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HomeMy WebLinkAboutSanta Clara County Library - 2012 Library LeaseLEASE AGREEMENT GILROY LIBRARY THIS LEASE AGREEMENT (this "Agreement ") is made and entered into between CITY OF GILROY, a Municipal Corporation, ( "City" or "Landlord "), and SANTA CLARA COUNTY LIBRARY DISTRICT JOINT POWERS AUTHORITY, a California Joint Powers Agency, ( "Tenant" or "JPA ") as of the Effective Date specified below. WHEREAS, A. Landlord is the owner of real property located at 350 West Sixth Street in the City of Gilroy, County of Santa Clara, State of California, as more particularly described on the attached Exhibit A ( "Real Property "); B. Landlord currently (i) leases to Tenant certain existing facilities located at the Real Property in the City of Gilroy ( "Existing Building ") to Tenant for the operation of a public library for the Santa Clara County Library pursuant to the "Lease Agreement Gilroy Library" between Landlord and Tenant dated January 13, 1969 ( "1969 Lease Agreement, and (ii) subleases to Tenant a certain building and adjacent parking lot commonly known as 7652 Monterey Road, Gilroy, California ( "Library Sublease "), which 1969 Lease Agreement and Library Sublease are collectively referred to in this Lease for convenience as the "Existing Leases "; C. Landlord, in consultation with Tenant, developed plans and specifications for a new library facility on the Real Property to include (1) a building (the "Building ") containing approximately 54,590 square feet for community library facilities; (2) furniture, fixtures, and equipment consisting of section walls, light fixtures, and shelving and public interior furniture ( "Landlord Provided FF &E "); and (3) a vehicle parking lot for approximately 116 automobiles and landscaping appurtenant to the Building and parking lot ( "Exterior Improvements ") (collectively the Building and Exterior Improvements are referred to as the "Improvements "); D. Upon substantial completion of the Building, Tenant shall move to the new Building subject to the terms and conditions of this Agreement; E. Tenant shall additionally provide, install and operate at its own cost and expense all computer equipment, telephones, copy machine equipment, and all other unattached personal property and improvements necessary for the operations of a public library in the Building ( "Tenant FF &E "); F. Upon Tenant's occupancy of the Building, the Existing Leases shall be terminated in accordance with the terms and conditions provided below. Gilroy Library Lease Page 1 2 -23 -12 NOW, THEREFORE, in consideration of the foregoing and the mutual promises set forth below, and subject to the terms and conditions hereinafter set forth, Landlord and Tenant agree as follows: 1. Description of the Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord the Premises, to be used exclusively as a public library to be operated and maintained as part of the Santa Clara County Library. The term "Premises" as used in this Agreement means the Building located at 350 West Sixth Street, Gilroy, California. 2. Effective Date; Occupancy Date; Annual Payment Commencement Date; Term of Lease. A. The "Effective Date" of this Agreement is the date the City Council as Landlord approves this Agreement, which date is set forth on the signature page and is attested by the City Clerk. The "Occupancy Date" is the first business day following the issuance of a so- called Temporary Certificate of Occupancy, or "TCO," or the issuance of a Certificate of Occupancy by the City Building Official, if sooner. The "Rent Commencement Date" as that term is used in this Lease is April 30, 2013, irrespective of the actual Occupancy Date. B. The "Term" of this Agreement shall commence on the Occupancy Date and continue until April 30, 2062, unless shortened by operation of Section Oe �C, Landlord and Tenant shall meet and confer regarding the possible extension of this Lease concurrently with its expiration, but shall be under no obligation to do so in the absence of mutually acceptable terms. C. If the City withdraws from the Library JPA at any time during the Term of this Lease, this Lease is automatically terminated concurrently with the effective date of the withdrawal, subject to the terms of Section 16 below and the obligations stated therein. 