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HomeMy WebLinkAboutSpecial Children's Connection Pre-School - 1996-06-17 •J, in CITY OF HUNTINGTON BEACH 0 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK June 18, 1996 Regina Markwardt Special Children's Connection Preschool 20581 Farnsworth Street (Rear) _ Huntington Beach, California 92646 Dear Ms. Markwardt: The City Council of the City of Huntington Beach at their regular meeting held June 17, 1996 approved execution of the enclosed agreement between the City and the Special Children's Connection Pre-School for the expenditure of Community Development Block Grant funds for the renovation of a portion of the facility known as the Clapp School site. Enclosed is a duly executed copy of the agreement for your records. Sincerely, Connie Brockway City Clerk/Redevelopment Agency Clerk Enclosure: Agreement CC: Foster Children's Connection (Telephone:714-536-5227) 40i ‘34;der, ibLIZAJ— Council/Agency Meeting Held: 1,/I Z l9(o Deferred/Continued to: Yr)4.,1 L ❑ ConditionallyApproved ❑ Denied City A pp pproved Clerk's S' nature Council Meeting Date: 6/17/96 Department ID Number: ED 96-41 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administ r PREPARED BY: DAVID C. BIGGS, Economic Development Director 0911 SUBJECT: SPECIAL CHILDREN'S CONNECTION PRE-SCHOOL Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Before the Special Children's Connection Pre-School can begin operation and provide daycare services for foster children, some renovation needs to be completed to a portion of the Clapp School site where this agency will be located. City Council needs to approve the CDBG Subgrantee Agreement between the city and the Special Children's Connection Pre-School. Funding Source: Community Development Block Grant (CDBG) Funds Recommended Action: Approve the CDBG Subgrantee Agreement between the City and the Special Children's Connection Pre-School for $25,000 in CDBG funds for materials to renovate a portion of the Clapp School site. Alternative Action(s): Do not approve the CDBG Subgrantee Agreement between the City and the Special Children's Connection Pre-School. V REQ ST FOR CITY COUNCIL AC ION MEETING DATE: 6/17/96 DEPARTMENT ID NUMBER: ED 96-41 Analysis: Special Children's Connection Pre-School is a nonprofit childcare/preschool program for foster parents and foster children specializing in the care of drug exposed infants and toddlers as well as abused and neglected children. According to the Orangewood Children's Home Study, in 1993 the Department of Social Services took into custody 2,596 children for alleged abuse and neglect. Between January and July of 1994 the numbers of children taken into custody had already reached 1 ,828. There is a need for more foster families to care for our children. Special Children's Connection will provide an affordable child care/preschool program for foster parents that opens up the field of recruitment to include single working parents and working couples. Many foster children have special needs most preschool programs are not prepared to meet. The staff, environment and curriculum work in unison to promote physical, social and educational growth in a nurturing atmosphere of safety and trust. Special Children's Connection has its own staff training program in addition to the educational program required by the State of California. Staff members are trained in the special handling and needs of drug babies, the handling of behavior problems, emotional needs, developmental delays and the overall nurturing of foster children. On May 8, 1995, the Citizen's Advisory Board (CAB) recommended and City Council approved $25,000 for materials to renovate a portion of the Special Children's Connection Pre-School located at the Clapp School site, 20581 Farnsworth Lane, Huntington Beach, California 92646. Some of the improvement will include demolition, framing and drywall, insulation, doors, glazing, ceiling repair, electrical, painting and staining, cabinet, and flooring. This project has been qualified as an eligible activity under CDBG regulations. Such improvements are needed to enable the pre-school to open for operation. Most of the labor will be donated by foster parents, and The Volunteer Center of Orange County. Three bids were received, the first one from Coastline Development for $33,000, the second from CRM Construction for $30,000, and the third from Jerry Noyes for $23,735. The lowest bidder Jerry Noyes was chosen. This contract will not require Davis-Bacon Prevailing Wages to be paid since the contractor is self-employed and other workers will be volunteers. Attached is the lease agreement between the Huntington Beach School District and the Special Children's Connection Pre-School. The lease begins March 1,1996 and terminates on February 28, 2001, and is attached to this RCA. The agreement between the City and the Special Children's Connection Pre-School stipulates that the city has the right to recapture all or a portion of CDBG should the pre- school fail to comply with all terms and conditions of the agreement, or should the facility close or cease operation within a five year period. RCA96-41.DOC -2- 06/06/96 11:57 AM REQ ST FOR CITY COUNCIL A CO ON MEETING DATE: 6/17/96 DEPARTMENT ID NUMBER: ED 96-41 This project will be monitored by the Economic Development Department to assure compliance with Community Development Block Grant (CDBG) regulations, and staff recommends approval of this agreement. Environmental Status: N/A Attachment(s): City Clerk's Page Number 1. Scope of Work. 2. Subgrantee Agreement between the City and the Special Children's Connection Pre-School 3. Lease Agreement between the Huntington Beach School District and the Special Children's Connection Pre-School. 