f:ve operating y!ars from eac~ required use or ~er~ice and for eacn si9nifica~t cpti~nal use or service which you plan ta pro~ide: ATlACHIIEIIT B 12 • B. ,. XI.L!lUl~CI~l IHFORKATI~ ~~TEO CONSTRUCTIQN COSTS - 1. land Relited Direct Construction Costs: •• b. land Preparation; including off·sites. grading, etc. landscapIng 2. Btdlding Related Direct Construction CDstS: a. Shell Construction b. Interior Finis~es Sub-Total C. Fixtures & ottJer Improvements ____ Sub-Total 3. Indirect c.ostS! i. Architect 5. Engineering b. legal, Appraisal & Accountin9': ___ _ c. Construction Loan c.osts": i. pOints ;;. inhrest d. ~O~th~e~r========= Sub -Tot.' Total Estimated Construction Costs *Asswner; construction loan of S 'Witn interest !stimated Ii!' % for IDOnths cDns.truction·--=:p"er"'j"o"dr.-Source of c.onstruction loan pa.yments will be: '-PRO-FORMA ANAlVSIS - On the attached pag~ provide a flve-ye;r pro-forma analysis of income and expenses for the propo~ed project. JAHET21M100A ATIACHl4E,", 8 lJ .·J.i. "J: .'" ····1 .,':' .i.;'iij'" , '/W.tlt ',.' , }li';I , 1st Gross lncom~'" ( lpss: Vacancies Eff~ctiye Gross Income l@ss Exp@nses: Salaries & Wages Supplies/Equipment Reserves for R~placements . Maintenance/Repairs Rent [nsurance & Possessory Interest TaX Utl11tl., . Olher: (U 'I) Ne: Income -- FIVE YEAR PRO·FO~ ANALYSIS YEAR OF OPERATION 2nd 3rd ':) ( l() ( ~Ih :l:j . r'--- ~ ". r-' I I .On separat~ sheet, list all sourc@~ and individual amounts of gross 1nr,om~, JUltfZ/MIOO"" ATTACHHF.HT 8 14 5th ( ~) ( %) .----~. 1--- ---- --- , I . i I t '. \ I \ , l , ~ ~ I \ I I 1 I .' XII. OTHER INFO!!!llliQ!j PleaSf prolli'cie any otner information which you feel will be heTpful in ~valuat1ng your Ibi 1 it)' to suctessfu11y develop and/or operate the proposea' fae; 1 ; ty in ccmpliance witn the City's Request for PropoSi15~ JMlET2~A AITACHMENT B 15 .. , ~-j ---~-------. --------------------------------------------------------------------.. ~-....... PROPOSER's MINORITr £MPLOY,~ENT PLAN (TO BE CO!1PLETEO UPON S,lECTJO~ ONl y) Usin9 this form or add'itional sl')eets, pluse provide your proposed plans related to employment of ~inorities fer all le~els Of employment opportunities related to the proposed operation on or fro~ the lea~ed Premises. J. Whet steps have been or wiil be tak.en to: i. Recruit Minorities? b. Assure equal employmel1't opportljnitj for all persons? c. Provide training for ne. hires where necessary to assure amcle opportunities for less qualified to improve their Qualifications? d. Provide opportunities for employee upgrading and training to aSSure equal opportunity for ad~'ancement and promotion? e. Provide ,ounsel,ng servicE for all ~no may need help to advance especially for newer employees? f. (ducate supervisors regarding nondiscrimination practices? 2. PrOVide estimates of total employment by job <:lassification and ifi estimCl.te of the number of minorities, by job classification, for the proposed Gperation on and from the leased Prel"lises. Recommended for Atteptance: Manager, Realm-Property Director of Purchasing Accepted: U (ity Hi-nager __ m ____ __ o Assistant City Manager Date: AITACIIHEtIT S 16 • Project: Parcel No.: -------- ~[RT!F!CArE QF NO~ISCR!M)NATION BY IJPPLIERS As su.pp~jers of goods or services to the public on or from the Pr"emises described e-lsewhere in tnt5 Request for Proposal, Proposer certifies: that it does root discriminate in its employment with re9ards to r~ce~ religion, creed, national origin or disability; that it is in compliance ~ith all FederaJ, State and local directives and executlY! orders regarding non-discrimination in empToyment; and that it agrees to demonstrate positively and aggressively the princ'iple·of equa1 Gpportunity in employment. Proposer icknowIsdges that, if chosen as the successful proposer~ the attached Proposerls Minority Employment Plan will be c{lmp1eted with respect to the operation described elsewhere;n this Request for Proposal. City's City Manager sha11 d!termlne whether or not th~ plan is· adequate. It is understeod, howev~r, tnat no estimate furnished as a part of tne attacned pla~s shall be construed is a hiring quot.. rt is further understood that i Tenant shall not be deemed in mat!.r'"ia.l treacl'1 of the lease upon award 1 when such Tenant hiS made i reasonable and substantial effort to comply with sajd Plan. Proposer; Title of Person Signin9: Signature: Date: ------------- A IT ACtllEH7 B 17 PROPOSED CHANGES IO OOCUMENT+ If YOiJ belie .. e cha!H~es to the forms of the document{sj (Option to lease Agreemo:!nt and/or Leasel are necessat"j' for jlO'J to successful 1,)' oper6te tlie proposed facil j ty please identify tne clauses requiring changes beTow and speciflcall.y indicate the nature of the required change on the document or on another !>heet of paper. IMPORTANT -any proposed changes snouTd r!late to the particular proposed use. Remember that ClTY II'li} reject any or .. 11 proposals, and requi red revisions to the doc'Jment{s) may be grounds for rejectiol'\, N{)twHhstanding the fo..-egoing, the form of the documents may al so be subject to thange by the (i ty ind further negotia.tion, based Q(1 the City ({juncil"s selection of tne pro~osed use of the prope rty. Clauses requiring Changes: Required Changes {use addition.;;l sheets if necessary} --------~------- ~ TT ACHKEH'T 8 i8 ., \ :)P'l'!ON TO LEASE and -~------.---------~-----------------:-'""'III Project: 3005 Midd1efield Road Te~nis/Swim Center OPTION AGREE~ENT This A9re~ment is made this ___ day of ___ , 199_ t·y i1~d betwHr. the Cit)' of P011c Alto, a municipal corporation, ("Un"') and ____ _ • ("OPTlIlliEE'). RECITALS A. (In owns proper-ty located in the City of Palo ATto, Santa Clara County commonly referred to as the fcrme~ ChucK Thompson site (~PROPERTyM) more specifIcally dfsc:ribed and shown 1n the leise attached hereto as [xnibit 1, which Exhibit is made a part hereof. B. ClTY, in comp1iance with ~ts Pel icy and Procedure; i-ll, issued a Request fDr PropDsal s fDr an option to lease Property and rec.eived a proposal from OPT10NEE which has been se1ected by the City Council. c. OPTIONEE desires to obtain an exclusiVE option to lease PROPERTY, in accordance with the terms and conditions or the lease attached hereto as Exhibit I. D. CrTY desires to grant an exclusive option to OPTIONEE during which time OPTIONEE shall del/elop specific plans, obtain financing, a~d satlsfy other conditions set forth prior to the Teasing and development of PROPfRTV. NOW THEREFO~E, in consideration of the p"emises set forth abnve, th~ parties hereto mutually agree as fo11ows: J. GRANT OF OPTION (Ol I.Oi S CITY hereby grants to OPT10NEE a~ e~clusive opt~on to lease the PROPERTY and to de~elop and operate PROPERTY upon the terms and subject to the covenants and cor,ditions set forth below and in the lease attached to His Optic.n Agreement as Exhibit l. 2. TE9J1 OF OPTION (Ol 5.0) S The t~rm of this option shall be 24 montns and shall commence upon execution of this Igreemel'1t by CIn. Attachment C ~E5 7/0( TENNIS 3. PURCHASE PRICE OF O?1I0N tOL 6.0) S The purchase pr~ce cf this option shall be $-----(-''"7'-:-'"'''' dol1irs) due and payable to CITY ~ithin ten (10J days of the s1gnjng of this option by ClTY. 4. CONDITIONS PRECEDENT (OL 7.0) S This option may not b~ exercis-ed by OPTIONEE un1ess and tJntn each anc! every following condition has bee~ satisfied: A. OPTIONEE s.hall have mi:lde thE! pa,yment(sJ reQui~ed iii c:ccordance wit~ Clause J. (PURCHASE PRICE OF OPTION) .bove. B. OPTIONEE sh.1T have ,ubmitted Schematic PT,", to CI1Y wit"'" 1 months of the corrrnencement of th';s option. Schematic Plans shall inc11.!de a s'tte layout of ii11 buil{jiflgs. landscape developments, sc;,ematic floor plans for all structures. simple elevatjons of all structures. identification of proposed archttec.tural tnfme or dyle, a detailed des.cription of an proposed improvements 'inc~uding proposed uses Cind methods of operatior, and a genera1 outline specification which identifies propo'5ed construc.tion material and methods), and an es.timate of the total construct ion cost for all proposed imprcvements. c. OPTIONEE shall have applied for and received a condition~l us~ permit fer the prop~sed developpent and operation from CITY'S Zoning Administrator. D. OPTIONEE shall nave submitted to. and shall have received ~pproval of its development plans for PROPERTY frcm CITY's. Archit~ctural Re~iew Board. Said plans shan include interior plans, str-uctural plans, exterior elevaticns, and landscaping plans and shall indicate spe~if;c p1ans and details 0f the resource conservation features to be included. OPTIONEE sflal1 conSider such features as passive SOlar buiiding dHign, solar water and space heatjng 1 water conservation fixtures and f2quipment and bicycle storage facilities. Any energy ccnser''Iin<] equlpm2nt or techMlogy which, over trH! life cf the structure or project, is cost-effective to tne Oiffler or users Shill b€ deemed feaSible and will be a required feature of Ute plans fer develop~nt of PROPERTY. CITY's Resource Conservation staff shall prov1de its technica1 assistance to OPTIONEE. £. OPTIONEE shall have complied witn the requirements of CITY's procedures for imp1ementation of the California Environmental Quality Act of 1970, as may be i..1!lE!nded f.-em time to time. F. OPTIONEE shalT have provided to ClTY's ReaT Proporty Manager evidence that any and all permits from any and ill agencies having pre-construction juri5dictio~ over the proposed d~velop~nt including, but not limited to. buildi ng permits, grading permtts and health permi ts haile baen authorized RElrASES IIOt.TENJ.jiS 2 ,: .\ ,-i • I ',I , i , I I ~I ! J i G. H. and arE' ivailabi e. OPTiONEE s~al' h~ve submittEd to (lTV's (hief Building Official certification that the plans for ani proposed building constructi'On comply. in an respects, l*1tn CLlr-rent buildi~g codes, the A.'l1er:cans .... ·Hh DisabiJities Act of 1990, if app1icable, ar,d .... ith energy conservatlon requirements as set forth in California Code of Regulations, TitTe 24 for non-res;;je-r.tial ronstru!:tion. The form u!-d c{)nterlt of said certifications sMa)l be in conformance with th.e reqL1irements of California Code of Regulations, Title 24 for ncn-res!dential construction. OPTIONEE shall have obtained :approval of the construction drawings fer the propose1 de\lelopment (tb.e ·Construction Drawi~gs") from the City Engineer and Chief BuiTdinS Official, Working Drawings sh3.ll include: 1. Complete architectural, landscape ar.d engineering workir!g dra· .... ings~ 2. Complete constructiDn speCiflcations; 3. Complete construction contract form; and 4. Proposed construction schedule. I. OPTIONH shall ha .... e satisfied the Director of Final'1ce that OPTIONEE nas sufficient finai1ces or financial clJlTiTlitm€nts. to implement the plan.£; lopproved by CIn in accordance with tne above. J. OPT<ONEE. in accordanc •• ith Clause XVIII (TENANT'S ASSURANCE OF CONSTRUCT10N COMPLETION) of th@ attached lelSp., shall hav~ furnished to the Director of Finance, evidence of coverage that assures CIn that sufficient monies. win be available to c.omplete the-proposed constr'1ction. K. OpnONEE sh3.li have submitted to the Real Property Manager, a security deposit in accordance with Clause XXV (SEClJRITY OEPOSI1j of the attached Lease. L If OPTlONEE proposes to hypotheca;te the leasehold as SECUrity for a 10an in accordance with Clause XXV (ASS!GN1NG 1 SUBLETTING & ENCUMBERING) of th~ attached lease, OPTIONEE shall have submitted tn the tl.eal Property Manager~ any and ail doc~rr~ents relatoed to such hypotnecation and shall pa,)' the necessarj processing fet!s as set forth l'i the attached Lease. 5. EXERCISE OF OPTION (OL B.O) S At any time during the cpt ion term that OPTIONEE has satisfit!d ead and every condition precedent set forth 1n Clause 4 (CONDITIONS PRECEDENT) above, to the satisfaction of Cln, OPTIONH may exercise this option by gi .... ing the Real Property .JrI:anager written notice of its election to do so, accompanied by two prop~rly executed copies of the attacned lease. CITY shall execute the lease within one month of recei~t cf the request to exercise option in accordance with this clause. 3 - 6. RETeNTlaN OF OPTIO~ OF PURCHASE PRier (Ol 9.0) S T" the event thc.t OPTIONEE does net ex€rcise this opticn 1r· accordance with the terms hereof, .all option mor.'tes paid to eIn shall be n~tair:ed by ern 11'1 consid­ eration for the granting of thjs optio~. 