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HomeMy WebLinkAboutCaltrans - State of California Department of Transportation - 1999-04-199 Hlr. as- edd 10 (4) bat14-/- acovoe-l- Council/Agency Meeting Held: �I/9 If to: 7rred/Continued Approved ❑ Conditionally Approved ❑ Denied UlY i Clerk's Signature Council Meeting Date: April 19, 1999 Department ID Number: ED 99-19 ,41v re., & Del4o / n-#t4 's CITY OF HUNTINGTON BEACH aivm ry ��- a�✓ �s-/ REQUEST FOR COUNCIL ACTION -1ze,ene °,- o"A4, SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administratora2,Q,� PREPARED BY: DAVID C. BIGGS, Economic Development D' to RON HAGAN, Community Services Directo pw SUBJECT: Approval of Lease with Caltrans for the Relocation of the Beach Maintenance Facility to the Caltrans Maintenance Yard on Beach Blvd. Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: In order to facilitate the redevelopment of the Waterfront expansion, the City has an obligation to relocate the beach maintenance yard. Caltrans has agreed to lease its empty maintenance yard on Beach Boulevard to the City of Huntington Beach for the interim relocation of the Beach Maintenance Yard. The lease is structured for one year at $2,500/month, with a month to month extension thereafter. Funding Source: Up to $750,000 in funds for the relocation expenses and the payment of rent are being advanced by the Robert Mayer Corporation to the Redevelopment Agency as part of the redevelopment of the Waterfront Expansion site. The Redevelopment Agency will utilize these funds to reimburse the City for the rental and relocation expenses related to the leasing of the Caltrans property and its improvement. Recommended Action: I. City Council Motion to: Authorize the Mayor and the City Clerk to approve the lease with Caltrans in substantial form as presented subject to the final review by the Economic Development Director and the City Attorney. The basic deal points have been basically established, with only two clauses outstanding. One is the clause on indemnification and the other clause relates to hazardous materials. 0 0 REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 2. Redevelopment Agency Motion to: DEPARTMENT ID NUMBER: ED 99-19 Appropriate $295,000 for 18 months of lease payments totaling $45,000 and the expenditure of funds to make temporary improvements and additional operating expenses necessary to relocate the Beach Maintenance Facility. Alternative Action(s): Under the terms of the Disposition and Development Agreement with Mayer Financial LLC, it is imperative that the Beach Maintenance facility be relocated to allow the construction of the Hilton Ocean Grand Resort and the residential element of the project. There is no viable alternative that the City can pursue without being in breach of the Disposition and Development Agreement (DDA). Analysis: The existing City Beach Maintenance facility is located on property, which is part of the Waterfront Expansion site. The replacement facility will be built on a City -owned site on Edison Way just east of Newland Avenue. This site is much closer to the beach, which best facilitates the operational needs of the division. Since it will take some time to design and construct a new facility, staff from Economic Development and Community Services has identified a temporary location in which to locate the Beach Maintenance facility can locate. The best -suited temporary site to the recently vacated Caltrans maintenance yard located at 19601 Beach Boulevard in Huntington Beach. The existing maintenance facility has substantially all of the buildings and facilities necessary to the Beach maintenance operation. However, there will be some improvements and/or modifications required to allow the interim operation of this site. Accordingly, Caltrans has agreed to lease this property in order to accommodate the City's interest in relocating the Beach Maintenance facility. The lease will be for one year on a month -to -month basis thereafter for $2,500/month. Caltrans was planning on surplusing the property, and the City approached Caltrans about the interim lease of the site. Caltrans recognized the importance of assisting the City in allowing the Waterfront Expansion to proceed in a timely manner, and will defer its sale of the site until a future date. Attached is memorandum form Jim Engle, Community Services Deputy Director, detailing the costs associated with the temporary relocation of the Beach Maintenance Facility to the Caltrans property. It is estimated that this temporary relocation will cost approximately $250,000 in one time costs and added expenses for an 18-month period. A portion of these costs will be for equipment to be reused as part of the permanent facility. Additional information is set forth in Attachment 3, a memorandum dated April 5, 1999, to the City Council. Environmental Status: N/A BCHMAINT.DOC -2- 04/12/99 3:16 PM • • REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: ED 99-19 Attachment(s): 1. Lease with Caltrans. 2. Memorandum dated March 23, 1999. 3. Memorandum dated April 5. 1999. RCA Author: Duran at extension 1529. BCHMAINT.DOC -3- 04/12/99 3:16 PM • • Lease with Caltrans TT �t F, k a � g 0 J STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall famish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. 0 LEASE AGREEMENT (COnt'd) Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINIMIZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT (Cont'd) Page 3 of 6 RW 11-2 (Rev. 12198) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12198) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations And/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as apart of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 0 0 LEASE AGREEMENT (Cont'd) Page 5 of 6 RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) , ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. • s LEASE AGREEMENT (Cont'd) Page 6 of 6 RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH i - PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST:- Cc)nni3Brockwa VONNIC11ROCKWAY, CITY CLERK BY Schubert eputy C`i-ty Clerk / APPROVED AS TO FORM IL H TTON, CITY ATTORNEY �-/ 2- STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By 4BNqDA`MORRISON,CH1EEF PROPERTY SERVIC IRVINE OFFICE By CAROL DEVOIUUN, MANAGER REAL PROPERTY SERVICES SOUTHERN RIGHT OF WAY REGION Apr-07-99 12:50P Rig*o-F Way (9* 724-2411 P.02 STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION Page 1 of 6 LEASE AGREEMENT RW 11-2 (Rev. 12198) File Reference 100427-0(X)1-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE. California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH,a municipal corporation. Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648_ WITNESSETH 1) DESCRIPTION: The Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby lease, demise. and let unto Lessee that certain property in the County of ORANGE, State of California; the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This lease shall be for a term of one year, commencing on the 1ST day of MAY, 1999. and ending on the 30TH day of APRIL, 2000,thereafter on a month to month basis for a period of six months ending on the 30`F' day of September, 2000. With the right of cancellation and termination in both lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF S 2,5(X).00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of S 5,000.00 from the Lessee, in payment for the first (and last *) month's rental under this lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee. or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy. and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. Apr-07 -99 12:51P Rig* o-F Way (94S 724-2411 P-03 LEASE AGREEMENT (COnt'd) Page 2of6 RW 11-2 (Rev. 12/98) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019. SACRAMENTO. CA. 95816-3819 7) LATE PAYMENT CHARGE: Tenant hereby acknowledges that late payment by Tenant to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this lease, the exact amount of which will be extremely difficult to ascertain Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Tenant shall not be received by Department within ten (10) days after such amount shall be due, Tenant shalt pay to Department a We charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Tenant. Acceptance of such late charge by Department shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Tenant hereby agrees: a) That for personal chocks returned for insufficient funds, Tenant shall pay to the Department a fee of S 10.00 plus any and all fees Department must pay for the returned check. b) That if the Tenant has two returned checks within any twelve-month period, the Department shalt accept no more personal checks for payments due under this agreement. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit. suffer, or permit any waste on said property and shall comply with all Stale laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTLING AND CLEAN UP, TO CONDUCT SCHEDULED PRE -SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINIMIZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CfIY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLAWNG, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days next prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor do Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92012-1692. The address to which the notices shall be mailed to either party shall bo changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. Lessor shall also be able to serve notices by posting and subsequent mailing to Lessee. 0 raZ Apr-07-99 12:51P Rig*o- Way (90 724-2411 wpm LEASE AGREEMENT (COnt'd) Page 3 of 6 RW 11-2(Rev.12198) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to snake any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable. in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number or garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 11) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorneys Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the properh, was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER Should the Lessee hold over after the expiration of the term of this lease with the consent of the Lessor. express or implied, the tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terns and conditions of this lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk. and Lessee will make no claim of any nature against Lcssor by reason. of any damage to Lessee's property in the event. it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any e.,jsting lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this lease shall cancel and terminate said prior lease or rental agreement as of the etrective date or this lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises aficr Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this lease agreement is intended to create duties of obligations to or rights in third parties not parties to this lease agreement or affect the legW liability of either party to the lease agreement by imposing any standard of care respecting the duties and obligations under this lease agreement different from the standard of care imposed by law. It is understood and agreed that this lease agreement is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility. liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind �A P as Apr-07-99 12:52P Rig* of Way (9* 724-2411 P.05 LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12/98) whatsoever and to whomsoever belonging, including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, his agents. customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indcmni(v and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this lease agreement. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, whether active or passive, primary or secondary, on the part of State of California, other than its sale negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of S1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by (lie Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to Third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the olEcers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this lease. 