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HomeMy WebLinkAbout11069ORDINANCE NO. 11069 AN ORDINANCE APPROVING A SUBLEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE PUEBLO DEPOT ACTIVITY DEVELOPMENT AUTHORITY, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Sublease Agreement between the City of Pueblo, a Colorado Municipal Corporation, and the Pueblo Depot Activity Development Authority, a copy of which is attached hereto ("Agreement"), having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is authorized to execute and deliver the Agreement in the name of the City of Pueblo and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The officers of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 14, 2025. Final adoption of Ordinance by City Council on October 27, 2025. ____________________________ President of City Council Action by the Mayor: Approved on _______________. Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ____________, on _____________ ____________________________ President of City Council ATTEST ________________________________ City Clerk City Clerk's Office Item # S9 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 27, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE APPROVING A SUBLEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE PUEBLO DEPOT ACTIVITY DEVELOPMENT AUTHORITY, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: This Ordinance approves a sublease agreement between the City and the Pueblo Depot Activity Development Authority for the City's use of facilities at PuebloPlex. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The City has entered into a contract to sell a property located at 33580 United Ave. to Trussworks, LLC a company that has entered into an economic development agreement with the City to establish a manufacturing facility at that location. That properly currently houses impounded vehicles held by the Pueblo Police Department which must be relocated prior to the property being conveyed to Trussworks. Staff has coordinated a proposed lease agreement with the Pueblo Depot Activity Development Authority for use of a 45,000-square foot warehouse that would be suitable for securely storing the impounded vehicles. FINANCIAL IMPLICATIONS: Under the terms of the proposed lease, the City will pay $33,750 quarterly ($135,000 annually) for use of the warehouse facility plus utilities as well as the cost for installing and maintaining any security systems that may be required. It is intended that the lease will be executed once the ordinance is approved with an estimated effective date for the agreement on or about November 1, 2025. Funds for the lease payments in 2025 will be paid from salary savings within the 2025 Police Department operating budget. Funds for the 2026 lease payments will be paid from the 2026 Police Department operating budget, subject to appropriation by City Council. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the City of Pueblo will not be able to execute the PuebloPlex lease, delaying the Trussworks economic development project. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Tenant Building Sublease 2025 Control Number No. DACA45-1-18-6039-XXX PUEBLO DEPOT ACTIVITY DEVELOPMENT AUTHORITY SUBLEASE THIS SUBLEASE, is entered into by and between the Pueblo Depot Activity Development and, a corporation, WITNESSETH: The Secretary of the Army, on behalf of the United States (hereinafter referred to as the e, Section 2667, has leased the document and pursuant to the authority contained in that Lease and Section 29-23-108, Colorado Revised Statutes, hereby subleases the Subleased Premises to the Sublessee. 1.SUBLEASED PREMISES a.In exchange for the consideration provided herein, and subject to the terms and conditions set forth herein, PuebloPlex does hereby sublease to the Sublessee the following County of Pueblo, State of Colorado, to wit: REAL PROPERTY AND INSTALLED PERSONAL PROPERTY Associated Rent Building No. Description Square Feet Land Per Annum 590 Building 45,000 N/A $ Rental rate to increase annually by 1% starting on 1/1/2. PERSONAL PROPERTY NOT INSTALLED Inventory # Description Rent Per Annum N/A : Exempt_ RENT, SECURITY, TAXES, IMPROVEMENTS, UTILITIES AND SERVICES As consideration for this Sublease, Sublessee will pay rent quarterly to PuebloPlex for the above-describedreal property and personal property in the rent amounts indicated above. Rental for aperiod of less than one year shall be prorated accordingly. Sublessee hereby agrees to the following Property Taxes, Tenant Improvement, and Utilities and 1 Rev. 05/25 Services terms: Security Deposit: None Property Taxes: $tax annually to be paid by Sublessee. Sublessee will Tenant Improvements: provide all property improvements, if needed, including utility connections at sole expense. Sublessee will be responsible for electricity charges at Utilities and Services: a reduced rate until Chemical Materials Activity (CMA- West) formerly Pueblo Chemical Depot (PCD) closure. CMA West will provide security and emergency services until CMA West closure. Rental payments shall be made payable to the order of the Pueblo Depot Activity Development Authority (PuebloPlex) and delivered to 45825 CO HWY 96 E, Building 46N, Pueblo, Colorado 81006. All rent payments are due at the beginning of lex. Any rent or other debt not paid to PuebloPlex within 30 days of its due date is considered to be a late payment. PuebloPlex may, but is not required to, send notice(s) of rent due, or any other debt owed by Sublessee to PuebloPlex. Upon receipt of any such notice, Sublessee will remit payment to PuebloPlex so that PuebloPlex receives payment within 30 days of any such notice sent. Late payment of rent and other debts owed to PuebloPlex by the Sublessee will be subject to a late charge of 10%, plus all recoverable administrative and legal costs, such late payments and penalties. All penalties