HomeMy WebLinkAboutStaff Report 5.C 01/05/2015Agenda Item #5.0
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DATE: January 5, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing CS G
SUBJECT: Introduction (First Reading) of an Ordinance Authorizing Lease of Real Property
Located at 951 Petaluma Blvd. So, Petaluma, CA (APN: 019-210-012) to
Petaluma Ecumenical Properties Inc (PEP) and Authorizing the City Manager to
Execute the Lease and Related Documents
RECOMMENDATION
It is recommended that the City Council Introduce the attached Ordinance Authorizing Lease of
Real Property Located at 951 Petaluma Blvd. So, Petaluma, CA (APN 008-530-007) to Petaluma
Ecumenical Properties, Inc. (PEP) and Authorizing the City Manager to Execute the Lease and
Related Documents.
BACKGROUND
The City of Petaluma has historically acted in partnership with nonprofit developers to address
the City Council's goal of providing safe, decent, affordable housing for the community's low-
income seniors. As part of that goal, the City assisted Petaluma Ecumenical Properties (PEP
Housing) in the purchase of property at 951 Petaluma Boulevard South to serve as a corporate
office facility and a future housing development.
The City's initial financial participation (2006) consisted of a "deferred second loan" in the
amount of $1,432,000. That loan was secured by a Deed of Trust and evidenced by a Note and a
Memorandum of Understanding (MOU) containing certain conditions regarding future
development of the site. Due to the economic downturn, a financial restructuring was necessary
to provide PEP with the financial aid to more efficiently address its primary mission of providing
affordable senior housing. The City paid off PEP Housing's first mortgage in the amount of
$975,458.92 and took possession of the property, leasing the building to PEP Housing for their
corporate office. Monthly rent was established at $2,000 per month for a 4 year terns.
A lease was entered into between the City of Petaluma and Petaluma Ecumenical Properties, Inc.
on March 1, 2011 and continues through February 28, 2015. PEP Housing wishes to renew the
lease for a five year terns. PEP Housing is a developer of affordable housing and uses the
property as their corporate office. The cost of maintenance on the property is the responsibility
of PEP Housing.
Pursuant to the requirements of the California Environmental Quality Act (CEQA), Title 14,
Chapter 3 of the California Code of Regulations (CEQA Guidelines), sections 15061, 15301, the
action qualifies for a categorical exemption because it involves operation, repair, maintenance,
permitting, leasing, licensing and minor alteration of an existing facility involving negligible or
no expansion of use beyond that existing at the time of the City's determination.
FINANCIAL IMPACTS
In consideration of the important community service that PEP Housing delivers providing
opportunities for the community's low-income seniors to obtain safe, clean, affordable housing ,
the rent on the leased space is proposed to be $2,000 per month which is below market rent.
ATTACHMENTS
1. Ordinance
2. Lease (Exhibit A)
EFFECTIVE DATE
OF ORDINANCE
Introduced by
ATTACHMENT#I
ORDINANCE NO. N.C.S.
Seconded by
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING
A LEASE AGREEMENT, BETWEEN PETALUMA ECUMENICAL PROPERTIES, INC, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION ("TENANT") AND THE CITY OF PETALUMA
("LANDLORD") FOR A PORTION OF IMPROVED REAL PROPERTY(APN 008-530-007)
("PREMISES"), 951 PETALUMA BOULEVARD SO., PETALUMA, CA,
AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO
COMPLETE THE LEASE TRANSACTION
WHEREAS, Section 46 of the Charter of the City of Petaluma requires that specified
actions for the acquisition, sale, or lease of real property be taken by Ordinance; and,
WHEREAS, Landlord owns in fee simple real property located at 951 Petaluma Boulevard,
So., Petaluma, CA (Assessor's Parcel Number: 008-530-007), which has been improved with a
building ("Property"); and
WHEREAS, Tenant desires to lease the premises for their corporate office, and the
Landlord desires to provide a location at which the Tenant may offer such services, subject to
the terms and conditions of the lease attached to and made a part of this ordinance as Exhibit
A; and
WHEREAS, the City Council finds this action qualifies for categorical exemption under the
California Environmental Quality Act (CEQA) pursuant to Title 14, Chapter 3 of the California
Code of Regulations (CEQA Guidelines), sections 15061, 15301 because the project involves
operation, repair, maintenance, permitting, leasing, licensing and minor alteration of an existing
facility involving negligible or no expansion of use beyond that existing at the time of the City's
determination, in that leasing to PEP Housing approximately 10,000 square feet of the City
owned property at 951 Petaluma Boulevard South pursuant to the lease will not result in
significant expansion of use of the property in terms of impacts on the property and the
neighborhood beyond the current impacts of services that PEP Housing is being offered on site.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
Section 1: The above recitals are true and correct and incorporated into this
ordinance as findings of the City Council.