3. Relocation of Library Operations and Termination of Existing Leases. The City is currently constructing the Building on the Real Property as described in this Agreement, to which Building the Library JPA shall relocate its public library operations. The City anticipates substantial completion of the Building will occur on or about April 1, 2012. At substantial completion, the City shall advise the County Librarian of substantial completion inspection of the Building and the County Librarian, or her designee, may attend the inspection. Following this inspection, the City will prepare and provide its construction contractor with a "punch list" of items to be completed within thirty (30) days. The City will consider the County Librarian's feedback in creating the punch list with the understanding that the City Gilroy Library Lease Page 2 2 -23 -12 is under no obligation to include in the punch list the correction or completion of work which was not included within the original construction documents. Punch list items may be completed after the Occupancy Date. The substantial completion date is a planned estimate only and the City shall not be liable for any damages or delay costs associated with a rescheduled substantial completion date. Upon occupancy, the Library JPA assumes all liability and responsibility for the Building as set forth in this Lease, including the requirement for insurance set forth in Section 10, and Tenant shall promptly move in and open the Building to the public within six weeks of occupancy. Upon opening of the Building to the public [e.g. within six weeks after the Occupancy Date], the parties agree that the Existing Leases shall terminate. Tenant's occupancy under the 1969 Lease Agreement has terminated due to the destruction of the Building leased under that agreement (and accordingly no repair, restoration or other surrender terms shall be applicable to that lease). Tenant shall surrender the premises subleased pursuant to the Library Sublease to Landlord in good condition and repair and damage by casualty or act of god excepted. Tenant shall vacate those premises leaving them in "as is" broom clean condition upon surrender. 4. Occupancy Payment. A. The Library JPA has agreed to make certain payments to the City as set forth on the attached Exhibit B ( "Library Payments "). Those Library Payments are not rent, and are independent of any rights or obligations under this Agreement, but are to be paid in accordance with Exhibit B and are included herein for convenience. In the event of the early termination of this Lease for any reason, the Library Payments shall cease. The Library JPA has made advance payment of the Library Payments to the City in the amount of $532,428 which the City used toward the preparation of architectural and engineering documents for the Improvements B. City Finance Director shall provide annual invoice and tenant shall direct payments to Landlord to the City Finance Director at the address set forth for Landlord in Section 14. The City agrees to provide the JPA an invoice each year but the failure to issue such an invoice shall not affect the JPAs obligation to make the annual payments. 5. Use of Premises. A. The Premises shall be used by Tenant exclusively for the operation of a public library governed by the policies and rules adopted by the Santa Clara County Library District Joint Powers Authority. In the event of any conflict between this Lease and the policies and rules adopted by the Gilroy Library Lease Page 3 2 -23 -12 Santa Clara County Library District Joint Powers Authority, the provisions of this Lease shall control. B. Tenant shall not lease or sublease the whole or any part of the Premises, nor sell or assign this Agreement, either voluntarily or by operation of law, nor allow the Premises to be occupied by anyone contrary to the terms hereof, nor permit their use for any purpose other than as hereinabove specified, nor abandon or vacate the Premises, nor fail or refuse to actively cause the Premises to be used as hereinabove specified for the purposes of this lease, without the prior written consent of Landlord. C. The Landlord shall have the first right to reserve the use of the available community meeting facilities during both scheduled and non - scheduled library hours of operation. The Landlord shall leave these areas used, in a clean condition, ready for use by the library on the following business day. D. Parking to be available for library staff, visitors and patrons shall include only the unreserved parking generally made available to the public in the City's Civic Center Complex, as well as generally available street parking. City will reserve parking for Library use when a City Special Event is scheduled during Library operating hours. No overnight parking shall be allowed except as may be expressly allowed by the City in the City's sole and absolute discretion. Tenant shall abide by all rules and regulations which are prescribed from time to time for the orderly operation and use of the Landlord's parking facilities, including any sticker or other identification system established by Landlord. Tenant shall cooperate in seeing that Tenant's staff complies with such rules and regulations. