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HomeMy WebLinkAboutAgenda Report - March 6, 2013 C-08AGENDA ITEM COA yOF�CITY OF LODI 09<IFOR�`Q COUNCIL COMMUNICATION TM AGENDA TITLE: Approve Plans and Specifications and Authorize Advertisement for Bids for Fire Station No. 2 Site Improvement Project and Adopt Resolution Authorizing City Manager to Execute Lease Agreement with Design Space Modular Buildings, Inc., of Dixon ($90,876) MEETING DATE: March 6, 2013 PREPARED BY: Public Works Director RECOMMENDED ACTION: Approve plans and specifications and authorize advertisement for bids for the Fire Station No. 2 Site Improvement Project and adopt resolution authorizing City Manager to execute lease agreement with Design Space Modular Buildings, Inc., of Dixon, in the amount of $90,876. BACKGROUND INFORMATION: Fire Station No. 2 was constructed in 1982 and is a one-story, slab - on -grade, pre-engineered, steel structure with exterior metal siding and metal roof. The original roof has been patched repeatedly but continues to leak. Mold, persistent rat infestations and other building -related issues have caused living and working conditions to deteriorate to the point where the building has become unsuitable for occupancy. On December 19, 2012, Council authorized the purchase of property located at 16 and 40 South Cherokee Lane as the new location for constructing the replacement fire station. Planning and design phases are underway, and it is anticipated the new station will be operational by April 2015. While construction of the replacement fire station is taking place, crews will need temporary quarters to conduct operations. This project consists of installing a modular building in the parking/training area on the north side of the existing Fire Station No. 2, as shown on Attachment A. The 2,820 -square -foot building includes an assembly room, sleeping quarters, kitchen, office space and male and female locker rooms. It will be served by City utilities and communications infrastructure. During the time fire crews occupy the modular building, only the existing apparatus floor of Fire Station No. 2 will remain in use. The site improvement project includes the installation of approximately 260 lineal feet of wastewater service pipeline, 56 lineal feet of water service pipeline and 200 square feet of concrete walk. City forces will be used to provide electrical and communications service to the building. The estimated cost for the improvements, permitting, staff time and miscellaneous costs is $50,000. The 24 -month lease (Attachment B) includes modular building rental (including tax), delivery, installation and setup and removal. The total estimated cost for the temporary quarters including the lease and temporary site improvements is $140,000, as shown in Attachment C. FISCAL IMPACT: The City will incur additional costs to operate the temporary quarters that may be partially offset by vacating part of the fire station. radt Bartlam, City Manager K:\WPkPROJECTS\MISC\FireSta2\CPSA—fs-2.doc 2/25/2013 Approve Plans and Specifications and Authorize Advertisement for Bids for Fire Station No. 2 Site Improvement Project and Adopt Resolution Authorizing City Manager to Execute Lease Agreement with Design Space Modular Buildings, Inc., of Dixon, ($90,876) March 6, 2013 Page 2 FUNDING AVAILABLE: General Fund Capital (1211045) Jordan Ayers Deputy City Manager/Internal Services Director F. Wally S delin Public Works Director Prepared by Charlie Swimley, City Engineer/Deputy Public Works Director FWS/CES/pmf Attachments cc: Larry Rooney, Fire Chief Ron Penix, Battalion Chief Chris Boyer, Assistant Engineer Charlie Swimley, City Engineer/Deputy Public Works Director K:\WP\PROJECTSWIISC\FireSta2\CPSA_fs 2.doc 2/25/2013 � OFA OF LODI U '�mOd PUBLIC WORKS DEPARTMENT FIRE STATION #2 SITE IMPROVEMENT PLAN ATTACHMENT A WELLIR WELL HEAD $e2 47.0 OFRCE3 ' ANEW M4D . AR BUILDING 60.0 4 7471EMYLYg7(YA f =- 00.2 PROPOSED J EXISTING FIRE STATION #2 VM SERVICE 1 l 43.0 1 LODIAVENUE Scale: 1 "=40' "* Desi n S ace ■■■ p MEN MODULAR BUILDINGS From Vision to Reality I On Time and On Budget RETURN EQUIPMENT TO DSMBI: 2725 Fitzgerald Drive Dixon, CA 95620 Phone: 707-678-6100 LEASE AGREEMENT NO: V-001178 CUSTOMER NUMBER: CUSTOMER PO/REF. NUMBER: Equipment Located At Contact 705 E Lodi Ave Lodi, CA 95240 Name: Larry Rooney Phone: 209-333-6735 E-mail: Irooney0lodi.gov DESIGN SPACE MODULAR BUILDINGS, INC. (DSMBI) hereby leases the equipment specified below (the "Equipment') to: Lessee Name Customer & Address Lodi Fire Department 25 East Pine Street Lodi, CA 95240 Billing Contact: Customer