7. GeNERAL CONDlTiOl,S !Ol 10.0) S A. Revie. by Cit! (Ol 10.1) S OPTIONEE hereby acknowledges thst one of the purposes of t~js option is to afford ern the opportunit,)' to determin-a ."heth~l" or n<lt OPTIONEE; s abl e to meet the various conditions ind obtain the required appro~als as set forth in this <Iption. Several of those conditions ;;1vah'e obtail"ling review and approval from officers, employees or agerlts of (In. Each cf those reviews shall be conducted 1n an indepcrident manner and n.othing contained herein shall be deemed to 1 imit the jur;sdicUon or authority other'wise possessed by 'tne officers, employees or agents in the conduct of such r~\liew. Nothing contained in this option shall be deemed to imp~y that the approvals will be forthcomif'lg, and the failure: to issue an), st,;ch appro'lar or permit by any officer, employee or agent of CITY shall nut be deemed in any manner a brea~h of this option, nor shall any suc~ deni~l give raise to any claim, liability, obl;9ation~ or cause of action ~;th respect to this Dption or the attached Lea.se. ern agrees to conser-t to any appl ieat i on. by OPHONEE wlt.h resp~ct to any permits or approvals related to actjvitifs or improvemel1ts approved by CiTY in accordance with the option which may be requ.ired by any governrr,ental or other reglllatory agencies as.ide from CITY. B. Assignment Prohibited (Ol 10.2) S This option tlas been awarded based on He bacl<ground and proposals cf OPTIONEE; therefo~e, Uis Opti")n cannot be sold, assigned or otheniise trans­ ferred without the prior written c~nsent cf CITY. Failure to obtain CITY's required written consent shall render said 5ale , assignment, or transfer void. c. Extension of Opt;~n (10.3) S Upon written request of OPTIONEE stating the reasons ttlerefore, the City Manager, or designee~ may, at rris or her sole discretion, extE'na the tern of this option as follows: L City Manager or designee may grant an extension of the term of this option for a reasonable p~riod of ti'7.e, is determined by the CHy Manager or designee in the event OPTIONEE is delayed in fulfilling the conditions , - 1, precedeTit to t~~ H_~~'cise of t~is O~UOf' by r~aS(H, of ar1j caus~ n.et t"'i! faL;1t of, or Wlithin the reds,onable control of, OPTIONEE Jr its: agents or employees; or City Manager or designee !liar grant an extension cf the term of the option for a period not to ex.:eed flin-e!.y (90) days, in tne eOient OPTIONEE is delayed in fulfjlling the conditions precedent to the exercise of this cpt'Ofl fvr any other reason. Hawe"er, U,e C, ti Manager or design.e~ ma)' grant such extension only upon the fol1owi~g conditions: a. Written reqJJest for such e:xtenslon shail hai,le D€en deliver-ed by OPTIONEE to the Real Property Manager at least fjfteen (lS) days prio'r" to the expiration of the option termj b. Payment 'ir, 1'l'1 amQunt equal to $5QQ,00 {FiVE hu.ndred dollars} shall be submitted to CITY with the request for extension referred to above (in the event an e~tension is denied, CITY shall ref~nd said amount to OPTIONEE,); arod c. OPTIONEE shall sub~it, tog€ther with its requEst for extension, ~w1- den.ce of its progress toward fuifll1ing the cor.ditiorls precedent to the exercise of this option, docume.ntation cf its proposed a.ctions and feasibility of satisfying the conditions within the term of the ex-tension requested and such other 1f1formi!tior: and material as may be required by the City Manager or designee, o. Terwinati~n of Optior. (OL 10.4) S Failure of OPTIONEE to satisfy the terms and conditions of this option fully and satisfactorily within the time limits stated shan absolutely and conclusiwely terminate OPTiONEE'S rights hereunder. Upon termination h.::reof withl>'Jt exerche of the option by OP110NH, OPTIONEE. shell. Wltrllr: S businas5 days of receipt of request from CTTY'S Real Property Manager, deliver to CITY a properly executed Quitclaim Deed quitclaiming any and all interest in and to PROPERTY. Execut.ion of the leas= by CIn and OPT10N~E substantially in the form of Exhibit I, attached hereto, shall be deemed a termination of this Option Agreement. E. OPIIONEE'S Ri9ht to Enter (Ol 10,5) S CIn hereby grants to OPT10NEE, its agents, employees, and assigns, during the tern of this option or-any extensi:;n tt1erecf, the right to enter said propeY'ty or any portion thereof at reasonable times for the purposes of condudii19. at OPHONEES' own cost and expense, such soil, geolo9ic, and engineering investi~dtions as ,may be required by any public agency required to approwe any subdivision or d".lopment of PROPERTY by OPTIONEE. OPTlONEE h.reb)' agrees REliASES 1!Dl TENNIS 5 --. -,-.,---. '''···L--.· .. . ' .' , - /, to' ~ndemnHjI eiT( and hold CIrr, un's ageT1ts and employees, free and harmless from any loss or liabl1ity irrcurr~d by reason of sud inlJestig;)t10n. Should ti'l;s option be terminated, OPTIONEE agreEs to fe-pair ar,y and -111 damages caused to the PROPERTY by reason of any such ir;vestig.ation or investigations. (In, at the soie d~sr:l:"€:t~on of the City l1~rloger I)r deSignee, m,3.j r"eql.!ire that OPTimjEE provide evidenre of insurance ccverag€ in the arnourts set fCirtn in Clause XXIII (INSURANCE) arid/or a security deposit up to one-half of the amount set forth ir; Clause XlV {SECURIH DEPOSrT} prior to any soil. gEologic or otner tests or investigations on PROPERH by OPTrONEE, its age~ts, employees Qr assigr.ees. F, Notices (OL 10,6) S Any notice, tendt;!r, or ,jelivery to be given in accordance with this option by eith~r party to the oHler sliall be given in accorda'lce with Clause xxnrr (NOTICES) of the attached Lease, G, Reprl.entations (OL 10,)) S E~ch party repre~ents to the other tnat it has empToyed no real estate broker or finder in connection with this agreement and hel"'eby agrees to hold the other hanrlless, and fre~ from anyliabillty in connection with any corrmission ~r finder's fee alleged to be incurred by it. H, Entire Agreement (OL 10,8) S This instrument contains the entire agree:ner.t. between the parties relating to the option granted bj this agreement. Any oral representations or modifica­ tions concerning this instrument shall be of no fcrce and fffect except in a subsequfnt modification which ;s mode in writing. and signed by boH"1 parties I_ Recovery cf Attoney's Fees {OL 10.9) S In the e~ent of any controversy. c'ai~. or dispute between the parties hereto, ariSing out of or relating to this agreement or the breach the-reof, the prevailing puty shall be entitled to recover from the lOSing party reasonable e~penses, inc1uding attorney's fees, and other legal costs. J. Binding on SiJccessQrs (Ol 10.10) 5 Tnis agreement shall bind and inure to U1e be-nefit of the respective heirs, penonal representatives, successors, and assigrls of the parties hzreto except as may be expressly provided elsewhere in this a9reem~nt. A(L£l.SfS 7,t)L TFN N IS 6 • j I '! . , .' IN WITNESS WHEREOF, the parties hereto ~ave Ex~cuted t~is Optio~ Agreement on the day and year first abov~ written. CITY: CIT! OF PALO AL10 Mayor ATIrSl: City Clerk APPROVED AS TO FORM: Sr. Assistant City Attorne~ RECOMMENDED FOR APPROVAL: DirectClr, Planning ~nd Cor,muni ty Environment DirectDr of Finance Manager, Rfai Property Oirector, Social & Ccmmunity Services Risk Manager I'\El.£ASES ~ toLTEHNIS OPTIONEE: 8y: it s: 8y: __ _ Its:. ________ _ 7 • -'~"-- Exhibit I proj ect: Tenris/s"'im Center 300S JoHd_5Uef ield F.oac::l: LEASE # This Lease is made this between the City of Falo Alto, a day of _ ,19 by :trunicipal corporation, -YCITY) (TENANT) • JlECZTALS RL 2.0 S and and Now, therefore, in consideration ,')f these covenants, terms and conditions. the parties hereto mutually ag:ree as fo110\,,.-s: A. In accordance with a votex-approved lI",easure, em April 28, 1987, CIT¥ acquired a 3.73 acre parcel on Kiddlefield Road r commonly ](no,",7; as "Winter Lodge-site, for the purpose of continuing its use as an ice skating facility. B. On January 26, 1950, CITY enter-ed into i! 20-year lease 'With Communi ty Skating. Inc. for the improvement and continued operation of the ice skating facility. C. The nWint~r Lodge" site also includes a former s'Wim and tennis facility \,..-hich is not included in the l("ase for the ice skating facility. O. On , 1993, CITY entered into an Option to Lease Agreement 'Witb TEN~"T (the "Option""} I under which 7ENA..~'r agreea to secure all necessary CITY appr~vals and permits in order to exercise its option to lease the PREMISES, construct improvements and operate tbe PREMISES as a E. TENANT has satisfied all the conditions of, and now desires to exercise, the Option and to lease the PREMISES from CI'l'Y in order to construct improvements and operate the PREMISES as a F. CITY and TENANT desire that the s'Wi~ and tennis facility be improved and operated by the 'I'ENANT as a in accordance with the terms and conditions set forth below. 1lE-..u.ASI'J ,7/Lzre.iN1S 1 ---~ 1. PREMISES (RL J.O) S Subject to 't_he terms and conditions set forth in this Lease l ClTY leases tc TE'NAN'l' that certain property ~PREMrSES} described and shown in "Exhibit BPI. Exhibit B is att.ach~d tQ ~ndl by this rGference~ made a part of this Lease. Unless specif ically provided elsewhere in this Lease, TENANT accepts the PREMISES "as-is" on the dat~ of execution of this L~as~. II. PURPOSE (RL 4.0) S The purpose of this Lease is to provide for the development and opa~ation of a recreational facility otfering tenniS and/or swimming. u!. REQUIRED AND OPTIONAL SERVICES AND USES (RL 5.0) S In furtherance of the purposes stated above I the following required and optional services and uses shall be provided, pernitted or prohibited: A. Required Services and Use...§:. 'I'-hroughout the tenn of this Lease TENANT shall provide the following services and activities: B. Optional Services and Uses. S\Jbject to the prior w-ritten approval of the City lo'!anager .. TENANT may a1.s? use the PRE:JIl.ISi:S to provide additional services and u::,es which are ancillary to and compatible ... itn the required services and uses s't.a.ted above and not in conil iet ~ .. i th the: required uses.. Such uptional uses may include t!",e follo..-ing; Approval of optional uses shall be within the sole QiGcretion of the city ~anager. C. Restricted Uses. The above listed services and uses, both required and optional, sha.ll he the only services and 'Uses permitted upon or fro~ the PREMISES. TENANT agrees not to use the PREMISES for any other purpose nor to engage in, or permit, any other business activity within or from the PREMISES. 2 -··'.:.~"····"··L ' C'_" , :c, . ' ""' .. IV. TERM (RL 6.0j 5 The term of this Lease shall be te~ (1'0) y~,i.\r ... depending on specific nature of use a.nd i1'lprovament,s, com.~encing on the first aa:l ot the month following signing of LEASE by Cit}'. V. OP7ION TO EXTEND (RL 6.2) 5 'I'ENANT st-.a 11 have the option to extend this Lease term for an additional five (5) years if the follo .... ii1g conditions have been satisfied: A. TENANT has, to the satisfectioi' of the City Manager r faithfully perfoL~ed each and every condition ot thi& Lease througholJt the Lease term. The City Manager' s assess~ent of TENANT'S per.formance shall be final and conclusiv~ and s~all be based on infonr.ation received from CrTl·~S staff, and othars that may have knowledge 0f TENA]J'T/S performance; and B. TENANT has submitted to CITY, a written notice of TENANT'S intent to extend the Lease in accordance .;ith the terms of this clause, on or before six (6) months pr io~ to the end of the Lea~e term set forth in Clause IV (TERM). CITY may notify TENANT if TENANT'S performance has. not been acc~ptable in acco~dance ~ith subparagraph A of this clause within two (2) months of receipt of TENANT'S notice of intent to extend this L-ease. CITY'S failure to notify shall not be deemed or construed as CITY'S approval of TENANT'S option to extend. VI. CONSIDERATION/RENT (Rl" 7.0) S A. Ccnsiderati_9Jl_of CITY. In considerati':ln for TEN.WT'S use of the Prelllises provided by CITY I TEN1.NT shall, in accordance ~ith Clause XI {REN"T PAYMEnT PROCEDURE). pay to CITY. the qreater of the follo~ing a~ounts: 1. Minimum Annual Rent. The minimum annual rent for the first Lease year (being the first twelve months following the commencement of this Lease) shall be ______ dollars '$ ). (Minimum rent to be determined based on specific nature of use and improvements.) The minimum annual rental for each su.bsequent Lease year shall be adjusted automatically to the greater of the following: a. Seventy-five percent (75\) of the annual rent paid by TENA.~T to CITk' in accordance ..,i th this Clause for the previous Lease Year l or 3 •. ~~. I I , --'"._- The initial minimum ann~al rent adjusted in proportion to eighty-five percent (SS\:) of the charlge in the Consumer Price Inde>.:, All t!rban Cor.sumers (base years 1982-1984 100). San Francisco-oakland-San Jose CS'NA published by the United States Department of Labor, Bureau of Labor Statistics, or the offi=ial successor t~ this index. The adjustl:iH~nt shall be effective on each anniversary of the commencement of this Lease ~nd shall be calculated as follo~s; x = A[(C + O.85(E-C))IC] \r\o'here: X Adjusted rental. A Rental at the co~encement of the Lease. B Average mont.hly ir.dex for the 12 calendar months ending wit,h and including the index published just prior to the month in which each rental rate adjust!r'tent is to become effective. C Average monthly index for the 12 calendar months ending with and including the index puhlished just prior to the commencement of this Lease. In no event shall the mini':nUnt rent be less than the !llinimu:n annual rent for the preceding lease year. Should this Lease be terminated during the Lease year, the applicable minimum annual rental shall be prorated. 2. Percentage Rental. Percentage rental for TENANT'S use of" the PREMISES shall be calcul.ated using the follo\oring percentages of gross receipts fro~ business operations conQuctcd on or from the PREMI£ES: Business Category Pel';'_cp.Qtaqe Rent (to be determined) 4 a. Rent for optional service§ ___ and Uses. TFNkNT shall, in addition to the above, pay to CITY rent for approved optional se-rvices and uses. Re:"lt tor optional services ana uses approved in accordance with Cj..ause III (REQUIRED & OPTIONAL USES} subparagraph B .• shall be mutually agreeable to the City Manager and TENANT. Should TENANT' and the City Ma.nager fail to agree to a rent for such approved optional uses, the City Council shall review data presented by TENANT and the City Manager and sh~ll determine the appropriate rent. The City Council determination shall be final and conclusive. Should TENANT not agree to slJ.ch rent determination, TENP..NT agrees r.ot to engage in such activity t notwithstanding any prior approval ot such optional uses, whether express or implied. VII. REVISION OF RENTALS (RL 1.3) NS The l'linJ_l!IWIl annual rental specified in Cla~se VI (CONSIDERA­ TION/RENT) shall be subject to automatic annual adjustmehts ir'! proportion to changes in the Conswner Price Index, All Urban Consumers, (base years 1982-1984 = 100) for San F~ancisco-Oakland­ San Jose CSMA published by the u.S. 