will continue to accrue from the date due until the debt is paid in full. All payments received will be applied first to any accumulated late charges, then administrative and legal expenses and costs, and lastly to the unpaid rental or other payment balance. Any dishonored checks from Sublessee to PuebloPlex for payment of rent or other debts will be subject to a $50.00 charge. TERM The initial term of this Lease shall , Initial Term this Lease renews for successive renewal terms of twelve (12) months each,commencing on January 1 and expiring on December 31 of each lease year until RenewalTerm Term The Sublessee shall have the nonexclusive option to extend the original term of this Sublease for a successive one-year terms, but as a maximum, such terms shall end the 30th day of November, 2027. Upon theexpiration of the last term ending November 30, 2027, the parties may enter into goodfaith negotiations to offer the Sublessee additional one (1) year options for five (5) moreconsecutive years for the Subleased Premises provided the Master Lease between 2 Rev. 05/25 PuebloPlex and the United States Army has been extended beyond November 30, 2027, and/or the property has been transferred to PuebloPlex. If the Sublessee desires to terminate this Sublease, it shall give written notice to PuebloPlexof its desire to terminate the Sublease at least one hundred and twenty (120 ) days priorto the time the original term of this Sublease, or any subsequent term expires as statedabove in Paragraph 3. At the time when such notice is given, there shall not be anyuncured event of default on the part of the Sublessee. If PuebloPlex desires to terminate this Sublease, and there has been no defaultby Sublessee as described herein, or termination of the Master Lease asdescribed herein, PuebloPlex shall give written notice of such termination to theSublessee of its desire to terminate this Sublease at least one hundred andtwenty (120) days prior to the time the original term of this Sublease expires, asstated above in Paragraph 3.a., or an extended term expires as provided inParagraph 3.b. Upon termination of this Sublease other than as a result of termination or failureto extend the Master Lease, any structures and/or improvements made on or tothe Subleased Premises shall be completely removed by Sublessee, at less PuebloPlex, in its sole discretion and in writing,agrees that such structures and/or improvements can remain on the SubleasedPremises. Any structures and/or improvements that PuebloPlex determines mayremain on the Subleased Premises shall be deemed owned solely by PuebloPlexupon termination of the Sublease and Sublessee will have no ownership rights orclaims to any such structures and/or improvements. Upon assuming ownershipof such structures and improvements PuebloPlex shall assume responsibility forall prospective costs and expenses associated with such structures andImprovements and all prospective liability arising in connection with suchstructures and improvements. In addition, the original term of this Sublease, as well as the nonexclusive optionto extend the term of this Sublease, is specifically subject to there being no eventof default or termination of the Master Lease between the Secretary andPuebloPlex whether caused by default of its provisions by the Sublessee,PuebloPlex, or simply due to the authority of the Secretary to terminate the Leasefor reasons other than default. PuebloPlex agrees to provide Sublessee withcopies of any notices of default received by PuebloPlex with respect to the MasterLease. 4.USE AND ACCESS OF THE SUBLEASED PREMISES a.The sole purposes for which the Subleased Premises and any improvements thereon may part hereof. In addition, Sublessee understands and agrees that background checks are conducted when access is requested for the Sublessee, its agents, guests, or associates and access may be denied. (See Exhibit 3, attached hereto and made a part hereof.) 5.MASTER LEASE CONDITIONS 3 Rev. 05/25 a.The Master Lease is incorporated herein by this reference. This Sublease is subject to the terms and conditions of the Master Lease. Approval of this Sublease by the District Engineer or his authorized representative does not modify and/or delete any of the terms and conditions of the Master Lease. Further, any conflicts between the terms and conditions of the Master Lease and the terms and conditions of the Sublease will be resolved in favor of the Master Lease. b.ase of the Subleased from, and governed by, the conditions set forth in its Master Lease with the Secretary. It is the intent and purpose of this Condition No. 5 to bind and obligate the Sublessee to compliance with said conditions to the same extent as PuebloPlex is bound and obligated hereunder. All rights of the Sublessee in and to the Subleased Premises are acknowledged by the Sublessee to be limited by and shall be no greater than those of PuebloPlex derived from the Master Lease. c. retation of this Sublease. d.As between PuebloPlex and Sublessee only, the following terms and conditions of the Master Lease are clarified: No. 2. Condition 2.a. is applicable to the Sublessee, but conditions 2.b. and 2.c. are not applicable to the Sublessee. No. 4. The Sublessee shall have no authority to terminate the Master Lease, it being understood that this authority is retained exclusively by the Secretary and PuebloPlex. This Sublease may not be terminated or relinquished by the Sublessee except under such terms and conditions as may be mutually agreeable to in this Sublease or another written document agreed to between PuebloPlex and Sublessee and signed by both parties. In no event shall rent paid as consideration be returned to the Sublessee if No. 5 is not applicable to the Sublessee. No. 6. All notices, communications and correspondence given pursuant to this sublease , shall be in writing and addressed as set forth below in Paragraph 10. No. 9. PuebloPlex