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HomeMy WebLinkAbout10. Adopt Ord-Approving Lease w-Plaza de la Raza Child Development SrvcsiteM NO. • TO: MAYOR ASHTON AND MEMBERS • THE CITY COUNCIL FROM- • • THE CITY MANAGER BY: ALDO E. SCHINDLER, DIRECTOR • • DEVELOPMENT DATE: APRIL 24, 2018 SUBJECT: LEASE AGREEMENT WITH PLAZA DE LA RAZA CHILD DEVELOPMENT SERVICES, INC. FOR 7850 • DRIVE, SUITES A & B AND NEW PLAYGROUND AVE4 Z That the City Council adopt the following titled ordinance, W WIM-11 91:1 W-111 Zf -11rICIT" - BACKGROUND At its April 10, 2018 meeting, the City Council introduced the attached Ordinance, extending an existing lease with Plaza de La Raza Child Development Services Inc. for 15 years. FISCAL IMPACT The lease will generate $30,712 in rent revenues for the General Fund during the first year of the lease. Thereafter, the lease may increase every year by a rate equal to the increase in the Consumer Price Index (CPI). Attachments: "A" — Ordinance with Lease AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING A LEASE BETWEEN THE CITY OF DOWNEY AND PLAZA DE LA RAZ, CHILD DEVELOPMENT WHEREAS, in May 1991, the City of Downey ("City") and Plaza de la Raza Child Development -• into a month-to-monthagreement property owned by the City of Downey located at 7850 Quill Dr. Suites A & 13, Downey; and WHEREAS, in August 2014, PDLR entered into a three (3) year lease agreement with the City; ES, the current lease, which expired in September 2017, reverted to a month-to- month rental agreement; and WHEREAS, the City and PDLR wish to enter into a 15 -year lease agreement. NOWj THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES ORDAIN AS FOLLOWS: SECTION 1. That certain Lease, a copy of which is attached hereto as Exhibit "A" and by between the City of Doessor,and PDLR, Lessee, te0aftling property commonly referred to as 7850 0611 Dr. Suites A & B, and the 5,040 square foot vacant lot south of Suites A & B is hereby approved. SECTION 2. The City Clerk shall certify the adoption of this Ordinance and cause the same to be published in the manner required by law. Attachment "A" ORDINANCE NO. 18 - PAGE 2 APPROVED AND ADOPTED this _ day of . 2018. SEAN Ayor ATTEST: MARIA ALICIA DUARTE, CMC City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS CITY OF DOWNEY I HEREIBY CERTIFY that the foregoing Ordinance No. 16- Was introduced at a th at a Regular Meeting of the City Council of the City of Downey held on the of 2018, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: MARIA ALICIA DUARTE, CMC City Clerk I ORDINANCE NO. .,,_ LEASE BETWEEN THE CITY OF DOWNEY r •, r, •• 1. Parties and Date. This Lease Agreement ("Lease") is made and entered into this 10th day of April, 2018 (the "Effective Date"), by and between the City of Downey ("City"), a California municipal corporation and charter city, with its principal place of business at 11111 Brookshire Avenue, Downey, CA 90241, and Plaza De La Raza Child Development Services, Inc. ("Lessee"), a California nonprofit corporation with its principal place of business at 8337 Telegraph Road, Suite 300, Pico Rivera, California 90660. The City and Lessee are sometimes herein referred to individually as "Party" and collectively as "Parties." 2.1 City Property. City is the owner of that real property located at 7850 Quill Drive (the "City Property"), 22 Purpose of Lease. City desires to lease to Lessee, and Lessee desires to lease from City, a portion of the City Property for due and adequate consideration, the receipt and sufficiency of which is acknowledged by the Parties and further described and set forth in this Lease, for the purpose of operating an Early Head Start Program pursuant to a contract with the Los Angeles County Board of Education. The City recognizes that Lessee is performing a needed and worthwhile program which serves the public health and general welfare. 3.1 Description of Leased Premises. City hereby leases to Lessee, and Lessee leases from City, on the terms and conditions set forth in this Lease, portions of the City Property consisting of Suites and B, with a total of 2,625.75 square feet and the vacant lot directly south of Suites A and B, with a total of 5,040 square feet, which are shown in Exhibit ""1" ("Leased Premises"), attached hereto and incorporated herein by this reference. 3.2 Term. The term of this Lease shall be for fifteen (15) years, commencing June 1, 2018 ("Commencement Date") and ending at the expiration of fifteen (15) years from said date, June 1, 2033; unless earlier terminated as provided herein (collectively the "Term"). At the expiration of the Term, this Lease shall revert to a month-to-month agreement until or unless the Parties renegotiate a renewal of this Lease. 