2020/11/08 New Hub Properties, LLC Amendment 6, change to 'option to renew' DocuSign Envelope ID: F75D75F3-521 E-49C6-BFD5-68808837E729 A&
MENIFEE
CITY OF MENIFEE
Agreement/contract coversheet
DATE: December 8, 2020
TO: Armando G.Villa,City Manager ^�'t
CC: Department Date Initials
Wendy Preece, Deputy Finance Director 2/8/2020 °s
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Rochelle Clayton, Deputy City Manager 2/8/2020 GCS
Jeffrey T. Melching, City Attorney 2/8/2020 9hfa
Sarah A. Manwaring, City Clerk 2/8/2020 Sa&,CC
Agreement Routed to City Attorney: 12/5/2020(Via email,attached)
REQUIREMENTSINSURANCE
CATEGORY APPLICABLE NOT WAIVED EXPIRATION
APPLICABLE DATE
General Liability ❑ ® ❑
Automobile Liability ❑ ® ❑
Worker's Compensation ❑ ® ❑
Professional Liability ❑ ® ❑
Other: ❑ ❑ ❑
Other: ❑ ❑ ❑
APPROVED/REVIEWED BY RISK Do Sign.d by:
MANAGEMENT(R.Cardenas, Risk Manager): Ebbw (aV'h"s
FROM: Imelda Huerta, Sr. Management Analyst is
Margarita Cornejo, Financial Services Manager �
SUBJECT: Amendment No. 6 to Commercial Lease Between New Hub Properties, LLC and the City of
Menifee of Menifee PD Headquarters (29714 Haun Menifee Rd, CA 92586)
IS THE AGREEMENT/CONTRACT WITHIN THE CITY MANAGER'S SIGNATURE AUTHORITY?
❑Yes—❑ Purchase of Commodities under$50,000 ❑ Professional Services under$25,000
❑ Change Order under$25,000 or less than 10%of original contract(supplies, equipment,services
or construction contracts)
❑ Public Works Contract for$60,000 or less
❑ No—City Council authorized City Manager to sign (Council action attached)
® Other—Amendment to existing Commercial Lease Agreement
WHY IS THIS AGREEMENT/CONTRACT NEEDED?
This lease agreement amendment(Amendment No. 6) provides clarification that the current lease provides includes
four(4) successive five (5) year terms in the option to renew granted by Landlord to Tenant under Section 35 of the
Lease, formally authorizing the lease through 2034, at the discretion of choosing to extend in five year extension
increments.
The next optional renewal will be April 2024,and require the City to notify the tenant at least 180 days(October 1,
2023) before expiration of its intent to renew through 2029.
*Please attached a second page for additional information to support this agreement.
DocuSign Envelope ID: F75D75F3-521E-49C6-BFD5-68808837E729
WHAT IS THE TOTAL LENGTH OF THE AGREEMENT/CONTRACT?
The existing lease is set to go through April 2024.Amendment No. 6 allows extensions through 2033.
WHAT IS THE TOTAL DOLLAR AMOUNT OF THE AGREEMENT/CONTRACT?
N/A
HOW WAS THE VENDOR/CONSULTANT/CONTRACTOR DECIDED ON?
New Hub Properties, LLC is the existing landlord of the Menifee PD HQ property
Supplies/Equipment/Maintenance/Construction Prior Contract/Experience with the City
❑ $5,000-$49,999—Three Written Quotes ❑ Yes
❑ Over$50,000—Competitive Bidding and Formal Proposals
Public Works Projects Professional Services
❑ Under$60,000—Purchase Order, Contract (Prudent Judgement) ® Under$25,000—City Manager
❑ $60,000-$200,000—Informal Bidding Process ❑ over$25,000—City Council Approval
❑ Over$200,000—Formal Bidding Required
WHERE ARE THE FUNDS COMING FROM?
N/A
WHAT GENERAL LEDGER ACCOUNT NUMBER SHOULD BE USED FOR THE PURCHASE ORDER?
N/A
IS THERE SUFFICIENT BUDGET? WHAT IS THE AVAILABLE BUDGET?
N/A
ATTACHMENTS
- CONTRACT/AMENDMENT
- CERTIFICATES OF INSURANCE (N/A)
- EMAIL TO CITY ATTORNEY FOR REVIEW/APPROVAL
- EXPENDITURE STATUS REPORT (AVAILIBILITY OF FUNDS)(N/A)
2
DocuSign Envelope ID: F75D75F3-521 E-49C6-BFD5-68808837E729
AMENDMENT NO. 6 TO COMMERCIAL LEASE BETWEEN
NEW HUB PROPERTIES, LLC
AND THE CITY OF MENIFEE
This Amendment No. 6 ("Sixth Amendment") is entered into on this 8th day of Novem-
ber, 2020 ("Effective Date") by and between the CITY OF MENIFEE, a California municipal cor-
poration, ("Tenant") and NEW HUB PROPERTIES, a Limited Liability Company ("Landlord').
RECITALS
A. Landlord and Tenant previously entered into that certain Commercial Lease dated Octo-
ber 1, 2008 ("Lease").
B. City and Landlord now desire to clarify that the Lease includes four (4) successive five (5)
year terms in the option to renew granted by Landlord to Tenant under Section 35 of the
Lease.
AMENDMENT TO LEASE
Based upon the foregoing Recitals, which are incorporated herein by this reference, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Landlord and Tenant hereby agree as follows:
1. The first paragraph of Section 35 of the Lease is amended to state as follows, with
revised language shown in bold and italics:
"35 OPTION TO RENEW. In the event that Tenant shall not be in default hereun-
der, Tenant shall have the right not earlier than one hundred eighty (180) days
prior to the date of the expiration of the term of this Lease, and not later than thirty
(30) days prior to the date of expiration of the term of this Lease, to renew the term
of this lease for an additional four(4) successive five (5) year terms from the date
of expiration of the term of this lease as outlined hereinafter. Such election shall
be made by Tenant by serving upon the Landlord a notice in writing to the effect
that Tenant elects to renew and extend the term of this Lease for such extended
term. Except for the re-determination of rental in accordance with this paragraph,
all terms and conditions of the original Lease agreement shall apply to any ex-
tended term."
2. Except as modified in Paragraph 1 of this Sixth Amendment, all other terms and
conditions of the Lease remain in full force and effect.
3. This Agreement may be executed in multiple counterparts, each of which shall be
an original and all of which together shall constitute one agreement.
CITY OF MENIFEE/TENANT NEW HUB PROPERTIES/LANDLORD.
F�Dll"Sig"Id by: DocuSigned by:
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Armando Villa, City Manager Li to I son
DocuSign Envelope ID: F75D75F3-521 E-49C6-BFD5-68808837E729
AMENDMENT NO. 6 TO COMMERCIAL LEASE BETWEEN
NEW HUB PROPERTIES, LLC
AND THE CITY OF MENIFEE
[Signatures continue on following page]
Attest:
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Sarah Manwaring, City Clerk
Approved as to Form:
DocuSigned by:
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Jeffrey Melching, City Attorney