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects of the parking facilities at any time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of rent under this Lease, from time to time, close -off or restrict access to the parking facilities for purposes of permitting or facilitating any construction, alteration or improvements. Tenant's may not transfer or claim to transfer any parking rights (or permit the use of the Civic Center Complex parking facilities by any third party) without Landlord's prior approval in Landlord's sole and absolute discretion. 6. Alterations, Additions, Maintenance. A. During the Term of this Agreement Tenant shall keep and maintain the Premises in good and tenantable condition at its sole cost and expense. This obligation to maintain includes repair and replacement of the building, all building systems and equipment, and the Interior Improvements. The Landlord Provided FF &E and the Tenant FF &E is to be owned by the Tenant and shall be kept in a clean and serviceable condition. Gilroy Library Lease Page 4 2 -23 -12 B. Without limiting the generality of Tenant's maintenance obligations, the Tenant shall provide maintenance services that follow the manufactures recommended maintenance level that the Building was constructed to. C. During the Term of this Agreement, Landlord shall keep and maintain the Exterior Improvements (e.g. landscape and hardscape outside the building envelope in good and tenantable condition. This obligation to maintain includes repair and replacement of the Exterior Improvements. D. The Tenant may contract with the City of Gilroy for maintenance services that would otherwise be Tenant's obligation under this Lease, e.g. for emergency maintenance response; mechanical /electrical systems or equipment; graffiti removal or other vandalism; landscape or hardscape maintenance or other maintenance needs as may arise, so long as such arrangements are mutually agreeable to both parties. E. At least two complete sets of keys and the building's security access codes shall be given to Landlord for emergency access to the Premises by its maintenance personnel. These keys and access codes shall be updated immediately if any rekeying or code changes are made by the Tenant for the duration of the lease. F. The demarcation line for the allocation of maintenance responsibilities for the Building is where the hardscape or landscape contacts the Building. The Tenant is responsible for the exterior of the building envelope (including exterior painting) as well as the interior area. The Landlord is responsible for the hardscape and landscape up to the Building, G. For one year following the issuance of a Certificate of Occupancy for the Building, Landlord shall bear responsibility for correction of construction defects, and be responsible for the repair or replacement of any defectively constructed structures or systems within or on the Premises. In addition, for a period of ten years or until the statute of limitations for latent defects has expired, whichever is earlier, Landlord shall pursue for Tenant's benefit all express and implied warrantees covering design or construction defects, and shall cooperate with Tenant in enforcing such rights. H. Tenant shall not make any structural alterations, changes, modifications or additions ( "Modifications ") to the Premises without obtaining prior written consent of Landlord which consent shall not be unreasonably withheld; provided, however that Landlord may withhold its consent in its sole and absolute discretion relating to any requests for Modifications to facilitate a use other than as set forth in Section 6A. Any Modifications made by Tenant shall be at the sole cost and expense of Tenant, and, upon termination of this Agreement, said Modifications shall remain the property of the Landlord, unless Landlord requires Tenant to remove such Gilroy Library Lease Page 5 2 -23 -12 Modifications upon the expiration or sooner termination of this Lease. Landlord may choose to expand the Premises during the Term of this Agreement. Landlord will provide notice and give the Tenant time to comment upon the expansion design process if there is a decision by the City to proceed. There will be no reduction or abatement of annual payments if such a Building expansion occurs. 7. Solar Panels and HVAC Systems. A. The Premises incorporates state -of- the -art energy conserving applications with particular design elements that exceed the customary and usual maintenance and repair requirements of any other Santa Clara County Library building. These cost elements include photo voltaic systems, mechanized and automated window coverings, automated ventilation systems, and natural light capture mechanisms. Photo voltaic system: Tenant shall be responsible for routine cleaning. Landlord shall be responsible all other servicing necessary to maintain the warranty for the system. City of Gilroy will purchase extended warranty periods on certain complex building systems, but only if funds from the project are available to be used for that purpose with the budget constraints. Possible systems for inclusion are a Building Management and Control System, Heat Pump system, VRV system, Energy Recovery Ventilation Unit, the Fire Alarm systems and equipment, Mechanized/ Automated window covering system, the Automated Ventilation Systems, and natural light capture mechanisms. 