and the Sublessee have performed a joint inventory and condition survey of the Subleased Premises prior to the Sublessee occupying the Subleased Premises. Upon the expiration, revocation or termination of this Sublease, a closeout inventory and condition survey shall be prepared by PuebloPlex and the Sublessee. All significant variances from the initial survey shall be clearly documented in a closeout report prepared by PuebloPlex. This closeout report shall constitute the basis for settlement between the parties hereto for any 4 Rev. 05/25 of the Subleased Premises shown to be lost, damaged, contaminated, or destroyed during the term of the Sublease. Also, the Sublessee shall be liable to PuebloPlex in the amount and to the same extent as PuebloPlex will be liable to the United States Government. No. 10. In addition, prior written consent of PuebloPlex is required in advance of any proposed transfers, assignments, or subleasing by Sublessee. No. 11. The Sublessee hereby agrees to and specifically accepts the obligation to pay the provider for the cost of utilities, if applicable. No. 13. The Sublessee shall be responsible for the acquisition and premium payments for all insurance required in Master Lease Condition No. 13. Furthermore, the Sublessee acknowledges that neither the Secretary nor PuebloPlex have insurance coverage of Subleased Premises contents owned by desires coverage. The Sublessee shall require its insurance company to furnish to PuebloPlex a copy of the policy or policies or certificates evidencing the purchase of such insurance. No. 14. In addition to the rights of the United States to enter the Subleased Premises, as described in Condition 14 of the Master Lease, PuebloPlex shall have an equivalent right to enter the Subleased Premises in connection with its government purposes, including, but not limited to, those obligations of PuebloPlex contained in the provisions of the Master Lease. No. 15. PuebloPlex shall not be responsible for loss or damages to property or injuries or death to persons which may arise from or be incident to the exercise of the rights or privileges herein granted, or for damages to the property of the Sublessee, or for damages to the property or injuries to the person of the Premises at their invitation or the invitation of any one of them, and the Sublessee shallndemnify and hold PuebloPlex harmless from any and all such claims, notincluding damages due to default or negligence of PuebloPlex or its contractors.This indemnification includes, but is not limited to, any claims of third parties arisingout of or from accidents and environmental releases caused by the Sublessee, itsofficers, agents, employees, or invitees. Further, the Sublessee shall indemnifyand hold harmless PuebloPlex from any costs, expenses, liabilities, fines, orpenalties resulting from discharges, emissions, spills, storage, disposal, or anyother action by the Sublessee giving rise to PuebloPlex liability, civil or criminal, or responsibility under the Federal, State, or local environmental laws, including any such liability of PuebloPlex to the United States pursuant to the provisions and conditions of the Master Lease. The Sublessee shall also indemnify and holdharmless PuebloPlex for any other costs, expenses, liabilities, or obligations thatPuebloPlex incurs or is determined to be liable for to the United States pursuant tothe provisions and conditions of the Master Lease due to the activities of theSublessee, its officers, agents, employees, or invitees in connection with thisSublease. Sublessee understands, and hereby agrees, that the provisions of thisCondition 15 shall survive the expiration or termination of this Sublease. No. 16. Rev. 05/25 5 to execute any bill of sale, title, or other documents provided by law to properly transfer clear title to any purchaser of said personal property under the provisions of Paragraph 8 below. No. 22. The provision of this condition shall be applicable only to claims by the Sublessee against PuebloPlex, and, conversely, those claims of PuebloPlex against the Sublessee. Claims between PuebloPlex and the Sublessee shall be resolved in the manner provided for under Colorado law, or as otherwise provided in the terms and conditions of this Sublease. No. 23 . As provided in Condition 15 above, the Sublessee shall be liable for andshall indemnify and hold harmless PuebloPlex for any environmental liabilitiesattributable to the actions of the Sublessee, its officers, employers, agents, orinvitees in connection with this Sublease provided. No. 34. The Sublessee acknowledges that Pueblo County Property Taxes will be levied on the real and personal property of the Subleased Premises if the Sublessee is a taxable entity and the Sublessee agrees to pay these Pueblo County Property Taxes. The Sublessee will cooperate with PuebloPlex and Pueblo County Assessor to determine the assessed value of the Subleased Premises. The Sublessee will pay the estimated Pueblo County Property Taxes annually in advance to PuebloPlex, and PuebloPlex shall hold these funds and pay the Pueblo County Treasurer on or before the date tax payment is due. The estimated Pueblo County Property Taxes for the initial term of the Sublease are as stated above in Paragraph 2. If the actual Pueblo County Property Taxes are less than the estimate, the difference will be returned by PuebloPlex to the Sublessee on or before the date payment is due, unless that difference is less than $50.00. Excess tax payments of less than $50.00 will be retained by PuebloPlex and applied to any subsequent tax obligations or returned to the Sublessee upon the termination or expiration of this Sublease. If the actual Pueblo County Property Taxes are greater than the estimate, the difference will be paid by the Sublessee to PuebloPlex before the payment is due. NORMAL REPAIR AND MAINTENANCE RESPONSIBILITIES PuebloPlex will beresponsible for normal repair and maintenance of: Utilities; Fire sprinkler; Fire alarm; Fire extinguishers (hand held); Heating; Ventilation; and Roof The Sublessee agrees to accept financial responsibility for damage caused to the following: Utilities; Fire sprinkler; Fire alarm; 6 Rev. 05/25 Fire extinguishers (hand held); Heating; and Ventilation. The Sublessee agrees to perform a monthly fire extinguisher inspection and report all bad fire extinguishers to PuebloPlex. Sublessee agrees to be available for monthly PCD Fire Department inspections and perform corrective actions, as required, in a timely matter. If the maintenance or repair of an above-referenced system requires a contractor or person licensed, certified or registered by a Federal, State or Pueblo County law, then PuebloPlex and Sublessee agree to retain only such qualified contractor or person. 