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HomeMy WebLinkAboutC-3460(D) - Lease Agreement (for Marine Studies Center - Back Bay Science Center "BBSC")STATE OF CALIFORNIA STANDARD FORM LEASE AGREEMENT LEASE COVERING PREMISES LOCATED AT CALIFORNIA DEPARTMENT OF FISH AND GAME UPPER NEWPORT BAY ECOLOGICAL RESERVE BACK BAY SCIENCE CENTER 600 SHELLMAKER ROAD NEWPORT BEACH, CALIFORNIA 92660 AGENCY DEPARTMENT OF FISH AND GAME SOUTH COAST REGION 4949 VIEWRIDGE AVENUE SAN DIEGO, CALIFORNIA 92123 DEPARTMENT OF FISH AND GAME SOUTH COAST REGION THIS LEASE, dated for reference purposes only as of 8dOet— 3/ , 2007, is made by and between the State of California, acting by and through its Department of Fish and Game, hereinafter referred to as the STATE, and the City of Newport Beach, a charter City and Municipal Corporation, hereinafter referred to as the LESSEE. STATE and LESSEE are sometimes referred to as the "Parties" to this Lease. BACKGROUND A. The STATE is the owner of certain real property located at 600 Shellmaker Road, Newport Beach, California, commonly known as Shellmaker Island (the `Property"); and B. The Property is part of the STATE's Upper Newport Bay Ecological Reserve (the "Reserve"). The primary purpose of the Reserve is to protect rare and endangered wildlife, aquatic organisms and critical habitat, and specifically to preserve and enhance a coastal salt marsh ecosystem; and C. Pursuant to Fish and Game Code Section 1585, the STATE is authorized to construct facilities and conduct programs in ecological reserves it selects to provide natural history education and recreation if those facilities and programs are compatible with the protection of the biological resources of the reserve; and D. This Lease is entered into pursuant to the Cooperative Agreement dated August 17, 2004 (the "Cooperative Agreement") among STATE, LESSEE, the County of Orange (the "County") and The Regents of the University of California on behalf of the University of California at Irvine ("UCI"), regarding the planning, funding and construction of the Back Bay Science Center project to replace existing facilities for educationallinterpretive programs, water quality testing, and office staff, and including trails, wetlands rehabilitation and ancillary parking and utilities on a portion of the Property (the "Project"); and E. A Negative Declaration for the Project was prepared pursuant to the provisions of the California Environmental Quality Act. On September 30, 2003, the STATE filed a Notice of Determination for the Project with the State Clearinghouse; and F. The Project includes certain facilities and improvements which the Parties refer to as the BBSC Complex. The "BBSC Complex" consists of an approximate 13,000 square foot permanent enclosed structure comprised of three new buildings containing a total of four wings located on the Property (the "BBSC Buildings"); as well as parking areas, common areas and walkways on Shellmaker Island, but excluding planted berms, interpretive pathways, and the demonstration marsh; and G. LESSEE has constructed or will construct the BBSC Complex under the Interagency Agreement for Construction of a Back Bay Science Center at Upper Newport Bay Ecological Reserve, Agreement Number P0380039, entered into in July 2004, and the BBSC Administrative Wing Construction Contract, Agreement Number P0650019, commencing February 2007, each between STATE and LESSEE; and H. LESSEE, the County, the STATE, and UCI are also parties to the Back Bay Science Center Complex Operating Agreement dated 2007 (the "Operating Agreement"). Among other things, the Operating Agreement establishes a Facilities Working Group for the BBSC Complex (the "Facilities Group") to identify facilities needs and plan for property maintenance, capital projects and improvements to the BBSC Complex and identifies functions and obligations of its respective parties in connection with the BBSC Complex; and I. Pursuant to Section 420 of the City Charter of the City of Newport Beach, the City is prohibited from entering into Leases for a term of more than twenty-five (25) years, or any extension thereof; J. LESSEE desires to lease from STATE certain space within the BBSC Buildings for the consideration and upon and subject to the terms, covenants and conditions of this Lease. NOW, THEREFORE, the Parties hereby mutually agree as follows: LEASE PREMISES I . (a) STATE hereby leases to LESSEE and LESSEE hereby leases from STATE for DESCRIPTION the term of this Lease, in exchange for the consideration and upon all of the other terms, covenants, and conditions set forth in this Lease, the approximately 4,000 square feet of rentable area designated as the "Water Quality Lab" located within the "OC Water Quality Lab/Storage" wing of the BBSC Complex, as shown on the Site Plan attached to this Lease as Exhibit A (the "Premises"). The Parties agree that the Premises represent approximately 32 percent of the rentable area of the BBSC Complex. TERM (b) LESSEE shall also have the non-exclusive right to use, in common with others entitled to such use, the Common Areas (as defined below) of the BBSC Complex. (c) LESSEE has inspected the plans for the BBSC Complex, the BBSC Buildings and the Premises and agrees that the square footage of the BBSC Complex, the BBSC Buildings and the Premises set forth in this Lease is only approximate and the STATE does not warrant or guarantee the actual area thereof. 2. (a) The term of this Lease shall be for 25 years, commencing on the Commencement Date, as defined below, and ending on the day before the 25th anniversary of the Commencement Date, unless renewed for an additional Option Term(s) (as defined below) or sooner terminated pursuant to any provision of this Lease. (b) So long as at the time of exercise and at the time the Option Term commences: (i) LESSEE is not in breach or default under this Lease, (ii) the Project is actively operating and expected to continue in active operation, and (iii) LESSEE and each subtenant, if any, has performed and is continuing to perform all of its functions and obligations in connection with the BBSC Complex, then LESSEE will have the option to renew the Lease for up to three successive additional terms of five (5) years each (each an "Option Term"). Any such renewal shall be upon the same terms, covenants and conditions of this Lease, except that the consideration for the Lease during the Option Term will be determined as set forth below. LESSEE will exercise each option, if at all, by giving STATE written notice (the "Option Notice") at least 6 months but not more than 12 months before the expiration of the initial term of this Lease or the then current Option Tenn, as applicable. 2 COMMENCEMENT DATE CONSIDERATION USE AS -IS LEASE (c) LESSEE and STATE will have 180 days after STATE receives the Option Notice within which to agree on the consideration for the Option Term based upon factors which may include (but shall not be limited to) the condition and projected useful life of the Premises, its fair rental value and the operational and other needs of the BBSC Complex as identified by the Facilities Group, and any unamortized value of Lessee's contribution to the construction or improvement of the BBSC Complex. If STATE and LESSEE agree on such consideration within the 180-day period, they shall amend this Lease accordingly. If STATE and LESSEE are unable to so agree, this Lease shall not be renewed and shall instead expire at the end of the then -current term. The option granted to LESSEE is personal to LESSEE and may not be exercised or assigned, voluntarily or involuntarily, by or to any person or entity other than the original LESSEE named in this Lease. The second renewal option cannot be exercised unless the Lease is renewed for the first Option Term. 3. The Commencement Date of this Lease shall be the date upon which LESSEE's building department issues a certificate of occupancy or temporary certificate of occupancy for the Premises. However, if the Commencement Date has not occurred by January 1, 2008 then this Lease shall terminate and be of no further force or effect. LESSEE shall have no right to occupy the Premises prior to the Commencement Date. Upon the Commencement Date, the temporary Ground Lease (Shellmaker Island) between STATE and LESSEE dated December 17, 2002 shall terminate. 4. The STATE is entering into this Lease in consideration of the Cooperative Agreement, the Operating Agreement, the performance by LESSEE and the County of their respective duties and obligations under the Cooperative Agreement and the Operating Agreement, and LESSEE's performance of its obligations (including LESSEE's provision of janitorial services to the BBSC Complex) as set forth in this Lease. 5. The Premises shall be used and occupied only as a County -wide water quality testing facility operating as part of the Project pursuant to the Cooperative Agreement and the Operating Agreement, including any amendment(s) to those Agreements (the "Permitted Use"), and for no other purpose without the prior written consent of STATE, which STATE may withhold. LESSEE shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that unreasonably annoys or disturbs occupants of, or causes damage to, neighboring premises or properties. 6. LESSEE hereby accepts the Premises and the BBSC Complex in its AS -IS condition existing as of the Commencement Date. LESSEE acknowledges that STATE has not made any representation or warranty as to the present or future suitability of the Premises for LESSEE's intended use. LESSEE AS 7. As part of the consideration for this Lease, LESSEE shall be the Facilities PROJECT Manager for the BBSC Complex as set forth in the Operating Agreement. Nothing in this FACILITIES Lease shall limit any right of LESSEE to receive any sum payable by the County or UCI to MANAGER LESSEE as Facilities Manager under the Operating Agreement, including but not limited to payment or reimbursement of operating expenses of the Project. However, STATE shall have no obligation to reimburse LESSEE for maintenance (including janitorial) and repair expenses for the BBSC Complex, as the payment of such costs by LESSEE is also a part of the consideration for this Lease. ACCESS 8. Subject to the other terms and conditions of this Lease and applicable legal restrictions (including, without limitation, Cal. Code Regs., Title 14, Section 630 et seq.), STATE will provide LESSEE with reasonable access to the BBSC Complex (other than STATE work and storage areas) 24 hours a day, 365 days per year, as necessary for LESSEE to perform its obligations under this Lease, the Operating Agreement and the Cooperative Agreement. 