8. Utilities. Tenant shall pay for all water, gas, heat, light, power, security monitoring service, telephone, sewage, janitorial, elevator maintenance and monitoring of the emergency phones system, and any and all other utilities and services which may be furnished to or used in or upon the Premises during the Term of this Agreement. Gas, electric and water utilities shall be separately metered so that Tenant can be billed separately for utilities necessary only to maintain the Premises. 9. Taxes. Tenant shall pay any and all taxes and all special assessments for improvements as may be levied against the Premises or any part thereof. Gilroy Library Lease Page 6 2 -23 -12 10. Indemnity and Liability Insurance. A. Tenant hereby agrees to defend and save harmless Landlord from any and all claims, demands, actions, losses or liabilities for bodily injury or death to persons or damage to property ( "Claims ") arising out of or in connection with: (A) Tenant's use and occupancy of the Premises; (B) the conduct of Tenant's business or any activity, work or thing done or permitted by Tenant in the Premises or on or about the Real Property; (C) any failure by Tenant to perform or observe any of the obligations or conditions required to be performed or observed by Tenant under this Lease; and (D) any negligence or other misconduct of Tenant with respect to the Premises or the exercise of Tenant's rights or performance of Tenant's obligations under this Lease and (E) Tenant's negligent operation, occupation, use or repairs of the Premises. Landlord hereby agrees to defend and save harmless Tenant from any and all claims, demands, actions, losses, or liability for bodily injury to persons or damage to property arising out of Landlord's negligent ownership, occupation, use or repairs of the Exterior Improvements. This mutual indemnification agreement is adopted pursuant to Government Code section 895.4 and in lieu of and notwithstanding the pro rata risk allocation which might otherwise be imposed between the parties pursuant to Government Code section 895.6. B. Each party shall maintain comprehensive general liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence. Such insurance shall be written on a commercial general liability form or on a comprehensive general liability form covering the hazards of premises- operations, products /completed operations, independent contractors, advertising, contractual, broad form of property damage, and personal injury. If at any time during the Term of this Agreement either party shall elect to become self insured or carry deductible liability insurance, it is agreed that the responsibility of each party under this paragraph shall be comparable to the responsibility of a commercial insurance carrier providing public liability insurance. To the extent Tenant elects to self- insure such risks (which election shall automatically be deemed to have been made by Tenant to the extent of any failure by Tenant to carry the insurance required by this Lease), then, as between Landlord and Tenant, Landlord and Tenant shall maintain all rights and obligations between themselves as if Tenant maintained the insurance with a third -party insurer, including any waivers of any rights of recovery and /or subrogation against one another or their insurers for any losses which would have been covered had Tenant maintained such third -party insurance. Gilroy Library Lease Page 7 2 -23 -12 C. Such insurance shall name by endorsement "City of Gilroy ", its elected officials, officers, employees, agents, and representatives" and "Santa Clara County Joint Powers Authority, it's officers, employees, agents, and representatives ", respectively as additional insured parties. Tenant's insurance shall also be endorsed to state that this insurance shall be primary and not contributing with any other insurance, self- insurance, or re- insurance in effect for Landlord. In addition, such insurance shall be endorsed such that Landlord and Tenant each waive the rights of subrogation that may arise against the other due to any act covered by insurance. All endorsements effecting Landlord's additional insured status shall be acceptable to Landlord and shall be at least as broad as additional insured endorsement form number CG 20 26 11 85 promulgated by the Insurance Services Office. D. Landlord and Tenant shall furnish, each to the other, a Certificate of Liability Insurance (or certificate of self- insurance) endorsements demonstrating the coverages specified herein and stating that at least 10 days notice of cancellation or material change shall be given to the certificate holder. 