'Department of Labor, Bureau of Labor Statistics or any replacement index published by said Bureau. The automa~ic adjustment shall be effective on each anniversary of the commencement date of this Lease an.d shall be calculated in accordance with the following formula: x = A (B/C) Where: x = Adjustea rental. A Rental at the Commencement of the Lease. B ~ Average monthly index for the 12 calendar months endinq with and including the index published just prior to the month in 'Which each rElntal rate adjustment is to become effective. C Average monthly index for the 12 calendar ttlonths ending with and including the index published. just prior to commencement of this Lease. VIII. CHARGE FOR UNAUTHORIZED SERVICES AND USES (RL 7.4) 5 TENANT ~hall pay CITY a sum equal to one hundred percent (lOOl) of the gro$s receipts for any service or use that is not permitted or authorized by Clause rII (REQUIRED' OPTIONAL USES). This payment is subject to the "due daten requir~ment provided in Clau6e XII {Ca~GE FOR LATE PAYMENT). The ~xistence of such charge or the 5 -- payment or l:'ec~ipt of money under this clause, d·:les not cons.t.itut.e an authorization of a particular service or use and do.:as not constitute a '.:aiver of CITY'S right to tenr.inate s.uch service or l.Jse. IX. CONTROL OF HOURS, PRICES AND PROCEDURES (RL 8.0) S TENAN~ shall continuously use the PREMISES for the uses specified in Subparagraph A of Clause III (REQUIRED AND OPTIONAL SERVICES & USES) during all usual business hours and on all such days as comparable: businesses in the area Or as are customarf for the Required and optiona.l Services and :Jses permitted in accordance with Clause III (REQUIRED AND OPTIONAL SERVICES & USES). TENANT shall use only such space within the PREMISES for office, clerical or other non-sales or services uses as is reasonably required for TENANT' 5 required or approved uses of the PRDIISES. TENANT shall at all times maintain a written schedule setting f~rth the operating hours and operating procedures fvr each required and optional use provided on or fro'!!! the PREMISES. A scheduie of prices charge.d for all goods and/or services related to the required and optional uses of this Lease shall also be Eaintained and individual merchandise must be clearly priced. TENANT agrees that when alternate forms of packaging are available, only items packaged in the ma~~er most compatible with the goals of reducing litter and preserving the environment shall be sold. Upon written request, TENANT shall fur:'1.ish the City Manager or designee, a copy of the schedules and procedures. Should the City Manager or designee decide that any part of these schedules or procedures is not justified ~ith regard to fairly satisfying the needs of the public, TENANT, upon • .rr i tten notice from the City Manager. shall modify these schedules or proceo'Jres to the satisfaction of the City Manager. Prior to issuing such a no~ice, the City Manager or de~ignee, shall personally revie~ a~d confer ~ith TENANT or its repr~sentative. Primary consideration shall be given to the public's benefit in implementing this clause. All prices charged for goods and{or services supplied to the p'.1.blic on or from the PREMISES shall be fair and reasonable, based upon the following considerations: A. The degree of public service involved in the sale of the goods and/or services; S. The market prices charged by other competing and/or comparable businesses; and C. The reasonableness cf the profit margin as related industry­ wide. 6 · -. -, - TENANT'S failure comply vith the provisions of this cla'~se sh!lll consti tute a :elaterial :breach of this Lease and may be grounds for termination of this Lease. TENANT aq:-ees t-hat it 'w'ill operate and manage the services and facilities offered in a competent and efficient manner at least comparable to other well managed operations of a similar type. TENANT &hall at all times retain active, qualified; competent, and experienced personnel to supery:i.se TENANT' 5 operation and to represent and act for TENANT. TE'NAN'T shall require its attendants and employees to be properly dressed, clean, courteous, efficient, and neat in appearance at all tim~s. TENANT shall not allow any person(s) in or about the PREMISES who shall use offensive language and/or act i~ a boisterous or otherwise improper manner~ TE~ANT shall maintain a close checK. over attendants and emplorees to insure the maintenance of a high standard of service to the public. It the city Manager, on behalf of CITY, determines that the quality of service rendered by TENANT, including, 'Without limitation, a determination tnat the standard of service provided by any employee of TENANT is not satisfactory under the provisions of this Lease, TENANT shall act immediately to remedy any and all such determinations after receipt of notice from the City Manager. CITY reserves the right to disqualify from providing services to the public employees of TENANT who do not meet the standards of service specified in this paragraph~ CITY may require TENANT to remove any employees from the provision of services to the public pursuant to the t~rms and conditions of this Lea.se. TEl-.lANT'S tail~e to effectively remedy any written notice of determination to the satisfaction of the City within five (5) days of receipt of such notice shall constitute a default by TENANT. X. DEFINITION OF GROSS RECEIPTS (RL 9.0) 5 The term "gross receipts" upon which percentage rentals are to be based shall include: A. The sale price of all goOOs, ",,'arc~, merchandise, and products sold on or from the PREMISES by T£N~~T, whether for cash or credit and whether payment is actually made or not; B~ The charges made by TENANT for sale or rendition on or from the PREMISES of services of any nature or kind Whatsoever, whether for cash or credit and whether payment is actually made or not; C. All admissi~n, entry rental, and other fees of any nature or kind charged by TENANT {including but not limited to deposits accepted by TENANT}; 7 "' " I , D. A~l sums deposited in any cain-operated vendi:l.g machine or ot.her device maintained on the PREMISES I regardless of the. ownership of the Iflacrl.ine or device, or \.:hethe:-Such sums are removed 3na counted by TENANT or others, and regardless of what percentage thereof TENANT is entitled to receive; E. F. XI. A. The fair rental value of facilities used by TENANT or its employees for purposes othe~ chan the business purposes for ~hich the PREMISES are leased; Secur i ty deposits colle-::ted by TENANT from its subtenants, agE:=nts , concessionaires or licensees and not placed in an escrow' or trust account ""i th interest not accrui:'l9 to the TENANT. RENT PAYMENT PROCED0RE (RL 10.1) S Payment of Rentals. On Or before the t~entieth day of each month, TENANT shall pay rent to CITY as set forth in Clause VI {CONSIDERATION/RENT) and shall render to CITY a correct. statement of all applicable gross receipts and rent due for ~~at portion of ~he current accounting year which ends with and. includes the last day of the preceding calendar month. The statement shall be signed by TENANT or its responsible agent under penalty of perjury, and shall Le substantially in the form of Exhik:it C attached to, and by this reference, incorporated into this 'lease. B. commencement of Obligation to Pay. TENANT' 5 obligation to pay percentage rent to C.!TY for acti vi ty or occupancy of any sublessee of all or a pcrtion of the PREMISES shall commence ~ith the earliest of the following dates (whether or not CITY has approved the sublease and regardless of whether or not a perce.ntage rent \rIas established bi' CITY): 1. Commencement date of sublea~e; 2. Date of physical occupancy; cr 3 • Oate of earliest activity (Le., solicitation of business, construction sublessee, e~c.}. sale of goods, or alteration by Acceptance of rental hereunder shall not c~nstitute approval of any unauthorized sublease or use. c. plac~ of Payment "nd Fi ling. Rental paj'lflents shall be delivered to, and statements required by this clause and Clause XIII (RECORDS AND ACCOUNTS) sc,all be filed with the 8 -,..., , D. XII. . Rea.l Property Manager, 250 Hal'l1ilton Avenue, PO Box 10250, Palo Alto, California 94303. The designated place of pa~~ent and filin.g may be chanqed 'it any time by CITY upon ten (10) days written noticE: to TENANT. Rental payments :may be made by cheCK made payable to City of Palo AltQ, ho,*,ever, TENANT assumes all risk of loss or delay if pay-l!:ents are made bi' mail. ~ccep~aTIce of Late or Incorrect Rent. TENANT specifically .agrees that acceptance of any late or incorrect rentals submitted by TEMANT shall not constitute an acquiescence or waiver by CITY and shall not prevent CITY from enforcing Clause XII (CHARGE FOR LATE PAYME'NT) or any other remedy provided in this Lease. CHAEGE FOR LATE PAYMENT [RL 11. 2) S If any payment of rent as specified in Clause VI (CONSIDERATION/RENT) is not received by CI~Y on or before the due date on the twentieth of the month, or if any other sum due CITY is not received by CITY on or before the due date for such other sums, a lete charge determined in accordance with the following formula shall be added to the delinquent payment, and the total sum shall become immediately due and payable to CITY: L A + D[(R + 2%)/12)J Where~ L The charge for late payment due CITY A The administrative costs involved with collection of past d\,;;e SUlIl, e.g., Delinquent Notices l telephone contacts, etc., whiCh for the purpose of this clause shall be $45.00 D The amount of the delinquent payments R The current average annual rate of return on the City's portfolio of invested funds as reported by the Treasury Manager Acceptance of late charges and/or any portion of the ove.rdue payment by CITY shall 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 hereunde~ or by any provision of la •. ,:~ . ~,.!,;;': -?-- ~" XIrI. RECORDS AND ACCOUNTS (RL 12.0J 5 ).. B.ecQrds~ 'I'EN.l..NT shall, at all times during the term cf this Le-ase. keep or cause to be 1:'.ept true and complete beoks, rec~rd5, and accounts of all financial transactions conducted in the operation of all business activities, of .... hatever nature; conducted pursuant to the rights granted herein. The records, books and accour-.ts shall be :kept or !:lade available to CITY at. a location within Santa Clara or San Mateo county. The reccrds must be supported by source documents su~n as sale slips, cash register tapes, purchase invoices, or other pertinent documents. Except as may be oth~~ise provided by thi~ Lease, all retail sales and charges shall be recorded by means of ~ash registers or other comparable devices which display to the c'.Jstomer the amount of the trans-action a:!ld automatically issue a receipt. The registers shall be equipped with devices -which lock in sales totals and ether transaction rec()rds, or-with counters ·which are not reset table and which record ~rar.saction numbers and sales details. Totals registered shall be read and recorded at the beginning and end of each day. Retail sales and charges may be recorded by a system other than cash registers or other comparable devices providecl that system is approved by the city Auditor. In the event of admission charges or rentals, TENANT shall issue serially numbered tickets for each such admission or rental and shall keep an adequate record of the tickets, both issued and unissued. upon request of TENANT and at the city Audit~r's sole discretion, the city Auditor may authorize the keeping of the above-referenced books of account and rec~rds and supporting sc~rce documents in a single location outside the limits of Santa Clara or San Mateo County provided TENANT ag~ees to pay all expenses including, but not limited to, transportation, food, and lodging necessary tor the City Auditor to send its reoresentative to audit or re.view bvoks and records. Th5.s right shall not be e.xercised by the City Auditor more than once each accounting year. B. The AccQ\lnting Year. The accounting year shall be tweJve full calendar months. The accounting year may be established by TENANT. provided TENA..lJT has notified CITY in writing of the accounting year to be used. The accounting year shall be deemed to be approved by CITY unless CITY objects to TEN.}..NT' 5 selection in .writing wit:r~in sixty (60} days of receipt of TENANT'S written notification. In the event TENANT fails to establish an accounting year of its choice, regardless of the cause, the accounting year shall 10 - be syncnymvus -with the t .... elve {12) month per-iod !ollolo.·ing commencement of this Lease. Once aT, accoiJrlting year is esta!:>lished. it shall be continued through the term of the Leas~ ~nless CITY specifi~ally approves in vriting a different accounting ysar. CITY shall approve a change in accounting r-ears only in the event of undue hardship being pl,,_ced on ei the!' the TENANT or CITY, and not because of mere convenience or inconvenience. C. Financial StiJtements Clnd Audit by~. Within ninety (SOl days after the end of eac;, accounting year, TENANT shall J at its own expense, submit to C!T¥ a palance sheet and income statement prepared and audited by a Certifiec Public Accountant, reflecting business transacted on or from the PREMISES during the preceding accounting year. The certified Public Accountant must attest that the balance and income st.a.tement submitted are an accurate representation of TENANT"S records as reported to the United Stat~E of America for income tax purposes. At the same time. 'tErV.NT shall subm.it to CITY a statement certified as to the accuracy by a certified Public Accountant wherein the total gross receipts for the accounting year are classified according to the categories of business established for percentage rental and listed in Clause VI (CONSIDER'TI0NjRENT) and for any ether business conducted on or fro~ the PREMISES. The City Auditor may accept alterna­ tives to the above certifiad Public Accountant-audited statement provided that in the City Auditor's sole opinion, the alternative provides SUfficient assurance tha~ the financial statement accurately reflect busines$ transacted on or from the PREMISES. All of TENANTIS books of account and records and supporting source documents shall .be mad€ available to CITY'S representatives a~ any and all reasonable time du~ing the term of this Lease and ~ithin two (~) years after expiration or termination of this Lease, for the purpose of determining the accuracy of the ~onthly statements of sales and monies received, and rent due and paid to CITY, Notwithstanding the previous paragraph, the full cost of any such audit by CITY, as determined by CITY, shall be borne Py TENANT if either of the following conditions exists: 1. The audit reveals an underpayment of Jnore than two percent (2%) between the rent due as reported and paid by TENANT in accordance with this Lease and the rent due as deternined by the audit; or 11 2. TENANT has failed to maintein true and complete bo~ks~ records, accounts, and supporting source documents in accordance with subparagraph A above. The adequacy of records s'nall be determined by the city AlH:'Ii tor. Otherwise, CITY shall bear the cost of any ~uch audit. Upon the request of CIT~ I TENANT shall promptl:{ provide, at TENA."1'I-' S expense, necesEioary data to enable CITY to fully comply with any and all requirements of the State of California or the United States of America for ir..formation or reports relating to this Lease and to TENANT'S use of the PREMISES. Such data shall include I if required, a detailed breakdown of TEN~~T/S use of the PREMISES, GI.nd/or a detailed breakdown of TENANT' 5 receipts and eXp-g!nses. XIV. SECURITY DEPOSIT (RL 13.1) S A security deposit in the sum cf five thousand dollars ($5,000.00) shall be provided to CITY by TENANT. The security deposit shall take one of the forms set out below and shall guarantee TENANT'S full and faithful performance of all the terms, covenants. and conditions of this Lease. A~ Cash. B. The assignment to CITY of a savings deposit held in a tini!...l"J.cial institution in Santa Clara or San Mateo County acceptable to CITY. At a minimum. 