3 UTILITIES AND 9. (a) LESSEE agrees to make all necessary arrangements for, and pay the cost of, SERVICES all gas, electric, water and other utility services associated with the use of the Premises during the term of this Lease, including but not limited to connection costs. If any such services are not separately metered to LESSEE, then LESSEE shall pay a reasonable proportion of the Premises' utility costs of all charges jointly metered with other portions of the BBSC Complex, the Project or the Property. (b) LESSEE shall comply with all reasonable conservation measures, if any, requested by STATE as a result of any "energy crisis" or any curtailment of gas, electricity, water or other utilities serving the Premises. (c) Installation, monthly billing, maintenance, repair, removal and replacement of any telecommunications equipment, lines or systems in or serving the Premises shall be the sole responsibility of the LESSEE. JANITORIAL 10. LESSEE shall, at LESSEE's expense, have or hire janitorial services sufficient to SERVICES maintain the BBSC Complex, including without limitation, the Teaching Lab Wing, the Administrative Wing, and the public restrooms in a clean and well maintained condition, and properly dispose of all trash in the central trash collection area (dumpster area) of the BBSC Complex. The janitorial services for which LESSEE is responsible shall include those identified in Exhibit B attached to and made a part of this Lease and such other services, if any, as the Facilities Group may specify from time -to -time. MAINTENANCE 11. (a) LESSEE shall, at LESSEE's expense, keep the Premises and the other AND REPAIRS portions of the BBSC Complex (other than STATE work and storage areas) in good order, condition and repair, including without limitation, the plumbing, pipes, heating, ventilation, air conditioning, electrical, lighting facilities, fire protection and/or smoke detection system, fire sprinkler system, fixtures, walls, ceilings, roof, floors, windows and window frames, gutters, drains and downspouts, doors, and walkways, except to the extent of UCI's responsibilities (if any) for any of the foregoing under the Ground Lease with STATE dated December 15, 2004. LESSEE shall not be responsible for maintaining the trails, walkways or wetland areas of the Reserve or the Property that are outside of the BBSC Complex. (b) The new condition of the BBSC Complex at the time of the execution of this Lease leads the Parties to anticipate that Major Capital Improvements (as defined below) to the BBSC Complex to replace existing items which have worn out (e.g., roofing and siding) should not be necessary for approximately 15 to 20 years. However, Major Capital Improvements could become necessary for other reasons, such as to correct defects in the construction of the BBSC Complex, comply with any governmental law or regulation that was not applicable to the BBSC Complex at the time it was constructed, or because of total or partial destruction of the BBSC Complex or the condemnation of a portion of the BBSC Complex. "Major Capital Improvements" as used in this Lease shall mean improvements costing more than S30,000 in Current Dollars (as defined in Section 32) and which under generally accepted accounting principles and practices are properly classified as capital improvements. The Parties agree that Major Capital Improvements to replace existing items, such as the roof, siding, or heating or air conditioning systems, shall be planned, budgeted and paid for as set forth in the Operating Agreement, and are outside the scope of the maintenance and repair activities that the City is obligated to perform and pay for under this Lease. (c) LESSEE shall, at LESSEE's expense, maintain and keep lighted during BBSC Complex operational hours the lobbies, reception areas, common meeting rooms, corridors, and common entrances to, and all public restrooms of, the BBSC Complex. 4 (d) LESSEE agrees that in no event shall STATE be required to perform any maintenance, repairs or improvements in, to or on the Premises pursuant to this Lease, and LESSEE shall keep the Premises in good order, condition and repair at its own expense. RULES AND 12. STATE shall have the right from time -to -time to adopt, modify, amend and REGULATIONS enforce reasonable rules and regulations concerning the Common Areas of the Project. The "Common Areas" shall be defined to include common entrances, lobbies, corridors, public restrooms, parking areas, loading and unloading areas, trash areas, and walkways. LESSEE shall abide by and conform to such rules and regulations and shall cause its agents, employees, contractors, invitees and sublessees to so abide and conform. STATE shall provide ninety (90) days' notice of changes to these rules and regulations to LESSEE unless STATE finds that an emergency exists that requires the rules and regulations to be enacted earlier. LESSEE'S 13. Except as otherwise provided in this Lease, LESSEE shall, at LESSEE's COMPLIANCE expense, comply promptly with all applicable laws, statutes, regulations, codes, orders and ordinances (collectively "Applicable Laws") which relate in any manner to the Premises, the use of the Premises, or any activities of LESSEE under this Lease. LESSEE shall, within 10 days after receipt of written request by STATE, provide STATE with copies of all permits and other documents and information evidencing LESSEE's compliance with any Applicable Laws specified by STATE. Immediately upon receipt of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure or alleged failure of LESSEE or the Premises to comply with any Applicable Laws, LESSEE shall notify STATE in writing (with copies of any documents involved). STATE'S RIGHTS 14. If LESSEE fails to perform any of its obligations under this Lease, STATE may at its option (but shall not be required to) perform such obligations on LESSEE's behalf, and the cost of such performance together with interest thereon at the maximum rate then allowable by law shall become due and payable by LESSEE to STATE within 30 days after STATE's written request for payment. DEFAULT AND 15. LESSEE shall be in default of this Lease if LESSEE fails to observe or perform REMEDIES any of the provisions of this Lease or the Operating Agreement on the part of LESSEE to be kept and performed and if such failure continues for a period of 30 days after receipt of written notice from STATE to LESSEE. Provided, however, that if the nature of LESSEE's breach is such that more than 30 days is reasonably required for its cure, then it shall not be deemed to be a default if LESSEE commences the cure within said 30-day period and thereafter diligently pursues the cure to completion. In the event of a default by LESSEE, the STATE shall endeavor to provide County notice of such default at the address provided in the County Sublease (as defined in Section 17), if the County Sublease is then in effect. Without limiting the obligations of LESSEE, the County shall have the ability to cure any such default upon the same terns and conditions as the LESSEE under this section, and any such cure by the County shall be deemed a cure by the LESSEE. In the event of a default by LESSEE, the STATE may elect to terminate this Lease by any lawful means and pursue any other remedy now or hereafter available at law or in equity. In the event of termination of this Lease, STATE shall have the right to reenter the Premises and every part thereof and to remove and store at LESSEE's expense all property therefrom and to repossess and occupy the Premises. In the event STATE terminates this Lease pursuant to this paragraph, the STATE shall not be required to pay LESSEE any sum or sums whatsoever. HOLDING OVER 16. Any holding over after the expiration of the term of this Lease or any renewal period with the consent of the STATE, express or implied, shall be deemed to be a tenancy only from month -to -month. Any such month -to -month tenancy shall be upon and subject to all the terms and conditions of this Lease insofar as applicable. 5 ASSIGNMENT AND SUBLETTING NOTICES 17. This Lease is made solely in furtherance of the cooperative Project described in the Cooperative Agreement and the Operating Agreement. LESSEE shall not assign this Lease in any event and shall not sublease the Premises or any part thereof and will not permit the use of the Premises by anyone other than the LESSEE. Provided, however, that LESSEE may sublease the Premises to the County for a term not to exceed the term of this Lease, pursuant to a sublease in form and substance reasonably acceptable to the STATE ("County Sublease"), and upon the express condition that such sublease shall terminate if the County at any time withdraws from the Project or fails or ceases to perform the Project functions for which the County is responsible under the Cooperative Agreement, the Operating Agreement or the County Sublease. Regardless of STATE's consent, no subletting or assignment shall release LESSEE of LESSEE's obligation or alter the primary duty of LESSEE to observe and perform all of the obligations of LESSEE under this Lease. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. In the event of a breach by any assignee or successor of LESSEE, in the performance of any of the terms of this Lease, STATE may proceed directly against LESSEE without the necessity of exhausting remedies against said assignee or successor. 18. All notices, requests, consents, and other communications (each a "Notice") required, provided for or given under this Lease shall be in writing, and (a) personally delivered (including by means of professional messenger service), (b) sent by recognized overnight courier, (c) deposited in the United States mail, postage prepaid, return receipt requested, or (d) transmitted by receipt -confirmed facsimile, to the intended recipient at the address(es) or facsimile number(s) set forth below. Notice shall be deemed received upon the earlier of (i) if personally delivered or sent by overnight courier, the date of delivery, (ii) if mailed as provided above, on the date of receipt or rejection as shown on the return receipt, or (iii) if transmitted by facsimile, when received by the other party if received Monday through Friday between 9:00 a.m. and 5:00 p.m. Pacific Time, so long as such day is not a state or federal holiday, and otherwise on the next business day. A copy of any Notice transmitted by facsimile shall be mailed to the intended recipient on the same date as the facsimile transmission. Notices shall be addressed as follows: To the LESSEE: City of Newport Beach City Manager 3300 Newport Boulevard Newport Beach, CA 92658-8915 Telephone: (949) 644-3000 Facsimile: (949) 644-3020 With a Copy to: City of Newport Beach City Attorney 3300 Newport Boulevard Newport Beach, CA 92658-8915 Telephone: (949) 644-3131 Facsimile: (949) 644-3139 6 TENANT IMPROVEMENTS ALTERATIONS AND IMPROVEMENTS To the STATE: Depathuent of Fish and Game South Coast Region Regional Manager 4949 Viewridge Avenue San Diego, CA 92123 Telephone: (858)467-4201 Facsimile: (858) 467-4239 With a Copv to: Depa tment of Fish and Game Office of the General Counsel General Counsel 1416 Ninth Street, 12`h Floor Sacramento, CA 95814 Telephone: (916) 654-3821 Facsimile: (916) 654-3805 Notice of change of address or facsimile number shall be given by written notice in the manner described in this section. 19. Tenant improvements to the Premises shall be the responsibility of LESSEE and shall be completed by November 1, 2008 at no cost to STATE, pursuant to the Work Letter Agreement attached to this Lease as Exhibit C and incorporated herein by this reference. 20. (a) Except as provided in Section 19, LESSEE shall not, without the prior written consent of STATE, make any alterations, improvements, additions or Utility Installations (as defined below) in, on or about the Premises, except for non-structural interior alterations not visible from the exterior of the Premises and not exceeding $10,000 in total costs during any 12-month period or $100,000 in cumulative costs over the term of this Lease. (b) Except as otherwise provided in Section 20 (a), above, LESSEE shall make no change or alteration (including Utility Installation) to any portion(s) of the Premises, the BBSC Buildings, or the BBSC Complex without the prior written consent of STATE. No such alterations or improvements shall be permitted to begin until the STATE has approved the complete plans and specifications for the project, the plans to be prepared by an architect licensed to practice architecture in the State of California. LESSEE shall submit the complete plans and specifications for the project to the STATE for review and approval, which approval shall not be unreasonably withheld. STATE shall respond with its approval or denial within 60 days of submittal, unless a longer period is reasonably necessary for the STATE to comply with its obligations under the California Environmental Quality Act (CEQA) with respect to the proposed project. As used in this Lease, "Utility Installation" shall mean carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning and plumbing. STATE may require that LESSEE remove any or all alterations, improvements, additions or Utility Installations to the Premises at the expiration of the term and restore the Premises to their prior condition. Should LESSEE make any alterations, improvements, additions or Utility Installations for which the consent of STATE is required without first obtaining such consent, STATE may require LESSEE to immediately remove any or all of the same and restore the BBSC Complex, the BBSC Buildings and the Premises to their prior condition. 