hereby leases Equipment from DSMBI for a minimum period of 24 months (the "Minimum Lease Period") from the start of the lease term in accordance with the terms and conditions of this Lease Agreement including the terms and conditions set forth on the attached page (this "Lease"). Rental month is defined as a thirty -day period. Customer agrees to pay DSMBI without demand and in advance the monthly rental and other charges on the due dates set forth in this Lease. The anticipated delivery date for the Equipment, subject to Section 3(c) on the attached page, will be on or about the 11th day of March, 2013. Unit No. Serial No. Width Length Monthly Weekly Daily I Insurance Value 4743-46 19902-05 48 60 $3,506 $ 1 169 $ 234 $125,000.00 • ANCHORS Included INSURANCE WAIVER @ 1.00/day per floor • SKIRTING Included STEPS Quantity: 1 Included ONE TIME CHARGES AMOUNT MONTHLY CHARGES AMOUNT Billed At Time Of Delivery BUILDING $3,506.00 • DELIVERY Included ADDITIONAL LEASE COSTS • BLOCK AND LEVEL/SET-UP Included OTHER - • ANCHORS Included INSURANCE WAIVER @ 1.00/day per floor • SKIRTING Included STEPS Quantity: 1 Included • FOUNDATION AND RAMP PLANS $1,000.00 RAMPS Size: (2) 36ft Included Billed At Time Of Return • RETURN DELIVERY Included • UNBLOCK/TEARDOWN • ANCHOR REMOVAL Included Included TOTAL MONTHLY (Excl Tax) DOH/DMV/PPT Tax $ 3,506.00 Included Customer has o bon to renew for one yjar at the same rates. Advance Pa nests Description of Charges I Payment to be Applied Amount Applied to Inuaice 8 Applied to Final lnvci s No agent, employee or representative of DSMBI has any authority to make any representation or warranty concerning the Equipment that is not specifically included in this Lease. Unless specifically identified in this Lease, this Lease supersedes all prior negotiations, proposals and documents. This Lease will not be subject to any additional provision that may be contained in the Customer's purchase order, although the parties may use Customer's purchase order number as a convenient reference for invoicing purposes. Steps not returned are billed at $479.00/each. Keys not returned are billed at $50.00/each. Signed by duly authorized agents, with the intent to be legally bound, this day of , 2013. By: DESIGN SPACE MODULAR BUILDINGS INC. Name: BRENT HOFFMAN By: CUSTOMER OR AUTHORIZED AGENT Name: (Please print) 1 of 5 ri� TERMS AND CONDITIONS OF LEASE AGREEMENT L. LEASE This transaction is a lease and not a sale. Customer does not acquire through this Lease or by payment of rental under this Lease any right, title or interest in or to the Equipment, except the right to possess and use the Equipment so long as Customer is not in default under this Lease. 2. RENTAL AND OTHER PAYMENTS (a) The start of the lease term is the date on which DSMBI substantially completes its scope of work for installation, unless otherwise agreed to among the parties. Monthly rental will accrue through and including the month in which the later of the Return Date or End of the Term occurs. The "Return Date" is the date on which the Equipment is returned to DSMBI in accordance with the terms of this Lease. The "End of the Term" is the date on which the term of this Lease is to expire either originally, under a renewal term or under month -to month renewals as contemplated by this Lease, Rental and such other charges will be prorated on a daily basis where necessary. Unless other wise specified in this Lease, charges for delivery and installation, initial month's rent and any applicable initial charges as outlined on the front of this agreement will be due and payable at the start of the lease term, and charges for teardown and return will be due and payable at the earlier of the Return Date or the End of Term. After payment of the initial month's rent, each month's rent thereafter is due and payable without demand and in advance (i) at the end of each thirty (30) day period following the commencement of the lease term, if a rental month is defined on the first page of this Lease as a thirty -day period or (ii) on the first of each month immediately following the month in which this lease commences, if a rental month is defined on the first page of this Lease as a calendar month. All other sums payable by Customer under this Lease are due and payable when invoiced. Unless agreed otherwise, all payments made under this Lease will be made by Customer's check drawn on its regular bank checking account or such other form of payment as is acceptable to DSMBI. (b) Customer will pay DSMBI for any and all sales and use taxes, other direct taxes and registration fees imposed by any