7.MODIFICATIONS This Sublease contains the entire Agreement between the parties hereto, and no modification of this Agreement, or waiver, or consent hereunder shall be valid unless the same shall be in writing and signed by the parties. TERMINATION, ABANDONMENT, FAILURE TO PAY, ENFORCEMENT OF LIEN, BREACH/DEFAULT OF SUBLEASE TERMINATIONThe Sublease automatically terminates at the end of the term set forth in above in Paragraph 3 or when the Sublease is in default. Termination does not relieve the Sublessee of its obligation to have all personal property removed on or before the date of termination, nor relieve the Sublessee of any unpaid rent, taxes, and utility charges. Termination does not relieve the Sublessee of any damage to the premises beyond normal wear and tear that occurred during the term of the Sublease. BREACH/DEFAULTBreach of the Sublease occurs when the Sublessee fails to perform any obligation or duty set forth in the Sublease or in CRS Article 21.5. A default of the Sublease occurs when the Sublessee fails to correct any breach in a timely manner. Default can be immediate when the breach is so serious as Rev. 05/25 7 to impose additional risk to either the United States, PuebloPlex, the Sublessee and/or their employees. A serious breach includes, but is not limited to, unsafe operations, unsafe working conditions, environmental contamination or high probability that contamination will occur, absence of required insurance coverage for Workers Compensation, liability, and/or structural damage, storage of contraband, and storage of hazardous materials. PuebloPlex may limit or deny f facility during the period of breach; however, the Sublessee shall be afforded reasonable access to correct the breach and/or remove its personal property. Default is a basis for termination. Notwithstanding anything else herein, should PuebloPlex determine Sublessee has committed a serious breach amounting to an immediate default, PuebloPlex shall promptly provide Sublessee with written notice of such breach describing the basis for its determination. Sublessee shall have five (5) business days from receipt of such notice to provide PuebloPlex with evidence that (1) no breach has occurred or (2) that any breach has been remediated or is in the process of being remediated and that remediation will be completed within a reasonable amount of time, in which case no default shall have occurred. PuebloPlex shall have the release of hazardous materials and/or other environmental contamination shall not be grounds for default if the result of or arising from conditions on the property that preceded the beginning of the sublease term. 9.ACKNOWLEDGEMENT OF EXECUTIVE ORDERS 13658 AND 13706 EXECUTIVE ORDER 13658 a.The parties expressly stipulate this sublease is subject to Executive Order 13658, the regulations issued by the Secretary of Labor in 29 CFR part 10 pursuant to the Executive Order, and the following provisions. b.Minimum Wages, (1)Each worker (as defined in 29 CFR 10.2) engaged in the performance of this contract by the prime contractor or any subcontractor, regardless of any contractual relationship which may be alleged to exist between the contractor and worker, shall be paid not less than the applicable minimum wage under Executive Order 13658. (2)The minimum wage required to be paid to each worker performing work on or in connection with this contract between January 1, 2021, and December 31, 2021, shall be $10.95 per hour (and increasing to $15.00 per hour beginning January 20, 2022). The mini of the applicable minimum wage under section 2(a)(ii) of Executive Order 13658 results in a higher minimum wage. Adjustments to the Order minimum wage under section 2(a)(ii) of Executive Order 13658 will be effective for all workers subject to the Executive Order beginning January 1 of the following year. If appropriate the contracting officer, or other agency official overseeing this contract shall ensure the contractor is compensated only for the increase in labor costs resulting from the annual inflation increases in the Executive Order 13658 minimum wage beginning on January 1, 2018. The Secretary of Labor will publish annual determinations in the Federal Register no later than 90 days before such new wage is to take effect. The Secretary will also publish the applicable minimum wage on www,wdol.gov (or any successor Web site). The applicable minimum wage is incorporated by reference into this lease. 