7 SIGNAGE (c) Any alterations, improvements, additions or Utility Installations that LESSEE shall desire to make and which require the consent of STATE shall be presented to STATE in writing with proposed detailed plans. If STATE shall give its consent, the consent shall be deemed conditioned upon LESSEE acquiring all proper permits to do so from appropriate governmental agencies, the furnishing of a copy of each permit to STATE prior to the commencement of the work, and LESSEE's compliance with all terms and conditions of such permits in a prompt and expeditious manner. (d) Unless STATE requires their removal under Section 20 (b), all alterations, improvements, additions and Utility Installations which may be made on the Premises shall at the expiration or termination of the term become the property of STATE and remain upon and be surrendered with the Premises. Despite the contrary provisions of Section 20 (b), LESSEE's machinery and equipment, other than that which is affixed to the Premises so that it cannot be removed without material damage to the Premises, shall remain the property of LESSEE and may be removed by LESSEE subject to the provisions of Section 24. 21. LESSEE shall not place any sign upon the Premises, the BBSC Buildings or the Project without the prior written consent of STATE. STATE hereby agrees that LESSEE may develop and submit for approval kiosk -type signage and monument -style recognition signage for the Project and Parking Lot. LESSEE shall submit plans for any proposed signage to the STATE for review and approval, which approval shall not be unreasonably withheld. STATE shall respond with its approval or denial within 60 days of submittal. RIGHT TO ENTER 22. STATE shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times with reasonable advance verbal or written notice to LESSEE (except in case of an emergency, when advance notice shall be unnecessary), for the purpose of inspecting the condition of the Premises, verifying compliance with this Lease, performing obligations of LESSEE which LESSEE fails to perform in accordance with this Lease, or any other lawful STATE purpose. SECURITY 23. Neither STATE nor LESSEE shall have any obligation to provide guard service or MEASURES any other security measures to the BBSC Complex. LESSEE shall be responsible for the protection of the Premises, LESSEE, its agents, employees, contractors, invitees, sublessees and their property from the acts of third parties. In addition, should the Facilities Group determine that guard service or other security measures are necessary or appropriate, then LESSEE shall provide such guard service or security measures. REMOVAL OF 24. All articles of personal property and all business and trade fixtures, machinery and PROPERTY equipment owned and installed by LESSEE, at LESSEE's expense, on the Premises, shall be and remain the property of LESSEE, and may be removed by LESSEE at any time during the term of the Lease, provided that any and all wires, conduits, or pipe leading to any fixtures may be left in place on said Premises at the option of LESSEE, provided the same shall be insulated, plugged or otherwise treated in accordance with applicable standard practices and Applicable Laws. Any such property of LESSEE not removed on or before the last day of the term or any earlier termination of this Lease shall be deemed to have been abandoned by LESSEE and may be disposed of or retained by STATE as STATE may choose. SURRENDER 25. On the last day of the term or any earlier termination of this Lease, LESSEE shall surrender the Premises to STATE, with any appurtenances or improvements therein, clean and free of debris, in good operating order, condition and repair, reasonable use and wear thereof excepted. LESSEE shall remove any and al] personal property, trade fixtures, machinery and equipment and repair any damage to the Premises, the BBSC Buildings or the BBSC Complex occasioned by the installation or removal of those items. 8 COMPLIANCE WITH LAWS; AMERICANS WITH DISABILITIES ACT DEBT LIABILITY DISCLAIMER RELATIONSHIP OF PARTIES TAXES AND .ASSESSMENTS HOLD HARMLESS AND INDEMNIFICA- TION ABANDONMENT OF' PREMISES INSURANCE 26. LESSEE shall, at its sole cost and expense, comply promptly with all Applicable Laws, covenants and restrictions of record, and requirements in effect during the Term, pertaining to the Premises or LESSEE's use of or activities in, on, or about the BBSC Buildings and the Project. Since compliance with the Americans with Disabilities Act ("ADA") is dependent upon the specific use of the Premises, STATE specifically disclaims any representation or warranty as to whether or not the Premises comply with ADA or any similar legislation. If the use of the Premises requires modifications or additions to the Premises in order to comply with ADA, LESSEE shall perform any such necessary work at LESSEE's expense. 27. STATE will not be liable for any debts, claims, liens, or encumbrances that arise from the operation of this Lease. 28. LESSEE and any and all agents, employees, contractors, invitees and sublessees of' LESSEE shall act in an independent capacity and not as officers, agents or employees of STATE. The relationship of LESSEE and STATE is that of tenant and landlord. Nothing in this Lease is intended, or shall be construed or interpreted, to create a partnership or relationship other than that of tenant and landlord between LESSEE and STATE. 29. LESSEE agrees to pay all lawful taxes, assessments or charges which at any time may be levied upon this Lease or any interest of LESSEE in the Premises. STATE specifically calls to the attention of LESSEE the fact that this Lease may create a possessory interest subject to property taxation and LESSEE may be subject to the payment of property taxes levied on such interest. LESSEE alone shall pay any such tax. 30. LESSEE shall indemnify, defend and hold harmless the STATE, its officers, directors, employees and agents, from and against any and all liability, losses, costs, expenses (including attorneys' fees), claims and damages (collectively, "Claims") by reason of any injury (including death) to any person or persons, including LESSEE and any subtenant(s), or loss of or damage to property of any kind whatsoever and to whomsoever belonging, including LESSEE and any subtenant(s), arising out of or in connection with this Lease, the use or occupancy of the Premises, or LESSEE's presence or activities on or about the BBSC Complex, the BBSC Buildings or the Premises, except those arising out of the sole negligence or willful misconduct of the STATE. To the extent allowed by law, STATE shall indemnify, defend and hold harmless LESSEE, its officers, directors, employees and agents, from and against any and all Claims against LESSEE arising out of the sole negligence or willful misconduct of STATE in connection with, or arising out of this Lease or the presence or activities of officers or employees of the STATE on or about the BBSC Complex, the BBSC Buildings or the Premises. 31. If the LESSEE abandons, vacates or surrenders the Premises, or is dispossessed by process of law, any personal property, trade fixtures, machinery and equipment belonging to the LESSEE and left on the Premises shall be deemed to be abandoned, at the option of the STATE. Failure by LESSEE to occupy and/or use the Premises for a period of thirty (30) days or longer shall constitute abandonment by LESSEE. 32. LESSEE, at its sole cost and expense, shall insure its activities in connection with this Lease and obtain and keep in force at least the following insurance: (a) Commercial General Liability insurance protecting LESSEE and STATE against claims for bodily injury, personal injury and property damage based upon or arising out of the use, occupancy, maintenance or improvement of the Premises or the BBSC Complex. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not Less than Two Million Dollars ($2,000,000) per occurrence. The policy shall not contain any intra-insured exclusions as between insured persons or organizations but shall include "contractual liability" coverage for the performance of LESSEE'S 9 indemnity obligations under this Lease. (b) Property, fire and extended coverage insurance covering all risks of direct physical loss or damage to the Premises, including the perils of flood and earthquake, including coverage for demolition and debris removal and the enforcement of Applicable Laws requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Such insurance shall be in an amount equal to the full insurable replacement cost of the Premises, as the same shall exist from time -to - time, and shall contain an agreed valuation provision in lieu of any coinsurance clause and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted Index (as defined below). (c) Automobile liability insurance covering owned, non -owned, hired or scheduled vehicles with a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence. (d) Worker's compensation and/or employer's liability insurance in form and amount covering LESSEE's full liability as required under federal and state law, if applicable. Each policy of insurance shall be issued by a reputable insurer admitted to transact business in the State of California and maintaining during the policy term a General Policyholder's Rating of at least A- V II, as set forth in the most current issue of "Best's Insurance Guide". All sums set forth in this Section 32 shall be maintained in Current Dollars (as defined below). LESSEE's obligation to carry the insurance required by this Lease may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by LESSEE, so long as the coverage afforded to STATE will not be reduced or diminished by reason of the use of such policy or policies and al] requirements set forth in this Section 32 are otherwise satisfied. LESSEE shall, prior to the Commencement Date, deliver to STATE copies, or other evidence acceptable to STATE, of the existence and amounts of the required insurance. The policies referred to under subsections (a), (b) and (c) above shall name STATE, its directors, officers, employees and agents as additional insureds by endorsement. No such policy shall be cancelable, non-renewable, or subject to material modification except after at least 30 days prior written notice by the insurer to STATE. LESSEE shall, at least 30 days prior to the expiration of any such policy, deliver to STATE evidence of renewal or a new policy of insurance which meets the requirements of this Lease. "Current Dollars" as used in this Lease shall mean a dollar amount calculated by multiplying a dollar amount specified in this Lease by a fraction, the numerator of which is the Index (as defined below) last published prior to the anniversary of the Commencement Date and the denominator of which is the Index last published prior to the Commencement Date. "Index" as used herein shall mean the Los Angeles/Riverside/Orange County Metropolitan Area Consumer Price Index (all items) for All Urban Consumers (Base Year 1982 — 1984 = 100) as published by the United States Department of Labor, Bureau of Labor Statistics. STATE shall not be liable for the payment of any premiums or assessments on the insurance coverage required by this Section 32. LESSEE agrees that the insurance herein provided for shall be in effect at all times during the term of this Lease, all renewals thereof, and any holdover periods. The proceeds from the insurance referred to under subsection (b) above shall be applied toward demolition, repair and reconstruction of the Premises or the BBSC Complex, as applicable. All insurance carried by LESSEE shall be primary to and not contributory with insurance carried by STATE, if any. STATE makes no representation or warranty that the 10 limits or forms of coverage of