city, county, state, or federal government or other taxing authorities and related directly or indirectly to the Equipment or its use, excluding federal or state taxes relating to income (all of the foregoing that Customer is to pay, "Taxes"). Taxes may be allocated by DSMBI on either an individual or prorated basis for any item of Equipment based on purchase price, value, possession, use, location, rentals, delivery or operation of such Equipment. Taxes may include an allocation on a statewide basis of locally imposed taxes. Customer's obligations under this Subsection will survive the termination of this Lease. (c) For Customer's convenience, DSMBI intends to issue invoices for amounts due under this Lease. If Customer fails to pay any amount due within twenty (20) days of the due date, DSMBI may impose a charge on such amount at one and one-half percent (1-1/2%) per month or the highest rate permitted by law, whichever is lower, from the due date until payment in full is received by DSMBI. 3. Delivery and Installation (a) Customer will provide free and clear access for delivery of the Equipment by standard mobile transport vehicles. Customer will be solely responsible, at its cost, for preparation of the site on which the Equipment is to be use (the "Site"), including any required structural or grade alterations and identification of utility lines. Customer will provide firm and level ground on no more than six-inch (6") slope from one end to the other for safe and unobstructed installation for the Equipment. Site election is the sole responsibility of Customer. DSMBI ASSUMES NO LIABILITY OR OFFERS ANY WARRANTY FOR THE FITNESS FOR ADEQUACY OF THE UTILITIES AVAILABLE AT THE SITE. (b) Customer will have sole responsibility, at Customer's cost, to obtain any and all licenses, titles, building and other permits and any other approvals and certificates as may be required by law or otherwise for the installation and placement of the Equipment and Customer's lawful operation, possession or occupancy of the Equipment, customer agrees that all certificates of title or registration applicable to the Equipment will reflect DSMBI's ownership of the Equipment. (c) DSMBI's delivery of the Equipment is subject to delays in manufacturing, modification, delivery or installation due to fire, flood, windstorm, riot, civil disobedience, strike or other labor actions, acts of God, or any circumstances beyond DSMBI's control (including but not limited to breaches by DSMBI's sub -contractors or manufacturers) which delay the manufacture or modification of products or the making of deliveries in the normal course of business. (d) The prices for delivery, installation, teardown, return delivery and other "one-time" charges, the due dates of such charges and the start date of this Lease assume accuracy of the information given to DSMBI with respect to site conditions and locations and are subject to adjustment to the extent that the timing of or physical nature of access to the Site is or becomes limited, the Site does not have adequate load bearing or topographic qualities or is otherwise not properly prepared, utilities are not correctly located, provision of utilities is not timely or applicable licenses or permits are not provided in a timely manner or Customer otherwise delays completion of DSMBI's scope of work. 4. Maintenance of Equipment (a) Customer will not move or in any way modify the Equipment without written consent of DSMBI. Notwithstanding DSMBI's consent to Customer's modification of the Equipment, Customer is liable for the cost of the removal of such modification or restoration of the Equipment upon the termination of this Lease for the modified Equipment. DSMBI may place its name on the Equipment, and Customer will assure that such name is not removed'or concealed in whole or in part. (b) Customer, at Customer's sole cost, will keep the Equipment at all times until the Return Date in good repair and operating condition, return it in the same condition it was delivered subject to ordinary wear and tear, and free of any and all liens and encumbrances. DSMBI will have the right to inspect the Equipment from time to time until the Return Date and if DSMBI reasonably believes the Equipment to be misused, abused or neglected, DSMBI may summarily remove and repossess the Equipment at Customer's cost. (c) Customer will perform, execute and comply with all Laws, which in any way affect the use, operation, maintenance, or storage of the Equipment. "Laws" means all laws, rules, regulations or orders of any governmental agency or instrumentality of the United States, Canada, any