02-091 (see also 96-016) Joint Powers Authority (JPA), Lease Agreement for Cupertino Branch, Library ServicesLEASE AGREEMENT FOR
CUPERTINO BRf~NCH LIBRARY
The following is a lease agreement between the SANTA CLARA COUNTY
LIBRARY JOINT POWERS AUTHORITY, State of California, hereinafter referred to as
"Lessee," and the CITY OF CUPERTINO, a :municipal corporation, hereinafter referred
to as "Lessor."
WHEREAS, Lessor is the owner of real property hereinafter described and
located in the civic center site in the City of Cupertino, California; and
WHEREAS, on December 26, 1967, the City of Cupertino, as lessor, and the
County of Santa Clara, as lessee, entered into a lease for a term of twenty-five (25) yeazs
which provided for the construction of a building for use as a county public library at the
civic center site of the city; and
WHEREAS, on June 11, 1985, the City of Cupertino and the County of Santa
Clara amended the 19671ease by entering into an agreement for the construction of a
library addition by Lessor, whereby Lessee agreed to pay to Lessor $120,000.00 per year
as reimbursement of bond payments commen~~ing in 1986 and for a period not to exceed
thirty years (30); and
WHEREAS, although the twenty-five (25) year term of the 19671ease terminated
on December 26, 1992, Lessee and Lessor ha~re continued to honor the terms of the lease
and desire to continue to do so;
NOW, THEREFORE, in consideratio~l of, and subject to, the terms and
conditions hereinafter set forth, LESSOR and LESSEE AGREE AS FOLLOWS:
1. Description of Property
Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to rent from
Lessor, the real property described in Exhibit A attached hereto and made part hereof by
reference .
2. Use of Premises
Said premises shall be used by Lessee for the maintenance and operation of a
branch library for the Santa Clara County Library. The term "premises" is defined to
mean the real property above described and th.e building and all improvements thereon.
3. Term of Lease
The term of this lease shall be for a period of twenty-three (23) yeazs commencing
on January 1, 1996 and ending on the last day of the twenty-third (23rd) yeaz following.
4. ODtlon to Renew
Lessor hereby grants to Lessee the sole and exclusive option to renew said lease
for an additional term of twenty-five (25) years, which option shall be exercised by
Lessee by giving one year's advance written notice of Lessee's intention to renew said
lease. In the event Lessee does not exercise its option within the time prescribed
hereunder, the lease shall automatically terminate upon the expiration of the term hereof,
and no notice shall be required to effectuate said termination.
5. Rental Amount
Lessee agrees to pay Lessor a minimum base rent of $120,000.00 per year,
payable by Lessee to Lessor annually on the first business day of June of each yeaz of the
term hereof, or as the parties hereto may agree in writing. In addition to said base rent
described above, Lessee shall pay a yearly swn equal to the increase of Cupertino's
assessed value of property as a percentage of the assigned assessed value from the base
fiscal yeaz 1985-1986. Said increase is expre;~sed as follows:
Cupertino AV
> 18.96% (base fiscal yeaz 1985-1986)
Assigned AV
The last payment under this lease agreement will be due in June, 2018.
6. Maintenance and Utilities
Lessee shall make all repairs during tree term as aze necessary to keep and
maintain said premises from the exterior walls and roof inwazd in good and tenantable
condition. Lessor shall maintain landscaping ;end parking for said premises at Lessor's
cost and expense.
7. Alterations, Changes or Additions
Lessee shall not make any alterations, changes or additions to said premises
without obtaining prior written consent of Le:~sor. Any such alterations, changes, or
additions made by Lessee shall be at the cost and expense of Lessee, and, upon
termination hereof, said alterations, changes, nor additions shall inure to the benefit of
Lessor, except, however, trade fixtures, lighting fixtures, partitions, appliances,
equipment, furniture, and other improvement:; placed on said premises by Lessee; and
upon termination of this lease, Lessee shall hive a reasonable length of time in which to
remove said trade fixtures, lighting fixtures, f~artitions, appliances, equipment, furniture,
and other improvements installed by it on saki premises.
8. Utilities
Lessee shall pay for the furnishing of ;~11 water, janitorial services and other
utilities necessary or required for use in or upon the premises during the term of this lease
or any extension thereof.