insurance specified in this Lease are adequate to cover LESSEE or its property or the operations or obligations of LESSEE under this Lease. The limits of insurance carried by LESSEE or required under this Lease shall not limit the liability of LESSEE or relieve LESSEE of any obligation under this Lease. Without affecting any other rights or remedies, LESSEE releases STATE and waives LESSEE's entire right to recover damages against the STATE for loss of or damage to property arising out of or incident to the perils required to be insured against in this Lease. The effect of such release and waiver is not limited by the amount of insurance carried or required, or by any deductible amounts applicable thereto LESSEE agrees to have its property damage insurance carrier waive any right to subrogation that it may have against STATE, so long as the insurance coverage is not invalidated by such waiver. STATE shall not be liable for injury to LESSEE or damage to the property of LESSEE, LESSEE's employees, agents, invitees, subtenants, contractors, or any other person in or about the Premises, nor shall STATE be liable for any injury to LESSEE's employees, agents, invitees, subtenants or contractors, as a result of any condition of the Premises or the BBSC Complex, from any cause, whether such damage or injury is caused by or results from conditions arising in the Premises, any other portion of the BBSC Complex, or other sources or places. Further, STA IL shall not be liable for any damages arising from any act or neglect of any other tenant or occupant of the Premises, the BBSC Complex, or the Property, including but not limited to UCI. NO STATE 33. STATE shall not be required to (and anticipates that it shall not) keep the INSURANCE Premises, the BBSC Complex or any other portion of the Project or the Property insured (including, without limitation, against fire, flood, earthquake or other casualty), and LESSEE will make no claim of any nature against STATE by reason of any damage to the Premises or the property of LESSEE in the event of damage or destruction by fire or other cause, arising other than from or out of the sole negligence or willful misconduct of agents or employees of the STATE in the course of their employment. DAMAGE OR 34. (a) If the Premises are damaged by a risk required to be covered by the insurance DESTRUCTION described in this Lease, then LESSEE shall repair or restore such damage as soon as reasonably possible at LESSEE's expense and this Lease shall remain in full force and effect. (b) If the Premises are damaged by a risk not required to be covered by the insurance described in this Lease, then LESSEE shall have the option to either (i) repair or restore such damage as soon as reasonably possible at LESSEE's expense, this Lease continuing in full force and effect, or (ii) give notice to STATE at any time within 45 days after the date of such damage terminating this Lease as of the date of, or such later date as LESSEE may specify in, such notice. If notice of termination is given, STATE shall have the right within 45 days after the receipt of such notice to give written notice to LESSEE of STATE's election to repair such damage, in which event this Lease shall continue in full force and effect. If STATE does not elect to repair, this Lease shall expire and any interest of LESSEE in the Premises shall terminate on the date of, or such later date specified in, the notice of termination by LESSEE. (c) If in STATE's judgment the Premises cannot be restored as required herein under Applicable Laws, notwithstanding the availability of insurance proceeds, this Lease shall be terminated effective as of the date of the damage. (d) Any repair or restoration by LESSEE pursuant to subsection (a) or (b) above shall be commenced as soon as reasonably possible after the date of damage and prosecuted diligently to completion at the earliest possible date. STATE shall not be required to carry insurance of any kind on LESSEE'S property and shall not be required to repair any injury or damage thereto by fire, flood, earthquake or other causes, or to make any restoration or 11 • • replacement of any paneling, decorations, partitions, ceilings, floor coverings, office fixtures, machinery, equipment or any other improvements or property installed in the Premises by or for LESSEE, and in case of damage LESSEE, shall be required to restore or replace the same at LESSEE's expense. LESSEE shall have no claim against STATE for any loss suffered by reason of any such damage, destruction, repair or restoration. (e) LESSEE shall have no right to terminate this Lease as a result of any statutory provisions now or hereafter in effect pertaining to damage or destruction of the Premises or the BBSC Complex, except as expressly provided herein, and LESSEE expressly waives the provisions of California Civil Code Section 1932(2) and 1933(4) with respect to any damage or destruction of the Premises. CONDEMNATION 35. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of such power (all of which are referred to in this Lease as "Condemnation"), then this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under the threat of the exercise of such power shall be the property of STATE, whether such award or payment shall be made as compensation for diminution in value of the leasehold or the taking of the fee, or as severance damages. Provided, however, that LESSEE shall be entitled to any award or payment for loss of or damage to LESSEE's trade fixtures and removable personal property. If this Lease remains in effect after such Condenmation then STATE shall, to the extent of severance damages it receives in connection with such Condemnation, repair or cause to be repaired any damage to the Premises caused by the Condemnation except to the extent that LESSEE has been reimbursed therefor by the condemning authority. LESSEE shall pay any amount in excess of such severance damages required to complete the repair. HAZARDOUS 36. The term "Hazardous Substance" as used in this Lease shall mean any product, SUBSTANCES substance or waste the presence, use, manufacture, disposal, transportation or release (either by itself or in combination with other materials) is either: (a) potentially injurious to public health, safety or welfare, the environment or the Premises; (b) regulated or monitored by any governmental authority; or (c) a basis for potential liability of STATE under any applicable statute or common law theory. Hazardous Substance includes, without limitation, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by- products or fractions thereof. LESSEE shall comply with all Applicable Laws, federal, state and local, pertaining to the presence, generation, possession, storage, use, disposal, transportation or release of any Hazardous Substance in, on or from the Premises, the BBSC Buildings or the Project. If LESSEE knows or has reasonable cause to believe that a Hazardous Substance has come to be located in, on, under or about the Premises, the BBSC Buildings or the Project, other than in full compliance with Applicable Law, LESSEE shall immediately give verbal and written notice of such fact to STATE, and provide STATE with a copy of any report, notice, claim or other information which LESSEE has concerning such Hazardous Substance. Verbal notice to STATE pursuant to this Section 36 may be given to any on -site employee of STATE at the Back Bay Science Center. LESSEE shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about the Premises, the BBSC Buildings or the Project (including through the plumbing or sanitary sewer system) and shall promptly, at LESSEE's expense, comply with all Applicable Laws and take all investigatory and/or remedial action reasonably recommended for the cleanup of any contamination and for the maintenance, security and/or monitoring of the Premises, the BBSC Buildings, the Property, or other property in the vicinity of the Premises, that was caused or materially contributed to by LESSEE or involving any Hazardous Substance brought onto the Property during the term of this Lease, by or for LESSEE or any third party acting with the consent, or under the direction 12 • • or control, of LESSEE. LESSEE shall indemnify, defend, and hold harmless STATE, its officers, directors, agents, and employees from and against any and all claims, liabilities, losses, costs, expenses, damages, judgments, fines, and penalties arising out of or involving any Hazardous Substance brought onto the Property or any portion thereof (including the Premises or the BBSC Buildings) by or for LESSEE or any third party acting with the consent, or under the direction or control, of LESSEE. The obligations of LESSEE shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by LESSEE, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. EASEMENTS, 37. This Lease is subject to all existing covenants, conditions, restrictions, contracts, RIGHTS AND liens, encumbrances, leases, licenses, easements, rights of way and other interests. STATE DEDICATIONS reserves the right to convey, lease or encumber the Project, in whole or in part, and to grant such additional easements, rights and dedications as the STATE may deem necessary or desirable, so long as they do not unreasonably interfere with the rights of LESSEE under this Lease. NON- 38. In the performance of this Lease, the LESSEE shall not discriminate, harass, or DISCRIMINATION allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability (including HIV and AIDS), mental disability, medical condition, age (over 40), marital status, sex, sexual orientation, or use of family care leave. LESSEE shall insure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. FORCE MAJEURE Al ITHORTTY LESSEE shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) el seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Lease by reference and make a part hereof as if set forth in full. LESSEE shall give written notice of its obligations under this clause to any labor organizations with which LESSEE has a collective bargaining or other agreement. Further, LESSEE shall post in conspicuous places available to employees and applicants for employment, notice setting forth the provisions of this section. 39. If either LESSEE or STATE shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, govemmental restrictions, regulations or controls (except those reasonably foreseeable in connection with the uses and activities contemplated by this Lease) or other cause without fault and beyond the control of the party obligated (except financial inability), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. Nothing in this clause shall excuse LESSEE from prompt payment of any sums, taxes, insurance or any other charge required of LESSEE, except as may be expressly provided in this Lease. 40. Each individual executing this Lease on behalf of LESSEE represents and warrants that he/she is duly authorized to execute and deliver this Lease on behalf of LESSEE in accordance with a duly adopted resolution of the City Council of LESSEE, and that this Lease is binding upon LESSEE in accordance with its terms. LESSEE shall, within 30 days after execution of this Lease, deliver to the STATE a certified copy of 13 NO LIENS AMENDMENTS SMOKING RESTRICTIONS SECTION HEADINGS; INTERPRETATION SUCCESSORS BOUND TERMINATION; MERGER REMEDIES CUMULATIVE TIME OF ESSENCE WAIVER resolution of LESSEE'S City Council authorizing or ratifying the execution of this Lease. 41. LESSEE shall pay when due all claims for labor or materials furnished or alleged to have been furnished to or for LESSEE at or for use in the Premises, the BBSC Buildings or the Project. LESSEE shall keep the Premises, the BBSC Buildings, the Project and the Property free and clear of all liens resulting from work done by or for LESSEE. 42. This Lease may be altered, changed, or amended only by written agreement signed by the Parties. 