state province, municipality or other local government and all orders, writs and decrees of any court, tribunal or administrative agency, in any case which now exist or hereafter arise (including but not limited to laws governing Hazardous Substances and other environmental risks and the Americans with Disabilities Act). Customer will not make or permit any unlawful use or handling of the Equipment. (d) HAZARDOUS SUBSTANCES. (i) "Hazardous Substances" means hazardous, toxic, radioactive or bio -hazardous substances or petroleum products. (ii) Customer will not use or store Hazardous Substances in the Equipment, except such substances and in such 2of5 quantities as would be normal in the operation of a commercial office. Customer will not locate the Equipment at a remediation or nuclear site or use the Equipment for medical laboratory testing. (iii) Ordinary wear and tear does not include contamination by Hazardous Substances. If any returned Equipment is found to have been contaminated by Hazardous Substance during Customers possession, DSMBI may charge Customer for the clean up or may require Customer to purchase the Equipment at the then current market price charged for an uncontaminated unit. (e) Customer agrees that any person other than Customer or its agents, employees or invitees will not occupy the Equipment leased hereunder, 5. NO WARRANTY FOR MERCHANTABILITY OR FITINESS THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AND ALL WARRANTIES OF ANY KIND, INCLUDING ANY EXPRESSED OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR PURPOSE, ARE HEREBY EXCLUDED BOTH AS TO THE EQUIPMENT AND AS TO ANY INSTALLATION, MAINTENANCE OR REPAIR WORK PERFORMED BY DSMBI ON THE EQUIPMENT. 6. Limitation of Damages Customer does hereby expressly waive any and all claims and demands for loss of profits or other alleged consequential, incidental or punitive damages arising out of or in connection with this Lease. DSMBI is not liable for any loss or damage to any property stored, located or transported in, upon, under or around any Equipment and Customer does hereby waive any and all claims and demands for any such loss or damage. 7. End of Lease (a) Unless specified otherwise, Customer must give DSMBI sixty (60) day's prior written notice of the date on which the Equipment is to be returned. (b) If Customer, without any further written agreement, continues to possess or occupy the Equipment after the expiration of the initial and any renewal term of Lease, with or without consent of DSMBI, Customer will then be deemed to have renewed this Lease on a month -to month basis subject to such rate as DSMBI declares to be in effect (and in the absence of such declaration at the last monthly rate applicable to the Equipment), and DSMBI may terminate such month -to month extensions at any time. (c) If, at any time after the initial or any renewal term (or at DSMBI's request at any time this Lease is on a month -to month basis), DSMBI requests the return of the Equipment, Customer will return the Equipment to DSMBI, within five (5) days, at DSMBI's designated address, at Customer's sole cost. Additional charges will apply if DSMBI must return the building and the building's path of removal is blocked, obstructed, utilities are not disconnected, require equipment beyond a truck, or impaired in any way. Missing accessories, attachments or other items, repairs of any kind and restoration to original specifications whether due to Customer alterations or otherwise will remain the sole responsibility of Customer, normal wear and tear excepted. (d) Customer may terminate this Lease prior to the expiration of the Minimum Lease Period, subject to all terms and conditions of this Lease, and the Customer will pay (in addition to tear -down and return charges) the following termination charges: i) If Customer is the first user of the Equipment: the remaining unpaid rental charges for the Minimum Lease Period; ii) If customer is not the first user: The lesser of the remaining term or, (A) if the Minimum Lease Period ("MLP") is less than three (3) rental months, four (4) times the Adjusted Weekly Lease charge ("AWLC"); if the MLP is between three (3) rental months and six (6) rental months, inclusive, eight (8) times the AWLC; if the MLP is more than six (6) rental months but one (1) year or less, twelve (12) times the AWLC; if the MLP exceeds one (1) year, fourteen (14) times the AWLC for each year, or portion thereof, of the portion of the MLP cancelled. iii) The "Adjusted Weekly Lease Charge" or "AWLC" means the Weekly Lease Charge less that portion representing amortization of