9. Insurance
Lessee, at its own cost and expense, shall maintain during the term of this lease
casualty and fire insurance to the extent of the: insurable value of the premises, including
provision for payments to cover bonding cost; abated as a result of damage by fire, the
elements, casualty or other cause or ha~penin; not due to the negligence of Lessee.
Lessee. shall further maintain during the term of this lease public liability and property
damage insurance. Lessor shall be named as :additional insured under the terms of said
policies of insurance.
10. Damage to Premises
If said premises aze paztially or totally destroyed by fire, casualty, or other cause
or happening, said premises shall be promptly restored by Lessor to their previous
condition and made safe, and a just proportion of the rent herein provided for, according
to the extent to which said premises have bee~i rendered untenantable or declazed unsafe,
shall abate until said premises have been restcred and put in proper condition for use and
occupancy; provided, however, that (a) if said. building is totally destroyed and a fully
comparable building is not completely rebuilt by Lessor and ready for occupancy by
Lessee within six (6) months after the casualr~ causing destruction, or (b) if said building
is partially destroyed and the same is not restored to its former condition and made safe
within sixty (60) days from the date of the ca~;ualty causing said partial destruction, then,
in either event, Lessee may, at its sole option, cancel and terminate this lease in its
entirety, and should Lessee exercise its optior.~ to cancel and terminate, any unearned rent
paid in advance by Lessee shall be refunded t~~ it. The determination of whether the
casualty has caused total or partial destructior.~ shall be made solely by Lessee within ten
(10) days after the date of the date of said casualty. In the event of disagreement between
Lessor and Lessee as to Lessee's determination of the amount of destruction, Lessor shall
submit the matter to arbitration and the rules quid procedures of the American Arbitration
Association shall apply. Failure to submit the; matter within thirty (30) days after the date
of said casualty shall be deemed assent by Le:~sor to Lessee's determination of the extent
of said destruction.
11. Use and Eniovment
The enjoyment and use of all entrances, exits and approaches, and means of
entrance and approach now existing in favor c-f said premises shall not be unreasonably
interfered with or interrupted by any act or as:~ent of Lessor during the term of this lease.
12. Condition of Premises
Lessor covenants and agrees that said premises will be delivered to Lessee free
from all tenancies and occupancies and free from all orders, notices, and violations filed
or entered by any public or quasi-public authority and free from complaints and/or reports
of violations noted or existing in, or filed with, any governmental authority.
13. Notices
All notices required or permitted to be given hereunder or by any provisions of
law shall be given to the party to be notified try personal delivery or sent by registered or
certified mail addressed to Lessor at the Administration Office of the City of Cupertino,
10300 Torre Avenue, Cupertino, California 9.5014, and addressed to Lessee to the
attention of the County Librarian at 1095 North Seventh Street, San Jose, California. All
notices given as aforesaid shall be sufficient service thereof, and if sent by mail, shall be
deemed served as of the date of deposit in the mails.
14. Termination
It is mutually agreed that this lease m~iy be canceled and terminated by Lessee if
the whole or any part of the City of Cupertino served by the branch library occupying the
said premises withdraws from the Santa Clarz. County Library System for any reason or
purpose whatsoever.
At the end of the term or upon termination of this lease or any extension thereof,
Lessee shall surrender said premises in as good condition as the same were when Lessee
took possession, reasonable wear and tear, damage from the elements, fire, acts of God,
structural deficiencies and repairs, and exterior deficiencies and repairs, or other casualty
beyond the reasonable control of Lessee, excepted.
15. Successors and Assigns
The foregoing covenants and conditio~is shall be binding upon the parties hereto
and their respective heirs, successors, executors, administrators, legal representatives, and
assigns.
IN WITNESS WHEREOF, the parties hereto have subscribed their names this
~~'t! day of ~/~ti~~ , 1996.
COUNTY OF SANTA CLARA
airperson, Joint Powers Authority
"Lessee"
CITY OF CUPERTINO
By
Mayor, Cupertino City Council
"Lessor"
ATTEST:.
Clerk, Joint Powers Authority
i,
~,~ `,
BY ~/I c'~2Z-/~E"- ~:/~~tZ-
APPROVED AS TO FORM:
By
Deputy County Counsel
ATTEST:
Cupertino City Clerk
By
/G• ~i%
By ~~ ~~
arles T. Kilian, City Attorney