4. Insurance Certificate for the Special Children's Connection Pre- School RCA96-41.DOC -3- 06/06/96 11:57 AM S s SUBGRANTEE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND SPECIAL CHILDREN'S CONNECTION PRE-SCHOOL FOR FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS THIS AGREEMENT is entered into this Iday of9tA,e____- , 1996, between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY," as an entitlement recipient in the U. S. Department of Housing and Urban Development's Community Development Block Grant Program, and the SPECIAL CHILDREN'S CONNECTION PRE-SCHOOL, a nonprofit California corporation, hereinafter referred to as "SUBGRANTEE," for the expenditure of Community Development Block Grant (CDBG) funds; The Community Development Block Grant Program, hereinafter referred to as "CDBG," mandates that a Subgrantee Agreement be executed in order that such funds be utilized by the parties hereto. IT IS HEREBY AGREED that the following provisions are approved and shall constitute the entire agreement between the CITY and SUBGRANTEE: 1. The purpose of granting $25,000 in CDBG funds to SUBGRANTEE shall be solely for the renovation of a portion of SUBGRANTEE'S facility, commonly known as the Clapp School site in accordance with the Scope of Work, Attachment 1, which is hereby incorporated by this reference. CDBG funds shall be expended within a time period not exceeding six (6) consecutive months following the date of execution of this agreement, in installments determined by CITY. Disbursements shall be made to SUBGRANTEE following the 1 4\s:PCD:Agree:Special\5/30/96 RLS 96-239 I • in a form prescribed by CITY, detailing such expenses. SUBGRANTEE agrees to submit requests for disbursement fifteen (15) days after the end of each monthly period. CITY shall disburse funds based upon the submittal of such invoices within thirty (30) days after receipt thereof, provided CITY is satisfied that such expenses have been incurred within the scope of this Agreement and that SUBGRANTEE is in compliance with the terms and conditions of this Agreement. CITY has the right to recapture all or a portion of Block Grant Funds not requested for disbursement 30 days after the end of the six-month period mentioned herein. 2. SUBGRANTEE agrees to conduct all activities of the organization, whether funded in whole or in part by CDBG funds from CITY, in accordance with the provisions contained in the Federal Office of Management and Budget ("OMB") Circular A-87 and its attachments, including those for contracts in excess of Ten Thousand Dollars ($10,000.00) and including the provisions relating to audit requirements and resolution of audit findings as provided in Circular A-128. SUBGRANTEES who have received $25,000 or more in grant funds are required to submit an annual report including either a single audit or program audit reports, which evidence an audit was completed in accordance with specific program requirements of the OMB Circular (i.e., A-128 or A-133). 3. The CITY shall have the right to recapture all or a portion of Block Grant funds disbursed to SUBGRANTEE should the SUBGRANTEE fail to comply with all of the terms and conditions of this agreement or refuse to accept any conditions which may subsequently be imposed by the U. S. Department of Housing and Urban Development for the operation of the 2 4\s:PCD:Ag ree:Special\5/29/96 RLS 96-239 S i Community Development Block Grant Program, or if SUBGRANTEE should close and cease operations within five (5) years of the date this agreement is approved by CITY. 4. SUBGRANTEE shall not dispose of any real or personal property acquired in full or in part with CDBG funds through sale, use, or relocation without the express and prior written permission of the CITY, and SUBGRANTEE agrees to maintain program records for a minimum of three years after the close-out of the subgrant and to make such records available for on-set monitoring by CITY not less than annually and to periodic inspections by HUD officials during this three-year period. 5. SUBGRANTEE agrees that no officer, employee, agent, or assignee of CITY having direct or indirect control of CDBG funds granted to the CITY shall serve as an officer of SUBGRANTEE. Further, any conflict or potential conflict of interest of any officer of SUBGRANTEE shall be fully disclosed to the CITY prior to the execution of this agreement and shall be attached to and become a part hereof. 6. SUBGRANTEE agrees that any earned interest income on funds generated through the use or investment of funds received from CITY shall be used in conformance with program income requirements set forth in Code of Federal Regulations 570.504. The SUBGRANTEE shall disclose to the CITY all program income received utilizing CDBG funds administered under this Agreement. 7. SUBGRANTEE agrees that in the event it is unable to perform or defaults upon any provision contained herein, the CITY shall have the right to recapture the full amount of funds granted to SUBGRANTEE. 3 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 I • 8. SUBGRANTEE acknowledges that the CITY shall disburse funds to SUBGRANTEE only upon execution of this agreement, and CITY is empowered only to provide funds to SUBGRANTEE pursuant to the provisions of this agreement. 9. SUBGRANTEE hereby agrees to protect, defend, indemnify and hold and save harmless CITY, its officers, and employees against any and all liability, claims,judgments, costs and demands, however caused, including those resulting from death or injury to SUBGRANTEE'S employees and damage to SUBGRANTEE'S property, arising directly or indirectly out of the obligations or operations herein undertaken by SUBGRANTEE, including those arising from the passive concurrent negligence of CITY, but save and except those which arise out of the active concurrent negligence, sole negligence, or the sole willful misconduct of CITY. SUBGRANTEE will conduct all defense at its sole cost and expense. CITY shall be reimbursed by SUBGRANTEE for all costs or attorney's fees incurred by CITY in enforcing this obligation. 10. Pursuant to California Labor Code Section§1861, SUBGRANTEE acknowledges awareness of Section 3700 et seq. of said code, which requires every employer to be insured against liability for workers' compensation; SUBGRANTEE convenants that it will comply with such provisions prior to commencing performance of the work hereunder. SUBGRANTEE shall maintain such workers compensation insurance in an amount of not less than One Hundred Thousand dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to CITY. 4 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 S • SUBGRANTEE shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractor's employees. SUBGRANTEE shall furnish to CITY a certificate of waiver of subrogation under the terms of the worker's compensation insurance and SUBGRANTEE shall similarly require all subcontractors to waive subrogation. 