Section 2: The City Council approves the lease, between the City of Petaluma as
Landlord, and PEP Housing, as Tenant, a copy of which is attached as Exhibit A.
Section 3: On behalf of the City, the City Manager is authorized and directed to
execute documents substantially in accordance with Exhibit A, as determined by the City
Attorney, and all other documents reasonably necessary to complete the lease transaction.
Section 4: If any section, subsection, sentence, clause, phrase or work of this
Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by State legislation, such decision or legislation shall not
affect the validity of the remaining portions of this Ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this Ordinance and each
and all provisions thereof irrespective of the fact that any one or more of said provisions be
declared unconstitutional, unlawful other otherwise invalid.
Section 5: This Ordinance shall become effective thirty (30) days after the date of its
adoption by the Petaluma City Council.
Section 6: The City Clerk is hereby directed to publish or post this Ordinance or a
synopsis for the period and in the manner provided by the City Charter and any other
applicable law.
INTRODUCED and ordered posted this 51h day of January 2015.
ADOPTED this _ day of
Ayes:
Noes:
Abstain:
None
Absent:
None
ATTEST:
2015 by the following vote:
None
Claire Cooper, CMC, City Clerk
David Glass, Mayor
APPROVED AS TO FORM:
Eric W. Donly, City Attorney
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Exhibit A to Ordinance
LEASE
This Commercial Lease Agreement (the "Lease"") is entered into as of
, 2015, by and between the City of Petaluma, a California charter city
("Landlord") and Petaluma Ecumenical Properties, Inc., a California nonprofit public benefit
corporation ("Tenant"). Landlord and Tenant are hereinafter referred to individually as
"Party" and collectively as "Parties."
RECITALS
A. Landlord owns in fee simple real property located at 951 Petaluma Blvd., South,
Petaluma, CA (Assessor's Parcel Number: 008-530-007), which has been improved with a
building ("Property").
B. Landlord and Tenant previously entered into a lease dated March 1, 2011 in
which Landlord leased the Property to the Tenant for use as their corporate office.
C. The lease dated March 1, 2011 will expire on February 28, 2015.
C. Tenant desires to continue leasing the Property for their corporate office, and the
Landlord desires to provide a location for such use, subject to the terms and conditions herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:
1. PREMISES: Landlord hereby leases the Property to Tenant in accordance with
this provision, including both improved and, unimproved areas of the Property, driveways,
parking facilities, and pedestrian and vehicular ingress, egress and travel ways , (the
"Premises"), all as depicted in Exhibit A attached hereto in accordance with the provisions of
this Lease. Tenant's obligations regarding the Premises pursuant to this Lease, including, but
not limited to, Tenant's use, maintenance and repair, indemnity and insurance obligations,
apply to the entire Premises.
2. TERM: The term of this Lease shall commence on March 1, 2015
("Commencement Date") and continue through February 28, 2020, unless terminated sooner
in accordance with the provisions of this Lease (the "Rental Period").
3. RENT: In consideration of the fact that PEP Housing is providing valuable
community service of providing safe and affordable housing for seniors, Tenant shall pay rent
for the period in the sum of $2,000.00 per month for the use and occupancy of the Premises,
due as of the Commencement Date and each month thereof.
4. TRIPLE NET LEASE: This is a triple net lease to Landlord. It is the intent of
the Parties that the Rent shall be an absolutely net return to Landlord. Tenant shall pay all costs
and expenses relating to Tenant's occupancy of the Premises of any hind or nature whatsoever.
Such costs and expenses include, without limitation, all amounts attributable to, paid or
incurred in connection with Tenant's operation, repair, maintenance (whether interior or
exterior) and management of the Premises; all taxes and assessments; insurance premiums;
security; janitorial services; labor; costs of licenses, permits and inspections; and all other costs
and expenses incurred or paid by Tenant with respect to the Premises.