any delivery, set-up, teardown, return or similar one-time charges and customer -requested modifications not provided as a separate charge under the terms of this Lease (the "Amortized One -Time Costs"). In addition to the termination charges outlined above, Customer will pay in full the unpaid Amortized One -Time Costs and rental for ancillary equipment such as steps, decks, and ramps. In no case will the termination charges be in excess of the rental charge for the remainder of MLP. 8. Indemnification Customer Indemnity: Customer hereby specifically indemnifies, agrees to defend and holds harmless DSMBI, its employees and agents from any and all loss, claims, liabilities, damages, fines, forfeitures, seizures, penalties and expenses (including attorneys' fees and investigative costs) (collectively "Losses") that are caused by Customer or its agents or employees that may arise from or in connection with: (a) The loss of or damage to the Equipment prior to the Return Date because of collision, fire, lightning or theft, flood, windstorm or explosion, civil disturbance or riot or any other peril or casualty; (b) The death of or injury to, including but not limited to, damage to the property of, any person (other than the Equipment) as a result of, in whole or in part, the use or condition prior to the Return Date of the Equipment; (c) Any act or omission of Customer in violations of this Lease; (d) The actual or alleged storage maintenance, use, handling, repair, or operation of the Equipment, prior to the Return Date, including but not limited to any failure to use anchor straps, any work done on, or any materials supplied to or in connection with operation, maintenance, possession or storage of the Equipment and any loss or damage to anything stored in any of the Equipment; and (e) Any damage to Customer's property or the property of any third parties incurred during or in connection with the fulfillment or Customer's obligations by or on behalf of DSMBI or the repossession or return of Equipment by DSMBI in accordance with the terms of this Lease. DSMBI Indemnity: DSMBI hereby specifically indemnifies, agrees to defend and holds harmless Customer, its employees and agents from any and all loss, claims, liabilities, damages, fines, forfeitures, seizures, penalties and expenses (including attorneys' fees and investigative costs) (collectively "Losses") that are caused by DSMBI or its agents or employees that may arise from or in connection with: (a) The loss of or damage to the Equipment prior to the Return Date because of collision, fire, lightning or theft, flood, windstorm or explosion, civil disturbance or riot or any other peril or casualty; (b) The death of or injury to, including but not limited to, damage to the property of, any person (other than the Equipment) as a result of, in whole or in part, the use or condition prior to the Return Date of the Equipment; (c) Any act or omission of Customer in violations of this Lease; (d) The actual or alleged storage maintenance, use, handling, repair, or operation of the Equipment, prior to the Return Date, including but not limited to any failure to use'anchor straps, any work done on, or any materials supplied to or in connection with operation, maintenance, possession or storage of the Equipment and any loss or damage to anything stored in any of the Equipment; and 3 of 5 (e) Any damage to Customer's property or the property of any third parties incurred during or in connection with the fulfillment or Customer's obligations by or on behalf of DSMBI or the repossession or return of Equipment by DSMBI in accordance with the terms of this Lease. The obligations contained in this Section 8 will survive expiration or termination of the term of this Lease and the Return Date. The indemnifications contained in this Section 8 will apply to Losses whether they are asserted before or after the Return Date. 9. Insurance Customer Insurance: (a) Customer, at Customer's sole cost, will procure and keep in full force and effect, from the initial delivery date until the return of all Equipment the following policies of insurance satisfactory to DSMBI as to the insurer and as to the form and amount of coverage, with premiums prepaid: i) Commercial General Liability Insurance with a minimum combined single limit of $1,000,000 per occurrence, written on an occurrence form, including coverage for premises, operations, contractual liability, broad form property damage, independent contractors and personal injury liability naming DSMBI as an additional insured. ii) Commercial Property Insurance protecting against all loss and