11. SUBGRANTEE shall carry at all times incident hereto, on all operations to be performed hereunder, general liability insurance including coverage for bodily injury, property damage, products/completed operations, and blanket contractual liability. Said insurance shall also include automotive bodily injury and property damage liability insurance. All insurance shall be underwritten by insurance companies in forms satisfactory to CITY for all operations, subcontract work, contractual obligations, project or completed operations and all owned vehicles and non-owned vehicles. Said insurance shall name the CITY, its officers, agents and employees and all public agencies as determined by the CITY as Additional Insureds. SUBGRANTEE shall subscribe for and maintain said insurance policies in full force and effect during the life of this Agreement, in an amount of not less than One Million Dollars ($1,000,000) combined single limit coverage. If coverage is provided under a form which includes a designated general aggregate limit, such limit shall be no less than One Million Dollars ($1,000,000). In the event of aggregate coverage, SUBGRANTEE shall immediately notify CITY of any known depletion of limits. SUBGRANTEE shall require its insurer to waive its subrogation rights against CITY and agrees to provide certificates evidencing the same. 12. SUBGRANTEE agrees to comply with all requirements and utilize fair employment practices in accordance with the California Government Code sections 12900 et seq. 5 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 111 13. The CITY has ascertained from the Director of Industrial Relations of the State of California the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the works is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by resolution on file in the office of the City Clerk of CITY. SUBGRANTEE and any subcontractor under it shall pay not less than said prevailing wage rates to all workers employed on this Subgrantee Agreement, as required by California Labor Code Sections 1771 and 1774. In accordance with the provisions of Section 3700 SUBGRANTEE agrees to secure payment of compensation to every employee. 14. Pursuant to this Agreement and in accordance with section 1774 and 1775 of the California Labor Code, SUBGRANTEE shall, a penalty to CITY, forfeit twenty-five dollars ($25) for each calendar day or portion thereof for each worker paid (either by SUBGRANTEE or any of its subcontractors) less than the prevailing wage rate established for that particular craft or type of work. 15. California Labor Code, Section 1810 et seq., shall apply to the performance of this Agreement; thereunder, not more than eight (8) hours shall constitute one day's work and SUBGRANTEE and each subcontractor employed by its hereunder, shall not require more than eight (8) hours of labor per day or forty (40) hours per week from any one person employed by it hereunder, except as stipulated in California Labor Code, Section 1815. SUBGRANTEE and each subcontractor employed by it hereunder shall, in accordance with Section 1812, keep an accurate record, open to inspection at all reasonable hours, showing the name and actual hours 6 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 • worked each calendar day and each calendar week by each worker employed in connection with the PROJECT. 16. Pursuant to this Agreement and in accordance with California Labor Code Section 1813, SUBGRANTEE shall, as a penalty to CITY, forfeit twenty-five dollars ($25) for each worker employed hereunder by SUBGRANTEE or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one (1) calendar day or forty (40) hours in any one (1) calendar week in violation of California Labor Code Section 1815. 17. Section 1773.8 of the California Labor Code, regarding the employment of apprentices, is applicable to this PROJECT. 18. Section 1777.5 of the California Labor Code, regarding the employment of apprentices, is applicable to this paragraph. 19. SUBGRANTEE agrees to keep accurate payroll record showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice or worker employed by it in connection with the project and agrees to require each of its subcontractors to do the same. SUBGRANTEE further agrees that its payroll records and those of its subcontractors, if any, shall be available at all reasonable times to the CITY, and the employee or his representative, and the Division of Labor Standards Enforcement and the Division of Apprenticeship Standards, and to comply with all of the provisions of California Labor Code Section 1776, in general. 7 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 20. It is understood and agreed that the SUBGRANTEE is, and shall be, acting at all times hereunder as an independent contractor and not as an employee of CITY. SUBGRANTEE shall secure, at its expense, and be responsible for any and all payment of income tax, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for SUBGRANTEE and its officers, agents and employees, and all business licenses, if any, in connection with the project. 21. All notices pertaining to this Agreement, and any communications from the parties may be made by delivery of said notices in person or by depositing said notices in the U.S. Mail, registered or certified mail, return, receipt requested, postage prepaid and addressed as follows: To CITY: To SUBGRANTEE: City of Huntington Beach Special Children's Connection Pre-School Community Services Department 2000 Main Street Huntington Beach, California Huntington Beach, CA 92648 Attention: Attention: Jim Engle Any of the parties may cancel this Agreement by giving thirty (30) days written notice of said cancellation to the other party hereto. In the event of termination or cancellation for any reason, CITY shall be liable for services rendered up to such termination. This document fully expresses all understandings of the parties concerning all matters covered and shall constitute the total Agreement. No prior written or oral provisions or understanding, between the parties shall have any force or affect. No addition to or alteration of 8 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 i the terms of this Agreement shall be valid unless made in writing and formally adopted in the same manner as this Agreement. 