43. Smoking is not allowed in or upon the Project. LESSEE will enforce the smoking prohibition as to LESSEE's employees, agents, contractors, invitees and sublessees, inside the Premises and Common Areas, and within 20 feet of a main exit, entrance, or operable window of the BBSC Buildings. 44. All captions and section headings contained in this Lease are for convenience of reference only and are not intended to define or limit the scope of any term or provision of this Lease. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 45. The terms and provisions of this Lease shall extend to and be binding upon and inure to the benefit of the Parties and their respective heirs, executors, administrators, successors, and assigns, subject to the limitations on assignment and subletting set forth above. 46. The voluntary or other surrender of this Lease by LESSEE, the mutual termination or cancellation hereof, or a termination of this Lease by STATE for a default by LESSEE shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that STATE may elect to continue any one or all existing subtenancies. STATE's failure within 30 days following such event to elect to the contrary by written notice to the holder of any such lesser interest shall constitute STATE's election to have such event constitute the termination of such interest. 47. No remedy or election under this Lease shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 48. Time is of the essence of each and all of the provisions of this Lease. 49. If the STATE waives the performance of any term, covenant or condition contained in this Lease, such waiver shall not be deemed to be a waiver of any other provision of this Lease or of any subsequent breach of the same or any other term, covenant or condition. The acceptance of performance by STATE shall not constitute a waiver of any preceding breach by LESSEE of any term, covenant or condition of this Lease regardless of STATE's knowledge of the breach. Failure by STATE to enforce any term, covenant or condition of this Lease for any length of time shall not be deemed to waive or decrease the STATE's right to insist thereafter upon strict performance by LESSEE. Waiver of any term, covenant or condition contained in this Lease affecting the STATE may only be made by a written Notice signed by an authorized STATE representative. sevERABILITv 50. If any provision of this Lease is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, this determination shall not affect any other provision of this Lease, and all other provisions shall remain in full force and effect. CONFLICT 51. Any conflict between this Lease and the Operating Agreement shall be controlled by this Lease 14 • • ANTI -DEFICIENCY LIQUEFACTION; SEISMIC HAZARDS; ASSUMPTION OF RISK ENTIRE AGREEMENT Any duty of STATE to carry out obligations under this Lease that require STATE to expend funds shall be subject to the availability of appropriated funds therefor. 53. (a) LESSEE has been informed and acknowledges that the BBSC Complex is on an island, and is subject to hazards from liquefaction. The BBSC Buildings are designed to move freely in an earthquake. LESSEE assumes the risks of injury and damage from earthquake, including liquefaction and movement, in connection with this Lease, the Operating Agreement and the Cooperative Agreement. LESSEE unconditionally waives any claim of damage or liability against the STATE, its officers, agents and employees for injury or damage from such hazards. LESSEE further indemnifies and holds harmless the STATE, its officers, agents and employees against any and all liability, claims, demands, damages, costs (including costs and fees incurred in defense of such claims) expenses, and amounts paid in settlement arising from any injury or damage to any persons or property in or about the Premises due to such hazards. (b) LESSEE is encouraged to plan and prepare for earthquakes and to take appropriate steps to secure and anchor furniture, equipment, machines, containers and other objects in the Premises. The California Seismic Safety Commission publication, The Commercial Property Owner's Guide to Earthquake Safety (available on the Internet at http://www.seismic.ca.gov/pub/CSSC 1998-01 COG.pdf) contains information and recommendations regarding pre -earthquake planning. The Guide suggests precautions such as, but not limited to, the following: writing down evacuation, fire response, search -and rescue, and first aid procedures and training employees to follow them; listing and acquiring basic emergency supplies, including tire extinguishers, crescent and pipe wrenches to turn off gas and water supplies, first - aid kits and handbooks, flashlights with extra bulbs and batteries, and portable radios with extra batteries; setting up an ongoing program to reduce earthquake weaknesses in the Premises; and training employees by holding drills, establishing responsibilities for carrying out the emergency response plan and teaching them to act immediately to put out fires. LESSEE INITIALS LESSEE INITIALS 54. This Lease, together with its exhibits, and the Operating Agreement entered into concurrently with this Lease, together contain all agreements of the Parties and supersedes any prior negotiations, agreements and understandings with respect to any matter mentioned in this Lease or the Operating Agreement. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK I5 EXHIBITS 55. The following exhibits are attached to this Lease and incorporated herein by this reference: Exhibit A — Site Plan Exhibit B — Janitorial Services Exhibit C — Tenant Improvement Work Letter, with Attachment 1 IN WITNESS WHEREOF, this Lease has been executed by the Parties as of the date of the last signature below. STATE: LESSEE: State of Californi., a d through its Department of Fi td ame City of ; wp�,.. h, a charter City By By Name ' - V i ) r E-7-y1 ' Name Title 1`1 Cifin _43 a 'tale r Title Mayor Date: Odv b i-r" 31 , 2007 Date: October 29 Approved as to form: Robin Clauson, City Attorney Attest: , 2007 j614%b)2 LaVonne Harkless, City Clerk 16 Exhibit A Site Plan of BBSC Exhibit A sHelkmaMn Mani aea• ArreJy Q P gecl Area BBSC Complex UCI Crew Lipase C 1 amain Common Ilea Demonstration Ma sit a,w(e OIM_Itesn HBSC &Memos A anises UCI &ahN�q • Exhibit B Janitorial Services Janitorial services shall be provided to the BBSC Complex by LESSEE. Services are: 1—Restroom maintenance: Nightly Monday -Saturday (includescleaning and disinfection of fixtures and floor, removal of trash, restocking of soap and paper products). Available within 4 hours for emergency cleaning. 2 — Trash collection: Inside waste cans to be emptied to the dumpsters by staff within each individual building. 1 x a week commercial dumping of outside trash dumpsters. 3x a week dumping of outside trash cans (cans placed around building and on parking lot). 3 — Floor cleaning: C .and.tite_fioocs in the Teaching Lab swept or vacuumed weekly. Cement and tile floors in the Teaching Lab washed 2x a year or more frequently if needed. Carpets in the Administrative Wing vacuumed 2x a week. Carpets in the Administrative Wing shampooed 2x a year. 4 — Window washing: All windows in Teaching Lab and Administrative Wing washed inside and out 2x a year. 5 — Outside Common Areas and Parking Lot (subject to the limitations in Paragraph #11(B) in the Lease Agreement): Trex decking, gravel areas, and entryway painted concrete swept or hosed down as needed. Steam cleaning of Trex decking and concrete 2x a year or more frequently as needed. Restriping of parking lot as needed. Repair of kiosks and signage as needed. Repair of storm drain catch basin and retention facility as needed. 6 - Compliance with Condition #8 of the Coastal Development Permit for the Project (CDP No. 5-03-451): •. Sweep the parking lot weekly (#8-2-B) • When physically cleaning the parking lot, avoid using detergents or cleaning components that have phosphates. The components must be biodegradable and non -toxic to marine wildlife. Amounts used shall be minimized to the maximum extent practicable. No fluids containing ammonia, sodium hypochlorite, chlorinated solvents, petroleum distillates, or lye shall be used (#8-2-C). • Avoid spraying down or washing down the parking lot unless the water used is directed through a filtered drain, the sanitary sewer system, or recovered into a tank that later is dumped into the sanitary sewer (#8-2-D). • Operate all Best Management Practices (BMP's) associated with the Parking Lot for the life of the project, and, at a minimum, inspect, clean out, and where necessary, repair structural BMP's (such as the filtration system): (1)prior to October 15'h each year; (2) during each month between October 151h and April 15m of each year; and (3) at least twice during the dry season (#8-2-E). • Dispose of debris and other water pollutants removed from Structural BMP's during clean - outs in a proper manner (#8-2-F) • Maintain the drainage system and associated structures and BMP's in accordance with manufacturer's specifications (#8-2-G). 7 — Native -Landscaped Berms: Weeding (quarterly), trash removal as needed, trimming of plants (quarterly), monitoring and repair of any irrigation systems as needed. EXHIBIT C Tenant Improvement Work Letter This Tenant Improvement Work Letter ("Work Letter") is incorporated by reference into the Standard Form Lease Agreement ("Lease") dated as of , 2007, between the State of California, acting by and through its Department of' Fish and Game (the "State") and the City of Newport Beach, a charter City and Municipal Corporation ("Lessee"), covering Premises within the BBSC Complex on Shellmaker Island within the State's Upper Newport Bay Ecological Reserve in Newport Beach, California. 1. Definitions. Initial -capitalized terms used in this Work Letter and not otherwise defined herein shall be defined as set forth in the Lease. 2. Lessee's Work. Lessee, at Lessee's sole cost and expense, shall construct and complete (or cause to be constructed and completed) all leasehold improvements required for Lessee's use and occupancy of the Premises (the "Lessee's Work") in accordance with this Work Letter. This Work Letter and the Lease are intended to be consistent with one another and shall be interpreted as such to the fullest extent possible. However, if any provision of this Work Letter as so interpreted should conflict with any provision of the Lease, this Work Letter shall govern the rights and obligations of the State and Lessee regarding the construction of Lessee's Work. 3. Plans. Within 30 days after the date the Lease has been fully executed by Lessee and the State, Lessee shall deliver to the State for its approval proposed plans, drawings and specifications for the completion of the Premises including, without limitation, Lessee's proposed layout, finish and decoration and any communications or special utility facilities for the Premises ("Plans"). The State shall not unreasonably withhold its approval of the Plans. A copy of the Plans, as approved, shall be dated and initialed by both Lessee and the State. 4. Required Approvals. Lessee shall obtain, at Lessee's sole cost, all necessary approvals of the Plans from governmental authorities with jurisdiction, and all permits, licenses and inspections required in connection with the construction of Lessee's Work (such approvals, permits, licenses and inspections are individually and collectively referred to as the "Required Approvals"). The Required Approvals shall include, without limitation, requirements of the State Fire Marshal and the Handicapped Compliance Officer of the Department of General Services, Division of the State Architect. 5. Quality of Work. Lessee shall cause Lessee's Work to be constructed in a good and workmanlike manner with new materials of good quality in accordance with the approved Plans, Applicable Laws, and all Required Approvals. Lessee shall not make any changes or substitution of materials without first obtaining the written approval of the State Lessee's Work shall not (a) affect the structural aspects of the Premises, (b) cause substantial modification to any of the building systems in or serving the BBSC Complex, or (c) be visible from or alter the exterior appearance of the Premises. 