6u~h assignment shall be evidenced by the delivery to CITY of the original passbook reflecting the savings deposit and a written assiqnment of the d.eposit to CITY in a form approved by the Real Pr-operty Manager. C. A Time Certificat~ of Deposit from a financial institution in Santa Clara or San Mateo County wherei'l the principal SUIll is made payable to CITY or order. Both the financial i~stitution and the form of the certificate must be approved by the Real property Manager. D. A Letter of creditor other instrument of credit trom a financial institution, subject to regulation by the state or federal government, pledging that funds necessary to secure performance of the Lease terms, covenants, and conditions, are on deposit and guaranteed for pa:~rment, and agt"eeing that said funds shall be trust funds sec~ring TENANT'S performance and that all or a::1:7 part shall be paid to CITY or order upon demand by CIT¥~ Both the financial institution(s) and the form of the instrument,s} must be approved by Real Property Manager. 12 - .~ -", -.. Regardless of the to!Ln in which TENA...t.,;T elects to raak6 said security dEposit, all or aTIY portion of the principal SUDl shall be available unconditionally to CITY for correcting any default or breach of this Lease incurred by CIT\' as a result of the failure by TENANT, its successors or as:signs, to faithfull}' per-forTI! all of the terms, covenants, and conditions of this Lease. Should TENA~T elect to provide a Time Certificate of Deposit, L€tter of Credit~ or other instrument of credit, t .. ereinafter collectively referred to as Ii INSTRlJ"M,ENT " , to fulfill the security d.eposit requirements of this L-ease., the INSTRUMENT shall contain a provision .... hereby the institution iss".Jing tr:'5! INSTRUMENT agrees to provide CITY with WTitten notice of its intent not to renew the INSTRUMENT at least thirty (30) days prior to expiration or termination of the INSTRUMENT. If TENANT has !"'lot provided CITY 'Wi ":h an acceptable alternate form of security deposit ~t least ten (10) days prior to expiration or termination of the INSTRUMENT~ CITY may demand and obtain f:rom the institution issuing the INSTRUMENT, the amount secure.d. by the INSTRUMENT as satisfaction of the security deposit provision of this Lease. Should TENA.."lT elect to assign the sevings'deposit to CITY, or provide an alternate INSTRUMENT~ to fulfill the security deposit requirements of this Lease~ the a:ssignment, or issuance of the INSTRT.JME'h'T shall have tl''".e 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 TENANT with a financial institution to establish the depo~it necessary to permit assignment or issuance of a certificate as provided aDove~ may allo~ the payment of interest accruing on account of the deposit to TENANT, or order. TENANT shall maintain the required security deposit throughout the Lease term. Failure to do so shall be deemed a default and may be grounds tor immediate termination of this Le3se~ The security deposit shall be repated, reassigf'led, released, or endorsed to TE...t'.(ANT or order, as applicable, at the end of the Lease ts.nn, provided T~~ANT or order, as applicable, at the end of the Lease term, provided TENANT has fully ~nd faithfully performed each and every term, covenant, and condition of this Lease~ On each five-year anniversary date of the commencement of this Lease, the amount of the security deposit set forth above shall be adjusted according to the following formula: "''"here: 'L R SD A R ~ SD[(B + D.85(A -Bl/B] Revised security deposit~ Initial security deposit. Average monthly index for the 12 calendar months ending 'With and including the index 13 , ~. t -.. publiE.hed just prior tc the month in 'Which each securit:,' deposit adjustmoeT'lt is to become effective. B =--A-,I'ecage monthly index for the 12 calendar mont.hs ending liith and including the inde.x p"<Jblished just prior ~o commencement of this Lease. In no event shall the aI:lount of the revised security deposit be less than the initial security deposit. The difference between the initial security deposit and the revised security deposit shall be due and payable to CITY within te~ (lJ) days of receipt of a notice of revision of the security deposit from the Real property Manager. XV. MAINTENANCE AND REPAIR (RL 14.1) N5 TENANT at its exp&nse, shall perform all maint~nance ~nd repairs, including all pain1:ing f and all maintenance of lan~scaped areas necessary to keep the PREMISES and all improvements thereto in first-class order, repair and condition throughout the term of this LEASE. In additioTl, TENANT shall liIaintain~ at its expense, all equipment, furnishings and trade fixtures upon the PREMISES required for the maintenance and operation of a first-class business of the type to be conducted pursuant to Clause II! {REQUIRED AND OPTIONAL SERVICES WD USES}. TENANT waives the right to make repairs at the expense of CI'r'i and the benefit of the provisions of Sections 1941 and 1942 ot the Civil Code of CAlifornia relatinq thereto; and further agrees that if and when a.ny repairs, alterations~ additions or betterments shal::'" be made by it as required by this paraqr3.ph, it shall promptly pay for all labor done or materials furnished and shall keep the PREMISES free and clear of any lien or e.ncu.m!Jrance of any kind .... hatsoever. Should TENANT fail to make any repairs or perform any maintenance work for which it is liable, CITY shall have the option to make th~ repairs and TENANT ....... ithin ten (10) days of receipt of a bill therefor front the Real Property Manager ~ reimburse CITY for the cost of such repairs, including a fifteen percent {15%} administrati ve overhead fee. The making of such repairs or performance of maintenance by CITY shall in no event be construed as a waiver of the duty of TENANT to make repairs or perfoI'llJ maintenance as provided in this clause. TENANT shall be responsible for its share of the maintenance ana repair of all the parking area of the city-o~nea 3.73 acre parcel~ TEN1LNT'S share shall be determined by the ~umber of parking spaces required tor the use of the facility and the number of months the facility is in operation~ by mutual agreement of TENANT and CITY. 14 i - [, - , . XVI. INrTIAL CONSTRUCTION Bi TENANT (RL 15.0) S .,. ltinimuill ConstructiQ1L!lna Timing. TENANT .shall in ar. efficient and .... o:!"x:mar,likE: manner, cause: to be designed~ constru.cted, and installed within the PREMISES, at no cost to CITY 1 appropriate improvements to adeq'.latQly aCCOllll!H:>date these services and uses required :by Clause III (REQUIRED , OPTIONAL SERVICES AI'ill USES) . ThE! plans prepared by TENkNT ana approved by CITY during the option period prcceedinq execution of this Lease shall be a master plan fo~ development of the PREMISES 1 and the cons.truction drawings prepared by TENANT and approved by ~he City Engineer durinq the same period snall be the plans j specifications I a~d time schedule for constructing such improvements. Development proposed by TENANT in the master plan may be scheduled in incI ements approved by the city Manager or designee. B. pevelopment: Plan and construction Standards. All desiq1'l and construction shall conform .... ith the construction and architectural standards contained in CITY-approved plans and cons~ru=tion drawings and shall meet all other requirements ~ontained in this Lease. C. Minimum cost of Improvements. The minimum cost of TENANT constructed improvements ~hall be $ XVII. COI/STRUCTIOI/ ANDiOR ALTERA"rIOI/ BY TENAIIT (RL 15.1) S A. CITX'S Congent. No structares l improvements, or facilities shall be constructed, erected, altered, or m.ade within t&,e PREMISES without the prior written consent of City Council if required by City of Palo Alto procedures or cr-dinances, or othentise by the City Manager. Any conditions relating to the manner, method j design, and construction of the structures, improvements, or facilities established b:r~ CITY shall be conditions of this clause as though originally stated herein~ TENANT may, at any time and at its sole expense, install 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 M.anager I or designee. 8. Strict Compliance with Plans and Specifications. All improvements constructed by ~ENANT within the PREMISES shall be constructed in an efficient and workcar,like manner and in strict compliance ... it.h detailed plans and specifications approved by the City Council if required by City of Palo Alto procedures or orQinances or othe~ise by the City Manager, or designee, and applicable City of Palo Alto codes and ordinances. 15 L . -.. "--~, .. ,, ,---+ "~. ~- ~f~}tlf.·.···-· c. Certificat~ Q..L.I.D __ ?paction. Upon completion c! construction of any building, TENANT shall submit to the :r<ee.l Prope!""ty Marlage.r-, .a Certif icate of Ir,spection~ verifyin'9 that the const.cuctior, '.'as co:mpleted in conformance '.dth Title 20 of the Californi~ Code of Regulatior.s for residenti~l cc~struction( or in confor:r:ance with Title 24 of t.he Cr::liforr.ia Code of R~qulation5 for non-residentidl construction. XVIII. TENANTtS ASSURA..~CE OF CONSTRUC'rION COMPLETION (RL 15.2) 5 Prior to commencement of construction of apprcved facilities, or any pha.se thereof. within the PREMISES by TENANT. TENA .. 'oJT shall furnish the Real Property Manager t evidenca that assures CITY that sufticie:lt monies will be available to complete the proposed construction. The al'!'.ount of such assurance sllall be at least the total estimated construction cost that ..... as sub~i tted to and appt"oved by CITY in accordance with this Lease and the (date 9.f Opticn.L.. Option Agreement. Evidence of such ass'J.rance shall take one or wore of the: forms set out be lor...' and shall guarantee TENANT' I S full and faithful performance of all of the terIns, covenants, and conditions of this Lease: A~ Completion Bond; B. Performance r labor and material bonds, supplied by TENANT'S contractor or contracto!"s, pruvided tbe bonds are issued jointly to TENANT and CITY; - C~ Irrevocable letter of credit from a fL~H.ncial institutionj or D. Any combination of the above. All bonds and letters of credit must be issued by a surety company qualified to transact surety business in the State of California and be acceptable to the Director of Finance and City Attorney. All bonds and lettsrs of credit shall be in a form acceDtable to the Director of FinaJ"l.ce and City Attorney, and shail insure faithful and full observance and performance by TENANT of all of the terms, conditions, ccvenants .. and agreements relatin~ to the construction of improvements in accorcance with plans approved by CITY as set forth in this Lease. XI>:. DAMAGE TO OR DESTRUCTION OF IMPROVEMEN'I'S (RL 15.3) S In the event of damage to or destruction of TENANT-constructed buildings, facilities, or improvements located 'Within the PREMISES o!" in the event TENANT-constructed buildings, facilities, or improvemer-.ts located 'Wi thin the PREMISES are declared unsafe or unfit for-use or occupancy br a public entity ..... ith the authority to make and enfcrce such declaration, TENANT shall, 'Within thirty (30) days, commence and diligently pursue to completion the repair, replacement .. or recoIistruction of improvements necessary to permit L - .>;;~;.: ;~;Jt~" •. . , - full use and occupan-cy of the PREMISES for the purposes required by this Leas~. Repair, replacement, or re~ons~ruction of irnproveme~ts vithin the PREMISES shall be accomplished in a manner and according to plans approved by the Chie.f Building Official and the Real Property Manager. Except as: otherwis-e provided herein, terminatior: of this Lease shall not reduce O~ nullify 'I'ENAHT' S obligation ur,der this paragraph. Nct\o'ithstandi:l.g t::he above, shou)d the TENM'T-constr:.:cted imprcvements on the PREM.ISES b~ more than seventy-five percent (75\) destroyed or damaged by an insured loss duri.ng the last five (5) Y6ars of the term of this Lease, TENANT shall have rhe option of rebuilding or repairing such damage or terminating this Lease~ TENANT shall notify the Real Property Manager in "oolriting of its decision within ten !10j days of the occurrence of such damage or destruction. In the event that TENANT elects to terminate this Lease and not rebuild O~ repair such damage, TENANT sha]l demolish any remaining structures or portions of structures nQt desired by CITY and clean up any and all debris and shall pay to CIry a pro­ rata portion of the proceeds of insurance required in accordance with Clause XXIII (INSURANCE). The pro-rat~ portion shall be based on the following formula: L F (R/Tl L CIT'll S portion of insurance proceed.:;. P Total insurance proceeds paid exclusive of demcJ,.ition and debris removal expenses. R Remaining ter~, of t:he Lease. T Tne total Lea~e term, including any extensions made in accordance with this Lease. xx. AS BU1LT PLANS (RL 15.5) 5 Upon completion of ani major TENANT-constructed improvements~ TENANT shall provide the Real Property Manager with a complete set of' reproducible "'as built plans" reflecting actual construction .ithin or upon the PREMISES. TENANT shall also provide the Real Prope::'ty Manager "dth a statemei1t signed by TENA.."l'T under penaltr of perjury certified as to accurac}' and of actual construction costs for all such improvements. XXI, OWNERSHIP OF IMPROVEMENTS (RL 16.0) S All improvements constructed, erected or installed upon the PREMISES must be free and clear of all liens~ clairns~ or liability for labor or matetial and shall become the property of CITY, at its IlE-lEASE.> M.2TtNNlS 17 L < +~ :~-~. election r upor.. expiration or e~rl ier termination of upon city's eleccion, shall remain upon the termination of this Le~se. • <'-" __ '~ -,~."j -"AA __ ._~ this lease and, PREMISES upon Title to all equipment, f1.lrniture, furnishings and trade fixtLlres placed by TEN_ltNT upon the PREMISES shall rema in in TENAlrr. and replacel'f1.ents i substitutions arlO modifications therec! may be rnad:: by TF.NA..~T throughout the term of this Leae:e. TENANT may remov'S such fixtures and furrlishings upon termination of this Lease if TENAJol'T is not then in default under this Lea.se I provided tha't TENANT shall repair to the satisfaction of CITY any damage to the PREMISES and imprc'vements cau~ed by such removal and provided that usual and customary lighting~ plumbing and heating fixtures shall remain upon the PREMISES upon termination of this Lease. XXII. UTILITIES (RL 17.0) S TENAN'r shall be responsible for and shall pay, prior to delinquency, all charges for utilities 5uppljed to the PREMISES. XXIII. INS~~CE (RL 18.1) S TENANT shall mdin~ain insurance acceptable to CITY in full force and effect throughout the term of this Lease. M1nJmum Scope of Insurance Coverage shall be at least as broad as: 1) Insurance Services Office Commercial General Lia.bility coverage (occurrence fo~ CG 0001). 