5. USE: The premises shall be used solely for the purpose of
administrative offices for the development and property management of affordable
housing ("Use"). No other use may be conducted on the Premises other than the Use.
Tenant shall obtain and keep in effect all licenses and entitlements required for this use
of the Premises and shall comply with all terms and conditions of said licenses and
entitlements. Landlord may treat any other use of the Premises by Lessee as an Event of
Default, as defined in Section 20. Permission granted for the Use in this Lease does not
constitute regulatory approval, and to the extent that such Use is subject to any
regulatory approval or permit, such Use shall not commence until any and all applicable
regulatory approvals and/or permits have been granted.
6. COMPLIANCE WITH LAWS. Tenant shall procure and maintain all
governmental approvals, permits and licenses required for the lawful conduct of Tenant's
permitted use of the Premises and shall comply with all state, federal and local laws, rules and
regulations in connection with its use and occupancy of the Premises. Landlord may treat
Tenant's failure to comply with such state, federal and local laws as an Event of Default.
7. UTILITIES AND SERVICES: Tenant shall pay when due all charges or
assessments for telephone, water sewer, gas, heat, electricity, garbage disposal, trash disposal
and all other utilities and services that are supplied to the Premises.
8. MAINTENANCE AND REPAIR: Tenant shall maintain the Premises in a
clean and sanitary condition. Landlord shall have no obligation to make repairs to or perform
maintenance of the Premises. Without limiting the provisions in Section 4 of this Lease, Tenant
shall pay all costs and expenses attributable to or incurred in connection with Tenant's use and
occupancy of the Premises, including janitorial and landscape maintenance services. In the
event that Tenant fails to maintain or keep the Premises in good repair or if Tenant's acts or
omissions result in a nuisance or health or safety risk, at Landlord's option, Landlord may
perform any such required maintenance and repairs. Within ten (10) days of Tenant's receipt
of Landlord's invoice therefore, Tenant shall pay Landlord's costs incurred in connection with
such repairs.
9. SECURITY: Tenant is responsible for providing its own security on the
Premises as Tenant deems necessary in its sole discretion.
10. STATUTORY NOTICE POSSESSORY INTEREST TAX TAXES AND
ASSESSMENTS: Throughout the Term, Tenant shall pay prior to delinquency, all applicable
real property taxes, possessory interest taxes, license and permit fees, sales, use or occupancy
taxes, assessments whether general or special, ordinary or extraordinary, foreseen or
unforeseen, of any kind or nature whatsoever pertaining to the Premises or a part thereof
(collectively, "Impositions"). Specifically, Tenant is advised that under California Revenue
ii--xation Code Section'07.'-, execution of this Lease may create a possessory interest for
Tenant subject to property taxation. Tenant hereby agrees that if such possessory interest is
created and is subject to property taxation, Tenant shall be solely responsible for the payment
of any property taxes levied on any such interest. Upon request by Landlord, Tenant shall
furnish, in a form satisfactory to Landlord, evidence of payment prior to delinquency of all
Impositions paid by Tenant.
11. AS -IS CONDITION OF PREMISES: Tenant is leasing the Premises in its "AS
IS" condition as such condition exists as of the Commencement Date. By executing this Lease,
Tenant acknowledges that it has had the opportunity to inspect the Premises and accepts the
Premises in the AS IS condition.
12. FUTURE ALTERATIONS AND REPAIRS: Except as provided in this
Section, Tenant shall not make alterations to the Premises without the prior written consent of
Landlord. Landlord agrees that Tenant is entitled to make repairs as part of its normal
maintenance and risk management programs.
13. INDEMNITY: To the maximum extent permitted by law, Tenant shall
indemnify, defend (with counsel reasonably acceptable to Landlord) and hold Landlord, the
City of Petaluma, and its officials, officers, agents, employees, contractors, guests and invitees
(collectively, "Indemnitees") harmless from and against any and all claims, demands,
liabilities, losses, damages, expenses and causes of actions of any kind, including, but not
limited to, attorneys' fees and costs of suit ("Losses") arising out of or in connection with use,
occupation, operation, improvement, repair or management of the Premises; and/or failure to
comply with any of Tenant's obligations contained in this Lease; by Tenant or any of Tenant's
officials, officers, employees, contractors, agents, or volunteers, provided that Tenant shall not
be obligated to indemnify, defend or hold the Indemnitees harmless for Losses resulting from
Indemnitees' sole or active negligence or willful misconduct . Tenant's indemnity obligation in
this provision shall survive the termination or expiration of this Lease with respect to any
Losses that occur during the Term.