6. Pre -Construction Notice. Lessee shall notify the State at least 10 working days before the date Lessee intends to commence Lessee's Work of the date on which construction will begin, the construction schedule, and the names, addresses, and contractor's license numbers of each contractor and subcontractor that Lessee intends to engage for the Lessee's Work. The State shall have the right to approve the contractors and subcontractors selected by Lessee, and only contractors and subcontractors approved by the State shall perform work in the Premises. The State shall not unreasonably withhold its approval. Lessee shall cause the Lessee's Work to be prosecuted diligently to completion in accordance with the construction schedule Lessee provides to the State pursuant to this paragraph. 7. Costs of Construction. Lessee shall pay when due all costs to construct and complete Lessee's Work, and shall indemnify, protect, defend and hold the State free and harmless of and from any and 19 all claims, liability, losses, costs, damages and expenses of any kind or nature (including attorneys' fees) arising from or connected with Lessee's Work. 8. Supervision; Inspections. Lessee shall supervise and direct the construction of Lessee's Work, using Lessee's best skill and attention. The State shall have the right, but not the obligation, to inspect Lessee's Work as it progresses to determine if it is being performed in accordance with this Work Letter. If the State determines that Lessee's Work is not being performed in accordance with this Work Letter or, when completed, will not be in accordance with the requirements hereof, then the State shall give Lessee written notice of its objections. If the State shall give such notice, Lessee agrees to make corrections promptly. Neither the ability to make inspections nor the making of any inspections by the State shall operate as a waiver of the right of the State to require good and workmanlike construction in accordance with the approved Plans, Applicable Laws, and all Required Approvals. 9. Manner of Performance. Lessee shall be responsible to perform, or have Lessee's Work performed, in such a manner as to not: (a) obstruct access to the BBSC Buildings or common areas, (b) interfere with the business or activities of the State or other occupants of the BBSC Complex, or (c) interfere with the labor force working at the BBSC Complex. Lessee shall repair any damage to State- owned buildings, improvements, infrastructure and property caused by or arising from the construction of Lessee's Work. 10. Insurance. Lessee shall require Lessee's contractors and subcontractors to procure and maintain insurance on all of their operations during the progress of the Lessee's Work for the minimum coverages set forth in Attachment 1 which is incorporated by reference in this Work Letter. If any contractor or subcontractor of Lessee shall fail to obtain the required insurance and a claim is made or suffered, then Lessee shall indemnify, defend and hold harmless the State, its officers, directors, employees and agents, from and against any and all Claims for which the required insurance would have provided coverage. This indemnity obligation is in addition to any other indemnification contained in the Lease. Lessee hereby releases, and shall cause its contractors and subcontractors to release, the State, its officers, directors, employees and agents from any and al] Claims which the releasing party might otherwise possess resulting from or in any way connected with any loss covered, or which should have been covered, by insurance maintained or caused to be maintained under this Work Letter. Each insurance policy shall provide that the insurer waives all right of recovery by way of subrogation against the State, its officers, directors, employees and agents in connection with any loss or damage covered by any policy. 11. Storage and Removal. All construction materials, tools, equipment, and debris shall be stored only within the Premises. The State shall not insure or be responsible for any loss or damage to property of any kind owned, used, rented or leased by Lessee, its contractors or subcontractors. Lessee shall cause its contractors and subcontractors to remove all waste materials, rubbish, tools, equipment and surplus materials on completion of Lessee's Work. 12. Notices. Notices under this Work Letter shall be given in accordance with Section 18 of the Lease. IN WITNESS WHEREOF, this Work Letter has been executed by Lessee and the State as of the date of the Lease. STATE: LESSEE: State of California, by and through its City of Newport Beach, a Department of Fish and Game charter City and Municipal Corporation By: By: Name: Name: Title: Title: 20 ATTACHMENT 1 TO EXHIBIT C A. Worker's Compensation insurance and occupational disease coverage as required by California law and employer's liability insurance with a minimum limit of $1 million each occurrence. B. Broad form commercial general liability insurance with a combined single limit of not less than $2 million each occurrence for bodily injury, death, personal injury and property damage resulting from any one occurrence, including coverage for: a) premises, operations and mobile equipment liability; b) completed operations and products liability; c) blanket contractual liability covering the contractual obligations assumed by the contractor or subcontractor under the construction contract; d) independent contractors; e) broad form property damage liability coverage; and f) personal injury liability. C. Comprehensive automobile liability insurance, including all owned, hired and non -owned vehicles, with a combined single limit of not less than $2 million each occurrence. D. Excess and/or umbrella liability insurance with limits of not less than S2 million with coverage at least as broad as the primary coverage in A, B and C above, with any excess umbrella layers written on a strict following form basis over the primary umbrella. All policies of insurance required under this Exhibit C shall be endorsed to include the State as additional insured. Lessee shall furnish evidence of insurance to the State, together with satisfactory evidence of payment of premiums thereon, before any of Lessee's Work is commenced. The policies shall provide that there shall be no cancellation, reduction or material modification of coverage without at least 30 days' prior written notice to the State. 21 i r -30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 GA 1254-190 HCA/Temporary Water Quality Laboratory LEASE THIS IS A LEASE, hereinafter referred to as "Lease," made 2003, by and between City of Newport Beach, hereinafter referred to as "LESSOR," and the County of Orange, hereinafter referred to as "COUNTY," without regard to number and gender. The term "COUNTY" shall mean the Board of Supervisors of the political body that executed this agreement or its authorized representative. 1. DEFINITIONS (1.2 S) "Board of Supervisors" means the Board of Supervisors of the County of Orange, a political subdivision of the State of California "County Executive Officer" means the County Executive Officer, County Executive Office, County of Orange, or designee, or upon written notice to LESSOR, such other person or entity as shall be designated by the Board of Supervisors. "Director of CEO/Purchasing and Real Estate" means the Director, County Executive Office, Purchasing and Real Estate, County of Orange, or designee, or upon written notice to LESSOR, such other person or entity as shall be designated by the County Executive Officer or the Board of Supervisors. "Director of Health Care Agency" means the Director, Health Care Agency, County of Orange, or designee, or upon written notice to LESSOR, such other person or entity as shall be designated by the County Executive Officer or the Board of Supervisors. "Manager, HCA/Facilities Support -Real Estate" means the Manager, Health Care Agency, Facilities Support -Real Estate, County of Orange, or designee, or upon written notice to LESSOR, such other person or entity as shall be designated by the Director of Health Care Agency, or designee. "Auditor -Controller" means the Auditor -Controller, County of Orange, or designee, or upon written notice to LESSOR , such other person or entity as shall be designated by the Board of' Supervisors. "County Counsel" means the County Counsel, County of Orange, or designee, or upon written notice to LESSOR, such other person or entity as shall be designated by the County Executive Officer or the Board of Supervisors. 1 of 7 .ya[r( �_ 'COTTONWOOD\WMS\Real-Est\Misc\GA1254- 190 Water Qtly Lab-TH.Doc 12/10/02 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 "CEO/Real Estate" means the County Executive Office, Real Estate for the County of Orange, or upon written notice to LESSOR, such entity as shall be designated by the County Executive Officer or the Board of Supervisors. 2. PREMISES (1.3 N) LESSOR leases to COUNTY that certain property hereinafter referred to as "Premises," described in "Exhibit A" and shown on "Exhibit B," which exhibits are attached hereto and by reference made a part hereof, together with non-exclusive, in common use of LESSOR's driveways for vehicle ingress and egress, pedestrian walkways, other facilities and common areas appurtenant to COUNTY's Premises created by this Lease. 3. PARKING (1.4 N) LESSOR, throughout the term of this Lease, shall provide an area for parking for COUNTY's free and non-exclusive use. Said parking area are to be located in the area shown on Exhibit B. In addition to said parking area, LESSOR shall also provide parking for disabled persons in accordance with the Americans with Disabilities Act, Section 7102 of the California Uniform Building Code and the applicable codes and/or ordinances relating to parking for disabled persons as established by the local jurisdiction in which the Premises is located where the provisions of such local codes and/or ordinances exceed or supersede the State requirements. 4. USE (N) COUNTY shall use the Premises to provide for a water quality laboratory. COUNTY agrees not to use the Premises for any other purpose without the prior written consent of LESSOR, which shall not be unreasonable withheld. 5. TERM (2.2A S) The term of this Lease shall be three (3) years, commencing the first day of the first full calendar month following the date of execution by COUNTY. Parties agree that the commencement date of this Lease will be confirmed in writing by either party upon demand by the other. // X:Weal-Est\Misc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 2 of 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 6. OPTION TO TERMINATE LEASE (2.4 S) COUNTY shall have the option to terminate this Lease at any time after the first year of the lease term upon giving LESSOR written notice at least sixty (60) clays prior to said termination date. 7. RENT (N) In consideration of the services to be performed by COUNTY pursuant to the terms of this Lease, COUNTY's use of the Premises shall be rent-free. 8. REPAIR AND MAINTENANCE (5.1A N) COUNTY shall provide, at its own cost and expense, all janitorial supplies and services to the Premises, including the supplying of rest room expendables and replacement of light bulbs and fluorescent tubes. COUNTY shall also provide, at its own cost and expense, the cleaning and refinishing of interior surfaces and repair of' all damage. COUNTY shall provide, at its own cost and expense, all other repair and maintenance items, including, but not limited to, maintenance of the HVAC system for Premises. 9. ALTERATIONS (4.4 S) COUNTY may make improvements and changes in the Premises, including but not limited to the installation of fixtures, partitions, counters, shelving, and equipment as deemed necessary or appropriate. It is agreed that any such fixtures, partitions, counters, shelving, or equipment attached to or placed upon the Premises by COUNTY shall be considered as personal property of COUNTY, who shall have the right to remove same. COUNTY agrees that the Premises shall be left in as good condition as when received, reasonable wear and tear excepted. 