3.3 lease Payment 3.3.1 The Leased Premises are leased to the Lessee for the Two Thousand Five Hundred and Fifty -Nine Dollars and 30/100($2,559.30) per month which includes all utilities during the Term of this Lease ("Lease Payment"). Beginning at the annual anniversary of the Commencement Date, Base Rent shall be subject to an inflationary increase of not less than 0 percent, up to a maximum of the percentage increase of the Los Angeles -Long Beach -Anaheim Consumer Price Index for All Urban Consumers ("CPI - U") as published by the Bureau of Labor Statistics. Base Rent shall not decrease if the CPI -U decreases. Lease Payments shall be paid by Lessee to City on the 1st day of every month during the term of this Lease. The first Lease Payment shall be paid in full to the City by June 1, 2018. In the event Lessee fails to pay to City the Lease Payment by the date it is due, an additional payment of 5% of the amount due will be charged for each month or fraction thereof, that the payment is due. This charge is intended to compensate City for additional accounting and administrative costs. 3.4 Use. - The Leased Premises are leased to Lessee solely for the purpose of operating Early Head Start Program pursuant to a contract with the Los Angeles County Board of Education. The Leased Premises must be operated directly by Lessee. The City may from time to time sponsor programs and projects related to Lessee's operation. To this end, Lessee will cooperate with such activities and coordinate and promote such activities through the use of the Leased Premises and work jointly with the City to achieve these objectives. 3.5 Acceptance; Surrender. The Lessee shall be deemed to have accepted the Leased Premises as being in good condition for the above -stated uses. The Lessee shall, upon the termination or expiration of the Lease term, surrender the Leased Premises in as good condition, reasonable use and wear excepted. City and its agents shall have the right at all reasonable times to enter the leased Premises upon a 24 hour notice, unless in an emergency and immediate access is needed to: (a) Inspect the Leased Premises to determine whether Lessee is carrying on any activity that violates this Lease; (b) Show the Leased Premises to prospective purchasers, mortgagees, or tenants or to ground lessors or underlying lessors; (c) Serve, post, and keep posted notices required by law or that City considers necessary for the protection of the City or the City Property; or 2 (d) Conduct facility inspections and make necessary mechanical repairs. Such repairs and inspections will be scheduled in advance and are subject to Lessee's approval. (e) Playground area shall be accessible to the City and members of the public as provided in Section 3.7. 3.7 Hours of Operation During the Term of this Lease, and except as provided in Section 3.6, Lessee shall have exclusive use Leased Premises, between the hours of 6:30 am and 5:30 pm, Monday through Friday, ("Hours of Operation") on a year round basis; except that City and members of the public shall have access to the playground area: (1) After Lessee's Hours of Operation; (2) during nationally recognized holidays observed by the City of Downey The City shall provide Lessee with a list of observed holidays each year during the Term of this Lease; and (3) when the Early Head Start Program is not in session during the Hours of Operation. Any changes to the Hours of Operation must be approved by the City in advance, in writing. During the Hours of Operation, Lessee shall have the use, in common with others, of the restrooms, hallways, entrances, parking spaces, open adjacent grass area and other similar facilities to and surrounding the Leased Premises ("Common Areas"). Lessee is not permitted to make any physical improvements or place permanent physical barriers in or on any of the Common Areas unless approved in writing by the City. City reserves the right to limit or restrict use of the Common Areas to Lessee as City determines is necessary for the public health, safety or welfare. 3.8 Lessee's Obligations 3.8.1 Lawful Operation. Lessee shall operate the Early Head Start Program pursuant to a contract with the Los Angeles County Board of Education and in accordance with all applicable federal, state, and City laws and regulations, and this Lease. Lessee shall be responsible for ensuring that all necessary approvals, licensing requirements and permits remain in effect during the Term of this Lease in order to operate the Early Head Start Program in a lawful manner. The Leased Premises shall not be used for any use other than the Early Head Start Program or as a residence or for any residential purpose or for housing of any person or persons on an overnight basis. 