11. Responsibility for Property Damage and Property Insurance. A. Tenant shall be responsible for all loss or damage to the Building, howsoever caused, except as may be otherwise provided in this Lease. Landlord shall be responsible for all loss or damage to Exterior Improvements (Landscape and Hardscape outside the building envelope). B. Tenant agrees to provide insurance on the Building and contents for the benefit of Landlord and Tenant, as their interests may appear, on the same terms and conditions, forms, and against loss from the same perils as provided for County -owned buildings and contents; provided however, Tenant agrees to provide any additional insurance as may be required by the financing or bonding entities utilized by City to finance construction of the Improvements. In the event the Building is partially destroyed from any cause, Landlord shall repair, the Building. Neither insurance nor the absence thereof shall abrogate or limit the responsibility of the Tenant for damage to the Building as called for herein. Tenant's maximum liability for total destruction of the Premises under this paragraph shall be limited to the replacement cost of the Premises with like kind and quality. Landlord shall not be held responsible for damage and loss to the Tenant FF &E. C. In the event the Building is partially destroyed from any cause, Landlord shall repair, at Landlord's sole cost, the Building, provided that the cost of such repairs is covered at least ninety percent (90 %) by insurance. Such partial destruction shall not void this Agreement. In the event the cost to repair the Building exceeds the available insurance proceeds by more Gilroy Library Lease Page 8 2 -23 -12 than ten percent (10 %), Landlord may elect to terminate this Agreement and Tenant shall be released from making any further Base Rent payments not yet due. Landlord shall not be obligated to replace any of the Tenant's personal property which may be damaged or destroyed. 12. Exemption from Liability. Excepting only Landlord's indemnification obligation for property damage or personal injury caused by construction or design defects described in Section 10A and the exceptions in Section 7, Landlord shall not be liable for damages to Tenant's property arising from the failure of the supply of water, gas, electricity, or power, nor for the stoppage of any machinery and equipment, if any, in the Premises, for necessary repairs or otherwise, nor for the stoppage, leakage, or bursting of any gas, water, steam, sewer, or other pipe, tank, water closet, or other fixtures, or for any annoyance, inconvenience or damage caused by any electric or other wire, whether upon the Premises. 13. Dispute Resolution. Should disputes arise between the parties, the matter shall be referred to the City Administrator on behalf of the Landlord and the County Librarian on behalf of the Tenant to resolve the dispute. If the parties are unable to resolve such matters between themselves by negotiation after the complaining party has provided the other party written notice of the complaint and a reasonable opportunity to cure the problem, then such disputes shall be resolved in the courts of the County of Santa Clara in accordance with applicable law and procedure, including any claims procedures that may be required by law with respect to a general law city. 14. Notices. Any notice required or permitted to be given under this Agreement must be in writing and may be given by personal delivery, certified mail, or overnight express delivery service. Notices shall be deemed communicated immediately if personally delivered. Notices shall be deemed communicated within forty -eight (48) hours from the time of mailing if mailed by certified mail, and within twenty - four (24) hours if mailed by express delivery service, excluding Saturdays, Sundays and holidays. Any such notice shall be deemed sufficiently given if addressed to Landlord or Tenant at the address specified below. Either party may specify a different address for notice purposes, or specify that a copy of any notice given to such party be concurrently given to another person, by giving appropriate notice to the other party. Gilroy Library Lease Page 9 2 -23 -12 To Landlord: City Administrator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 To Tenant: County Librarian Santa Clara County Library 14600 Winchester Blvd. Los Gatos, CA 95032 15. Non - Waiver of Breach. In the event of a breach of any term, covenant or condition of this Agreement by Tenant, Landlord may with knowledge of such breach permit Tenant to continue in possession of the Premises, but any waiver by Landlord of any term, covenant or condition herein contained, or of any breach thereof, shall neither vitiate the same, nor any other term, covenant or condition contained herein, nor operate as a waiver of any other or future breach. 