8 Rev. 05/25 (3)The Sublessee shall pay unconditionally to each worker all wages due free and clear and without subsequent deduction (except as otherwise provided by CFR 10.23), rebate, or kickback on any account. Such payments shall be made no later than one pay period following the end of the regular pay period in which such wages were earned or accrued. A pay period under this Executive Order may not be any duration longer than semi- monthly. (4)The Sublessee shall be responsible for the compliance by any contractor or lower-tier subcontractor with the Executive Order minimum wage requirements. In the event of any violation of the minimum wage obligation of this clause, the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. (5)If the commensurate wage rate paid to a worker on a covered contract whose wages are calculated pursuant to a special certificate issued under 29 USC 214, whether hourly or piece rate, is less than the Executive Order minimum wage, the contractor must pay the Executive Order minimum wage rate to achieve compliance with the Order. If the commensurate wage due under the certificate is greater than the Executive Order minimum wage, the Sublessee must pay the 14 (c) worker the greater commensurate wage. c.Withholding. The agency head shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the Sublessee under this or any other Federal lease with the same prime contractor, so much of the accrued payments or advances as may be considered to pay workers the full amount of wages required by Executive Order 13658. d.Contract Suspension/Contract Termination/Contract Debarment. In the event of a failure to pay any worker all or part of the wages due under Executive order 13658 or 29 CFR part 10, or a failure to comply with any other term or condition of Executive Order 13658 or 29 CFR part 10, the contracting agency may on its own action or after authorization or by direction of the Department of Labor and written notification to the Sublessee, take action to cause suspension of any further payment, advance or guarantee of funds until such violations have ceased. Additionally, any failure to comply with the requirements of this clause may be grounds for termination of the right to proceed with the contract work. In such an event, the Government may enter into other contracts or arrangements for completion of the work, charging the contractor in default with any additional cost. A breach of the contract clause may be grounds for debarment as a contractor and subcontractor as provided in 29 CFR 10.52. e.The Sublessee may not discharge any part of its minimum wage obligation under Executive Order 13658 by furnishing fringe benefits or, with respect to workers whose wages are governed by the Service Contract Act, the cash equivalent thereof. f.Nothing herein shall relieve the Sublessee of any obligation under Federal, State, or local law, for the payment of a higher wage to any worker, nor shall a lower prevailing wage under any such Federal, State or local law entitle the lessee to pay less than the $9.30 (or the minimum wage as established each January thereafter) to any worker. g.Payroll Records. (1)The Sublessee shall make and maintain for three years records containing the information specified in paragraphs (g)(1) (i) through (vi) of this section for each worker 9 Rev. 05/25 and shall make the records available for inspection and transcription by authorized representatives of the Wage and Hour Division of the U.S. Department of Labor: (i)Name, address, and social security number. (iii)The rate of rates of wages paid (iv)The number of daily and weekly hours worked by each worker. (v)Any deductions made; and (vi)Total wages paid. (2)The Sublessee shall also make available a copy of the lease, as applicable, for inspection or transcription by authorized representatives of the Wage and Hour Division. (3)Failure to make and maintain or to make available such records for inspection and transcription shall be a violation of 29 CFR part 10 and this lease, and in the case of failure to produce such records, the contracting officer, upon direction of an authorized representative of the Department of Labor, or under its own action, shall take such action as may be necessary to cause suspension of any further payment or advance of funds until such time as the violations are discontinued. (4)The Sublessee shall permit authorized representatives of the Wage and Hour Division to conduct investigations, including interviewing workers at the worksite during normal working hours. (5)Nothing in this clause limits or otherwise modifies the Sublessee recordkeeping obligations, if any, under the Davis-Bacon Act, as amended, and its implementing regulations; the Service Contract Act, as amended, and its implementing regulations; the Fair Labor Standards Act, as amended, and its implementing regulations; or any other applicable law. h.The Sublessee shall insert this clause in all of its covered subcontracts and shall require its subcontractors to include this clause in any covered lower-tier subcontracts. The prime contractor and any upper-tier subcontractor shall be responsible for the compliance by any subcontractor or lower-tier subcontractor with this contract clause. i.Certification of Eligibility. (1) By entering into this contract, the Sublessee (and officials thereof) certifies that neither it (nor he or she) nor any person or firm who has an interest in the Sublessee of the sanctions imposed pursuant to section 5 of the Service Contract Act, section 3(a) of the Davis-Bacon Act, or 29 CFR 5.12(a)(1). (2)No part of this contract shall be subcontracted to any person or firm whose name appears on the list of persons or firms ineligible to receive Federal contracts. (3)The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. 