22. This Agreement shall be void and its terms shall have no force or effect whatsoever if not signed by authorized agents or officers of SUBGRANTEE within thirty (30) days of receipt of this document. It shall be the responsibility of the CITY to transmit this agreement and any other necessary documentation to SUBGRANTEE and to record the date of receipt thereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. SUBGRANTEE CITY OF HUNTINGTON BEACH SPECIAL CHILDREN'S CONNECTION a municipal corporation of the PRE-SCHOOL, a nonprofit State of California California corporation Mayor °Age) ES C 1/6/l i ; (print name) ATTEST:Its: (circle one)Chairrn esiden dititote.ice President i aaieilagr By: /)/?4LV)4 / (1 CAP City Clerk k `I ram _ 1/(e/tic-lb APPROVED AS TO FORM: (print name) Its: (circle one)Secretary/Chief Financial Officer/ � 6/s-1f6_ Asst' ecrS etary-Treasurer ( 1 City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: 441 e ity Administrator Director of Economic Development 9 4\s:PCD:Agree:Special\5/29/96 RLS 96-239 06/15/1996 14:38 1818'3934438 DE PALMA INS. PAGE 02 ACORD CERTIFICA. C " LIABILITY INS DATE(MM!DDA'Y)06,05,96 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE De Palma insurance Agency HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 8700 Reseda Blvd., Suite 106 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Northridge CA 91324-4041 COMPANIES AFFORDING COVERAGE COMPANY PhoaeNo. 818-993-8772 flu No. A Markel Insurance Company N PsuRED COMPANY Foster Childrenls Connection �°/17/96 B Non-Profit Corp. DBA: Special 7M�i , Childrens Connection Preschool "'`"'�� COMPANY Preschool Attn: Regina C 20581 Farnsworth St. (Rear) COMPANY Huntington Beach CA 92646 D COVERAGE THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OP ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLIGY NUMBER - POLICY EFFECTIVE POLICY EXPIRATIQN LIMITS LTA DATE(MM/Dp/1Y) PATE(MM/DD/YY) GENERAL LIABILITY GENERAL.AGGREGATE S 2000000 A X COMMERCIAL GENERAL LIABILITY 3602CC0499200 02/23/96 02/23/97 PRODUCTS-COMP/OP AGG {S 1000000 _ CLAIMS MADE X OCCUR - PERSONAL&ADV INJURY $ 1000000 OWNER'S/k CONTRACTOR'S PROT EACH OCCURRENCE $ 1000000 FIRE DAMAGE(Any one fire) S 50000 MED EXP(Any one person) $ 1000 AUTOMOBILE LIABILITY I COMBINED SINGLE LIMIT 1 S ANY AUTO ALL OWNED AUTOS a)OIDILY INJURY -D ENDORSE IL (Per person) $ SCHEDULED AUTOS ADD L- ;; �••� HIRED AUTOS BODILY INJURY $ (Per exident) NON-OWNED AUTOS PROPERTY DAMAGE S 1. ED-AS TO ORM• GARAGE LIABILITY AUTO ONLY•EA ACCIDENT S ANY AUTO GAIL 'U�=Tn'1 OTHER THAN AUTO ONLY: — CITY TTO'iln., EACH ACCIDENT S —_, -'� Ry AGGREGATE S EXCESSLIABILITY D ty ity kttorney EACHOCCIAuktsCE $ I UMBRELLA FORM AGGREGATE S —1 OTHER THAN UMBRELLA FORM S WORKERS COMPENSATION AND WC TORYS LIMITS ER LIMITS ER EMPLOYERS'LIABILITY EL EACH ACCIDENT $ THE PROPRIETOR/ INCL El.DISEASE-POLICY LIMIT S r PARTNERS/EXEC,UTIVE OFFICERS ARE: EXCL EL DISEASE-EA EMPLOYEE S OTHER 1 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS ADDITIONAL INSURED: CITY OF HUNTINGTON BEACH, ITS AGENTS, OFFICERS AND EMPLOYEES ENDT. CG20 10 11/85 ATTACHED. CERTIFICATE:HOUR CANCIrI'.I,A'ClON C I TYHU 1 SHOULD ANY OP THt ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING COMPANY WILL MAIL City of Huntington Beach 30 DAYS NRITTEN NOTICE TO THE CERTIFICATE HOLDER NAILED TO THE:,Err, Attn: Jennifer McGrath SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street Huntington Beach, CA 92648 OF ANY 14ND UPON THE COMPANY,ITS AGENTS OR REPRESENTATIVES. AVM ED REPRESENTATIVE _ >,/,,,:e4C4,4°: s 1"/" /'/:,:, CORPORATION 19$8 ACORD 25-S UJ95) �,c_- _- n-z• Fi:PArt Pn_= 06/05/1996 14:38 18189934438 DE PALMA INS. . • POLICY NUMBER: 3602CC0499200 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided tinder the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL LIABILITY CATASTROPHE COVERAGE PART SCHEDULE Name of Person or Organization: ** Wt-iO IS AN INSURED (Section II) is amended to include as an Insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CITY OF HUNTINGTON BEACH DE PALMA INSURANCE AGENCY 15-7387 Copyright, Insurance Services Office. Inc., 1985 nz• RfPT.A Pn4 S RECEIVED MAR 181996 FACILITIES LEASE AGREEMENT DEPARTMENT OF ECONOMIC DEVELOPMENT This Lease Agreement, hereinafter referred to as the "LEASE," dated , _, for reference purposes only, is made and entered into between Huntington Beach City School District hereinafter referred to as "LESSOR," and Special Children's Connection Pre-School hereinafter referred to as "LESSEE." LESSOR and LESSEE shall be collectively referred to as the "PARTIES." WITNESSETH: WHEREAS, LESSOR desires to lease certain premises, as hereinafter defined, to LESSEE: and WHEREAS, LESSEE desires to lease the premises from LESSOR for purposes of operating a pre-school child care center. NOW, THEREFORE, the PARTIES agree as follows: 1. Leased Premises. LESSOR agrees to lease to LESSEE and LESSEE agrees to lease from LESSOR the premises situated in the City of Huntington Beach, County of Orange, State of California, known as: Clapp School Building consisting of approximately 6,000 square feet of the rear portion space (hereinafter referred to as the "Leased Premises"), more specifically described in Attachment "A" which is attached hereto and incorporated by reference herein. LESSOR agrees that LESSEE shall have exclusive use of the Leased Premises and joint use of sidewalks, parking lots, and playgrounds. 