damages, at full replacement cost, sustained or suffered due to the loss of or damage to the Equipment as a result of collision, fire, lightning, theft, flood, windstorm, explosion or any other casualty, naming DSMBI as a loss payee, with a maximum deductible of $500. (b) Customer will deliver certificates evidencing all such insurance to DSMBI within fourteen (14) days after delivery of the Equipment to Customer's site, time being of the essence; except that, if Customer elects to enroll in the Damage Waiver Option, Customer will not have to deliver certificates of insurance to DSMBI for the type of risks covered by the Damage Waiver Option as elected by Customer. Each certificate will state that such insurance will not terminate or be materially changed without thirty (30) days' prior written notice to DSMBI. (c) If Customer fails to deliver the insurance certificate as required by paragraph (b) on the date required, Customer will be in default under this Lease. In addition to all the other remedies for default under this Lease, DSMBI may (i) impose upon Customer a one-time fee for insurance processing of One Hundred Dollars ($100) and (ii) assess as additional rent an uninsured lessee fee of ten percent (10%) of the monthly rental from the start of the lease term until the required insurance certificate is delivered to DSMBI. (d) Obtaining insurance as described above will not affect Customer's obligations and indemnities under this Lease, and the loss, damage to, or destruction of any of the Equipment will neither terminate this Lease nor, except to the extent that DSMBI is actually compensated by insurance paid for by Customer, relieve Customer of any of Customer's liability under this Lease. DSMBI Insurance: DSMBI shall take out and maintain during the term of this Agreement, insurance coverage as set forth in Exhibit A attached hereto and incorporated by reference. 10. Damage Liability Waiver (a) In certain circumstances, Customer may choose to accept a Damage Waiver Option to cover damage to the Equipment (the "Damage Waiver Option"). If the Damage Waiver Option is available and Customer, in writing prior to delivery of the Equipment to the site, elects to enroll in the Damage Waiver Option, then, Section 10(b) will apply. (b) If the Damage Waiver Option is properly elected and so long as Customer timely pays the additional fee specified for such Damage Waiver Option, Customer will not be required, under the terms of this Lease, to carry any additional commercial property insurance as required by Section 9(a) (ii) and Customer will not be liable to DSMBI in excess of $500 per unit of Equipment for loss or damage specified in Section 8(a), except customer will not be relieved of liability if Customer violates any other provision of this Lease or if damage results from theft, vandalism, negligence, misuse or abuse. THE DAMAGE WAIVER IS NOT INSURANCE COVERAGE. (c) Either party may cancel customer's acceptance of the Damage Waiver Option, or fees for the Damage Waiver Option maybe changed upon thirty (30) days prior written notice. If the Damage Waiver Option is, for any reason, cancelled, Customer will provide to DSMBI evidence of policies of insurance as set forth in Section 9 (a) (ii), as appropriate, within ten (10) days prior to the effective date of such cancellation. (d) The limitation of liability under the Damage Waiver Option does not extend to the transportation of Equipment or its contents, or to steps, decks and ramps and, only extends to Equipment installed on ground level with properly installed tie -down anchors. (e) The Damage Waiver Option will not be binding upon DSMBI unless any loss, damage, injury or claim is reported to DSMBI in writing within seventy-two (72) hours of the occurrence of any such event. Customer will also provide any information in regard to such event that DSMBI reasonably requests. 11. Default The occurrence of one or more of the following in clauses (a) -(e) below will constitute an Event of Default under this Lease: (a) Customer fails to pay when due any rental payment or any other payment due under this Lease or fails to perform its obligations under Section 9 of this Lease: (b) Customer fails to perform or observe any other term or condition under this Lease and such failure remains unremedied for more than ten (10) days after such failure to perform or observe; (c) Customer or any person or entity which controls more than fifty percent (50%) of Customer's equity (a "Control Person") or any guarantor of any of Customers obligations hereunder (a"Guarantor") (i) becomes insolvent, (ii) becomes subject to any