2) Insu!."'ance Services Office fo!"!r'. r.umber CA 0001 (Ed. 1/S7) covering AutolT.cbile Liability. eoce 1 (any auto). 3} Workers' COTripensat,ion insllrance as required by the state of California and Employer's Liability Insurance. 4) Course of Constructi::m insurance form providing coverage fOT naIl risks" of loss. The policy or policies of insurance maintained by TENANT shall provide the following limits and coverages: POLl.I;;X (l} WORKERS' COMPENSATION !i..E·L6ASES, 7/ l7.TENNlS MINIMl~ LIMITS OF LIABILITY Statutory 18 ::~:.:,:~:t < - (2) COMPREliE.NSIVE Bodily Injury .!t.UTOMOSILE LIABILITY, Pro}jerty Damage including owned, hired, and non-owned automobiles $1,000,000 $1,000,000 '$1,C'00,000 ea. ea. e •. person occurrence occurre:nce (3) CQl-!PREHENS IVE BlJd ily Injury $1,000,000 ea. person $1,000,000 ea. occurrence $1,000,000 aggreg~te $1,000,000 .ea. occurre.nce $1,000,000 ea. occurrence GENERAL LIABILITY incl~ding Property Damage products and Personal Injury completed operations, br-oad form contractual, and personal injury. (4) FIRE & EXTENDED COVERAGE (5) COURSE OF CONSTRUCTION Not less than ninety percent {90%) of the replacement cost of all insurable improvern~nts ~ithin or upon the PREMISES. Such policies liIust il"lclude ",-ater damage and debris cleanup provisions. Additional fire and extended coverage must be obtained in accordance .... ith this clause upo~ completion of construction or installation of any major insurable improvement. Completeu val~e of the project. peductibles and Self-Insured Retention~ Any deductibles or self-insured retentions must be declared to a~d approved by the CITY. At the option of the CITY eithe.r: the ir.s'..lrer shall reduce or eliminate SLlch deduct.ibles or self-insured retentions as respe~ts the CITY, its officers, officials, employees and volunte~rs; or the TENANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Insurance shall be in full force and effect commencing on the first day of the term of this Lease. Each insurance policy required by this Lease shall contain the following clauses: 1. .. Each insurance policy required by t.his clause 'Shall be endorsed to state that coverage shall not be suspended, voided I canceled by either party, reduced in coverage or in limits except after thirty {30) days' prior written notice by certified mail, return receipt requ-ested, has been given to the CITY." R.I:·l~S,ES 7il..zT~15 19 2. "All rights of subrogation are hereby ~"aived against the CITY OF PALO ALTO and the members of the City Count:il ~nd elective or-appointive officers or employees, ... ·hen acting ",'ithin the scope of their employrr.ent or appoir.tment.1<I 3 • "The CIT'i OF PALO ALTO property and course of described a~ove." is named as a cO:lstructiO!"l. loss payee on the ir,surance pOlicies 4. "'-rhe CITY, its officers, officials, el'!'.ploye-es, agents and voluntee~s are 'to be co .... ered as insureds as respect=:;.= liability arising out of act.iviti::!s performed by or on behalf of the TENANT; products and completE:d operations of th~ TENANT; premises owned, occupied or used by the TENANT; or automobiles owned, leased, hired or barrollled by the TENANT. The coverage shall contain no special limitations on the scope of protection afforded to the CITY. its officers, officials, e~ployees, agents or volunteers.- 5. -For any claims related to this Lea.:;e, the 'I'.E'NANT's insurance coverage shall be primary insurance as respects the CITY, its officers, officials l employees, agents and volunteers. Any insurance or self-in"mrance maintained by the CI'l.''i t its officers, officials, e:::cployees, agents or volunteers shall be excess of the TENANT's insurance and shall not contribute with it." 6. "Any failure to comply .ith reporting or other provisions of the policies including breaches of ~arranties shall not affect coverage provided tQ the ClTY. its officers, officials, employees, agents or volunteers." 7. "The TENANT I s insurance shall insured against .... hom claim is except .... ith respect to the liability.n apply separately made or suit is lin] ts of the to each bro',lght, irls'J.rer'S Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. XXIV. rNSL~CE (RL 18.2) TENANT agrees to deposit with the Real Propertj' Manager~ on or before the efte~tjve date of this Lease, certificates of insurance necessary to satisfj CITY that the insurance provisions of this Lease have been c01l:!plied .'ith, and to keep such insuranCE in effect ar.d the certificates therefore on deposit ~ith CITY during the entire tp.rm of this Lease. Should TENANT not provicl:e evidence of such requirt2:d 20 -.. - coverage at least three (3) days prior tc-the expiration of any exist.ing insura:"'lce covera'gE. CJ'I''l may purchase such insurance, or. behalf of and ~t the expense of TENANT to provide: six mOllti"'lS of coverage. CITY shall retain the :right at any tit'ne to revie· .... the coverage, for!!'!, and amount of the in~urance req'J.ired hereby. If I in the opinion cf the Risk Man.ager I tne insurance provisio!ls in this LeC'l.se de not provide ~dequate protection tor CITY and for rr,embers of the pLlblir..: using the PREMISES, the Real Property Manager may require TENANT to obtain insurance sufficient in coverage, forro r and an-tount to provide adequate protection as determined by the Risk Manager. CITY'S requirements shall be re.asonable and shall be designed to assure proteotion from and against the kind and extent of risk which exists at the time SI. change in insurance is required. The Real Property Manager shall notify TIDlANT in writing of changes in tha insurance requirements. If TEN.~T does not deposit copies of accgpt~hle insurance policies with CITY incorporating such changes within sixty '60) days Of receipt of such notice, or in the event T&~ANT fails to maintain in effect any required insuran~e coverage, TENANT shall be in default under this lease ~ithout further notice to TENANT. Such failure shall constitute a material breach and shall be grounds for immediate termination of this Lease at the option of CITY. The procuring of such required policy or policies of insurance shall not be construed to limit TEN.~T'S liability hereunder nor to fulfill the indemnification provision and requirements of this Lease. Notwithstanding the policy or policies of insurance, TENANT shall be obligated for 1:he full and total an-.ount of any damage, injury. or loss caused br or connected with this Lease or with use or occl.:.pancy of the PREMISES. xxv. ASSIGNING I SUBLETTING, AND ENCUMBERiNG (RL 19.0) S Any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, or assignment (collectively referred to as ENCu~BR'NCE} of TENANT'S interest in the PREMISES, or any part or portion there ot, shall first be approved in writing by the City Manager or designee. Any ENCUMBRANCE which has not been approved by CITY in writing shall be void. Occupancy of the PREMISES by a prospectiv'e transferee, subtenant, or assignee before approval of the transfer, sublease, or assignmeTlt by C1TY shall const.itute a breach of this Lease. If TENANT is a corporation, an ~nincorporateu association or partnership, the ENClTM8FUL~CE or transfer of any stock or interest in corporation, association, or pa~tnership in the aggregate exceeding twenty-five percent (25%) shall be deemed an assignment within the meaning of this Lease. 21 - Should CITY consent 'to any ENCl~BRANCE, such consent shall not constitute a 'Waiver of any of tl1.e terms, cO'Jenarlts, or conditions of this Leilse. such terms, covenants, or conditions sl":all apply to each and every ENCUMBRANCE hereunder and shall be severally binding upon each and ever}' assig!'lee, transferee, subtenant T or other successor in interest of TENANT. A~y docu~ent to encu~ber, transfe~, sublet, or assign the PRE.."fISES or any part thereof shall incorpol'ate directly or by r-eference all the provisions of this Lease. CI';Y agre,::.s that it ",,,ill not arbitrarill' \rrithhold consent to any encumbrance, but CITY may 'Withhold consent at its sole discretion if any of the fcllowing conditions exist: A. TE~ANT or a~y of its successors or assigns is in def~ult of any term, covenant. or condition of this Lease, whether notice of default has or has not been given by CIT'.l; B. The prospective ENCtN:BRNlCER does nat indicat:.e in o.rritirlg that such ENCUMBRANCE is subject to all the terms, covenants. and conditions of this Lease; c. All the terms, covenants 7 and conditions of the proposed ENCUMBRANCE including the consiceration ther-efo:."e of any and every kind, have not been revealed in 1;.'!."iting to CITY; D~ Any construction required of TENANT as a condition of this Lease has not been completed to the satisfaction of CITY; E. The processing fee required by CITY and set forth in the then current Palo Alto Municipal Fee. Schedule. has not been paid to CITY; F. If an assignment or sublease is proposed, and TENANT has not provided CITY 'wdth sufficient info:-r.,aticn to permit CITY to completely evaluat.e the backgro,,"nd, skills 7 financial position, proposed operat:ing plan ch<:l.nges and references of the prospective assignee or subtenant; or G. If the proposed assignee does not have the required skills. experience or financial standing to provide at least the same "~ level of service as TENANT which determination shall be w"ithin t!le sole discretion of the City Mal'"laqer. The above list is not inclusive but is intended to give TEN"ANT some idea of the types of situation ",'here Cl~Y ri:ay ..... ithhold its consent to any ENCUMBRANCE. CITY reserves the right to ~ithhold its consent to any ENCUMBRANCE that .... ill. iT! CITY'S sole option, adverselr affect the provision of service required by this Lease or adversely affect CITY'S interest ir. and to the land and structures covered by this Lease. Hypothecatic~ of the leasehold interest created by this Lea£e 22 - .. , .--""""'~--~-,~~---. ---.,.-,-_. is expressl)o' prohibited and any attempted hypot.hecation shall be null and veid. XXVI. DEFAULT' TN T£RMS OF THE I.·EASE BY TEN.~N'i' {RL 20.1) S A. Act....Q..Uefault Defined. The follo' • .'ing events constitute acts of default under this Lease: 1. St;ould TENANT fail to pay 311 or any portion of rental or any other payment due CIT¥ at the times and in the :!'r,anner provid~d in this Lease; 2. Should TENANT a.) abandon or vacate: the PREMISES (absence from the PR&~ISES for ten (10) days or more shall conclusively be deemed an abandonment of the PREMISES), b.) violate the provisions of Cla"..1se XXV (A.SSIGNING, SU8LE'TTrNG~ and ENCUMBERING), or c.) fail to provide evidence of insurance coverage throughout the terlll of this Lease in accordance vith Clause XXIII (INSURANCE); and 3. Should TENAN"T' violate any other provision of this Lease, and such violation shall not be cured within thirty (30) days after 'Written notice of such violation .by CITY to TENANT. Ho".,"ever r in the evel"'.t of a violation which cannot reasonabl)r be cured within thirty (30) days, TENANT shall have a reasonable period of time (as determined by the City Manuger) to cure such violation. 4. Should TEN~~T: a. file a voluntary petition or have an involuntary petition filed against it in bankruptcy or under any insolvency act or lawj b. be adjudicated a bankrupt; or c. att~mpt to make a general assig~~en~ for the benefit of its creditors. B. Rights and Remedies of CIT'i. In the event TENANT com.. ... ·tti ts an act of default, as defined in Subparagraph A. of this clause~ the following rights ano remedies shall be available to CITY which rights and remedies shall not be exclusive, but ... 'hich shall be cumulative and in addition to any and all rights and remedies noW' or .hereafter allowed by law or otherwise specifically provided in other clauses in this Lease: 1. CITY may, at its election I force and effect and not possession of the PREMISES, the right to collect rental continue tbis Lease in full terminate TENANT'S right to in ~hich event CITY shall have and other payments when due; - 2. CITY shall also have the right to terl'!'.inate this Lease and TEN~~T~S right to possession of the PREMISES at any time after-the occurrence of an act of default by TENA..~1'r upon _ritter, notice to TENANT tog~ther vith the right to recover dam~g~s for such act of default; 3. CIT't shall also have the right to ha.ve a receiver appointeu to co11ect r~Mtals and conduct TENANT'S busine~s; 4. CITY lnal', at its election, at any time after TENANT comrr,its an a.ct of default and .... ithout notice, c:..I.re the act of default fer the account a~d at the expense of TENANT. If CITY. by reason of an act of default by TENANT, is co"mpelled to pay. or elect to pay, any sum of money or do any act that will require the payner.t of an:y sum of :money I the sum or SUll1S paid by CITY, together with an administrative charge equal to fifteen percent (15\:) of said sum or sums; shall be deemed to be additional renta! due CITY under this Lease and shall be due from TENANT with ten (lO) days of CITY'S ~ailing an invoice therefore by certified :m~il; 5. CrTY shall also have the right to seek an action or suit in equity to e~join any acts O~ thirHJs \"·:r.ich may be unlawful or in viol~tion of the rights of CITY; 6. CIT'{ shall 2:1so have the right to se:ek a mandamus or other suit, action of proceeding at law or in equity to enforce its right against TENANT and any of its officers, agents, employees, assiqns or subtenants, and to compel it to perfor~ and carry out its duties and obligations under the law, the covenants and agreements as:. provided in this Lease. 