14. INSURANCE REQUIREMENTS: During the tern of this Lease, all extensions
thereof, hold -over periods or any other occupancy of the Premises by Tenant, Tenant shall
maintain at its sole cost and expense, the following insurance coverages: (i) Comprehensive
General Liability insurance issued by a carrier authorized to sell insurance in the State of
California, written on an occurrence basis, and providing coverage for bodily injury, death and
property damage caused by or occurring in connection with Tenant's use and occupancy of the
Premises with a policy limit of at least Two Million U.S. Dollars ($2,000,000) per occurrence;
(ii) Workers' Compensation insurance in compliance with the requirements of law; and (iii)
property insurance providing coverage against fire, casualty loss and damage to the Premises.
Tenant shall provide Landlord with satisfactory evidence of the foregoing insurance coverage
prior to the commencement of the Terni and, upon Landlord's request, of its continuance in
force throughout the Term. The foregoing insurance policies shall be primary and
noncontributing with respect to any policies issued to Landlord and shall name Landlord as
additional insureds and/or loss payees, as their interests may appear.
15. NONDISCRIMINATION: Tenant hereby covenants by and for itself and its
successors and assigns, and all persons claiming under or through it, and this Lease is made and
accepted upon aria subject to tire conditions that there shall be no discrimination against or
segregation of any person or group of persons on any basis listed in subdivision (a) or (d) of
Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of
I
the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure or
enjoyment of the Premises nor shall Tenant or any person claiming under or through it establish
or permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, subtenants or vendees in the Premises.
16. RIGHT OF ENTRY: To the maximum extent provided by law, Landlord shall
have the right to enter and to inspect the Premises to ensure compliance with this Lease at all
reasonable times during the term of this Lease, provided that the Tenant is given at least 24
(twenty-four) notice of any inspection. Notwithstanding the foregoing, in the event of an
emergency, Landlord shall have the right to enter, to inspect, and to undertake any repairs or
take other action as necessary to mitigate the emergency without notice. Tenant shall provide
Landlord with a key to all Tenant -furnished locks securing the Premises and/or Landlord shall
retain a key to any Landlord -furnished lock(s).
17. PREVAILING WAGE. This Lease shall be subject to the requirements
of the California Prevailing Wage Law, California Labor Code Section 1720 et seq., and
to the extent applicable, Tenant shall comply with all applicable requirements of the
California Prevailing Wage Law, including, but not limited to, all applicable
requirements contained in Exhibit B, which is attached to and made a part of this
Agreement. Tenant's noncompliance with the applicable requirements of this section
shall constitute an Event of Default. Notwithstanding the foregoing, prior to
undertaking any improvement, alteration or maintenance, the Parties may agree in
writing that the proposed improvement, alternation or maintenance does not fall within
the definition of public works as defined in Labor Code section 1720, or alternatively, is
otherwise exempt from complying with Prevailing Wage Law.
18. SUBLETTING: Tenant shall not assign this Lease or sublet any portion of the
Premises without the prior written consent of Landlord.
19. DEFAULT: Tenant shall be in default of this Lease upon the occurrence of any
of the following ("Events of Default"): (i) the failure to pay any monetary obligation when
due, (ii) the failure to obtain and maintain insurance required by this Lease, (iii) the voluntary
or involuntary transfer of all or any portion of Tenant's interest in the Premises without
Landlord's prior written consent, or (iv) a default in the performance of any term, provision,
covenant or agreement pursuant to this Lease. Upon the occurrence of an Event of Default, the
non -defaulting party shall deliver a notice to the non-performing party ("Notice of Default")
stating the nature of the obligation which such non-performing party has failed to perform, and
stating the applicable period of time, if any, permitted to cure the default. Failure to give, or
delay in giving, a Notice of Default shall not constitute a waiver of any obligation or covenant
required to be performed hereunder.
20. TERMINATION: REMEDIES.
a. Termination for Cause: Upon the occurrence of any Event of Default,
and in addition to any and aii other rights or remedies of Landlord hereunder and/or
provided at law or in equity, Landlord shall have the right to terminate this Lease and
Tenant's possessory rights hereunder in accordance with applicable law. No remedy
I
specified in this Lease shall be considered exclusive of any other remedy, but the same
shall be cumulative.
b. Termination without Cause: Landlord may terminate this Lease at any
time for any reason after delivering Notice as defined in section 21 at least 90 days in
advance of its intent to terminate the Lease. Tenant agrees to vacate the Premises
within 90 days of the Notice of the intent to terminate the Lease being delivered and
agrees to the Release as set forth in Section 20.c.