10. UTILITIES (5.2 S) COUNTY shall be responsible for and pay, prior to the delinquency date, all charges for utilities supplied to the Premises, except water and sewer services, which shall be the obligation of LESSOR. // // // // 3 of 7 X:\Real-Est\Misc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 11. INDEMNIFICATION (5.5 S) COUNTY shall defend, indemnify and save harmless LESSOR, its officers, agents, and employees, from and against any and all claims, demands, losses, or liabilities of any kind or nature which LESSOR, its officers, agents, and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property as a result of, or arising out of, the sole negligence of COUNTY, its officers, agents, employees, subtenants, invitees, or licensees, in connection with the occupancy and use of the Premises by COUNTY. Likewise LESSOR shall defend, indemnify and save harmless COUNTY, its officers, agents, and employees from and against any and all claims, demands, losses, or liabilities of any kind or nature which COUNTY, its officers, agents, and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property as a result of, or arising out of, the sole negligence of LESSOR, its officers, agents, employees, invitees, or licensees, in connection with the ownership, maintenance, or use of the Premises. 12. TAXES AND ASSESSMENTS (5.6 N) All taxes and assessments which become due and payable upon the Premises shall be the full responsibility of LESSOR, and LESSOR shall cause said taxes and assessments to be paid prior to the due date. 13. BUILDING AND SAFETY REQUIREMENTS (5.7 N) During the full term of this Lease, LESSOR, at LESSOR's sole cost, agrees to maintain the Premises in compliance with all applicable laws, rules, regulations, building codes, statutes, and orders as they are applicable on the date of this Lease, and as they may be subsequently amended. Included in this provision is compliance with the Americans with Disabilities Act (ADA) and all other federal, state, and local codes, statutes, and orders relating to disabled access as they are applicable on the dates of this Lease, and as they may be subsequently amended. LESSOR further agrees to maintain the Premises as a "safe place of employment," as defined in the California Occupational Safety and Health Act (California Labor Code, Division 5, Part 1, Chapter 3, beginning with Section 6400) and the Federal Occupational Safety and Health Act, where the provisions of such Act exceed, or supersede, the California Act, as the provisions of such Act are applicable on the date of this Lease, and as they may be subsequently amended. 4 of 7 X:Vteal-Est\Misc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 14. TOXIC MATERIALS (5.9 S) COUNTY hereby warrants and represents that COUNTY will comply with all laws and regulations relating to the storage, use and disposal of hydrocarbon substances and hazardous, toxic or radioactive matter, including, but not limited to, those materials identified in Title 26 of the California Code of Regulations (collectively "Toxic Materials"). COUNTY shall be responsible for and shall defend, indemnify and hold LESSOR, its officers, directors, employees, agents, and representatives, harmless from and against all claims, costs and liabilities, including attorneys' fees and costs arising out of or in connection with the storage, use, and disposal of Toxic Materials on the Premises by COUNTY. If the storage, use, and disposal of Toxic Materials on the Premises by COUNTY results in contamination or deterioration of water or soil resulting in a level of contamination greater than maximum allowable levels established by any governmental agency having jurisdiction over such contamination, COUNTY shall promptly take any and all action necessary to clean up such contamination. Likewise, LESSOR hereby warrants and represents that LESSOR has in the past and will hereafter comply with all laws and regulations relating to the storage, use and disposal of hydrocarbon substances and hazardous, toxic or radioactive matter, including, but not limited to, those materials identified in Title 26 of the California Code of Regulations (collectively "Toxic Materials"). LESSOR shall be responsible for and shall defend, indemnify and hold COUNTY, its officers, directors, employees, agents, and representatives, harmless from and against all claims, costs and liabilities, including attorneys' fees and costs arising out of or in connection with the previous, current and future storage, use and disposal of Toxic Materials on the Premises (or building if the Premises comprises only a portion of said building) by LESSOR. If the previous, current and future storage, use, and disposal of Toxic Materials on the Premises by LESSOR results in contamination or deterioration of water or soil resulting in a level of contamination greater than maximum allowable levels established by any governmental agency having jurisdiction over such contamination, LESSOR shall promptly take any and all action necessary to clean up such contamination. 15. DEFAULTS AND REMEDIES (6.8 S) The occurrence of any of the following shall constitute an event of default: • Failure to pay any installment of any monetary amount due and payable hereunder; • Failure to perform any obligation, agreement or covenant under this Lease. // // 5 of 7 X;\Real-Est\Misc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 In the event of any non -monetary breach of this Lease by COUNTY, LESSOR shall notify COUNTY in writing of such breach, and COUNTY shall have fifteen (15) days in which to initiate action to cure said breach. In the event of any non -monetary breach of this Lease by LESSOR, COUNTY shall notify LESSOR in writing of such breach and LESSOR shall have fifteen (15) days in which to initiate action to cure said breach. In the event of any monetary breach of this Lease by COUNTY, LESSOR shall notify COUNTY in writing of such breach, and COUNTY shall have fifteen (15) days in which to cure said breach, unless specified otherwise within this Lease. In the event of any monetary breach of this Lease by LESSOR, COUNTY shall notify LESSOR in writing of such breach, and LESSOR shall have fifteen (15) days in which to cure said breach, unless specified otherwise within this Lease. 16. NOTICES (8.1 S) All written notices pursuant to this Lease shall be addressed as set forth below or as either party may hereafter designate by written notice and shall be deemed delivered upon personal delivery, delivery by facsimile machine, or seventy-two (72) hours after deposit in the United States Mail. TO: LESSOR City of Newport Beach City Manager's Office 3360 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 Attention: Assistant City Manager 17. ATTACHMENTS (8.2 S) TO: COUNTY County of Orange Health Care Agency HCA/Facilities Support -Real Estate 405 West 5th Street, Suite 610 Santa Ana, California 92701 Attention: Manager This Lease includes the following, which are attached hereto and made a part hereof: I. GENERAL CONDITIONS II. EXHIBITS A. Description - Premises B. Plot Plan - Premises 6 of 7 X:\Real-Est\Nilsc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. APPROVED AS TO FORM: LESSOR OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA CITY OF NEWPORT BEACH BY: BY: Deputy DATE: /z4/ .2. BY: RECOMMENDED FOR APPROVAL: Health Care Agency BY: B Senior Real Propert SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIR OF THE BOARD. COUNTY COUNTY OF ORANGE � `.' BY: DARLENE J.'I3LOOM Clerk of the Board of Supervisors of Orange County, California r' st,:(1446. Chair, Board of Supervisors 7 of 7 X:\Real-Est\Misc\GA 1254-190 Water Qtly Lab-TH.Doc 07/17/02 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 GENERAL CONDITION(S) 1. LEASE ORGANIZATION (9.1 S) The various headings in this Lease, the numbers thereof, and the organization of the Lease into separate sections and paragraphs are for purposes of convenience only and shall not be considered otherwise. 2. INSPECTION (9.2 S) LESSOR or his authorized representative shall have the right at all reasonable times and upon reasonable advance notice to COUNTY to inspect the Premises to determine, if COUNTY is complying with all the provisions of this Lease. 3. SUCCESSORS IN INTEREST (9.3 S) Unless otherwise provided in this Lease, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder. 4. AMENDMENT (9.5 S) This Lease sets forth the entire agreement between LESSOR and COUNTY and any modification must be in the form of a written amendment. 5. PARTIAL INVALIDITY (9.6 S) If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 6. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (9.7 S) If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, performance of such act shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. Financial inability shall not be considered a circumstance excusing performance under this Lease. // X:\Real-Est\Misc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 1 of 3 GENERAL CONDITIONS • r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 7. STATE AUDIT (9.8 S) Pursuant to and in accordance with Section 8546.7 of the California Government Code, in the event that this Lease involves expenditures and/or potential expenditures of State funds aggregating in excess of ten thousand dollars ($10,000), LESSOR shall be subject to the examination and audit of the Auditor General of the State of California for a period of three years after final payment by COUNTY to LESSOR under this Lease. The examination and audit shall be confined to those matters connected with the performance of the contract, including, but not limited to, the costs of administering the contract. 8. WAIVER OF RIGHTS (9.9 S) The failure of LESSOR or COUNTY to insist upon strict performance of any of the terms, conditions, and covenants in this Lease shall not be deemed a waiver of any right or remedy that LESSOR or COUNTY may have, and shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions, and covenants herein contained. 9. HOLDING OVER (9.10 S) In the event COUNTY shall continue in possession of the Premises after the term of this Lease, such possession shall not be considered a renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease. 10. HAZARDOUS MATERIALS (9.11 S) LESSOR warrants that the Premises is free and clear of all hazardous materials or substances. 11. EARTHQUAKE SAFETY (9.12 S) LESSOR warrants that the Premises is in compliance with all applicable seismic safety regulations and building codes. 12. QUIET ENJOYMENT (9.13 S) LESSOR agrees that, subject to the terms, covenants and conditions of this Lease, COUNTY may, upon observing and complying with all terms, covenants and conditions of this Lease, peaceably and quietly occupy the Premises. X:\Rcal-Est\ivtisc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 2 of 3 GENERAL CONDITIONS • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 13. WAIVER OF JURY TRIAL (9.15 S) Each party acknowledges that it is aware of and has had the advice of Counsel of its choice with respect to its rights to trial by jury, and each party, for itself and its successors and assigns, does hereby expressly and knowingly waive and release all such rights to trial by jury in any action, proceeding or counterclaim brought by any party hereto against the other (and/or against its officers, directors, employees, agents, or subsidiary or affiliated entities) on or with regard to any matters whatsoever arising out of or in any way connected with this agreement and/or any claim of injury or damage. 14. GOVERNING LAW AND VENUE. (9.16 S) This agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure section 394. 