10 Rev. 05/25 j.Tipped employees. In paying wages to a tipped employee as defined in section 3(t) of the Fair Labor Standards Act, 29 U.S.C. 203(t), the contractor may take a partial credit against the wage payment obligation (tip credit) to the extent permitted under section 3(a) of Executive Order 13658. In order to take such a tip credit, the employee must receive an amount of tips at least equal to the amount of the credit taken; where the tipped employee does not receive sufficient tips to equal the amount of the tip credit the contractor must increase the cash wage paid for the workweek so that the amount of cash wage paid and the tips received by the employee equal the applicable minimum wage under Executive Order 13658. To utilize this proviso: (1)The employer must inform the tipped employee in advance of the use of the tip credit; (2)The employer must inform the tipped employee of the amount of cash wage that will be paid and the additional amount by which the employee's wages will be considered increased on account of the tip credit; (3)The employees must be allowed to retain all tips (individually or through a pooling arrangement and regardless of whether the employer elects to take a credit for tips received); and (4)The employer must be able to show by records that the tipped employee receives at least the applicable Executive Order minimum wage through the combination of direct wages and tip credit. k.Antiretaliation. It shall be unlawful for any person to discharge or in any other manner discriminate against any worker because such worker has filed any complaint or instituted or caused to be instituted any proceeding under or related to Executive Order 13658 or 29 CFR part 10, or has testified or is about to testify in any such proceeding. l.Disputes concerning labor standards. Disputes related to the application of Executive Order 13658 to this contract shall not be subject to the general disputes clause of the contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR part 10. Disputes within the meaning of this contract clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the workers or their representatives. m.Notice. The Sublessee must notify all workers performing work on or in connection with a covered contract of the applicable minimum wage rate under the Executive Order. With respect to service employees on contracts covered by the Service Contract Act and laborers and mechanics on contracts covered by the Davis-Bacon Act, the contractor may meet this requirement by posting, in a prominent and accessible place at the worksite, the applicable wage determination under those statutes. With respect to workers performing work on or in connection with a covered contract whose wages are governed by the FLSA, the lessee must post a notice provided by the Department of Labor in a prominent and accessible place at the worksite so it may be readily seen by workers. Contractors that customarily post notices to workers electronically may post the notice electronically provided such electronic posting is displayed prominently on any Web site that is maintained by the contractor, whether external or internal, and customarily used for notices to workers about terms and conditions of employment. n.Hold Harmless and Indemnification. If a duly authorized representative of the United States discovers or determines, whether before or subsequent to executing this contract, that an erroneous determination regarding the applicability of Executive Order 13658 was made, the contractor, to the extent permitted by law, agrees to indemnify and hold harmless the United States, its officers, agents, and employees, for and from any and all liabilities, losses, claims, 11 Rev. 05/25 expenses, suits, fines, penalties, judgments, demands or actions, costs, fees, and damages directly or indirectly arising out of, caused by, related to, resulting from or in any way predicated upon, in whole or in part, the erroneous Executive Order 13658 determination. This includes contractor releasing any claim or entitlement it would otherwise have to an equitable adjustment to the contract and indemnifying and holding harmless the United States from the claims of subcontractors and contractor employees. EXECUTIVE ORDER 13706 a.Executive Order 13706. This sublease is subject to Executive Order 13706, the regulations issued by the Secretary of Labor in 29 CFR part 13 pursuant to the Executive Order, and the following provisions. b.Paid Sick Leave. (1) The Sublessee shall permit each employee (as defined in 29 CFR 13.2) engaged in the performance of this contract by the prime contractor or any Sublessee, regardless of any contractual relationship that may be alleged to exist between the contractor and employee, to earn not less than 1 hour of paid sick leave for every 30 hours worked. The contractor shall additionally allow accrual and use of paid sick leave as required by Executive Order 13706 and 29 CFR part 13. The contractor shall in particular comply with the accrual, use, and other requirements set forth in 29 CFR 13.5 and 13.6, which are incorporated by reference in this contract. (2)The Sublessee shall provide paid sick leave to all employees when due free and clear and without subsequent deduction (except as otherwise provided by 29 CFR 13.24), rebate, or kickback on any account. The contractor shall provide pay and benefits for paid sick leave used no later than one pay period following the end of the regular pay period in which the paid sick leave was taken. (3)The Sublessee shall be responsible for the compliance by any subcontractor or lower- tier subcontractor with the requirements of Executive Order 13706, 29 CFR part 13, and this clause. c.Withholding. The Sublessee shall, upon its own action or upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the prime contractor under this or any other Federal contract with the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay employees the full amount owed to compensate for any violation of the requirements of Executive Order 13706, 29 CFR part 13, or this condition, including any pay and/or benefits denied or lost by reason of the violation; other actual monetary losses sustained as a direct result of the violation, and liquidated damages. d.Contract Suspension/Contract Termination/Contract Debarment. In the event of a failure to comply with Executive Order 13706, 29 CFR part 13, or this clause, the contracting officer may on its own action or after authorization or by direction of the Department of Labor and written notification to the contractor, take action to cause suspension of any further payment, advance, or guarantee of funds until such violations have ceased. Additionally, any failure to comply with the requirements of this condition may be grounds for other contract terminations of the right to proceed with contract work. In such event, the Government may enter into or arrangements for completion of the work, charging the lessee in default with any additional cost. A breach of the contract clause may be grounds for debarment as a contractor and subcontractor as provided in 29 CFR 13.52. 