C. Release for Termination without Cause: Upon termination of
this Lease, without cause, Tenant may be or may become eligible to receive
compensation, reimbursement, assistance, including, but not limited to, the fair
market value of real and personal property, loss of goodwill, loss of profits,
actual and reasonable expenses for moving a business, loss of tangible real
property as a result of moving the business, expenses incurred in searching for
replacement site for the business, expenses to reestablish at the new site, "in -lieu
payments" and other such benefits (collectively, `Benefits") under the California
Relocation Assistance Act (Government Code, § 7260, et seq.), Title 25 of the
California Code of Regulations, Article I, § 19 of the California Constitution,
the California Eminent Domain Law (Civil Procedure Code, § 1230.010, et seq.)
or other similar local, state, or federal statute, ordinance, regulation, rule, or
decisional law (collectively "Compensatory Laws"). Tenant further
acknowledges that it has received full and fair compensation of all Benefits
Tenant is or might be or might become entitled to recover from Landlord as a
result of, or in any way related to, the Premises, the execution of this Lease, and
the subsequent expiration or termination of this Lease. Therefore, being fully
informed of and understanding the acknowledgements made herein and of
Tenant's rights or potential rights to benefits under the Compensatory Laws,
Tenant hereby expressly and unconditionally waives, and releases Landlord
from, any and all rights of Tenant to claim, demand, sue for, or receive any
Benefits which Tenant is or might be or might become entitled to recover from
Landlord as a result of, or in any way related to the Premises, the execution of
the Lease, and the subsequent expiration of or termination of the Lease. The
Landlord acknowledges and agrees that the release and waiver set forth in this
paragraph is material consideration for Landlord entering into this Lease, and
that but for this release and waiver, Landlord would not have entered into this
Lease. By releasing and forever discharging any claims related to the
Compensatory Laws, Lessee expressly waives any rights under California Civil
Code section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER
MUST HAVE MATERIALLY AFFECTED HIS OR
HER SETTLEMENT WITH THE DEBTOR."
I
Tenant's Initials Landlord's Initials
Notwithstanding the preceding paragraph, nothing in this Lease shall be construed as releasing
Landlord from any claims or obligations that are not related to the Benefits or the
Compensatory Laws. Tenant shall retain all of its legal rights and remedies with respect to
claims against Landlord that are unrelated to the Benefits or the Compensatory Laws.
21. NOTICES: All notices shall be deemed given when made in writing and
deposited in the United States mail, certified, postage prepaid and addressed to such party the
following address:
To Landlord: City of Petaluma
11 English Street
Petaluma, CA 94952
Attention: Housing Administrator
Telephone: (707) 778-4555
Facsimile: (707) 778-4586
To Tenant: Petaluma Ecumenical Properties Inc. (PEP Housing)
951 Petaluma Blvd. So.
Petaluma, CA 94952
Attention: Executive Director
Telephone: (707) 762-2336
Facsimile: (707) 765-9043
Either Party may change its address for the receipt of notices by giving written notice of
change to the other Party. Either Party may give personal notice to the other Party.
22. FAILURE TO VACATE: In the event that Tenant holds over, Landlord's shall
have all remedies as may be available to Landlord at law or in equity. In addition, Tenant shall
indemnify, defend (with counsel reasonably acceptable to Landlord) and hold harmless
Landlord and the City of Petaluma from all Losses resulting from Tenant's failure to vacate
pursuant to this Lease. This indemnity shall survive the expiration or termination of the Lease.
23. DISPOSITION OF IMPROVEMENTS: Prior to the expiration or termination
of this Lease, Tenant shall (i) remove all personal equipment, improvements, fixtures and
property placed on the Premises by Tenant, (ii) repair any damage caused by said removal, and
(iii) restore the Premises to its condition on the Commencement Date, less normal wear and
tear, except as Landlord may otherwise approve in writing. Except as expressly provided
herein, upon the expiration or earlier termination of this Lease all existing structures and other
improvements on the Premises shall unconditionally be and become the sole property of
Landlord, and Tenant shall have no right to compensation therefore. In the event that Tenant
does not remove its personal property within thirty (30) days after Lease expiration or
termination, Landlord, at its option, may deem such property abandoned and either retain or
dispose of it in accordance with applicable law.