2. Lease Term. The term of this LEASE shall commence beginning March 1, 1996. and shall terminate on February 28, 2001, subject to termination as set forth in this LEASE. The lease payments shall commence June 1, 1996 or upon students occupying, whichever occurs first. LESSEE may have the option to renew this LEASE for a further period of up to five (5) years, after the expiration of the original Lease Term, under the same terms and conditions. LESSEE must notify LESSOR in writing one hundred eighty (1180) days prior to the expiration of the original Lease Term of LESSEE's intent to exercise said option. • 3. Rent. LESSEE shall pay to LESSOR rent for the Leased Premises in the sum of Three Thousand Dollars ($3,000) per month, which sum shall become due on or before the first day of each month. The total rent per year shall be Thirty Six Thousand Dollars ($36,000). Rent shall not include utilities, custodial services or maintenance services. The minimum monthly rent will be subject to adjustment at the end of the first year and each year thereafter as follows. The rental amount shall be calculated annually based on a cost of living adjustment. The adjustment shall be calculated upon the basis of the United States Department of Labor. Bureau of Labor Statistics, Consumer Price Index Sub-Group - "All Items" for the Los Angeles, Anaheim, Riverside Western area for the first quarter of each year. 4. Late Payment Penalty If any installment of rent or any sum due from LESSEE shall not be received by LESSOR within twenty (20) days after the due date for such payment, LESSEE shall pay to LESSOR a late charge equal to ten percent (10%) of such overdue amount. Acceptance of such late charge by LESSOR shall in no event constitute a waiver of LESSOR's default with respect to such overdue amount, nor prevent LESSOR from exercising any of the other rights and remedies granted under this agreement. 5. Security Deposit. This LEASE recognizes that LESSEE had deposited with LESSOR the sum of Three Thousand Dollars ($3.000) as security for LESSEE's faithful performance of 1 s a LESSEE's obligations under this LEASE. If LESSEE performs all of LESSEE's obligations, said deposit or so much thereof as has not been applied to rent by LESSOR, shall be returned, without interest, to LESSEE (or, at LESSOR's option, to the last assignee, if any, of LESSEE's interest hereunder) at the expiration of the Lease Term. 6. Use. The Leased Premises shall be used for a Pre-School Child Care Center and for no other purposes without the prior written consent of LESSOR. LESSEE shall not commit, or permit to be committed, any waste or nuisance upon the Leased Premises. LESSEE shall not use the Leased Premises, or any part thereof, for any purpose other than the purpose or purposes for which said premises are leased. LESSEE shall, at LESSEE's sole cost and expense, observe in the use of the Leased Premises, all municipal, county, state and federal regulations, ordinances and'statutes now in force, or which may hereafter be in force. 7. Maintenance. The Leased Premises, and every part thereof, are at the date hereof in good order, condition, and repair. LESSOR shall maintain the Premises in reasonable condition. LESSOR's duty to maintain the Premises shall include the following: (a) The structural parts of the building and other improvements that are part of the Premises, which structural part include only the foundations, exterior walls, subflooring and roof; (b) Window frames, ygutters and other improvements that are part of the Premises; Notwithstanding the above, LESSEE will be liable to LESSOR for any damage caused to the Premises resulting from any acts or omissions of LESSEE or its authorized representatives. LESSOR will be liable to LESSEE for any damage caused to the Premises resulting from any acts or omissions of LESSOR or its authorized representatives. (c) LESSEE shall maintain at its own expense, in good condition, the plumbing, HVAC (including quarterly preventive maintenance) and sewage systems and the exposed electrical. The LESSOR shall be responsible for a major breakdown or complete loss of electrical or plumbing systems. LESSEE responsibilities include, but are not limited to, leaking faucets, stopped sinks, leaking toilets and broken door hardware. LESSEE may request service from the LESSOR on minor repairs. These services would be scheduled as routine maintenance and billed out as to Attachment "C" which would be updated annually. LESSEE shall also maintain, at LESSEE's expense, the exterior grounds itemized on Attachment "B". in a condition satisfactory to LESSOR. Attachment "B" is incorporated herein as if fully set forth. In the event that LESSEE fails to maintain the exterior grounds of the Premises in a condition satisfactory to LESSOR, LESSOR shall have the option to employ the services of any party LESSOR selects to maintain the grounds in which event LESSOR shall charge LESSEE the full cost for such maintenance services. LESSEE hereby waives any right it may have to make repairs at LESSOR's own expense pursuant to Section 1942 of the California Civil Code. 8. Utilities. During the Lease Term, LESSEE shall pay for LESSEE's proportionate share of gas, electricity, heat, light, power, sewage, water, telephone, security alarm, and all other similar services or utilities supplied to the Leased Premises during the Lease Term, including all installation, connection and disconnection charges. The method for splitting costs between multiple lessees in one building shall be negotiated prior to signing lease. 9. Alterations. LESSEE shall not make, or permit to be made, any additions or alterations to the Leased Premises, or any part thereof, without the written consent of LESSOR, and any additions to or alterations of said premises, when permitted to be made, shall be removed by 2 S0 LESSEE at the end of the Lease Term and the Leased Premises shall be restored to the condition it was in at the beginning of the Lease Term, reasonable wear and tear excepted, at LESSEE's sole cost and expense, unless otherwise agreed to by the PARTIES. 10. Compliance. LESSOR warrants to LESSEE that the Leased Premises to be occupied by LESSEE does not violate any covenants or restrictions of record, and is in compliance with all applicable statutes, codes, regulations and ordinances, including asbestos regulations. In the event it is determined that LESSOR is in violation of this warranty, LESSOR, at LESSOR's sole cost and expense, shall correct such violation immediately or within a time period agreeable to LESSEE. 