3.8.2 Utilities and Janitorial Services. Except as otherwise specifically provided in this Lease, City shall pay for all utility costs associated with the Leased Premises. Specifically, City is obligated to furnish to the Leased Premises with power, gas, electricity, heating, water, restroom facilities during the term of this Lease. Lessee shall pay all charges for telephone service, Internet service, and janitorial services. 3.8.3 Signage. Lessee shall provide, at its own cost and expense, signage in a manner consistent with all applicable local laws, rules and regulations. The form and substance of the signage shall be subject to the City's approval, which approval shall not be unreasonably withheld. 41 3.8.4 Requests for Repairs. For requests for repairs pursuant to Section 3.9 of this Lease, Lessee shall give at least24hours' notice to City staff. Lessee shall immediately report any mechanical failure of, or damage to, the Leased Premises or any City -owned equipment, furnishings or other property. 3.8.5 Maintain Clean, Safe Environment. Lessee, at its own expense, shall maintain the Leased Premises in a clean, orderly, and safe manner at all times including but not limited to the playground area, wall and floor surfacing, partitions, sinks, doors and windows. Lessee shall adhere to all federal, state and local laws with regard to the maintenance of the Leased Premises. Lessee shall provide or cause to be provided all security services, internal custodial service and telephone. 3.8.6 Liens; Encumbrances; Taxes. Lessee shall keep City Property and the Leased Premises and any and all improvements thereto free and clear of all liens, encumbrances, taxes and charges. Lessee shall be responsible for the prompt payment of liens, encumbrances, taxes and charges, if any, which may be lawfully levied upon all or any portion of the Leased Premises, including but not limited to any possessory interest tax involved in any operation contemplated under this Lease. 3.9 City Obligations= Maintenance and Repair. 3.9.1 City shall maintain in good repair the heating, ventilation and cooling system, plumbing and electrical systems, windows, roofs, sidewalks, yards, and common areas of the Leased Premises. 3.9.2 City shall also pay for the exterior landscape maintenance for the Leased Premises, except for the playground area. Lessee shall maintain the playground area clean and well maintained at all times. 3.9.3 City shall not be required to repair heating, ventilation and cooling system, plumbing and electrical systems, windows, roofs, sidewalks, yards, and common areas, unless and until Lessee has notified City in writing of the need for such repairs or replacement. Once notified, City shall complete any and all needed repairs and replacements within a reasonable period of time at no cost or expense to the Lessee, except to the extent that such repairs or replacements are attributable in whole or in part to the negligence or misconduct of the Lessee; its employees, agents, contractors, licensees and invitees. 3.10 Insurance. 3.10.1 Time for Compliance. This Lease shall not commence until Lessee has provided evidence satisfactory to the City that it has secured all insurance required under this section. 4 3.10.2 Minimum Reouirements. Lessee shall, at its expense, procure and maintain for the duration of the Lease insurance against claims for injuries to persons or damages to property which may arise from or in connection with this Lease by the Lessee, its agents, representatives, and employees. Such insurance shall meet at least the following minimum levels of coverage: (A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001);(2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code l (any auto); and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (B) Minimum Limits of Insurance.; Lessee shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Lease/Leased Premises or the general aggregate limit shall be twice the required occurrence limit; (2)Automobile Liability: $2,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of $2,000,000 per accident for bodily injury or disease. 3.10.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Lessee shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies: (A) General Liability. The general liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to this Lease and operations performed by or on behalf of the Lessee; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Lessee's scheduled underlying coverage. Any insurance or self- insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Lessee's insurance and shall not be called upon to contribute with it in any way. (B) Automobile Liability, The automobile liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or 5 borrowed by the Lessee or for which the Lessee is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Lessee's scheduled underlying coverage. Any insurance or self- insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Lessee's insurance and shall not be called upon to contribute with it in any way. (C) Workers' Compensation and Em to ers Liabilit Covera e. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Lessee. (D) All Coverages, Each insurance policy required by this Lease shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers. 3.10.4 Se aration of Insureds• No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers,_ employees, agents and volunteers. 3.10.5 Deductibles and Self -Insurance Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City. Lessee shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Lessee shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.10.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current AM. Best's rating no less than A:VII, licensed to do business in California, and satisfactory to the City. 3.10.7 Verification of Coverage. Lessee shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Lease on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and 0 endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 3.10.8 Safety• Lessee shall execute and maintain its work sous to avoid injury or damage to any person or property. The Lessee shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life-saving equipment and procedures (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.11 No Joint Venture or Partnership. City and Lessee shall not, by virtue of this Lease, in anyway or for any reason, be deemed to be or have become a partner of the other in the conduct of its business or otherwise, or a joint venturer. 3.12 Independent Contractor. Neither Lessee, nor any of its agents, employees, invitees, licensees, or guests shall constitute employees of the City. Any additional personnel working on behalf of Lessee shall also not be employees of City and shall at all times be under Lessee's exclusive direction and control Lessee shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services on behalf of Lessee and as required by law. Lessee shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.13 Improvements. Except as expressly provided by this Lease, Lessee may install, construct and/or maintain improvements to the Leased Premises, at Lessee's sole expense, with the City's prior written approval and provided that such additions and improvements are consistent with the purpose contemplated in this Lease. Lessee shall, at Lessee's sole cost, expense and liability, obtain all permits and entitlements required for improvements. All fixtures, improvements or additions made to the Leased Premises by Lessee shall become the property of the Lessee at the expiration or termination of the Lease and shall be removed by Lessee upon termination of this Lease; except that that equipment in the playground area shall remain the property of the City if Lessee fails to renew this Lease at the end of the Term. Upon removal of any fixtures, improvements or additions made 7 to the Leased Premises by Lessee, Lessee shall restore the Leased Premises to its prior condition before to the installation or construction of said improvements. 3.14 Violations. Lessee shall not engage in, or permit or authorize any of Lessee's employees, agents, licensees, invitees, or guests to engage in any activity which constitutes a violation of any applicable state, federal, city law or regulation. 3.15 Repair of Damage. Lessee agrees to notify City in writing within three (3) days of any damage to the Leased Premises resulting from fire, earthquake, or any other identifiable event of a sudden, unexpected, or unusual nature ("Casualty") ("Repair Notice Period"). If the Leased Premises are damaged by a Casualty or areas provided access to the Leased Premises are damaged to the extent that Lessee does not have reasonable access to the Leased Premises and if neither City nor Lessee has elected to terminate this Lease, City shall, at City's sole cost and expense, promptly and diligently restore such areas and the Leased Premises to substantially the same condition as existed before the Casualty, except for modifications required by building codes and other laws. During the period of time that Lessee does not have reasonable access to the Leased Premises due to damage by a Casualty, or during the time that the City makes any necessary or reasonable repairs and modifications to the Leased Premises, City shall have no obligation to provide Lessee a suitable alternate location for its operations and Lessee shall not be obligated to pay rent for the portion of the Leased Premises damaged and inaccessible during the period the City makes necessary repairs. Lessee shall be obligated to pay rent for that portion of the Leased Premises that is not damaged and is accessible by Lessee. However, in making the repairs and modifications contemplated by this Section, City shall make all reasonable efforts to avoid materially impairing Lessee's access to the Leased Premises. 