16. Surrender of Possession on Termination. Upon the expiration or termination of this Agreement for any reason, Tenant shall surrender the Premises in broom clean, good condition and repair, reasonable wear and tear excepted. Any Modifications installed by Tenant pursuant to Section 6.D are the property of Landlord, unless Landlord shall require the removal thereof. Any furniture, fixtures or equipment which shall remain the property of Landlord shall be so identified at the time of installation. Upon expiration or termination of this Agreement, Tenant shall have thirty (30) days to remove, at its sole cost and expense, any furniture, fixtures or equipment which are Tenant's property so long as Tenant repairs damage to the Premises caused by such removal. The indemnity and insurance obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between Landlord and Tenant shall survive the termination of this Agreement. 17. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the parties hereto. 18. Non - Discrimination Provisions. Tenant covenants by and for itself, its successors, executors, administrators and assigns, and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons, on account or race, color, creed, religion, sex, sexual orientation, marital status, national origin, actual or perceived gender identity, ancestry or disability in the Gilroy Library Lease Page 10 2 -23 -12 leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises. 19. Miscellaneous. A. Tenant covenants and agrees to keep the Premises free of any lien or encumbrances except as may be approved in advance by Landlord. B. Time is of the essence in this Agreement. C. Exhibit A and Exhibit B attached hereto are incorporated by this reference. D. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. E. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. F. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 20, Counterparts, This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Gilroy Library Lease Page 11 2 -23 -12 IN WITNESS WHEREOF, the parties subscribe their names below. LANDL . it of Gilroy By: City Administrator Tom Haglund ATTEST: jjh Ci y Council of he City of Gilroy approved this Agreement on hich i��he Effective Date of this Agreement. Civ Clerk APPROVED AS TO FORM: By: City Attorney TENANT:,Santa Clara County Library District Joint Powers Authority By: Chair, Santa Clara County Library trict Joint Powers Authority ATTEST: APPROVED AS TO FORM: By: _ Melinda Cervantes Deputy Co my Counsel County Librarian Santa Clara County Library District Joint Powers Authority Exhibit List Exhibit A -- Property Description Exhibit B — Payment Schedule Gilroy Library Lease Page 12 2 -23 -12 EXHIBIT A Property Description The New Gilroy Public Library located at 350 West Sixth Street is bounded by Sixth, Seventh, Hanna and Rosanna Streets within the Santa Clara County Assessor Parcel Number 799 -17 -066. jr i^ I - 1 f>{� N]Ct YI L >D ! M I S] I >D ! 231 50 1 33 I SO 1 50 1 SO 1 88 I I n - 7— HANNA 1 STREET - A 1 � i I 01 GI 1 A I W ' l 119.45 6130 1 ROSANNA 70131.10 tir� 2 m o N � D r-- -- Z 3 � A I ° v m I 3a• 70 120.20 -0 STREET Gilroy Library Lease Page 13 2 -23 -12 E Gilroy Library Lease Page 13 2 -23 -12 Gilroy Library Lease 2 -23 -12 EXHIBIT B Library Payment Schedule Initial Design Fees Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total $532,428 Paid Payment 118,822 120,072 121,379 122,747 124,180 125,686 127,270 128,940 130,704 194,716 194,716 194,716 194,716 194,716 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 256,859 238,157 6,203,132 Page 14 County of Santa Clara Employee Services Agency Department of Risk Management Insurance Division 231 O North First Street, Suite 203 San Jose, California 95131 (408) 441 -4340 FAX 441 -4341 CERTIFICATE OF COVERAGE ISSUED BY SANTA CLARA COUNTY This is to Certify to: City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Attn.: Dan Johnson Ins. Cert. No. FY12 -105 The following described coverage is in force at this date as set forth below: Assured: Santa Clara County 70 W. Hedding Street San Jose, CA 95110 Insurer 1. Self- Funded Retention 2. Self- Funded Retention 3. Self- Funded Retention Type of Coverage 1, Comprehensive General & Automobile Liability 2. Workers' Compensation 3. Physical Damage Expiration Continuous Continuous Continuous Limits $2,000,000 Per Occurrence $4,000,000 