HomeMy WebLinkAboutStaff Report 4.C 01/26/2015Agenda Item #4.0
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DATE: January 26, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing,, P
SUBJECT: Introduction (First Reading) of an Ordinance Authorizing Lease of Real Property
Located at 25 Howard Street, Petaluma, CA (APN: 008-044-010) to Petaluma
People Services Center (PPSC) 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 25 Howard Street, Petaluma, CA (APN 008-044-010) to Petaluma
People Services Center (PPSC) and Authorizing the City Manager to Execute the Lease and
Related Documents.
BACKGROUND
The City of Petaluma has historically acted in partnership with local nonprofits to address the
Council's goal or providing affordable housing and programs for the community's low-income
people. Petaluma People Services Center provides essential social and human services to the
low income community in Petaluma. The property at 25 Howard Street, Petaluma, CA, which is
owned by the City of Petaluma, has been leased to the Petaluma People Services Center since
1987 for their Senior Day program. Section 46 of Petaluma's City Charter requires leases to be
authorized by ordinance.
At the time their current lease was renewed, it wasn't done by an ordinance adopted by the City
Council. The end date for the lease is November 30, 2018. The new lease adopted by ordinance
will extend the lease to February 28, 2020 and there are no other substantive changes in the
lease.
The programs that PPSC administers provide programming for the more frail, predominately
low-income senior citizens in our community and their families. 'These programs are aimed at
assisting individuals in their efforts to age in place safely by promoting independence and
preventing isolation and premature institutionalization. Additionally, they have a Caregivers
Support group that meets twice a month.
hl entering into the attached lease, PPSC can continue to provide the necessary services to low
income seniors and the frail elderly in Petaluma. The lease term is for five years and rent is
proposed to be $1.00 per year. The direct benefits to the City and to the greater community off-
set that there is no income derived from the lease. PPSC provides case management to an
estimated 264 clients and information and assistance to over 3,200 individuals. PPSC's Adult
Day & Respite program provides accessible, structured and stimulation programming to 30 frail
elderly clients and provides over 9,000 hours of programming to their families.
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. Currently the
City owned property is leased to PPSC for senior programs and services. The proposed 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 the PPSC services being offered on site.
FINANCIAL IMPACTS
In consideration of the fact that PPSC is providing a valuable community service as noted above,
the rent on the leased space is proposed to be $1.00 per year.
ATTACHMENTS
1. Ordinance
2. Lease — Exhibit A
3. Memorandum of Lease
EFFECTIVE DATE
OF ORDINANCE
Introduced by
A'I" t'ACliMENT ft1
ORDINANCE NO. N.C.S.
Seconded by
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING
A LEASE AGREEMENT BETWEEN PETALUMA PEOPLE SERVICES CENTER, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION ("TENANT") AND THE CITY OF PETALUMA
("LANDLORD") FOR IMPROVED REAL PROPERTY(APN 008-044-010) ("PREMISES"),
LOCATED AT 25 HOWARD STREET, 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 25 Howard Streeet,
Petaluma, CA (Assessor's Parcel Number: 008-044-010), which has been improved with a building
("Property"); and
WHEREAS, Landlord currently rents the Property to the Petaluma People Services Center
to provide programming for the more frail, predominately low-income senior citizens in our
community and their families; and
WHEREAS, Tenant desires to offer their services to the low income senior community in
Petaluma, 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 and 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 the services being offered on site.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY 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 PPSC, 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 2611, day of January 2015.
ADOPTED this _ day of , 2015 by the following vote:
Ayes:
Noes: None
Abstain:
None
Absent:
None
ATTEST:
Claire Cooper, CMC, City Clerk
David Glass, Mayor
APPROVED AS TO FORM:
Eric W. Donly, City Attorney
ATTACHMENT #2— 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 People Services Center, 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 25 Howard Street, Petaluma,
CA (Assessor's Parcel Number: 008-044-010), which has been improved with a building
("Property").
B.. Landlord currently leases the Property to Tenant.
C. Currently, Tenant provides essential social and human services to the low income
senior community and the frail elderly in Petaluma at 25 Howard Street.
D. Tenant desires to offer their services and programs to low income seniors and
their families, and the Landlord desires to provide a location at which the Tenant may offer such
services, 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.
2. TERM: The term of this Lease shall commence on March 2, 2015
("Commencement Date") and continue through February 28, 2020, unless terminated sooner in
accordance with the provisions of this Lease (the "Rental Period"). The Parties agree to execute
and record a Memorandum of this Lease in the official records of Sonoma County.
3. RENT: In consideration of the fact that Tenant is providing valuable community
service, Tenant shall pay annual rent for the period in the sum of $1.00 per year for the use and
occupancy of the Premises, due as of the Commencement Date and each anniversary 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 shrill pay all costs and
expenses relating to Tenant's occupancy of the Premises of any kind 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 for a Senior Day and Case Management
Center providing programming for seniors and the frail elderly including, but not limited
to: providing assistance to individuals to age in place safely by promoting independence
and preventing isolation; the Adult Day and Respite program; and the Case
Management/Information & Assistance Program as well as the Caregivers Support group.
("Use"). No other use may be conducted on the Premises other than the Use. Landlord
may treat any other use of the Premises by Lessee as an Event of Default. 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 Lou 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 and Taxation
Code Section 107.6, 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
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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.
t I . 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.