3.16 General Indemnity. Lessee shall defend, indemnify and hold City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions or willful misconduct of Lessee, its directors, officers, employees, agents, volunteers and contractors arising out of or in connection with this Lease, including but not limited to (a) the condition of the Leased Premises, (b) Lessee's use of the Leased Premises, or (c) Lessee's operations or services in connection with or pursuant to this Lease, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses. Lessee shall defend, at Lessee's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its officials, officers, employees, agents or volunteers. Lessee shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Lessee shall 0 reimburse City and its officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Lessee's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers. This indemnification, defend and hold harmless obligation shall not be limited by insurance coverages and shall survive the termination or expiration of this Lease. Lessee shall not defend or indemnify City for any and all claims, demands due to City's willful misconduct arising out of or in connection with this Lease. 3.17 Default or Abandonment by Lessee. 3.17.1 Lessee shall be deemed to be in material default of this Lease if during the Term of this Lease Lessee shall have not performed any other material term, covenant, or condition required under this Lease, and shall have failed to remedy any such default with all reasonable dispatch within a period of twenty (20) days after written notice is given to Lessee by the City. 3.17.2 In the event of any of the above-described material defaults, the City shall have the right to: (i) Re-enter the Leased Premises, at the City's option, without further demand or notice, and eject all Parties in possession therefrom; and (ii) Re -let the Leased Premises for the account of Lessee upon such terms and conditions as the City shall deem advisable. 3.17.3 The Lease Payments on such subsequent re-leasing shall be applied first to the expenses of regaining possession, re -letting, and the collection of past due amounts owed to the City, including expenses necessary for repair or restoration of the Leased Premises to its original condition (taking into account normal wear and tear), reasonable attorneys' fees and any marketing or real estate commission actually paid. 3.18 Assignment/Sublease. Lessee may not sell, assign, mortgage, pledge, sublease, or otherwise transfer Lessee's interest in this Lease without the City's prior written consent. Any attempted transfer, whether by voluntary act or operation of law, without City's written consent, shall be void and shall constitute a non -curable breach of this Lease. 3.19 Option to Terminate 3.19.1 Either party may terminate this Lease upon giving thirty (30) day's written notice to the other party at the address listed in Section 3.25 of this Lease. 0 3.19.2 If the Repair Period Notice required by Section 3.15 indicates that the anticipated period for repairing the Leased Premises or areas exceeds ninety (90) days, Lessee may elect to terminate this Lease without any liability of any kind by providing written notice ("Lessee's Termination Notice") to City within ten (10) days after receipt of the City's repair period notice. If Lessee does not elect to terminate within this ten (10) day period, Lessee shall be deemed to have waived the option to terminate. 3.20 Severability. 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 shall not be affected, impaired or invalidated thereby. 3.21 Attorneys' Fees. In case either Party brings an action to enforce any term or condition of this Lease, the prevailing Party shall be entitled to its reasonable attorneys' fees as determined by the court, and all other costs and expenses related to such action. 3.22 Waiver. The waiver by either Party of the breach of any provision of this Lease shall not be deemed to be a waiver of any subsequent breach of that or any other provision. 3.23 Binding on Successors. This Lease shall apply to and be binding upon the heirs, successors in interest, executors, administrators, and assigns of the respective Parties hereto. The terms Lessee, City, Party and Parties shall include the heirs, successors in interest, executors, administrators, assigns, agents, employees, officers, or officials of such party or parties. 