1. CITY ard 'I'ENA."'JT :specifically agree t!1at acts of rna~ntenance or preservdtion or efforts to relet the PREMISES (including the making of alterations and/or improvements to the PREMISES in connection with any reletting) I and/or the appointment of a rec.eiver upon inj tiative cf CITY to protect CITY'S interests u~der this Lease will not constitute a termination of TENk~T/S right to posse~5ion. 2. Upon a termination of TENANT'S right to possession, ':ITY shall have the right to recover from TENANT: a. The ~orth at the time of a~ard of the unpaid rental which had been earned at the time of termination of the Lease; and '., j~~i .. ---.:. - b. The worth at the time of award of the amount D'j 'Which the unpaid rental which would have been eerned after th~ date of termination of this Lease u~til the time of award ~xceeds the amount of such rental loss that TENA."lT proved t;'o'.lld have been reasonably avc-idedj anj c. The ,,'orth 21t the time of a",'ard of t[le amount by which the ~npaij rental for the balance of the term after tl"1.e time of award exceeds the Ci!,!,.ount of s;Jch rental loss that ~rENAN'T proves could be reasonably avoided; and d. Arl)' other amount neces:;ary to co:r;;pensate CITY for all detriment. approximately caused by TENANT'S act of default O'r \TOhich in the ordina~y course of things ~ould be likely to result th~refrom, ~ncludinq, wit.hout li.mitation, all costs incurrl?d by CITY in connection ~ith reletting the PREMISES, court costs and reascnable attorney~s fees. The phrase "the fJort.h at the time of the al,{ard" as ccr,tained herein is to be computed by allowing interest at the rate equal to CITY'S average rate of return on invested fu.nds plus t .... ·(') percent (2%), or the maximum allo ..... ed by law, "'ihichever is greater. CITY'S efforts to mitigate the damages caused by TERlVlT'S act of default shall not constitute: a 'Waiver of CITY'S right to recover damages under the provisions of this clause. Upon termination of t,his. Lease, pursuant to Subparagraph B. of this clause, CITY may immediately re-enter the, PREMISES witnout due process of la'W, take possession of all buildings, improvements, additions, alterations, equipEent, eject all parties in possession thereof therefrom, using slJch force for that purpose as may be necessary ..... ithout being liable to any prosecution for the re-entry or the use of such force. Any such re-entry by CITi' si,all be allowed by TENANT ..... l.thout hindrance I and CITY shall not be liabl~ in damages or guilty of trespass because of any such re-entry. In the event of any re-~ntry or taking of posses~ion of the PREMISES, CITY shall have the right, but not be I obli9ated. to remove therefrom all of any part of the personal property located therein, and CITY may place the same in storage at a public warel"'.ouse at the expense and r i5k of o'*'ner or owners thereof. Nothing in this clause shall affect CITY'S right to indemnification for liability arising prior to termination of this Lease for personal injury or property damage pursuant to other provisions of this Lease. D. hRQ9_intment of Rec_eiver. If a receivet' is appointed at the request of CIT~ in any action against TENANT to take possession of the PREMISES and/or to collect the rents or profits derived therefrom, the receiver lllay, if it is necessa.ry or convenient in 25 .· ..•... 1 ..• .....J. - --_.,._----, -,""'_." order to collect such rents from profits, cond~lct the business of TENANT then being carried on in the PPEMlSES~ and ~ay take possession of any personal property belonging to TENANT and used in the cC<1duct of sucb business and :may be used by the appointed receiver i" cor,dl..l.cting such business on behalf of CIT"i and TENANT. Neither tr,e application for the appointment o£ such receivsr nor the appointment 0= such receiver shall b~ construed as an e:lection on CITY'S part to te!:"minate this Lease unless a notice of such intention is given to TENANT. TENJ..Nl' agrees to indemnif}" and hold CI'ry harmless from any liability arising out of the entry by any such receiver and the ~aking of possession of the PREMISES and/or use of personal property. ).TvII. BANKRUPTCY BY TENANT (RL 20.2) S Neither TENANT'S interest in this Lease, nor any lesser interest of TENANT in this Lease, nor any estate of TENANT created by this Lease, shall pass to any trustee, receiver, assignee for the benefit of creditors, TENANT as a Debtor-In-possession or any other person or entity (hereinafter collectively reierre:3 to as ItTRUSTEEJI) by operation of law' ·~.m~er the laws of any state having jurisdiction of the person or property of TENANT under any bankruptcy proceeding unless CITY shall specifically consent to such transfer {h,;.reinafter referred to as "TRANSFER") or assign:m.ent in writing. Acceptance by CITY of rent or an:{ other payments dUE CI'l'l' from any such 'l'FUSTEE shall not be deemed to be a waiver of the need to obtain CITY'S consent to any such TRANSFER. CITY'S ccnser.t to any such TRANSFER and CITY'S right to terminate this Lease under any bankruptcy proceedings shall be gov,erned by the follo'Winq paragraphs of this Lease. A. CITY'S Consent to 'I'i:'ar.sfer. CITY shall consent to TRANSFER only if the follo;..ring terms and ccnditions have been. satisfied: 1. TRUSTEE !""as, in ..... r iting, elected to assume and has agreed to abide by all of the tenns and conditions, specifically inclyding the use restriction of this Lease Yithin sixty (60) dai's from the date of the order for relief j 2. TENI>.NT or TRUSTEE has cured, or provided adequate aSS1 ... rance that any :rnonetari~ default under this Lease ... ill be cured within thirty (30) days of such TRANSFER; 3. TENANT or TRuSTEE has compensated CITY or has provided CITY adequate assurance that ;..rithin ten (10) days of such TRANSFER~ CITY \oIi11 be compensated for any pecuniary loss incurred by CITY arising from the default of TENANT' or TRUSTEEj 26 1 I , , 1 i i ! . ' - 4. TFNANl' or TRUSTEE has pl"ovided CITY '.:ith adequate aSSurance of the f",ture perform<":11ce of eac.h and E-very obligation of TENA."J'T or TRVS'l'£E under th is Lease; 5. Tf.NANT or l'RU$'i'EE has deposited ""ith CITY, as security ff)r timely payment of rent, aJ"'. amount equal to three (3} months rent and any ether monetary charges which may accrue or come due within the three (J) months following such TRANSFER. Should rent be ba~ed on p~rce~tage rent, the rent shall be estimated by usin~ the monthly average total rent paid b}' TENA.NT over the p~eceding three (3) x'ears; 6. The TRANSFER shall ;lot breact-. any provision reI ating to the leased FREMISES in any other lease, mortgage, financing agreement or other agreement by ~hich CIT~ is bound. , . TENANT or TRUSTEE has provided CITY w"i th sufficient info~ation regarding TRDSTEE, or any known proposed subsequent assignee, to enable CITY to determine that the 'I"RUSTEE, or any known proposed sUbsequent assignee, has the skills; experience and financial standing to successfully provide the uses and services required by this Lease, which determination shall be .... ithin the discretion of the City Manager. For the purposes of this subparagraph A, CITY and TENANT acknowledge that, in the context of the bankruptcy proceeding of 'IE~lANT, "adequate assur2nce" shall, as a minittluM, mean: L TRUSTEE or T.E.NP-..NT has and shall continue to have SUfficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure CITY that TEN~~ or TRUSTEE ~ill have sufficient funds to fulfill the obligations of TEN.~ .. NT or TRUSTEE under this Lp...ase, and to keep the PREMISES stocked ~ith sUfficie~t nerchandise a!"'lC/or suppl i~s and pr-operly staffed to conduct a fully operatiDnal actively pro!!1oted business on the PRE.'1:ISES; ano 2 • 'L The Bankruptcy Court shall have entered an order segregating sufficient cash pa~ .. able to CITY and/or TRUSTEE shall have granted a valid and perfected first lien and security interest and/or mortgage in property of T~1ANT or T~USTEE, acceptable in valUe and kind to CITY securing TENAlJT'S or TRUSTEE'S obligation to cure the monetary defaults under this Lease within the ti~e limits set forth above, or TRUSTEE shall have obtair.ed guarantees satisfactory in form and substance to CITY from one or more persons or entities who satisfy CITY'S standards of credit worthiness; and ------~--~ ) . CITi has obtained all, consents or ~aivers from ~ny third party required under any lease, mo~tgage. financing arrar.socment: or other agreerr:ent by ;,,"hich CrTY is bound to Fennit CI'ri to cor.sen-:=; to such TRANSFERS. B. Termirl{lti9J'! of Lease. This Lease shall, at CI'l'J"S optior., terminate if aMi' of the follor".ing conditior'.s exiEt: 2. If TENANT accordance above; or TRUSTEE fails to ,.;ith the requirements assume this Lease of subparagraph A. in 1 If a TRANSFER meeting each and every condi tj on set for-r.!". in subparC:!graph A above has not been completed within 120 days of TENANT'S becomlng a Debtor under C'hapter 7 of the Bankruptcy Code, or within one hundred twenty (120) days of the date of fili.ng of a Petition for reorganization or adjustment of debts under Chapter 11 or 13 of the Bankruptcy Code; or 3. If this Lease is assumed by a Trustee appointed for TENANT or by TENA. .... T as Debtor-ln-Possession und~r the provision of subparagraph A above and TENA..~T is thereafter liq .... idated or files a subsequent Petition for reo=ganization or adjustment of debts u~dar Chapter 11 or 1) of the Bankruptcy Co~e. CITY'S election to 'C.erminate this Lease shall be delivered to TENANT in vriting riO later than thirty PO) days after the occurrence of any of the above events. CITY' shall tJ1.er.eupon be immediately entitled to possession of the PREMISES vithout further obligation to TENANT or TRUSTEE, and this Lease shall be cancelled, hut CITY'S right to be compensated for da~ages in such liquidation proceeding shall survive. XXVIII. NOTICES (RL 23.8) S All notices, statements, demands .. requests~ consents, approvals, authorizations, offers, agreements, appointments or designations hereunder give by either party to the other, shall be in writing and shall be sufficiently gi'v'en and served upon 'the other party if (1) personally served, (2) sent by United states certified rnail. postage, prepaid, (3) sent by express delivery service, or (4) in the case of a facsimile, if sent to tnf:! telephone r.umb.er(s) set forth belo,", during normal business hou.rs of the receiVing party and followed within 48 hours by delivery of hard copy of the mat.erial sent by facsi~.ile. in accordance with {l), (2) or (3) above. Personal service shall include, without limitation, service by deli'/ery service and service by facsimile transmission. Delivery of notices properly addressed shall be deemed complete \"hen the notice is 28 ", .-\--. __ . . <~ .,.:-; ,-: -c}:.;.':: : ".-;,:/,--'ll:tI·r; . __ ~_~=wlI"s~$)~,ro; .. (v-.:>_-"","'" - physically delivered to the Real Property Manager or All notices pursu~nt to this lease shall be addressed as set forth below or as either party I"lay subsequent:ly designate br ... ritter: notice. 70: CIT'! Real property Manager City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto~ CA 94303 FAX: (415) 329-2468 with a copy to: TO: TENANT City Clerk, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: C41S} 029-2646 and City Attorney, City of Palo Alto P.O~ Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (415) 329-2646 IXXX~ AT'!ACl-iMEN'l TO LEASE (RL 24.0) S This Lease includes the following exhibits, which are attached hereto and by this refezence incorporated into this Lease: Exhibit A -General Conditions Exhibit B -Description of Leased Premises The inclusion of clauses in Exhibit A (GENERAL CONDITIOnS) is not in a~y way intended to lessen the importance of these clauses, but is merely done to e~~ance the organization of various clauses and this Lease. 29 - (RL 25.0) IN WITNESS WHEREOF, the pClrties have executed this Lease the day ~;1d year first above written. RL 26.0) CIT~: CITY OF PALO ALTO (LESSOR) BY: Mayor/City }tanager BY :----,~-cc------­ city Clerk APPROVED AS TO FORM: BY:~~_~ ___ ~ __ __ Senior Asst. City Attorney PROPERTY DESCRIPTION APPROVED: By: __ ~ __________ ~ Public Works/Engir.eerin-g----- RECOKKEh~E~ FOR APPROVAL: By:~ __ ~ __ ~ __ ~ Director, So·:::ial and community services By: ___ .... __ Director of Finance By: __________________ __ Real Pr~perty Manager By: ::0--:-= ____ --------- Risk Manager 30 TENi\N'l' : Its: B)·: ____ _ Its: (corp~o~r~a~t~e~S~e-a~l~)--- " EY.hISIT A GENERAL CONDITIONS 1. DEFINITIONS (RL 27.1) S cI'l'~ shall r.lean the City council of tr-.e City of Palo Alto, a municipal corporation. The city Manager is hereby au~horized to take any actions und~r t~is Lease on behalf of CITY except for ter~iT'lation of this Lease. Clauses in this lease refer to specific officers or employees of CIT¥. Should these positions be eliminated or the title changes, it is understood and agreed that such references shall be considered to be tc the new title for rena;ned pas i tions or to the replacement official designated with the responsibilities of any ~lirninated position. Any reference to a City office.r or e:r.lployee includes a reference to the officer's or err.ployee's designated representative. 2. PARTNERSHIP/CORPORATE AUTHORITY &: LIABILITY ,RL 27.2) S If TENANT is a partnership, each general partner: A. represents And warrants that the partnership is a duly qualified partnership authorized to do business in Santa Clara County; and B. shall be jointly ar,d se .... erally liable. for pgrfcrmance of the terms and provisions of this Lease. If TENAJ.."'l' is a corporation I each individual signing this Lease on behalf of TENANT represents and ~arrants that; A. he is duly allt,r.orizea. to do so in accordance 'irr'ith an adopted Resolution of ,!'ENA>"T'S Board of Directors or in accordance \o:it.h the Bylaws of the corporation; and s. TENANT is a duly qualified corporation authorized to do busine.~ s in st~te of California. As used in t.his Lease, the term "TENANT" shall include TENANT, its Bqents. slJolessees, concessional.res, or licensees, or any person acting under contract with TENANT; however, the definition of TENANT used h"!:rein, shall not be construed to authorize or permit .!:ny sublease or licenses net authorized O~ per~itted elsewhere in this Lease. 3. TIME (RL 21.3) S Time is of the essence of this Lease, 31 ,.;" .. ,..---..- 4. SIGNS (RL 27.4) 5 TENJu~'I' agrees not to construct, r.'.a i:1ta in, ot'" allow any sign to be placed upon the PREr-~I5ES e>;cept a5 rna,' be approved by CI'I'Y. Unapproved signs, banners, etc., may be re~cved by CITY. 5. PERMITS AND LICE:SSES (RL 27.5) S TENANT shall be req',dred to obtain any and all permits .and/or licenses Which !r1.ay be required in connectiorJ .... :i th the operatior: of, aTld any appro"led TENA.l.JT constructi·::m Up~rl, the PREMISES as set fort.h in this Lease. 