voluntary or involuntary bankruptcy or reorganization proceedings, (iii) commits an act or bankruptcy, (iv) admits in writing its inability to pay its debts as they become due or (vii) enters into any type of voluntary or involuntary liquidation or dissolution; (d) Customer, any Control Person or any Guarantor defaults under any other agreement with DSMBI or any affiliate of DSMBI; and (e) Any letter of credit, guaranty or other security given to secure the performance of Customer's obligations under this Lease expires, terminates or in the reasonable opinion of DSMBI becomes worthless. Upon the occurrence of an Event of Default, DSMBI will have the option to declare the entire balance of rent for the remainder of the stated lease term immediately due and payable and to accelerate and make immediately due and payable any other amounts owing under this Lease. DSMBI will also have the option to retake and retain any or all of the Equipment free of all rights of Customer without any further liability or obligation to redeliver any of the Equipment to Customer, and Customer hereby grants DSMBI the right to enter upon any premises where all or any of the Equipment is located in order to take possession of and remove such Equipment. (Notwithstanding the foregoing, if an Event of Default occurs under clause (c) above, such accelerations will occur automatically without the need for declaration.) Customer will pay to DSMBI's on demand all fees; costs and expenses incurred by DSMBI in enforcing its all other remedies provided in the 4of5 Lease or exist in at law or in equity. No action taken by DSMBI pursuant to this Section 11 or Section 13 will release Customer from Customer's covenants, obligations and indemnities provided under this Lease, including but not limited to Customer's obligation for the payment of rentals provided in the Lease. If DSMBI retakes possession of the Equipment or any part of the Equipment and there is at the time of such retaking, in upon or attached to such repossessed Equipment, any other property, goods or things of value owned by Customer or in the custody or control of Customer, DSMBI is authorized to take possession of such other property, goods or things and hold the same for Customer, at Customer's sole cost, either in DSMBI's possession or in public storage, at DSMBI's sole discretion. 12. DSMBI's RIGHT TO CURE If Customer defaults in any of its obligations under this Lease, whether or not an Event of Default then exists, DSMBI may pay all amounts or perform or cause to be performed all obligations required to be paid or performed by Customer under this Lease and recover from Customer as additional rent all amounts so paid or the reasonable value of all services so performed. 13. Set-Off Without limiting any other provision of this Lease, upon the occurrence of an Event of Default, DSMBI will have the immediate right, without notice, demand or other action, to set-off against Customer any amounts DSMBI may hold as prepayments or deposits for DSMBI liabilities to Customer whether or not then due to Customer. Unless otherwise prohibited by law, DSMBI will be deemed to have exercised such right to set-off and to have made a charge against any such sums immediately upon the occurrence of any Event of Default by Customer. 14. Assignment, Amendment, Modification, Miscellaneous (a) Customer will not have the right to assign this Lease or to sublet, rent or otherwise hire out or transfer possession of any of the Equipment to any person or entity other than DSMBI, without the prior written consent of DSMBI. DSMBI may assign this Lease and the rentals reserved under this Lease. If DSMBI makes such an assignment, the assignee will acquire all rights and remedies possessed by or available to DSMBI under this Lease. (b) This Lease contains the entire agreement between the parties pertaining to the subject matter of this Lease. No agreements, representations or understandings not specifically contained in this Lease will be binding upon any of the parties hereto unless reduced to writing and signed by the parties to be bound thereby. Any amendment, modification or addendum to this Lease will not by binding on DSMBI unless signed by an authorized officer of DSMBI. This Lease will be governed as to its construction, interpretation and effect by the laws of the State of Califomia without regard to principles of choice of laws. (c) In the event of any legal action or other proceeding between the parties regarding this Agreement, the prevailing party shall be entitled to the payment by the losing party of its reasonable attorneys' fees, court costs and litigation expenses, as determined by the court. 