15. TIME (9.17 S) Time is of the essence of this Lease. // // X:\Real-EsAMisc\GA1254-190 Water Qtly Lab-TH.Doc 07/17/02 3 of 3 GENERAL CONDITIONS • • DESCRIPTION - PREMISES PROJECT NO: GA 1254-190 WRITTEN BY: Thurman Hodges PROJECT: HCA/Temporary Water Quality Laboratory DATE: June 15, 2002 All the Premises shown crosshatched on the plot plan marked Exhibit B, attached hereto and made a part hereof, being that certain approximately 2,160 square feet of office space in an office trailer located at 700 Shelimaker Road, as shown on Exhibit B, in the City of Newport Beach, County of Orange, State of California, together with the appurtenant right to the free and non-exclusive use of the parking area. NOT TO BE RECORDED EXHIBIT A • • RON YEO, FAIA ARCHITECT, INC. MARINE STUDIES CENTER SHELLMAKER ISLAND, NEWPORT BEACH 500 JASMINE AVENUE CORONA DEL MAR, CALIFORNIA 92525 PHONE: (S49) 644-5111 FAX 6::..2r,g 15 Piot PIA - --GA 1254490-- HCA/Temporary Water Quality Laboratory Shellmaker Island Ndtaport Beach s Date:6/ 15/02 EXHIBIT B COUNTY OF ORANGE HCA/REAL ESTATE COASTAL RESOURCES MANAGEMENT PROPOSAL TO CONDUCT WETLAND STUDIES SHELLMAKER ISLAND, UPPER NEWPORT BAY, CA INTRODUCTION The City of Newport Beach and the California Department of Fish and Game are jointly planning to construct a Marine Science Educational Center on Shellmaker Island, in Upper Newport Bay, Orange County, California. The design of the Center will result the expansion of building facilities and a potential reduction in the acreage of biological habitats on Shellmaker Island. To this end, Coastal Resources Management (CRM) proposes to conduct wetland field studies and prepare a wetlands restoration demonstration plan for the south end of Shellmaker Island adjoining the existing saltmarsh. The purpose of the work is to (1) identify existing habitat types and wetland biological resources on the south end of Shellmaker Island, (2) identify sensitive habitats and rare and endangered species located on the property, and (3) prepare a wetlands restoration plan for a marsh demonstration project to be implemented as part of the Marine Science Center Educational Program. TASK 1. PROJECT PLANNING MEETINGS Five planning meetings will be held with the City of Newport Beach, Department of Fish and Game, and other regulatory agencies. These meetings will be held prior to, during the course of the studies, and at the completion of the project. The purposes of the meetings are to identify agency concerns, regulatory constraints, habitat values as perceived by the agencies, review draft reports and mitigation plans, and present a final wetland restoration plan to the City of Newport Beach and the California Department of Fish and Game. TASK 2 REVIEW RESULTS OF TOPOGRAPHIC SURVEYS OF THE EXISTING SITE AND OF THE WETLANDS LOCATED SOUTH OF THE PROPOSED MARINE SCIENCE EDUCATION CENTER AND PREPARE A REPORT OF FINDINGS The existing topographic features of the building site and the wetland habitat located south of the proposed Marine Science Education Center were identified by Ron Yeo & Associates. This information was prepared so that proposed wetland restoration plans can be developed based on the known elevations of the existing tidal channels, tidal flats, salt marsh, and transitional biological habitats. As part of the wetland habitat evaluation, CRM will prepare a topographic survey report that will be used as a basis for conducting the wetland habitat surveys (Task 3), and biological analyses and wetland restoration plan designs in Tasks 4, 5, and 6. TASK 3 CONDUCT WETLAND HABITAT MAPPING AND BIOLOGICAL RESOURCES SURVEYS CRM will conduct wetland habitat mapping and biological resources surveys in order to identify existing conditions on the project site and the nearby saltmarsh and tidal flats located next to the proposed Marine Science Education Center. Habitat mapping will be conducted using quantitative transects, and Differential GPS mapping techniques. These surveys will be conducted to delineate habitat types, vegetation, and the presence of wildlife resources present during the time of the survey. Emphasis will also be placed on determining the presence and location of sensitive, rare, threatened, or endangered species, such as the salt marsh bird's beak (Cordylanthus maritimus spp. maritimus), Belding's savannah sparrow (Passerculus sandwichensis beldingi), western snowy plover (Charadrius alexandrinus nivosus), peregrine falcon (Falco peregrinus), light-footed clapper rail (Rallus longirostris levipes), and California brown pelican (Pelecanus occidentalis californicus) for use in the Section 7 Biological Assessment (Task 4). TASK 4 PREPARE A FIELD REPORT OF FINDINGS CRM will prepare a biological field studies report that describes the habitats, vegetational communities, and wildlife in the area. A habitat map, based on the existing topographic map prepared in Task 2 will be presented that illustrates the biological resources on the project site and vegetational zones will be presented. TASK 5 PREPARE A BIOLOGICAL ASSESSMENT FOR THE SECTION 7 INFORMATIONAL CONSULTATION PROCESS Because of the high value and the potential for the wetland demonstration project to affect federally -listed endangered species and federal candidate species for listing, a biological assessment will be prepared in support of Section 7 of the Endangered Species Act, informal consultation process between the City of Newport Beach/Cal Fish and Game, the U.S. Army Corps of Engineers, and the U.S. Fish and Wildlife Service. This assessment will be based upon both site -specific survey of the area and Upper Newport Bay historical data collected over the last several years for the Upper Newport Bay Dredging Project. TASK 6 PREPARE A WETLANDS RESTORATION DEMONSTRATION PLAN Based on the impacts identified for the Marine Science Educational Center Project and the existing wetland topographic and biological attributes on the south end of Shellmaker Island, CRM will prepare a plan to restore additional wetland habitat proximal to the existing wetland. The restoration designs will take into account but not be limited to identified goals and priorities for restoration, physical and biological limitations of the area, regulatory constraints, associated goals of the California Department of Fish and Game research and educational programs, and input from local wetland scientists and wetland managers. The plan will include design plans for footbridges, pathways, and lookout kiosks to be used for educational purposes. A draft wetland restoration plan will be provided to the City of Newport Beach and the Department of Fish and Game for review and comment. In addition, a wetland restoration plan review and comment meeting will be held to gather input from wildlife and regulatory agencies, and the Upper Newport Bay Technical Advisory Committee. Based upon the comments received on the draft report, a final wetlands restoration plan will be prepared for the City of Newport Beach and the California Department of Fish and Game. This document will be finalized and submitted within 60 days of receiving comments on the draft report. TASK 7 PROJECT MANAGEMENT Mr. Rick Ware, Principal and Senior Biologist of CRM will be the Project Manager and Principal Investigator for the project. He has 25 years of experience conducting wetland, bay, harbor, and offshore marine biological studies and preparing state -and federal biological impact assessments, restorations plans, and implementing mitigation and monitoring programs throughout Southern California. He is extremely familiar with Upper Newport Bay and its environs, and has conducted studies in Newport Bay since 1977, and has conducted several wetland and marine biological investigations for the City of Newport Beach. Mr. Ware will be responsible for the timely and cost-efficient submittals for the project and will oversee as well as participate in all aspects of the project. PROJECT TIMELINE Timing of the project elements will be finalized following initial meetings with the City of Newport Beach and the California Department of Fish and Game. It is anticipated that the project will be initiated in December 2000, and that the Wetlands Demonstration Plan will be finalized by early March 2003. PROJECT COSTS Project costs, by task are presented in Attachment 1, and summarized below. The total estimated not -to -exceed project cost is $46,680.70. This cost includes a 10% contingency. TASK COST 1 Project Planning and Meetings 2 Review Topographic Survey Results, Prepare Report 3 Wetland Mapping and Habitat Resource Surveys 4 Biological Reports 5 Biological Assessment, Section 7 Informal Consultation Report 6 Wetlands Restoration Demonstration Plan 7 Project Management and Coordination Estimated Project Costs Contingency Costs Total Estimated Project Costs $4,842.00 $2,540.60 $4,429.00 $6,309.60 $3,451.00 $12,900.00 $2,291.00 $36,767.20 $ 3,676.72 $40,443.40 KEY PERSONNEL Person and Organization Rick Ware, Coastal Resources Management Kathy Keane, Keane Biological Randy Mason, Cash & Associates Ron Yeo, Architect Brian Shelton, Cal Dept of Fish and Game Task Responsibility Principal Investigator Wildlife Surveys Engineering Design Plans Integration of MSC Designs Project Review/Coordination COASTAL RESOURCES MANAGEMENT FEE PROPOSAL SHELLMAKER ISLAND MARINE SCIENCE CENTER WETLANDS DEMONSTRATION PROJECT PLANNING AND MITIGATION DESIGN EFFORTS TASK 1: PROJECT PLANNING MEETINGS (5) WITH AGENCIES Labor Hours Marine Biologist 30 Endangered Species Biologist 8 Architect 8 Word Processor 4 Total 50 Direct Charges Phone/Fax Copies Mileage 400 mi @ $0.33/mi Delivery Graphics Rate Amount Subtotal $95 $2,850.00 $75 $600.00 $100 $800.00 $45 $180.00 Subtotal Directs Total Task 1 $30.00 $100.00 $132.00 $50.00 $100.00 $4,430.00 $412.00 Total Task $4,842.00 TASK 2: REVIEW PRE -CONSTRUCTION TOPOGRAPHIC SURVEY RESULTS AND PREPARE REPORT Labor Hours Rate Amount Marine Biologist 24 $95 $2,280.00 Total 24 Direct Charges Mileage (120 mi @ $0.33/mi) Telephone/Fax/Copy Computer/Digital Photography/Prints $39.60 $25.00 $200.00 Subtotal $2,280.00 Subtotal Directs $264.60 Total Task 2 Total Task $2,544.60 TASK 3 : CONDUCT WETLAND HABITAT MAPPING AND BIOLOGICAL RESOURCES SURVEYS Labor Hours Rate Amount Subtotal Total Task Senior Biologist 24 $95 $2,280.00 Endangered Species Biologist 16 $75 $1,200.00 Total 40 $3,480.00 Direct Charges Gear rental $60.00 DGPS UNIT (2 days @ $100/day) $200.00 Mileage 120 mi @ $0.33/mi) $39.00 Misc field equipment $50.00 Report Printing/Reproduction $500.00 Computer/Digital Photography/Prints $100.00 Subtotal Directs $949.00 Total Task 3 $4,429.00 TASK 4: PREPARE A FIELD REPORT OF FINDINGS Labor Hours Rate Amount Subtotal Total Task Senior Biologist 40 $95 $3,800.00 Endangered Species Biologist 8 $75 $600.00 Word Processor 16 $45 $720.00 Total 64 $5,120.00 Direct Charges Telephone/Fax $60.00 Copy $90.00 Mileage 120 mi @ $0.33/mi) $39.60 Report Graphics/GIS Work $1,000.00 Subtotal Directs $1,189.60 Total Task 4 $6,309.60 TASK 5: PREPARE A BIOLOGICAL ASSESSMENT FOR THE SECTION 7 INFORMAL CONSULTATION PROCESS Labor Hours Rate Total Subtotal Total Task Marine Biologist 8 $95 $760.00 Endangered Species Biologist 32 $75 $2,400.00 Total 40 Hrs $3,160.00 Direct Charges Telephone/Fax $25.00 Mileage (200 mi @ $0.33/mi) $66.00 Copy/Graphics $200.00 Subtotal Directs $291.00 Total Task 5 $3,451.00 TASK 6: PREPARE A WETLANDS RESTORATION DEMONSTRATION PLAN Labor Hours Marine Biologist 40 Endangered Species Biologist 16 Graphic Artist 24 Word Processor 16 Total 96 Direct Charges Rate Amount Subtotal Total Task $95 $3,800.00 $75 $1,200.00 $45 $1,080.00 $45 $720.00 Hrs $6,800.00 GIS and Architectural Consultant (Ron Yeo, Architect) $2,500.00 Engineering Consultant (Cash & Associates) $2,500.00 Telephone/Copy $100.00 Copy/Graphics and Report Production $1,000.00 Subtotal Directs Total Task 6 TASK 7: PROJECT MANAGEMENT AND COORDINATION Labor Marine Biologist Word Processor Direct Charges Hours 20 5 Total 25 Telephone/Fax Mileage (200 mi @ $0.33/mi) Copy/Graphics Rate $95 $45 Hrs Subtotal Directs Total Task 7 $6,100.00 $12,900.00 Amount Subtotal Total Task $1,900.00 $225.00 $2,125.00 $50.00 $66.00 $50.00 $166.00 ESTIMATED COST 10 PERCENT CONTINGENCY COST TOTAL ESTIMATED COST $2,291.00 $36,767.20 $3,676.20 $40,443.40