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24. INDEPENDENT CONTRACTOR: This Lease shall not be construed or
interpreted to create a partnership or joint venture between Landlord and Tenant.
25. CORPORATE AUTHORITY: Each individual executing this Lease on Tenant's
behalf represents and warrants that lie or she is duly authorized to execute and deliver this
Lease on Tenant's behalf and that this Lease is binding on Tenant in accordance with its terms.
26. SEVERABILITY: The determination that a provision of this Lease is illegal or
unenforceable shall not affect any other provision of this Lease.
27. BINDING CLAUSE: The provisions, covenants and conditions of this Lease
shall extend to, be binding upon and insure to the benefit of the heirs, executors, administrators,
successors and assigns of the respective Parties hereon.
28. SECTION HEADINGS: All section headings contained herein are for
convenience of reference only and are not intended to define or limit the scope of any
provisions of this Lease.
29. ESSENCE OF TIME: Time is of the essence for every provision, covenant and
condition of this Lease.
30. ENTIRE AGREEMENT: This Lease contains all the agreements of the parties
hereto and supersedes all prior leases, agreements and negotiations. There have been no
representations by Landlord or understandings made between Landlord and Tenant other than
those set forth in this Lease.
31. AMENDMENT: This Lease may only be modified or amended by a written
instrument duly executed by the Parties hereto.
IN WITNESS WHEREOF, this Lease has been executed by the Parties hereto as of the
date listed below.
SIGNATURES ON FOLL0TKING PAGE.
TENANT
Petaluma Ecumenical Properties, Inc.
By:
Mary Stom Executi e Director
LANDLORD
City of Petaluma
John Brown, City Manager
Attest:
Claire Cooper, City Clerk
Approved as to Form:
Eric W. Danly
City Attorney
Exhibit A
Premises
Description of Premises:
The building is a 9,897 square foot Class D improvement constructed on a slab foundation.
The properties parking area is accessed off Petaluma Blvd. South, though a 21 -foot wide
asphalt drive and a wrought iron security gate.
The first floor measures 9,213 square feet. Approximately 2,713 square feet is comprised of an
entrance lobby, conference room, several private office areas will be used for PEP Housing's
corporate staff. Flooring materials in the private offices and conference areas are carpet. Each
of the men's and women's lavatory facilities are two stalls, of which, one stall in each is ADA
approved. Both lavatories contain floor drains, tile floor, and 5' of tile wainscot.
The open area of approximately 6,500 square feet contains two rooms. One room is
approximately 1,350 s.f. and has a 8' x 35' kitchenette. The other room is approximately 870
s.f. Both rooms contain vinyl flooring and a drop ceiling with florescent lighting. The
remaining 4,280 s.f. is an open area with concrete flooring. There is a men's and women's
restroom that is ADA accessible.
The second floor is a 684 square foot open area located up a stairway off the main lobby. This
area also contains a small 10' x 3' kitchenette area and a 4' x 37' storage area. The entire
building is serviced by a HVAC system located in the rear of the building.
Surrounding the building is approximately 10,000 square feet of paved parking area on the
south and east sides of the building. The parking ratio is 3.3 space/1,000 s.f. There are
approximately 25 parking spaces.
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Exhibit B
Prevailing Wage
HOURS OF WORK:
A. In accordance with California Labor Code Section 1810, eight (8) hours of labor in
performance of the Services shall constitute a legal day's work under this Agreement.
B. In accordance with California Labor Code Section 1811, the time of service of any
worker employed in performance of the Services is limited to eight hours during any
one calendar day, and forty hours during any one calendar week, except in accordance
with California Labor Code Section 1815; which provides that work in excess of eight
hours during any one calendar day and forty hours during any one calendar week is
permitted upon compensation for all hours worked in excess of eight hours during any
one calendar day and forty hours during any one calendar week at not less than one -
and -one-half times the basic rate of pay.
C. The Consultant and its subconsultants shall forfeit as a penalty to the City $25 for each
worker employed in the performance of the Services for each calendar day during
which the worker is required or permitted to work more than eight (8) hours in any one
calendar day, or more than forty (40) hours in any one calendar week, in violation of the
provisions of California Labor Code Section 1810 and following.