Per Occurrence $ 50,000 This certificate of coverage is provided by the County of Santa Clara to the above named certificate holder. The coverage specified herein will not be cancelled or reduced without thirty (30) days written notice from County of Santa Clara to the certificate holder. This certificate pertains to the agreement between the County of Santa Clara and City of Gilroy for the lease of the building located at 350 W. Sixth St., Gilroy, CA. This certificate expires June 30, 2012. Cindy C ow Insurance Technical Manager April 6, 2012 CC:td FY 12 -105 Le a s e@ 350 W S ixth StG i t roy Board of Supervisors: Donald F. Gage, George Shirakawa, Dave Cortese, Ken Yeager, Liz Kniss County Executive: Jeffrey V. Smith 008 CERTIFICATE NUMBER _ M ISSUE DATE (MM /DD/YYYY) PROP-1871 4 04/09/2012 THIS EVIDENCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BELOW. THIS EVIDENCE OF COVERAGE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND ADDITIONAL INTEREST. CSAC Excess Insurance Authority (CSAC EIA) COVERAGE C/O ALLIANT INSURANCE SERVICES, INC. AFFORDED A - CSAC Excess Insurance Authority PO BOX 6450 COVERAGE 13- NEWPORT BEACH, CA 92658 -6450 PHONE (949) 756 -0271 / FAX (619) 699 -0901 AFFORDED LICENSE #OC36861 MEMBER TOWER NUMBER MEMORANDUM NUMBER SANTA CLARA COUNTY IV EIAPPR12 -15 ATTN: LANCE SPOSITO EFFECTIVE DATE (MM /DD/YYYY) EXPIRATION DATE (MM /DD/YYYY) C/O ESA INSURANCE 2310 NORTH FIRST STREET, SUITE 203 03/31/2012 03/31/2013 CONT. UNTIL TERMINATED IF ❑ SAN JOSE, CA 95131 CHECKED THIS REPLACES PRIOR EVIDENCE: AMENDED CERTIFICATE CANCELS AND REPLACES CERTIFICATE DATED 3/31/2012 frY' LOCATION I DESCRIPTION AS RESPECTS LEASE AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA AND CITY OF GILROY FOR THE LEASE OF LOC. 443, THE NEW GILROY LIBRARY LOCATED AT 350 W. SIXTH STREET, GILROY, CA. THIS IS TO CERTIFY THAT THE MEMORANDUMS OF COVERAGE LISTED ABOVE HAVE BEEN ISSUED TO THE MEMBER NAMED ABOVE FOR THE PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE MAY BE ISSUED OR MAY PARTAIN. THE COVERAGE AFFORED BY THE MEMORANDUMS DESCRIBED HEREIN IS SUBJECT TO ALL TERMS, EXCLUSIONS, AND CONDITIONS OF SUCH MEMORANDUMS. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. •,....,:„.,.:w.,a t$» ` "E:. „,. .'A.'b"+ , ,z. < u ^mot .ITt .a� „s . sa. ,,. «.. , 7, »a :....... .... .. ... «..).. ......s «.'st..?.waa:a` merit* ?.:' S" iT. ai'..: <TTai++a.}grTWs::i « *a.n.; ----COVERAGE/ PERILS/ FORMS AMOUNT OF INSURANCE ALL RISK OF DIRECT PHYSICAL LOSS OR DAMAGE, INCLUDING FLOOD. $25,000,000 PER OCC FOR ALL RISK AND ANN AGG FOR FLOOD EARTHQUAKE IS EXCLUDED. EARTHQUAKE LIMIT IS NOT APPLICABLE. $25,000,000 PER OCC /ANN AGG FOR EARTHQUAKE REPAIR OR REPLACEMENT COST VALUATION SUBJECT TO MEMORANDUM OF COVERAGE PROVISIONS VEHICLE /BUSES ARE SUBJECT TO ACTUAL CASH VALUE OR REPLACEMENT COST PER SCHEDULE ON FILE WITH THE AUTHORITY LIMITS ARE SHARED. �A@L�Ly DEDUCTIBLES: ALL RISK OF DIRECT PHYSICAL LOSS OR DAMAGE (EXCLUDING FLOOD AND EARTHQUAKE): $50,000 PER OCCURRENCE AS PER SCHEDULE ON FILE WITH THE AUTHORITY FLOOD: $25,000 PER OCCURRENCE VEHICLES AND MOBILE EQUIPMENT: IF COVERAGE IS SCHEDULED AND PURCHASED, DEDUCTIBLE APPLIES PER SCHEDULE ON FILE WITH THE AUTHORITY. wl i§L Icn.k SHOULD ANY OF THE ABOVE DESCRIBED MEMORANDUM(S) OF COVERAGE BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE MEMORANDUM(S) OF COVERAGE PROVISIONS. pfj N�`"* 1 2= # A°FC$�b 'R uTs;a J "„$ ( '. 'T ;« `"h"kb• y"a't H n k«" k�'"i 5 .+ NAME AND ADDRESS sF NATURE OF INTEREST CITY OF GILROY MORTGAGEE ATTN: DAN JOHNSON ❑LOSS PAYEE (OTHER) EVIDENCE ONLY 7351 ROSANNA STREET GILROY, CA 95020 ^` AUTHORIZED REPRESENTATIVE CSAC EXCESS INSURANCE AUTHORITY PABAG PLAN Corporation ISSUE DATE (MM/DD /YY) CERTIFICATE OF COVERAGE 3/29/2012 BROKER: Alliant Insurance Service, Inc. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, 100 Pine Street, 11th Floor EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. San Francisco, CA 94111 415/403 -1400 COMPANIES AFFORDING COVERAGE PROVIDER: ABAG PLAN CORPORATION COMPANY P. O. BOX 2050 A ABAG PLAN Corporation OAKLAND, CA 94604 -2050 COMPANY 510/464 -7969 B Ins. Co. Of The State of Pennsylvania Covered Party: Gilroy COMPANY C Lexington Insurance Company City Hall, 7351 Rosanna Street Gilroy, CA 95020 THIS IS TO CERTIFY THAT COVERAGE AGREEMENTS LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH AGREEMENTS. POLICY POLICY LIABILITY LIMIT CO TYPE OF COVERAGE POLICY NUMBER EFFECTIVE EXPIRATION EACH LTR DATE DATE OCCURRENCE AGGREGATE A GENERAL LIABILITY GAL 2011 -12 7/01/2011 7/01/2012 Combined $5,000,000 XICOMPREHENSIVE FORM Single Limit F R PRODUCT/ (CSL) COMPLETED OPERATIONS PREMISES / OPERATIONS `r UNDERGROUND EXPLOSION X & COLLAPSE HAZARD CONTRACTUAL BROAD FORM Fx] PROPERTY DAMAGE A AUTOMOBILE LIABILITY GAL 2011 -12 7/01/2011 7/01/2012 