3.24 Captions. The various headings contained herein and the grouping of the provisions of this Lease into separate paragraphs are for the purpose of convenience only, and shall not be considered in interpreting the provisions of this Lease. 3.25 Notices. Any and all notices which are required under the terms and conditions of this Lease or which either City or Lessee desire to serve upon the other, shall be in writing and shall be deemed served when delivered personally or faxed, or when deposited in the United States mail, postage prepaid, return receipt requested, addressed as follows: 10 CITY: City of Downey 11111 Brookshire Avenue Downey, CA 90241 Attn: Director of Community Development Courtesy Copy To: City of Downey Attn: City Attorney 11111 Brookshire Avenue Downey, CA 90241 LESSEE: Plaza De La Raza Child Development Services, Inc. 8337 Telegraph Road Suite 300 Pico Rivera, CA 90661 Attn: Executive Director Any notice so given shall be considered served on the other Party three (3) days after deposit in the U.S. mail, first class postage prepaid, return receipt requested, and addressed to the Party at its applicable address. Actual notice, including by fax, shall be deemed adequate notice on the date actual notice occurred regardless of the method of service. 3.26 Governing Law. This Lease, and the rights and obligations of the Parties, shall be governed and interpreted in accordance with the laws of the State of California. Venue shall be in Los Angeles County. 3.27 Entire Lease. This Lease, along with any exhibits and attachments attached hereto and incorporated herein by reference, constitutes the entire Lease between the City and the Lessee relative to the City Property and the Leased Premises, and supersedes all prior negotiations, understandings or agreements. The Rental Agreement (Month -to -Month) dated May 1, 1997 is hereby terminated and replaced and restated by this Lease. This Lease may only be modified by mutual consent of the Parties in writing. 3.28 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.29 Prohibited Interests. Lessee maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Lessee, to solicit or secure M this Lease. Further, Lessee warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Lessee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Lease. For breach or violation of this warranty, City shall have the right to rescind this Lease without liability. For the term 'of this Lease, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Lease, or obtain any present or anticipated material benefit arising therefrom. 3.30 Equal Opportunity Employment. Lessee represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Lessee shall also comply with all relevant provisions of any City Minority Business Enterprise program,_ Affirmative Action Plan or other related programs or guidelines currently in effector hereinafter enacted. 3.31 Labor Certification. By its signature hereunder, Lessee certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. Time is of the essence for each and every provision of this Lease. 3.33 Effect of Conflict. In the event of any conflict, inconsistency, or incongruity between any provision of this Lease, any of its exhibits, attachments, purchase order, or notice to proceed, the provisions of this Lease will govern and control. 3.34 Authority to Enter Lease. Lessee has all requisite power and authority to conduct its business and to execute, deliver, and perform the Lease. Each Party warrants that the individuals who have signed this Lease have the legal power, right, and authority to make this Lease and bind each respective Party. 3.35 Counterparts. This Lease may be signed in counterparts, each of which shall constitute an original. 12 [Signatures on the Next Page] 13 IN WITNESS WHEREOF, City and Lessee have executed this Agreement on the date first herein above written. CITY OF DOWNEY a municipal corporation and charter city By - SEAN ASHTON, Mayor By: MARIA ALICIA DUT, CMC, City Clerk APPROVED AS TO FORM: By. YVETTE M. ABICH GARCIA, City Attorney By: Executive Director W m LEASED PREMISES SITE MAP AND FLOOR PLAN 15 Barbara J. Riley Community/Senior Center Plaza De La Raza Child Development Sery ces, Inc. SITE PLAN FM Barbara J. Riley Community/Senior Center East Wing-7850 Quill Drive Suite A and B Plaza De La Raza Child Development Services, Inc. w STRUCTURE NUMBER: 0000136380 - SS06-PS :g Plaza1 11 �� ` P r s von LDESMNEA1ts14.1] 8 Tt+e rotors Jeown are Pnr ilt tratron Purpesws onRy Art Suaf cafnrs may nary i �iV{` Wt Ott r Plaza de la Raza Suite A & B Plaza de la Raza New Playground