6. MEC:tANIC'S LIENS (RL 2:7.6} 5 TENANT shall at all times indemnify a:1d save CITY harrnl€ss from all claims for labor or materials supplied in corlnectian with construction, repair, alteration, or installation cf structures, improvements I equipment, or facilities within the PREMISES~ and from the cost of defending against such clai~s, including attorney fees. TENANT shall provide CITY ... it.h at: least ten {IO} days .... ritten notice prior to COmrrlencement of any 'Work which could give rise to a mechanics lien or stop notice. CITY res~rves the right to enter upon PREMISES for the pu.rposes of posting Notices of Non-Responsibility. In the event a lien is ilnposed upon the PREMISES as a result of such construction, repair, alteration, or instal1ation~ TENANT shall either: A. Record a valid Release of Lienj or B. Deposit sufficient cash with CITi to cover the areount of the claim on trle 1 is" in question ar.d authoriZe paj"ment to the e::.:ter.t of said deposl t to ar!y subseque:1t. j udgmer.t holder that may arise as a matter of public record iro'C< litigation 'With regard to lienholder claim; or c~ Procure and record a bond in accordance with Section 3143 of the eiv) 1 Code, which releases the PRE.),jISES frott the claim of the lien from any actio:1 brought to foreclose the lien. Should TENANT fail to accomplish one of the three optional actions within fifteen (15) days after the filing of such a lien, the Lease shall be in default arId ::rJay be subject to irn.mediate termination. 32 , -;:. - 7. LEASE ORGANIZATION Ah'O R~jLES Or' CO:~STRliCrlO:-; (RL 27.7) S Words of the masculine gender shall be deemed and construed to include correlat.ive ",·oro.s of the fer.inine and neut.er genders. TJnless­ the context. other--"'ise indicates~ -words i:rr.po:-ting the singular number shall include th~ plural nU"l';',beI.-and .... ic-e. versa., and word.s impot'ting persons sl".all inclu.de corporations and ass')ciatlons l i:lcluding public bodies~ as ~ell as ~atural persons. The terms "hereby" I I'hereoflt J "her~tolt, "herein lf f "hereunder n and al'1.¥ similar terms, as used in this agr£ernent, refer to this agree~ent. All the terms and provi5icns hereof shall be construed to effectuate t.lJ.e purposes set forth hei:"ein, and 1:.0 sustain t.he validjty hereof. The titles and headings of the sections of this agreement have been inserted for convenience of referer.ce only. are r,ot to be considered a part hereof and shall not in '?ny w.'ay modify or restrict any of the terms of provisions hereof or be ccnsidered ~r given any effect in construing this ag.reement or any provision hereof in ascertair,ing intent, if any qU6sticn of intent sball .3rise. S. AMENDMENTS (P.L 27. e) s Thip LEase sets forth all of the ag=eements and unde~st8ndings of the parties and any modifications must be ~ritt~n and properly executed by both parties. 9. UNLAWFUL USE (RL 27.9) S TENANT agrees that no improvements shall be erected. placed upon, operated~ ncr maintained within the PREMISES, !'lor Bt'.y business conducted or carried un therein or therefrom, in violation of the tenrls of this I.ease, or of any regLl.lat.ion , order of laW'~ statute, or ordinance of a governmental agency having joJrisdiction over TENAN1"S use of the PREMISES. 10. NONDISCRIMINATION (EL 27.10) S TENANT and its employees shall not discriminate against any person because of race, color, religion, ancestry. age, sex~ national origin or physical handicap. TEN~WT shall not discriminate against any el:'lployee or applic,,"nt for employmE!'l't because of race, color, religion, ancestry, sex, age, ~a~ional origin or physical handicap. TENANT covenants t.o meet all requireu.ents of the Palo Alto Municipal Cod£;!: pertaining to nondiscrimination in employment~ If TENANT is found in violation of the nondiscrimination provision of the State of California Fair Employment Practices Act or similar proviSions of 33 L , ! : I e,: •. - federal law or executive order in the conduct of its activities ~nder this Lease by the St.atE:: of Cal iforn.ia Fair Ecnployment Practic~s COmJllission or the equivaler.t federal ag,;"cy ot" officer. it shall therehv be found in default ;..:nder this Lease, and such cefa'.llt shall constitute a mati!.rial bre~ch of this Lease. CIT'{ shall the:n have t":le pOwer to cancel cr suspend this Lease in ',.hole or in part. .L.... INSPECTION (RL 27.11) 5 CITY'S employees and agents shall bave the rig~t at all reasonable times to inspect the PREMISES to deterlI'.ine if the provisions of this Leas~ are being ccrr.plied ~ith. 12. HOLD HAR.."fLESS (PL 27.12) S TENANT hereby .... aives all claims, li2.bility ;!Ind recourse against CITY including the right of contribution foc loss or damage of or to persons 0[' property ariSing from, gro\o.·ing out of ::)r in any ... ay connected ,",'i th or related to th is agreement. TENANT herebjo' agrees to indemnify, hold harmless and defend CITY, its officers, agents, and employees against any and all clains, liability, demands, damages~ cost, expenses or attorne1s' fees arising out of the ooeration or :aaintenance of the propert), described herEi:1 or 'I'ENAIfT'S performance or non perfor:l!'.ance of the term~, of this Lease. In the event CITY is named as co-defendant, TEl .... ANT shall notifv CITY of such fact and shall represent CITY in such legal action unless ClTY undertakes to represent itself as co-defendant in such legal cc'tion, in 'Which event TENANT shall pa:{ to CITI' its litigation costs, expenses and attorneys' fees. 13. TAXES AND ASSESSMENTS (RL 27.13) S This Lease tl,3Y create a pos<:;essary interest " .. 'r.ich is 5ubje-::t to the payment of taxes levied on such intere;'L It is understood and agreed that all taxes and assessments (ir.cl uding but not linli ted to the possessory interest tax) iothich become due and payable upon tbc PREMISES or upon fixtures r equipment, or other property installed or constructed thereon, srlall be the full responsibility of TENANT and TENAI-lT shall pay the taxes and assessments prior to delinquency. 14. SUCCESSORS IN INTEREST (RL 27~14) S. Unless other'oolise provided in this Lease l thE.' terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, ad~inistrators, and assigns of all the parties hereto~ all of whom shall be. jointly and severally liable hereunder. 34 - . .., -. ~~~ .;>':\~'" ·,~t~~ 15. CIRCL'"MSTANCES WHICii E;':-:USE PERFOFJ.'.ANCE (FORCE ~..AJEUH!::) {RL 27.15) S It either party hereto shall be delayed or pre-.'c':"ltea from the per!onr,ance of a:cy act required h~re·.mder by reason of acts of God, restrictive government~l laws or regulations, or other cause without fault and beyond tne control ·:Jf the party-obligated {financial inability excepted) , performance .of such act shall be excused for the period of the delay and the period fer the perfo!""!1':ance of any such act shall be extended for a period ~quival~nt tc the period of such delay. 16. PA.RTIAL INVALIDITY {RL 27.16) S If any term, covenant, condition, or provisicn of this Lease is determined to be invalid, void, cr u~enforceable, by a court of competent jurisdiction. the remainder of the provisions hereof shall remain in full force and effect and. shall in no •• ray be affected~ impaired, or invalidated thereby. 17. WAI\i-£k OF EIGH'!'S fRL 27.17) 5 The tailure of CITY or TENANT to insist 'Jpon st:.r ict performance of any of the terms, covenants; or conditions of this Lease shall not be deemed a ~aiver of any right or remedy that CITY or TENANT may have, and sha.ll not be deemed a .,aiver of the right to reqo..:.ire strict performance af all the terms, covenants, and conditions of the Lease thereafter, nor a ~aiver of any remedy for the subsequent breach or de.!'ault of any term, covenant I or condition of the Lease. 18. COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAlJLT (RL 27.18) S In the event eittler CITY er TEN~N7 ccr:r!':'.ences legal action against. the .. other claiming a breach 0= default of t!lis Lease, the prevailing party in such litigation shall be entitled to recover from the other cost of sustaining such actio!"., including reasc:lable attor-ney fees, as ma}' be fixed by the Court. 19. RESERVATIONS TO CITY (RL 27.19) S The PREMISES are accepted nas isl'l and lI.,.here is" by TeNANT subject to any and all existing easements, and encumbrances_ CITY reserves the right to install, lay, construct, lTlaintain, repair. and operate such sanitary se~ers, drains, storm water sewers. pipelines, manholes, and connections; ~ater, oil. and gas pipelines; telephone and telegraph power lines; and thE: applicaticns and appurte!"la!"lces necessary or 35 L - convenient for conncctio,'"] ther~.,: i th, i r" over, upon, through, across and along-the PREMISE.S or a ny part tnereof I and to Cl"lte.r the PREMISES fOr any and all such purposes. CIT'i a1;::.0 re.se!'Ve5 the right to grant franchises, easements. rights of ~ay, and permits. in. over, upon, through, across, and along any and all porticns of the PREMISES. No right res~rved by CITY in this claUSE shall be 30 exercised as to interfere unrea sonably \01 i t:. TEN";'_NT' S ope rat io,., rlereunaer. CIT);· agrees tha.t rights granted to third parties by reaSurl of this clauze shall contain previsions that the s~rface of the land shall be restored as nearly as practicabl.; to the crigi.nal conditio!") upon the completion of any construction. 20. HOLDING OVER (RL :27.2(1) S In the event TENANT shall cOr"'.tinue in possession of the PREMISES after the term of ~he Lease, such possessio~ shall not be considered a renewal of this Lease but a te~a~cy from month to month and shall be governed by the ~onditior.s, and covenants con~ained in this Lease. 21. CONDITION OF PREMISES UPON TER!"l:INJI.TION (RL :2"'i.21) S upon terrninatiorl of this Lease, except as otherwise agreed to herein,. TEN~~ shall redeliver possession .of the PREMISES to CITY in substantially the same conditi.on that existed immediately prior to TENANT'S occupancy, reasonable wear and tear, flood, earthquake. war, and any act of war excepted. 22~ DISPOSITIOn OF ABANDONED PERSONAL PROPERTY {RL 27.22) S If TENANT abandons the FREHISES or is dispossessed thereof by process of la'W or other .... ise. titlE; tc any personal property belonging to TENANT and left on the PREJo':ISES forty-five. (45) days after such abandonment or dispossessio~ shall be deem~d to have be2n transferred .t to CITY. CITY shall have the right to remove and to dispose of such property -without liability therefor to TENANT or to any person claiming under TENANT, and shall hav~ no need to account therefor~ 23. QUITCLAIM OF TENANT'S INTEREST UPON TER?lINATIGN (RL 27.23) S Upon termination of this Lease for any rea50n~ including but not limited to termination because cf default by TENlL~T, TENANT Shall, at CITY'S request execute. acknowledge and deliver to CITY within five (5) days after receipt of "";-:: i tten demand thereof. a good and sufficient deed INhereb~l all rights, title, and interest of TENANT in the PREMISES, is qUitclaimed to CITY. ShOLlld TENJo..NT fail or refuse to deliver the required deed to CITY, CITY may prepare and record a If,t..EA5ES,1,'l...~·IS -----~~~- "'''''" .. . f - ~"'IJMJ:>"'''''" notice reciti:J.g thE failur-e cf TU:.b..1'-'T 't-o @'xec'..,n:e~ ackr.ol ... ledge and deliver suerl deed a:1d the notice shall ce conclusive evidence of the termination of this Lease, a%"jd of all right of T£NA..'~JT or those claiming u!""tder TENAN':' in and to the PREMISES. 24. CITY'S RIGHT 1'0 RE-ENTEi=; (RL :27.24) S TENANT agrees to yield and peaceably deliver possessio;-. of the PREMISES to CITY on the date of termination of t.his Lease l .... h2ltsoever the reason for such termination. Upon giving \lritten notice of termination to Tt.N~NT, CIT'i shall have the right to re-enter and t.~ke possession of the PREMISES on the date such termination becomes effective without further notice of any kind and \rIithout institution of regular' legal proceedings. Termination of the Lease and re-entry of tt·,e PREY.ISES by CITY shall in no .. 'ay alter or diminish ani' obligation of TENANT under the Le~se terms and shall constitute an acceptance or surrender. TENANT waives a~y and all rights of redemption under any existing or future !.aw or statute in the event:. of eviction from or dispossession of the PREMISES for ar.y reason or in the event CITY re-enters and lawfully re-takes possession of the PR~~!SES. 25. CONFLICT OF INTEREST (RL 27.25) S TENANT warrants and covenants that no official or employee of CITY nor any business entity in yhicn any official or employee of C!TY is interested: (1) has been employed or retained tc solicit or aid in the procuring of this agre.ementj or (2) 'Will be: employed in the performance of this agreement .. o.<ithout the divulgence of such fact to CITY. In the event that CITY deter~ines that the emplo~~ent of any such official, emplo:.'ee or busilies;s entity is not compatible with such cffi=:ial's or ~,mploye-e.'s duties as en efficial or employee of CIT", TENANT upon request of CI'I'Y shall inu~ediately terminate such emplo~ent~ Violation of this provision constitutes a serious breach of this Lease and CITY may terminate this Lease as a result of such violation. ,6. EMINENT DOI'.AIN (RL 27.26) S In the event the whole or any part of the PREMISES are condemned t;ly a p1Jblic entity in -r:he lalo.'ful exercise of its power of elr.inent domain. this Lease shall cease as to the part condemned. The date of such ter-mina!.ion shall 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 37 L '. - . not substantially impair the cdpacity of the remal~de~ to be ~sed for t.l1e purposes required by this LE'_ase/ TE!'<AN'[ :shall continue to be bound by the terms, cove.--:a::-lts and condi t ions of this Lease. HO\olever. the then current rnini~cm annual rent shall be reduced in proportion to the relatior.snip that the co:,:"pcnsati en pa:'d by the conderr,nir.g pu~lic entity for the portion conde~ned bears to the value of the entire PREMISES as of tbe date of possessio •. of the part. condemned. If the condemnation of a part of the: :PREr1ISES substantially impairs the capacity of the re::nainder to be used tor the purposes required by this Lease ( TENANT may: J.+o Terminate this Lease and tl:.ereby be absolve.d of obligations under this Lease which t,ave :!'"JO't accrued as of the date of possession by the condemning p:.lblic entit.y; or B. Contin·ue to occupy the rerc.a in ing PRE.."USES and thsreby continu~ to be bound by the terms, covenants and conditio!"ls of this Lease. If TENANT elects to contim.:8 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 conde:r:med bears to the value of the entire leased PREMISES as of the date of possession by the condemning public entity. TENA.."iT shall provide CITY ..... it:h ,"'ritten notice advising CITY of TENANT'S choice lJ.·ithin tt.irty (30) days of !,ossession of the part condemned by the condemning public entity. CITY shall be entitled to and shall receive all cornpensati~n related to the condemnation of all or part of the PREMISES by the exercise of eminent domain except that TENANT shall be entitled to that portion of the compensation which represents the va lue of the TENANT constructed irr.pr-oveme!"1ts for the remainder of the Lease term. The amount to ~hich TENlL~T shall be entitled shall not exceed the actual cost of improvemeYlts cOr1:::tn.lcted by TE!':}d~'I' :i."ed'...ced in proportion to the relationshi.p of tl"le remaining Le.ase ter~ to the original Lease term, using a straight line approach. 