11. 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 snit ("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 t'enant'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 Indenmitees harmless for Losses resulting from
Indcnmitees' 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 term olthis 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 Term 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 and subject to the conditions that there shall be no discrimination against or
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segregation of any person or group of persons on any basis listed in subdivision (a) or (d) of
Section 12955 ofthe 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
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.
17. 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).
18. 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.
19. SUBLETTING: Tenant shall not assign this Lease or sublet any portion of the
Premises without the prior written consent of Landlord.
20. 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.
21. TERMINATION: REMEDIES.
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a. Termination for Cause: Upon the occurrence of any Event of Default, and
in addition to any and all 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 specified in this Lease shall be
considered exclusive of any other remedy, but the same shall be cunudative.
b. Termination without Cause: Landlord may terminate this Lease at any time for
any reason after delivering Notice as defined in section 22 at least sixty (60) days in advance of
its intent to terminate the Lease. Tenant agrees to vacate the Premises within sixty (60) days of
the Notice of the intent to terminate the Lease being delivered and agrees to the Release as set
forth in Section 21.e.
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 fill 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 filly 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, site 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 the claims described herein, 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 ITER
MUST HAVE MATERIALLY AFFECTED HIS OR
HER SETTLEMENT WITH THE DEBTOR."
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Tenant's Initials Landlord's Initials
22. 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
I l English Street
Petaluma, CA 94952
Attention: Housing Administrator
Telephone: (707) 778-4555
Facsimile: (707) 778-4586
To Tenant: Petaluma People Service Center (PPSC)
1500 Petaluma Blvd., So.
Petaluma, CA 94952
Attention: Executive Director
Telephone: (707) 765-8488
Facsimile: (707) 765-8482
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.
23. 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
indemnity, 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.
24. 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.
25. INDEPENDENT CONTRACTOR: This Lease shall not be construed or
interpreted to create a partnership orjoint venture between Landlord and Tenant.
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26. CORPORATE AUTHORITY: Each individual executing this Lease on Tenant's
behalf represents and warrants that he 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.
27. SEVERABILITY: The determination that a provision of this Lease is illegal or
unenforceable shall not affect any other provision of this Lease.
28. 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.
29. 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.
30. ESSENCE OP TIME: Time is of the essence for every provision, covenant and
condition ofthis Lease.
31. EN"TIRE AGREEMENT: This Lease contains all the agreements of the parties
hereto and supersedes all prior negotiations and written agreements. There have been no
representations by Landlord or understandings made between Landlord and Tenant other than
those set forth in this Lease.
32. 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 FOLLOIVING PAGE.
TENANT
Petaluma People Services Center
Elece Hempel, Executive Director
LANDLORD
City of Petaluma
By. —
John Brown, City Manager
Attest:
By. — ----
Claire Cooper, City Clerk
Approved as to Porm:
By:
Eric W. Danly
City Attorney
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Exhibit A to the Lease
Premises
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Exhibit B to the Lease
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PREVAILING WAGE EXHIBIT B
FLOURS 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
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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:
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.
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 or perjury, stating both of the following:
The information contained in the payroll record is true and correct.
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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.
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 rumished 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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ATTACHMENT 93
RECORDING RISA('E5'IVI) In
1ND lt'IIEN R[CORDED III _"It`RN 'IO:
City of Petaluma
P. O. Box 61
Petaluma, CA 94952-2610
Alto: City Clerk
EX EM Pr FROM RECORDING FEES PER
(iOVFR MMENI ('ODII cii l 0,,]7383
Space above this line for Recorder's use.
MEMORANDUM OF LEASE
This Memorandum of Lease (this "Memorandum"), dated for reference purposes as of
2015, by and between the City of Petaluma, a public body, corporate and
politic ("Landlord") and Petaluma People Services Center, a California nonprofit public benefit
corporation, ("Tenant"), in reference to and consideration of that certain Commercial Lease
Agreement dated as of 2015 ("Effective Date"), by and between
Landlord and Tenant (the "Lease").
1. The purpose of this Memorandum is to provide notice of the existence of the
Lease which is incorporated herein by this reference.
2. Landlord is the owner of fee title to the Property located at 25 Howard Street, in
the City of Petaluma, California, (the "Property").
3. Pursuant to the Lease, Landlord leases to Tenant, and Tenant leases from
Landlord, the existing improvements located on the Property (the "Premises") subject to all of
the terms and conditions set forth in the Lease.
4. The term of the Lease shall be March 2, 2015, to and including February 28,
2020.
5. In the event of any conflict between this Memorandum and the terms and
conditions of the Lease, the terms and conditions of the Lease shall control.
6. This Memorandum may be executed in counterparts, each of which shall be an
original, and all of which together shall constitute one fully -executed agreement.
IN WITNESS WHEREOF, the parties have executed this Memorandum as of the date set
forth above.
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LANDLORD
CITY OF PETALUMA
By
John Brown, City Manager
Attest:
Claire Cooper, City Cleric
Approved as to form:
Eric W. Danly, City Attorney
TENANT
PETALUMA PEOPLE SERVICE CENTER
By:
Elece Hempel, Executive Director
SIGNATURES MUST BE NOTARIZED.
20
FORM OF ACKNOWLEDGMENT
S"FATE OF CALIFORNIA )
ss.
COUNTY OF SONOMA )
On 20, before me, , a Notary Public, personally
appeared , who proved to me on the basis ofsatisfactory evidence
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (seal)
21