WAGES:
A. In accordance with California Labor Code Section 1773.2, the City has determined the
general prevailing wages in the locality in which the Services are to be performed for
each craft or type of work needed to be as published by the State of California
Department of Industrial Relations, Division of Labor Statistics and Research, a copy of
which is on file with the City and shall be made available on request. The Consultant
and subconsultants engaged in the performance of the Services shall pay no less than
these rates to all persons engaged in performance of the Services.
B. In accordance with Labor Code Section 1775, the Consultant and any subconsultants
engaged in performance of the Services shall comply Labor Code Section 1775 which
establishes a penalty of up to $50 per day for each worker engaged in the performance
of the Services that the Consultant or any subconsultant pays less than the specified
prevailing wage. The amount of such penalty shall be determined by the Labor
Commissioner and shall be based on consideration of the mistake, inadvertence, or
neglect of the Consultant or subconsultant in failing to pay the correct rate of prevailing
wages, or the previous record of the Consultant or subconsultant in meeting applicable
prevailing wage obligations, or the willful failure by the Consultant or subconsultant to
pay the correct rates of prevailing wages. A mistake, inadvertence, or neglect in failing
to pay the correct rate of prevailing wages is not excusable if the Consultant or
subconsultant had knowledge of their obligations under the California Labor Code. The
Consultant or subconsultant shall pay the difference between the prevailing wage rates
and the amount paid to each worker for each calendar day or portion thereof for which
each worker was paid less than the prevailing wage rate. If a subconsultant worker
engaged in performance of the Services is not paid the general prevailing per diem
wages by the subconsultant, the Consultant is not liable for any penalties therefore
unless the Consultant had knowledge of that failure or unless the Consultant fails to
comply with all of the following requirements:
1. The Agreement executed between the Consultant and the subconsultant for the
performance of part of the Services shall include a copy of the provisions of
California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815.
2. The Consultant shall monitor payment of the specified general prevailing rate of
per diem wages by the subconsultant by periodic review of the subconsultant's
certified payroll records.
3. Upon becoming aware of a subconsultant's failure to pay the specified
prevailing rate of wages, the Consultant shall diligently take corrective
action to halt or rectify the failure, including, but not limited to, retaining
sufficient funds due the subconsultant for performance of the Services.
4. Prior to making final payment to the subconsultant, the Consultant shall obtain
an affidavit signed under penalty of perjury from the subconsultant that the
subconsultant has paid the specified general prevailing rate of per diem wages
employees engaged in the performance of the Services and any amounts due
pursuant to California Labor Code Section 1813.
C. In accordance with California Labor Code Section 1776, the Consultant and each
subconsultant engaged in performance of the Services, shall keep accurate payroll
records showing the name, address, social security number, work classification, straight
time and overtime hours worked each day and week, and the actual per diem wages paid
to each journeyman, apprentice, worker, or other employee employed in performance of
the Services. Each payroll record shall contain or be verified by a written declaration
that it is made under penalty of perjury, stating both of the following:
The information contained in the payroll record is true and correct.
2. The employer has complied with the requirements of Sections 1771, 1811, and
1815 for any Services performed by the employer's employees on the public
works project.
The payroll records required pursuant to California Labor Code Section 1776 shall be
certified and shall be available for inspection by the Owner and its authorized
representatives, the Division of Labor Standards Enforcement, the Division of
Apprenticeship Standards of the Department of Industrial Relations and shall otherwise
be available for inspection in accordance with California Labor Code Section 1776.
D. In accordance with California Labor Code Section 1777.5, the Consultant, on behalf of
the Consultant and any subconsultants engaged in performance of the Services, shall be
responsible for ensuring compliance with California Labor Code Section 1777.5
governing employment and payment of apprentices on public works contracts.
E. In case it becomes necessary for the Consultant or any subconsultant engaged in
performance of the Services to employ on the Services any person in a trade or
occupation (except executive, supervisory, administrative, clerical, or other non manual
workers as such) for which no minimum wage rate has been determined by the Director
of the Department of Industrial Relations, the Consultant shall pay the minimum rate of
wages specified therein for the classification which most nearly corresponds to Services
to be performed by that person. The minimum rate thus furnished shall be applicable as
a minimum for such trade or occupation from the time of the initial employment of the
person affected and during the continuance of such employment.
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