27. CHANGES IN PRICE INDICES (RL 27.27) 5 Clauses contained in this Lease rr,ay provide fo!' adjust:rnent based on the Consumer Price Index:, component indices, or other indicE'_s. Should these indices be changed~ alten~d or cease 1:0 be published, the following conditions shall apply: A. If the subject index is changed 50 that the base year differs from that used as of the month in ·..:hich the term co,m:rnences, 'the subject index shall be converted in accordar.ce with the conversion factor published by the publisher of that index; S. If the subject index is discontinued or revised during the Lease 38 ------- . --' .-. ~~i;J~· ___ ' ___ -..........".-r .. ', -- tr;rlT:,. such index shall be replaced by another gcvern:went inde:.< or computat.ion ;.rhich ',.:il1 obtain substantial1y the same result as 'IoIould be obtained if 'Che subject index had r.ot beer: discontinued or revised. 28. POST-ACQUISITION TENAN'CY (iU.. 21.:2 8) S TENM~T hereby acknow'ledges that. its c,;::cupancy of the PREMISES is sUbsequent to acquisition 'Of the PREMrSES by CITY. TENA."JT further underst.ands an.d agrees that as a post-acquisition tena~t, TENANT is not eligible and furthet"Il'Iore '\,,;aives all clair:.s for relocation assistance ar.d benefits under federal J state or local law, 29~ HAZARDOUS SUBSTk~:ES (RL 27.29) S il.. Definition. A.s used h€reir., the terrr, "Hazardous Materials" means any substance or material \o.Ihich has been determined by any state. federal or local governmental autt:oriti' to be capable of pOSing risk of injury to heal th, safety, ar.d property. including petroleLJm and petroleum product!::; and all of those materials and substances designated as hazardous or toxic by the u.s~ Environmental Protection Agency, the California Water Quality control Board, the u.s. Department of Labor, the California Department of Industrial Relations. the California Department of Health Services l the California Health and Welfare Agency in connection with the Safe Water and Toxic Enforcement Act of 1986, the tLS~ Department of Transportat~on, the "J~S~ Department of Aqricult"..lre l 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 gove!:'nmental agency now or hereafter authorized to regul~te materials and substances in the environment. Without li:rniting the generality of the foregoing. the term "Hazardous Material Sfl shall include all of those materials and substances defined as "toxic materials" in Sections 6668C through 66685 of Title 22 of the California Code cf Regulations, Division 4, Chapter :20. as the same may be amended from ti~e to time. B. TENANT'S Use of PREMISES. D'..lring the term of this Lease, TE'NANT shall abide and be bound by a 11 of the fol1ov,'ing requirements: i. TENA..-";' .. ' shall cOn1ply .... lth all law5:. nO'wi or hereafter in effect relating to the use of Hazardous Materials on l under or about the PREMISES, and TEN~~T shall not contaminate the PREMISES, or its subs"..lrf<'l-::es, -• .'ith any Hazardous Materials. ii. 'I'EN.WT shall restrict its use of .Hazardous Mater ia1s at the PREMISES to these kinds of mater ials that are normally used in constructing the Proj ect. Disposal of any Hazardous Mater ials at the Premises are str iet1y prohibited. storage 39 L .. iii. iv. v. .... i. of such pe~missib!e Hazardo~s Materials 1s allowed only in accordance with all applicable laws now or hereafter 1n effect. All safety a~d nonitoring features of any storage facilitie$ shall be approvEod by CITY'S Fire Chief in a'=cordance ""ith all la'",s. TENArn shall be solely and fully responsible for the reporting of all nazardous Naterials releases to "the appropriate public agencies, -...:hen such releases are caused by or result fron; TENAN"T'S activities on the PRE.·'USES. TENAliT shall imr.lediately inform CITY of any release of HaZardous Materials, whether or not the rel~ase is in quantities that would oth€n .. ise be repo:n.able to a public agency. TENANT shall be solely and fully respor:sible and liable for such releases at the Premi~es, or into CITY'S sewage cr storm drainage systens. Tn:ANT shall take all necessary pracau":.ions to prevent any of it.s Hazardous Materials from entering into any storm or sewage drai~ systen or from being released on the Premises. TENANT shall remove releases of its Hazardous Materials in accordance with all la'lo.'s. In addition to all other rights and remedies of CITY hereunder, if the release of Hazardo~s Materials caused hy TENANT is not ren:oved by l'Er~}t..Nr 'Il!ithin ninetr (90) days afte.r discovery by TENANT, CIT', or any other third party, CITY may pay to have thoe same removed and TENANT shall reimburse CITY for such costs ... ithin five (5) days of CITY/S demand for payment. TENANT shall prvtect, defend, indemnifr and hold harmless CITY froI!) and against all loss, damage, or liability (including all foreseeable and u~foreseeable consequential da~3ges) and expen5es (i~=luding, ~ithout limitation, the cost of any clea!".·~p ar,d re:rr.eciiatio.r: of Baza:cdous Materials; whiCh CI'l'i rr.ay sustair. as 3 resl.>lt of the presence or cleanup of Hazardous Materials O~ the PREMISES. TENklllT'S obligation under th~s Clau,s:e shall sur .... ive the expiratio~ or earlier te:nr.ination of this Lease. 30. ALL COVENANTS ARE CONDITIONS (RL 27.30) S All provisions of the Lease are expressly made condit.ions. 31. PARTIES OF IN~EREST (RL 27.31) S Nothing in this agreement, expressed 0:;-implied, is intended to, or shall be construed to, conter upon or tc glve to any person or partj' <0 ". other th.a:n CIT't and TENANT the covena,lts, conditicr. Clr st~p.llations hereof. All covanant~, stipulations, promises and agreements in this Lease shall :be for the sol€: and e:xclusive benefit of CITY ,and TENl'J-IT. 32:. RECORD.~TrON of LE.t..SE {RL 27.~2) S Nei ther CIT,' r.or TENA."'fT snaIl record this Lease; ho',.;ever, a short­ foZ"lfl. memorandum of Lease rnay be recorded at CITY'S req'..Jest. - ~.P.NO. 127-53-15 PREPA..'t(E BY: J. l<lEH!.. CHECKED BY: ;J 4 BOtJRQUIN APPROVED MY: J. REMLEY DATE: ~JLY 13, 1992 Beginnin9: at the centerline of Matadero Creek: said point being North 47~ 13 1 54-East, 261.62 feet from th~ intersection of the Northeasterly line of Middlefield Road with the centerline of Matadero Creek as sho~~ on that certain map entitled "Parcel Map Being a Resubd.ivision of a Portion of Lot 74 af C .M. Wooster Company's Subdivision ft recorded March 29, 1973 in Book 320 of Haps on Page 3, Santa Clara county Official Records; Thence along the centerline or said Matadero Cree~ North 47~131 54 u East, 261.98 feet: Thence South 52° 00' 00" East, 328.21 feetj Thel".ce SOuth 38° 00' 00" ·";est , 162.00 feet; Thence North 52' 00' 00' West, 197.86 feet: Thence South 38'? 00' 00' West, 96.59 feet:; Thence North 520 00' 00" West, 172.38 feet to the Point of Beginninq. Containing ~.634 acres more or less of land and Being ~ portion of Lots 14 and 75 as shown on that certain ~ap entitled "C.M. Wooster Company's Subdivision of the Clar~s Ranch~ recorded November 11, 1912, in Book "0" of Maps on Paqe 16 of Santa Clara county O~ficial Recoras, together with the Use of a co~on drive described as follows: "Beqinninq at a point on the north~asterly line of Middlefield Road, said point being South si':l 00' 00" East 206.85 feet from the intersection of the centerline of Matadero Creek with the Northeasterly line of Middlefield Road, Thence North 3S':l CQ' 00" East, 153.00 feet; Thence North S2~ 00' OOn ~est, 2.50 feet; Thence North 38~ 00' 00" East~ 221.82 feet; EX~;BIT B (1 of 3) · , Thence Sout...~ 52° Thence South 35° Thence No~th 52° '!'hence South 38 C Thence Sout..~ 30° Thence South l80 Northeasterly line Thence North 52° Beqinninq. 00' 00 ' 00' 00' 52' 00' of OC" East; 85.00 00· West, 20.00 00· we.st, 65.00 00· West, 151. 82 30" West, 20.16 00" West, 183.00 ... _.---. .;...-- A.F.NO. 127-53-15 PREPARE BY: J. KrEHL CHECKED e'f: J. BOURQUIN APPROVED BY: J. REMLEY OATE: JULY 13, 1992 feet; feet; feet; feet ~ feet: teet to the Point on the said Middlefield Road; 00' 00· West, 20.00 feet to' the Point of Excepting there from e portion of that certain Flood Control and Ston EaseDlen'C Reccrded in Book 3965 on Page .1 of Santa Clara county Official Recor-ds and lying Southeasterly fJf the Northwesterly line of the above described parcel. END OF DESCRIPTION EXHIBIT B 2 of 3 = :: :s , I":": :::; ... :", -. (3C :: /"3'1 =~' ------~--=:....:._: _ _=_ __ ~'~ 'E - ,- ----~- l/lDDLEF/E!,O lo".,.~ ~, ,,,.~.,,~ ~, ·.C·. ... ,-,.-.'.'" , ~ : .c, .... L--,L _ C-i'.:.>' '~'\o,,'j,"' - i __ _ l .• ~ I , ,< , ~., 0 ~ -i -i -• I _. -" , , , i' l:.;. :'~~.=-:::::---:--1 ' On? f=l!~f' -----~ ROAD :":. _. I ------~ . :~~:,.:-, ! ----'-_. ----- EXHi BIT B 3 of 3 ,_ r:,..- AT'TIICHMEN1 0 PROPOSED PHYSICAL CfiANGES TO PROPERTY and ENVIRONHEIITlIL ASSESSMENT WOlU(SIlEET PROPOSED PHYSICAL CHANGES TO PROPERT~ .§.Jl1 JKVIRONKENT~L ~SSES~MENT WPRXSHEET For purposes of environmental assessment of the proposed project, provi~e the following: 1. A summary description of all physical changes proposed to the site and structures. 2. COlilplete and sign the attached Environmental Assessment Worksheet. ATTACHMENT C • \ '. - lay of ralo jiito ENVIRONMENTAL ASSESSMENT WORKSHEET Address of Projeet ________________ _ Current 2or!inaiL. _______ Comprehensive Plan Oesjgni!t~on. ___ _ Applicant: N .... ____________ _ ""'ner: Yes__ No __ Address _____________ _ Tel ephon' _____ _ Appl ieation for: Site .nd 0"';9"' __ _ Parcol Ma;>' ___ _ ARb R'view, ___ _ Use Pe""a Zone (hongo' ___ _ El~" EIR I. EXlSTI Hi S !IE J. SlZe of 'ite, _________ _ Assessor's Farce1 Humcer _____ _ 2. Site is owned, ___ rented, ___ by applicant. 3. Existing use of property' ___________________ _ 4. Total number of building Decupants for the •• isting us., _______ ___ S. NUlllber Df existing plrking spices ___ Percent of compact sp."s __ _ Number of existing bicycle parking spaces C1a" ___ _ 6. Number of existing structures ____ Current use ________ _ Ifill ony structures be dOlllOlisheo for this project? Yes No __ _ 7. Size of existing structure' ______ _ Condition _______ _ 8. If the c~rrent us, i~ residential: .Nu=ber Df owneraoccupied units ===== Number of renter-~c~upied units l!eif.w:Jrk.doc Page .-~~.~-.. -- ~ .. - -' .--.... ~-: ~,.' '- II. FROPOSED PROJECT 9. Description of project _____________________ _ 10. Number of structures proposed _____ Size ,in square feet} ____ _ 11. Humber of f1oors ___ _ Square ftllJtag~ of eadi f1 DCr ____ _ 12. Percent of site t~ be covered by pavement _____ _ 13. Tot" number of bui 1d'in9 occu?ants for the )lropos~d proje.:t __ _ 14. rf the proposed use ;s '"esidentii1: Total number of uo,t. ______ , Number of un~ts/acre _____ _ Exp!cted sales price or monthly rent per dwe1ling ~nit _______ _ List k..inds and sizes of c.otmliJni.ty bundings ___________ _ Area of ~rivate open space ___ _ Area of cOf!Yllon oper. spacE ___ _ Provision of low/moderat~ income units~ 1) HlDTIber of units provided fer: 5Ole ____ _ rent ____ _ 2) Sal. and/or rental price _______________ _ IS. Total number of \lehic1Es e.xpectgd daily for proposed project _____ _ NIJrnber of proposed parki ng spaces Percent of compact spaces __ _ NU1>l>er ~f proposod bicycle parking spaces Class ___ _ 16. An any toxic wastes to be di ,ch_'"Iled? Ye' _____ _ Nc ____ _ (If yes, please completf! a Sewer Discharge Questionnaire, whic'n is furnished by the Building Oepartment) 11. J1as this facility in t.~e past or will the operation of tile proposed facility involve the storage or use of hazardous :Tra.te-rials'? Yes. ND __ _ (If yes t please complate a Hazardous Materials Disclosure Checklist, wh~ch is furnished by the Fir. Department) I:eiawcrk.doc 18. Expe~ted amount of wlter usage (except fc~ resioentia1 deve 1cpments of fe~er th~n 4 ur.1ts not located i~ the f~otnills): Ooete.st it ________ 9.1, jay Peak. ;JSE ________ goili/min Co_re101 , ______ gal/day ,eak ",O _______ 9.1/min Expected fire flo. dem.nd, ______ ~g.1imin 19. Dany ,ewer discharge (over 30 fixtures on1yJ ____________ _ 20. Expeoted energy use: Gas, ____ the"'" flectrie, ____ KWH Pe.k electric d'''''no ___ _ Vies ~nd equipment sizes A.. Space heating: Ga' ______ _ BTUH, _______ _ S01.' ______ _ Electric __ _ KW __ _ He.t Pump, ____ _ Ton. ___ _ Other __________________________________ _ B. Air conditioning: NUSber ,of units C. Wlter Heating; 'as ______ __ 10t.l tonnIge _____ _ BiUH, _______ __ 501ar ______ _ Electrie__ KW ___ _ Heat Pump ____ _ Ton' ____ _ Other~ ____________________________________ __ Type: Central 5)"tom ____ Individual systems ____ _ Recirculating Loop? Yes ___ Ho __ _ [I. [)ther: Indoor 119ht1n9 __ KlI __ _ Outdoor li9htin9__ kW, __ _ , Cook i n9 __ _ J(W __ _ Refrigerat iOTl ____ _ T tms or ft 3 ___ "otor, __ _ HP __ _ X·Ray ______ _ tomputer ______ _ E , " , i Zl. Air pollution ,emissions ('oeel, applicable BAAPCD regulations), Co~rcitl/1ndustrla1 only: Source and typ~ Amount __ ~ __________________________ _ 22. NOise generat':;on: Source __________ Amounl(dSa) ________ _ Sound, proofi Mg propo.ed, ___________________________ _ 23. Site drainage provhions., ____________________________ _ 24. Amount of proposed grading (cubic yards), ______________ _ 25. Disposition of excavahd material ________________________ _ 26. Permits required from otner agencies: Santi Clara Valley Water District _____ _ Bay Conservation and Oevelcpment Com:ni ss lon' ________ _ aay kea Air Pollution Control Oistrict, ______ _ Corps of [nginoor., ____ _ Othor· ___________ ___ III. EKYIRD~ENIAl DESCRIPTION <7. Porcent and direction of ground slope at site' _______________ _ 28. Is this sTte wit";n a special flood hazard area? Yes~ __ No, __ _ 29. Existing sit~ vegetation (please list, and indicate any to be removed) 30. Existing animal and bird life on site' ____________________ _ a:eiawork..doc ....... \ -. , ------~.;. 31. land uses Idjlcent to s;te, ___________________ _ Prepared by ____________ _ Date ___ , __ _ NOTE": More information may be reqIJired before the appl icaticn for whid this lSsessllW!nt has Peen prepared' can be processed. P1ease can the Department of Planning and COlllllunity Environment at (415) 32S,2442 if you n'"e .,y questions. PLEASE RETIIRII cmtPLETED 1I0lUCSHEET TO THE DEPARTHM OF PWN!NS AlII) COMKUNITY EHVIROIII!OO. CIVIC CEHTER, 250 IWIILTON AVENUE. STH FLOOR. a:eia","orx.doc i i ! I I !