5 of 5 EXHIBIT A Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this contract, insurance coverage as listed below. These insurance policies shall protect the Contractor and any subcontractor performing work covered by this contract from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this contract, whether such operations be by Contractor or by any subcontractor or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: COMPREHENSIVE GENERAL LIABILITY 2. COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Ea. Occurrence $1,000,000 Bodily Injury - Ea. Person $1,000,000 Bodily Injury - Ea. Occurrence $2,000,000 Aggregate $1,000,000 Property Damage - Ea. Occurrence NOTE: Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95241-1910; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oject that it is insuring. A copy of the certificate of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed Boards, Commissions, Officers, Agents, Employees, and Volunteers as additional named insureds. (This endorsement shall be on a form furnished to the City and shall be included with Contractor's policies.) (b) Primary Insurance Endorsement Such insurance as is afforded by the endorsement for the Additional Insureds shall apply as primary insurance. Any other insurance maintained by the City of Lodi or its officers and employees shall be excess only and not contributing with the insurance afforded by this endorsement. (c) Completed Operations Endorsement For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 070 04, will be provided to the City of Lodi. (d) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (e) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 W. Pine St., Lodi, CA 95240. Compensation Insurance The Contractor shall take out and maintain during the life of this contract, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this contract at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 W. Pine St., Lodi, CA 95240. A Waiver of Subrogation against the City of Lodi is required. NOTE: No contract agreement will be signed nor will any work begin on a project until the proper insurance certificate is received by the City. City Of Lodi Fire Station 2 Temporary Quarters March 2013 Budget Item Amount Construction Site Acquisition (None) $0 Wastewater Connection Fee $0 Impact Mitigation Fees $0 RTIF Fees $0 Installation of w/ww service (Estimated) $24,000 Utility Services (PG&E, EUD) $10,000 COG Habitat Fees $0 Lease Amount (Total) $90,876 Plan Check/Permit Fee (Building Dept.) $2,500 Plan Check/Permit Fee (Public Works) $1,500 Plan Printing Costs (Stockton Blue) $0 Project Management (City Staff) $3,000 Copy/Shipping Expenses Estimate $0 Environmental Inspection $0 Construction Total $131,876 Equipment Purchase Budget None $0 Equipment Total $0 Engineering Services Amount None $0 Engineering Total $0 Total $131,876 Project Contingency $8,124 Project Total Budget $140,000 6% K:\WP\PROJECTS\MISC\FireSta2\FS 2 temp quarters Project Budget CC.xls 02/20/2013 RESOLUTION NO. 2013-32 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING AND AUTHORIZING CITY MANAGER TO EXECUTE LEASE AGREEMENT FOR TEMPORARY MODULAR BUILDING FOR FIRE STATION NO. 2 WHEREAS, Fire Station No. 2 was constructed in 1982 and, due to a leaking roof; mold; persistent rat infestations; and other building -related issues, living and working conditions have deteriorated to the point where the building has become unsuitable for occupancy; and WHEREAS, on December 19, 2012, Council authorized the purchase of property located at 16 and 40 South Cherokee Lane as the new location for constructing the replacement fire station. Planning and design phases are underway, but while construction of the replacement fire station is taking place, crews will need temporary quarters to conduct operations; and WHEREAS, staff recommends executing a 24 -month lease agreement with Design Space Modular Building, Inc., of Dixon, California, which includes modular building rental, delivery, installation, setup, and removal. NOW; THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve a lease agreement for a temporary modular building for Fire Station No. 2 with Design Space Modular Buildings, Inc., of Dixon, California, in the amount of $90,876; and. BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager to execute the lease agreement. Dated: March 6, 2013 I hereby certify that Resolution No. 2013-32 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 6, 2013, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None !R&AOHL City Clerk 2013-32