12 Rev. 05/25 e.The paid sick leave required by Executive Order 13706, 29 CFR part 13, and this clause is in addition to the Sublessee- Bacon Act, and a contractor may not receive credit toward its prevailing wage or fringe benefit obligations under those Acts for any paid sick leave provided in satisfaction of the requirements of Executive Order 13706 and 29 CFR part 13. f.Nothing in Executive Order 13706 or 29 CFR part 13 shall excuse noncompliance with or supersede any applicable Federal or State law, any applicable law or municipal ordinance, or a collective bargaining agreement requiring greater paid sick leave or leave rights than those established under Executive Order 13706 and 29 CFR part 13. g.Recordkeeping. (1)Any Sublessee performing work subject to Executive Order 13706 and 29 CFR part 13 must make and maintain, for no less than three (3) years from the completion of the work on the contract, records containing the information specified in paragraphs (i) through (xv)of this section for each employee and shall make them available for inspection, copying, and transcription by authorized representatives of the Wage and Hour Division of the U.S. Department of Labor: (i)Name, address, and Social Security number of each employee; (ii)The employee's occupation(s) or classification(s); (iii)The rate or rates of wages paid (including all pay and benefits provided); (iv)The number of daily and weekly hours worked; (v)Any deductions made; (vi)The total wages paid (including all pay and benefits provided) each pay period; (vii)A copy of notifications to employees of the amount of paid sick leave the employee has accrued, as required under 29 CFR 13.5(a)(2); (viii)A copy of employees' requests to use paid sick leave, if in writing, or, if not in writing, any other records reflecting such employee requests; (ix)Dates and amounts of unpaid sick leave taken by employees (unless a 13706 and 29 CFR part 13 as described in § 13.5(f)(5), leave must be designated in records as paid sick leave pursuant to Executive Order 13706); (x)A copy of any written responses to employees' requests to use paid sick leave, including explanations for any denials of such requests, as required under 29 CFR 13.5(d)(3); (xi)Any records reflecting the certification and documentation the contractor may require an employee to provide under 29 CFR 13.5(e), including copies of any certification or documentation provided by an employee; (xii)Any other records showing any tracking of or calculations related to an employee's accrual or use of paid sick leave; (xiii)The relevant covered contract; (xiv)The regular pay and benefits provided to an employee for each use of paid sick leave; and (xv)Any financial payment made for unused paid sick leave upon a separation from employment intended, pursuant to 29 CFR 13.5(b)(5), to relieve a contractor from the obligation to reinstate such paid sick leave as otherwise required by 29 CFR 13.5(b)(4). (2)(i) If the Sublessee wishes to distinguish between an employee's covered and non-covered work, the contractor must keep records or other proof reflecting such distinctions. Only if the contractor adequately segregates the employee's time will 13 Rev. 05/25 time spent on non-covered work be excluded from hours worked counted toward the accrual of paid sick leave. Similarly, only if that contractor adequately segregates the employee's time may a contractor properly refuse an employee's request to use paid sick leave on the ground that the employee was scheduled to perform non-covered work during the time she asked to use paid sick leave. (ii)If the Sublessee estimates covered hours worked by an employee who performs work in connection with covered contracts pursuant to 29 CFR 13.5(a)(i) or (c), the contractor/subcontractor must keep records or other proof of the verifiable information on which such estimates are reasonably based. Only if the contractor/subcontractor relies on an estimate that is reasonable and based on verifiable information will an employee's time spent in connection with non-covered work be excluded from hours worked counted toward the accrual of paid sick leave. If a contractor estimates the amount of time an employee spends performing in connection with covered contracts, the contractor must permit the employee to use paid sick leave during any work time for the contractor. (3)In the event the lessee is not obligated by the Service Contract Act, the Davis- Bacon Act, or the Fair Labor Standards Act to keep records of an employee's hours worked, such as because the employee is exempt from the FLSA's minimum wage and overtime requirements, and the contractor chooses to use the assumption permitted by 29 CFR 13.5(a)(1)(iii), the contractor is excused from the requirement in paragraph (1)(d) of this section to keep records of the employee's number of daily and weekly hours worked. (4)(i) Records relating to medical histories or domestic violence, sexual assault, or stalking, created for purposes of Executive Order 13706, whether of an employee or an employee's child, parent, spouse, domestic partner, or other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship, shall be maintained as confidential records in separate files/records from the usual personnel files. (ii)If the confidentiality requirements of the Genetic Information Nondiscrimination Act of 2008 (GINA), section 503 of the Rehabilitation Act of 1973, and/or the Americans Disabilities Act (ADA) apply to records or documents created to comply with the record keeping requirements in this lease condition, the records and documents must also be maintained in compliance with the confidentiality requirements of the GINA, section 503 of the Rehabilitation Act of 1973, and/or ADA as described in 29 CFR 1635.9, 41 CFR 60-741.23(d), and 29 CFR 1630.14(c)(1), respectively. (iii)The Sublessee shall not disclose any documentation used to verify the need to use 3 or more consecutive days of paid sick leave for the purposes listed in 29 CFR 13.5(c)(1)(iv) (as described in 29 CFR 13.5(e)(1)(ii)) and shall maintain confidentiality about any domestic abuse, sexual assault, or stalking, unless the employee consents or when disclosure is required by law. (5)The Sublessee shall permit authorized representatives of the Wage and Hour Division to conduct interviews with employees at the worksite during normal working hours. (6)Nothing in this contract clause limits or otherwise modifies the Sublessee recordkeeping obligations, if any, under the Davis-Bacon Act, the Service Contract Act, the Fair Labor Standards Act, the Family and Medical Leave Act, Executive Order 13658, their respective implementing regulations, or any other applicable law. 14 Rev. 05/25 h.The Sublessee shall insert this condition in all of its covered subcontracts and shall require its subcontractors to include this condition in any covered lower-tier subcontracts. i.Certification of Eligibility. (1) By entering into this contract, the contractor (and officials thereof) certifies that neither it (nor he or she) nor any person or firm who has an interest in the contract is a person or firm ineligible to be awarded Government contracts by virtue of the sanctions imposed pursuant to section 5 of the Service Contract Act, section 3(a) of the Davis- Bacon Act, or 29 CFR 5.12(a)(1). (2)No part of this contract shall be subcontracted to any person or firm whose name appears on the list of persons or firms ineligible to receive Federal contracts currently maintained on the System for Award Management Web site, http://www.SAM.gov. (3)The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. j.Interference/Discrimination. (1) The Sublessee may not in any manner interfere with an employee's accrual or use of paid sick leave as required by Executive Order 13706 or 29 CFR part 13. Interference includes, but is not limited to, miscalculating the amount of paid sick leave an employee has accrued, denying or unreasonably delaying a response to a proper request to use paid sick leave, discouraging an employee from using paid sick leave, reducing an employee's accrued paid sick leave by more than the amount of such leave used, transferring an employee to work on non-covered contracts to prevent the accrual or use of paid sick leave, disclosing confidential information contained in certification or other documentation provided to verify the need to use paid sick leave, or making the use of paid sick leave contingent on the employee's finding a replacement worker or the fulfillment of the contractor's operational needs. (2)A Sublessee may not discharge or in any other manner discriminate against any employee for: (i)Using, or attempting to use, paid sick leave as provided for under Executive Order 13706 and 29 CFR part 13; (ii)Filing any complaint, initiating any proceeding, or otherwise asserting any right or claim under Executive Order 13706 and 29 CFR part 13; (iii)Cooperating in any investigation or testifying in any proceeding under Executive Order 13706 and 29 CFR part 13; or (iv)Informing any other person about his or her rights under Executive Order 13706 and 29 CFR part 13. k.Waiver. Employees cannot waive, nor may Sublessee induce employees to waive, their rights under Executive Order 13706, 29 CFR part 13, or this condition. l.Notice. The Sublessee must notify all employees performing work on or in connection with a covered contract of the paid sick leave requirements of Executive Order 13706, 29 CFR part 13, and this clause by posting a notice provided by the Department of Labor in a prominent and accessible place at the worksite so it may be readily seen by employees. Lessees that customarily post notices to employees electronically may post the notice electronically, provided such electronic posting is displayed prominently on any Web site that is maintained by 15 Rev. 05/25 the contractor, whether external or internal, and customarily used for notices to employees about terms and conditions of employment. m.Disputes concerning labor standards. Disputes related to the application of Executive Order 13706 to this contract shall not be subject to the general disputes clause of the contract. Such disputes shall be resolved in accordance with the procedures of theDepartment of Labor set forth in 29 CFR part 13. Disputes within the meaning of this contract provision include disputes between the contractor (or any of its subcontractors) and the contracting officer, the U.S. Department of Labor, or the employees or their representatives. 10.NOTICE (a)All notices for Sublessee will be sent to: Attn: 1 Email: (b)All notices for PuebloPlex will be sent to: Pueblo Depot Activity Development Authority dba: PuebloPlex 45825 CO-HWY 96 E Building 46N Pueblo, CO 81006 Email: hq@puebloplex.com 11.CONDITION 11. AUTOMATIC RENEWAL OF SUBLEASED PREMISES will remain the same with the following change: Sublessee agrees and understands that should Sublessee not wish to continue to rent the Subleased Premises, The Sublessee shall notify PuebloPlex in writing 30 days in advance of intent of non-renewal. THIS SUBLEASE is executed by PuebloPlex this _______ day of ____________, 2025. By:________________________________ Title:_______________________________ THIS SUBLEASE is executed by this _______ day of _________________,2025. By:________________________________ Title:_______________________________ 16 Rev. 05/25