11. Mechanic's Liens. LESSEE shall pay all cost of any alterations or additions, and shall keep the Leased Premises free and clear of mechanics' liens. LESSEE shall indemnify LESSOR against, and hold LESSOR harmless from, any and all mechanics' liens or claims of liens and all attorney's fees, costs and expenses which may accrue, arise out of, or be incurred by reason of or on account of any such lien or claims of lien. LESSOR shall at all times have the right to post and to keep posted on the Leased Premises such notices provided for under or by virtue of the laws of the State of California for the protection of the Leased Premises from mechanics' liens or liens of a similar nature. 12. Inspection. LESSEE shall permit LESSOR's employees or agents to enter into and upon the Leased Premises for the purpose of inspecting the same, or for the purpose of making reasonable repairs, alterations or additions to any portion of said premises which LESSOR may see fit to make, without any reduction or rebate of rent to LESSEE for loss of occupancy or quiet enjoyment of the premises thereby occasioned, and LESSEE shall permit LESSOR at any time after sixty (60) days prior to expiration of the Lease Term to place upon the premises "FOR RENT" or "FOR LEASE" signs. LESSOR and LESSEE shall mutually agree to a time convenient to both PARTIES for such inspections and/or repairs to the Leased Premises. 13. Signs. No sign, advertisement or notice shall be inscribed, painted, or affixed to or on any part of the Leased Premises without LESSOR's written consent as to size, location, style, design and type. 14. Assignment and Sub-Lease. LESSEE shall not assign this LEASE, or any interest therein, and shall not lease or sublet the Leased Premises, or any part thereof or any right or privilege appurtenant thereto, or mortgage the leasehold, without the written consent of LESSOR, provided however LESSOR agrees not to withhold such consent unreasonably. A consent to one assignment or subletting shall not be construed as a consent to any subsequent assignment or subletting. Unless such written consent has been obtained, any assignment or subletting of this LEASE, or of any interest therein, either by voluntary or involuntary act of LESSEE, or by operation of law, or otherwise. may be deemed a breach of this LEASE by LESSEE at LESSOR's election: and any such purported assignment or subletting without such consent, may be deemed by LESSOR to be null and void. LESSOR's consent to any such assignment or subletting shall not relieve LESSEE from any obligations under this LEASE. 15. Indemnification and Insurance. LESSEE agrees to defend, indemnify and hold harmless the LESSOR, its officers, agents, employees, and volunteers from all loss, cost, and expense arising out of any liability or claim of liability for personal injury, bodily injury to persons, contractual liability and damage to property sustained or claimed to have been sustained arising of activities of the LESSEE or those of any of its officers, agents or employees, whether such act is authorized by this Agreement or not: and LESSEE shall pay for any and all damage to the property of the LESSOR, or loss or theft of such property, done or caused by such persons. LESSEE assumes no responsibility whatsoever for any property placed on or improved upon the premises. LESSEE further agrees to waive all rights of subrogation against the LESSOR. The provisions of the Article do not apply to any damage or losses caused solely by the negligence of the LESSOR or 3 ! I any of its agents or employees. LESSEE shall procure and maintain for the duration of the contract, insurance against claims for injuries and property damage that may arise from or in connection with the performance of this contract agreement. District may adjust the insurance requirement as reasonable and appropriate for the Premises at an interval of no greater than every two (2) years. LESSEE will furnish LESSOR with the original endorsements (Attachments D and E) properly executed effecting coverage as required below: (a) Minimum Scope and Limits of Insurance (Coverage shall be at least as broad) Commercial General Liability insurance to include premise operations, products and completed operations, contractual liability, independent contractors, broad form property damage, fire legal, and personal injury with a combined single limits of$1,000,000 per occurrence for bodily injury, personal injury and property damage or LESSEE's current limits, whichever is greater. Comprehensive Automobile Liability insurance to include all autos, owned, non-owned, and hired with a combined single limits of$1,000,000 per occurrence for bodily injury, personal injury and property damage or LESSEE's current limits, whichever is greater. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers' Liability insurance limits of$1,000,000 per accident or LESSEE's current limits, whichever is greater. (b) Deductibles and Self-Insured Retention Any deductibles or self-insured retention must be declared to and approved by the LESSOR. At the option of the LESSOR, either; the insurer shall reduce or eliminate such deductibles or self-insured retention as respects to the LESSOR, its officials, employees, agents and volunteers; or the LESSEE shall procure a bond guaranteeing payment of losses and related investigation, claim administration and defense expenses, unless other arrangements have been made and approved by the LESSOR. (c) Other Insurance Provisions The LESSOR. its officials, employees, agents and volunteers shall be named as an additional insured on the Commercial General Liability policy with respects to liability arising out of activities performed by or on behalf of the LESSEE; products and completed operations of the LESSEE; premises owned, occupied or used by the LESSEE. LESSEE's insurance coverage shall be primary insurance and non-contributory with respect to the District, its officials, employees, agents and volunteers. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the LESSOR, it officials, employees, agents or volunteers. The LESSEE's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. The insurers for the workers' compensation insurance shall agree to waive all rights of subrogation against the LESSOR, its officials, employees, agents, and volunteers for losses arising from use, occupancy or work performed by LESSEE for the LESSOR, its officials, employees, agents or volunteers. Each insurance policy required by this agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the LESSOR. 