Combined $5,000,000 Single X ANY AUTO Limit FRI ALL OWNED AUTO (CSL) RENTAL / LEASE AUTO NON- OWNED AUTOS GARAGE LIABILITY B Excess General & Auto Liability 6907982 7/01/2011 7/01/2012 CSL $10,000,000 $10,000,000 C Public Official's E &O 006502580 7/01/2011 7/01/2012 CSL $10,000,000 $10,000,000 C PROPERTY INSURANCE Pl 12695 -004 7/01/2011 7/01/2012 CSL $ 25,000,000 X PROPERTY / SPECIAL FORM PROPERTY (per schedide) X I BOILER & MACHINERY MACHR & $25,000,000 DESCRIPTION: General liability includes Personal Injury and Public Officials' Errors and Omissions Liability. This Certificate is issued as proof the above -named Covered Party is an active member and in good standing with coverage as indicated above. CERTIFICATE HOLDER CANCELLATION and representatives as additional insured on cert and !ment ntion: County Librarian - Santa Clara Library 14600 Winchester Boulevard Los Gatos CA 95032 SHOULD ANY OF THE ABOVE DESCRIBED AGREEMENTS BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE PROVIDER/PROVIDEE WILL ENDEAVOR TO MAIL 30 -DAY WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. HOWEVER, FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. (:7tS James Hill, PLAN Risk Manager ABAG PLAN Corporation Administered by the OAssociation of Bay Area Governments ASSOCIATION OF BAY AREA GOVERNMENTS OABAG PLAN Corporation P.O. Box 2050 Oakland, California 94604 -2050 (510) 464 -7969 ADDITIONAL COVERED PARTY ENDORSEMENT THIS ENDORSEMENT CHANGES THE CONTRACT Please read it carefully! Endorsement Effective: 4/1/2012 Entity: Gilroy Additional Covered Party: Santa Clara County Joint Powers Authority, its officers, employees, agents, and representatives as additional insured on cert and endorsement Description of Operations or Facilities: Lease Agreement - Gilroy Library ASSOCIATION OF BAY AREA GOVERNMENTS OABAG PLAN Corporation P.O. Box 2050 Oakland, California 94604 -2050 (510) 464 -7969 The definition of Covered Party is amended to include any person or organization the Entity is contractually obligated to include as an additional insured, and for which a Certificate of Coverage has been issued and is on file with ABAG PLAN Corp., with respect to Bodily Injury, Personal Injury and Property Damage arising out of the Entity's operations or premises owned by or rented to the Entity. The coverage provided to the additional Covered Party does not apply to any liability occurring after those operations or use of premises have ceased. Coverage applies only to the vicarious liability of the additional Covered Party for operations or services described in the contract with the Entity. No coverage applies to liability arising from the sole negligence of the additional Covered Party. The inclusion of more than one Covered Party under this policy shall not operate to impair the rights of one Covered Party against another Covered Party and the coverages afforded by this policy shall apply as though separate policies had been issued to each Covered Party. The inclusion of more than one Covered Party shall not, however, operate to increase the limit of ABAG PLAN Corp.'s liability. A Certificate Holder shall not, by reason of their inclusion under this policy, incur liability for payment of premium for this policy. If required by contract, any insurance carried by an additional Covered Party which may be applicable shall be deemed excess and the Entity's coverage primary notwithstanding any conflicting provisions in the Entity's policy to the contrary: The limit of coverage for the additional Covered Party is the minimum amount required by contract or $5 million, whichever is less. In the event of cancellation of the Entity's coverage, we agree to mail thirty (30) days (ten [10] days for non - payment of premium) advance notice of such cancellation to each Additional Covered Party per certificates on file with ABAG PLAN Corporation. All other terms and conditions in the policy remain unchanged. Authorized Signature: Date: 3/29/2012 James Hill, PLAN Risk Manager C, ABAG PLAN Corporation Lana Malloy, Board Chair Santa Clara County Library Joint Powers Authority Library Administrative Offices 14600 Winchester Boulevard Los Gatos, CA 95032 Re: Lease Agreement — Gilroy Library Dear Ms. Malloy: Attached is an executed copy of the Lease Agreement - Gilroy Library. Please note that we have corrected a typographical error in Section 23, where the Lease references the possibility of the early expiration of the Term, by changing the reference to Section "4.B" (which doesn't apply) to the correct cite, Section "2.0 ", which provides for the Term of the Lease to expire upon withdrawal by the City of Gilroy from the Library JPA. Plea ragglund ow if you have any questions. Thomas J. City Administrator cc: Linda Callon, City Attorney Melissa Kiniyalocts, Deputy County Counsel