4 0 Insurance shall be placed with California admitted insurers with a Best's rating of no less than A, Class X. 16. LESSEE's Default. If, (i) LESSEE defaults in the payment of rent or the payment of any monetary amount required by this LEASE (collectively, a "Monetary Default") and such Monetary Default continues for a period of thirty (30) days after written notice has been given by LESSOR to LESSEE specifying the Monetary Default: or(ii) LESSEE defaults in the performance of any other non-monetary agreement or condition required by this LEASE to be performed by LESSEE (collectively, a "Non-Monetary Default") and such Non-Monetary Default continues for a period of thirty (30) days after written notice has been given by LESSOR to LESSEE specifying the Non-Monetary Default, unless the Non-Monetary Default, by necessity, will require more than thirty (3Q) days to cure and LESSEE has commenced actions necessary to cure that Non-Monetary Default within said thirty (30) day period and is diligently pursuing the same to completion, or (iii) any proceedings are filed or action taken by or against LESSEE to declare LESSEE a bankrupt or to appoint a receiver or trustee for LESSEE or to reorganize LESSEE or to make an assignment for the benefit of the creditors of LESSEE or to do any other act of a similar nature or purpose under any state or federal bankruptcy or insolvency laws, and if such proceedings or actions shall to have been discharged within ninety (90) days thereafter, then, in the event of any of the above events (i-iii), subject to the rights of any Leasehold Mortgagee (if any), LESSOR may declare a breach of this LEASE by written notice to LESSEE and said Leasehold Mortgagee (if any), and exercise any one or more of the rights available to a landlord under the laws of the State of California, including, without limitation, the right: (a) To terminate this LEASE, immediately and without further notice to LESSEE, and recover (i) the worth at the time of award of the unpaid rent which has been earned at the time of termination; and (ii) any other reasonable monetary amount necessary to compensate LESSOR for all the detriment suffered by LESSOR which was approximately caused by LESSEE's default under this LEASE, including all costs of litigation and attorney's fees incurred by LESSOR. (b) To continue this LEASE in full force and effect, including LESSOR's right to collect rent as it becomes due; provided. LESSOR may, at LESSOR's option, take any action necessary or appropriate including entering upon the Leased Premises to cure default of this LEASE, in which event the reasonable costs incurred by LESSOR to effect such cure, including attorney's fees, shall become due and payable by LESSEE, including interest at ten percent (10%) per annum, calculated from the date of payment by LESSOR to date of repayment by LESSEE shall be due and payable upon written notice from LESSOR to LESSEE. (c) To seek such equitable or other relief as may be available to LESSOR by law. 17. Eminent Domain. (a) If the entire Leased Premises shall either be condemned or otherwise permanently acquired under the power of eminent domain, then this LEASE shall cease and terminate from the date title or the right of possession, whichever is earlier, vests in the condemning authority. (b) If only a portion of the Leased Premises shall be so permanently acquired or condemned and the remainder of the Leased Premises are not economically or practicably sufficient for the use which LESSEE is then using the Leased Premises, LESSEE shall have the option. subject to the rights of any Leasehold Mortgagee (if any), to terminate this LEASE by giving thirty (30) days written notice to LESSOR. In the event LESSEE does not elect to terminate this LEASE after a partial taking, LESSOR shall pay LESSEE all funds received by the LESSOR from the condemning authority for damages or disruption r 5 • to the Leased Premises or LESSOR shall agree to reduce the rent in proportion to the amount of the Leased Premises taken. 18. Taxes. In the event that the Leased Premises is not exempted from taxation and property taxes are increased during the term of the LEASE, the rent shall be increased by an amount equal to the increase in taxes in such year over such taxes levied. LESSEE shall pay an amount equal to any such increase to LESSOR not later than thirty (30) days following written notice to LESSEE by LESSOR of such increase. In the event the property taxes cover property of which the Leased Premises are only a part, the property tax shall be apportioned by the tax rate assessed on the square footage occupied by LESSEE. LESSEE shall pay all personal property taxes levied on LESSEE's personal property located on/in the Leased Premises. LESSEE shall also pay all taxes, licenses, fees or charges on account of any use which may be made of the Leased Premises or any activity conducted by LESSEE thereon during the Lease Term. 19. Equipment. LESSEE may install and operate equipment that is normal for the purposes for which the LESSEE is using the Leased Premises. LESSEE shall remove such equipment from the Leased Premises upon or prior to the termination of this LEASE. 20. Quiet Possession. LESSEE shall have quiet and peaceful possession of the Leased Premises for the LEASE term. 21. Holding Over. Holding over after the expiration of the LEASE term, or any oral extension thereof with the consent of LESSOR, shall be a tenancy from month to month at a minimum monthly rate of Three Thousand Dollars ($3,000). All other conditions and agreements of this LEASE shall be applicable to such holding over. 22. Termination. (a) On the last day of the Lease Term, or any earlier termination, LESSEE shall peaceably and quietly leave and yield the Leased Premises to LESSOR, with fixtures and appurtenances in good order, condition and repair, reasonable wear and tear excepted. (b). Either PARTY fnav, in its sole discretion, terminate this LEASE upon serving notice in writing to the other PARTY one hundred twenty (120) days prior to the end of any fiscal year. Upon receipt of said written notice, the non-terminating PARTY shall immediately comply with the notice and use all reasonable efforts to mitigate its expenses and obligations. In the event the Premises is needed by District for school purposes during the lease period, it shall notify LESSEE in writing, as early as possible of this need. In an emergency, the District may take immediate possession of the Premises and require the LESSEE to vacate. Such an emergency shall terminate the lease. 23. Miscellaneous. (a). The captions and Section headings of this LEASE are inserted only as a matter of convenience and for reference, and are not part of this LEASE and in no way define, limit or describe the scope of this LEASE or the intent of any provision thereof. (b) The invalidity of any particular provision of this LEASE as determined by court or arbitration shall in no way affect the validity of any other provision hereof. (c) The PARTIES agree that this LEASE shall be construed and enforced in accordance with the laws of the State of California, through California state courts with venue in Orange County, California. (d) The provisions of this LEASE have been negotiated by all of the PARTIES who have 6 0 • each been represented throughout the drafting process by their respective attorneys. No provision of this LEASE shall be considered to have been drafted by one PARTY versus another. (e) The failure of LESSOR or LESSEE to seek redress for violation of, or to insist upon, the strict performance of any covenant or condition of this LEASE, shall not be deemed a waiver by that PARTY of such covenant or condition or prevent a subsequent similar act, from again constituting a violation of such covenant or condition. (f) This LEASE contains the entire agreement between LESSOR and LESSEE regarding the Leased Premises and any agreement hereafter made shall be ineffective to modify this LEASE in whole or in part unless such agreement is embodied in an amendment to this LEASE which has been signed by both PARTIES. This LEASE supersedes all prior negotiations, understandings, representations and agreements. (g) All notices or demands to be given under this LEASE by either PARTY to the other, shall be in writing and given either by: (i) personal service, or (ii) by U.S. Mail, mailed either by registered or certified mail, return receipt requested, with postage prepaid. Service shall be considered given when received if personally served or, if mailed, on the third day after deposit in any U.S. Post Office. The address to which notices or demands may be given by either PARTY may be changed by written notice given in accordance with the notice provisions of this Subsection. At the date of this LEASE, the addresses of the PARTIES are as follows: LESSOR: Huntington Beach City School District 20451 Craimer Lane Huntington Beach CA 92646 Atm: Jerry Buchanan LESSEE: Special Children's Connection Pre-School 20581 Farnsworth Lane Huntington Beach CA 92646 Attn: Regina Markwardt (h) The conditions and agreements herein contained shall apply to and bind the heirs, executors, administrators, and successors in interest of the PARTIES hereto. (i) Both parties agree that they will not engage in unlawful discrimination of persons because of race, color, religious creed, national origin, ancestry, physical handicap, medical condition, marital status, or sex of such persons. (j) All exhibits attached hereto are considered incorporated into and do constitute an integral part of this LEASE by this reference. IN WITNESS WHEREOF, LESSOR AND LESSEE caused this LEASE to be executed. LESSOR: LESSEE: By: ::_1. By: s...�_ .... .aG" Jerry Buchanan Regina Markwardt Assistant Superintendent Director 7 1 ATTACHMENT C FACILITIES LEASE AGREEMENT The Facilities Lease Agreement of BURKE SCHOOL by and between the Huntington Beach City School District, hereinafter referred to as "LESSOR," and the Special Children's Connection Pre-School, hereinafter referred to as "LESSEE," is hereby amended as follows: 1. Per paragraph 7. (c) Maintenance. LESSEE requests for services by the LESSOR on repairs that are not the LESSOR's responsibility, will be billed out at $41.96 per hour plus materials. This rate will be updated annually by LESSOR. Increases will be based on the actual cost increases experienced by the LESSOR. LESSEE will be entitled to an estimate of costs to be incurred prior to commencement of work. 2. Except as expressly herein amended, said Lease Agreement of Burke School shall in all respects be and remain in full force and effect. IN WITNESS WHEREOF, the PARTIES hereto set their hands. LESSOR: LESSEE: By: '1c...t,.� By: Jerry Buchanan Regina Markwardt A ssistant Superintendent Director Jerry Noyes • ( 714) 995-0408 Scope of Service Renovation Cost Estimate General Labor $ 5, 000. 00 Carpet Installed 3 , 000. 00 Tile 2 , 000. 00 32 gallons of paint 560. 00 Electrical plus labor 2 , 000. 00 10 Dry Wall 48 . 00 1 roll Drywall Tape 5. 00 1 box Drywall nails 23 . 00 20 lb 8d's Drywall Nails 24 . 00 20 lb 16d's Drywall Nails 40. 00 Paint supplies 200. 00 $ 12 , 900. 00 Wall Between Church & School 34 ' Both sides. 2 - 5 gal joint compound $ 19 . 88 18 - 4x8 dry wall 114 .48 7 - 2x4x10 44 .45 28 - 2x4 studs 122 . 64 1 metal frame door 500. 00 and dead lock $ 801. 45 Office/Staff Lounge/Kitchen 2 5 gal joint compound $ 18.88 28 - 4x8 dry wall 178 . 08 23 - 2x4x10 112 . 70 56 - 2x4 studs 245. 28 1 metal frame door 300. 00 $ 854 .94 Infant Room 1 - gal joint compound $ 9 . 94 24 - 4x8 dry wall 152 . 64 11 - 2x4x10 53 . 90 32 - 2x4 studs 166. 44 3 2x6 top rail for 19 . 05 divider 1 - changing table with 350. 00 steps and guard rails 2 - gates 36x4 300. 00 completed gazebo 3 , 000. 00 door plus window 800. 00 plus labor $ 4 , 851. 97 • S Scope of Service Two Year Old Room 1 - 5 gal joint compound $ 9. 94 24 - 4x8 dry wall 152 . 64 11 - 2x4x10 53 . 90 38 - 2x4 studs 166.44 3 2x6 top rail for 19 . 05 divider 1 - gate 36x4 150. 00 Door plus window,plus labor 800. 00 1 - changing table with 350. 00 steps and guardrail $1, 701.97 Two Large Classrooms (some of these cost depend on getting portable walls or not) 84 - 4x8 dry wall $ 534 . 24 70 - 2x4x10 444. 50 228 - 2x4 studs 998. 64 10 lx8 dry wall trim 48. 00 3 - doors 600. 00 $ 2 , 625. 38 Projected Cost totals General $12, 900. 00 Wall between church 801. 45 Office/Staff/Lounge/Kitchen 854 .94 Infant Room 4,851. 97 Two Year Old Room 1, 701. 97 3-5 year old room 2 , 625. 38 $23 , 735. 71