25) NONDISCRIMINATION: The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns as a part of the consideration hereof. does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations. Department of Transportation, Subtitle A. Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. ^^ .,_ I--- 4-2•_M QdQ 7Pa P411 97% P.05 Apr-07-99 12:52P Righof Way (940 724-2411 LEASE AGREEMENT (Cont'd) Page 5ot6 RW 11-2(Rev.12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon and hold the same as if said lease had never been made or issued. 26) WAIVER: If any part of this Agreement is invalid by reason of law or governmental regulation, or if any provisions hereof arc waived by the Department, the remaining portions of this Agreement shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Agreement shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this lease and this lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the leased property and to sense or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Article 1 l of the above Code; as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the leased property. However, household products necessary for routine cleaning and maintenance of the property may be kept on the leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing. and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to immediately terminate this lease. it is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the properly. The Lessee shall also be responsible for any cleanup and decontamination on or off the leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or erriployee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. .cn ona "-)A -)A41 q7•L P.Gr, Apr-07-99 12:53P Righ*f Way (940724-2411 P.07 LEASE AGREEMENT (Cont'd) Page 6of6 RW 11-2 (Rev. QM) AMENDMENTS: Anything herein contained to the con(rary notwithstanding, this lease may be terminated, and the provisions of this lease may be, in writing. altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this lease are not a part of this lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO IMMEDIATELY TERMINATE THIS LEASE. ATTN: CITY CLERK APPROVED AS TO FORM CITY ATTORNEY STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By BRENDA MORRISON CHIEF REAL PROPERTY SERVICES BY PETER GREEN, MAYOR. CITY OF HUNTINGTON BEACH By CAROL DEVORKIN REGIONAL PROPERTY SERVICES MANAGER n nn • Memorandum dated March 23, 1999 �C H Ew��- T �� 0 CITY OF HUNTWITO 1 BEACH HUNTINGTON BEACH DEPARTMENT COMMUNICATION To: David Biggs, Economic Development Director From: Jim B. Engle, Director, Community Services Date: March 23, 1999 SUBJECT: COST ESTIMATE TO RELOCATE TO CALTRANS SITE The current Beach Maintenance Facility is located behind Driftwood Golf Course and is part of the property that the Mayer Corporation is developing as Phase II of the Waterfront Project. Therefore, there is a need for the Community Services Department to vacate that site immediately. The Caltrans Maintenance Facility south of Yorktown on Beach Boulevard will be the interim location for the Beach Maintenance Facility until the permanent site is developed on Edison Way, behind the Edison Power Plant. As you know, there are significant constraints to making an interim move rather than relocating immediately to the permanent site. Unfortunately, we were not able to construct the permanent Beach Maintenance Facility prior to approval of Phase II of Waterfront. The biggest challenge is the fact that the Caltrans site is two miles away from the beach. This requires the transporting of all the beach equipment for storage and maintenance along Beach Boulevard. This is a major concern to the Beach Operations because beach cleanup is done at night and there will have to be equipment in transit on Beach Boulevard after midnight when drivers travel at a rapid speed and at times are inebriated. The State Beach has had a couple of accidents in the past transporting on major arterial highways. This, coupled with the fact that the City Beach Maintenance operation at night consists primarily of part-time, recurrent workers, who have limited experience in driving equipment may cause problems. Use of recurrent staff makes for an effective, low cost beach operation, but creates potential hazards during this interim relocation. We currently stage our equipment behind the Edison Power Plant so it is only a short trip on Newland Street to get to the beach (less than'/ mile). The rest of the trek is over sand, not on major arterials. The other challenge is that the Caltrans facility is in significant disrepair with holes in walls, brokenivindows, no electrical, no security, etc. Listed below is the equipment and/or Caltrans modifications that need to be made whether they are one time costs or an annual rental cost and comments. Task One time cost Annual Cost Comments Relocate storage bin $600 0 The 8' x 40' storage bin at the Newland staging area will have to be relocated to the Caltrans site, followed by a second move to the permanent site. Mobile office building 0 $4,700 To provide power, security and repair to the Caltrans office building would cost $4,400. A more desirable option is to rent a mobile office building and place it adjacent to the garaglata Truck & trailer rental Recurr. $53,000 0 Originally 4 truck and trailer units were going to be rented Rental $41,600 cost of $163,800. However, with some additional short-te Total: $80,600 recurrent staff, this cost is reduced to $80,600. CALTRANS.DOC 0 Hoist & compressor $24,000 0 The permanent facility was to have two in-gound hoists and a compressor. By purchasing an above ground hoist and compressor now, and reutilizing this equipment in the permanent facility, the cost is transferred from the permanent site construction cost to the interim site cost. Equipment is needed for mechanical maintenance. Security fencing, $13,200 0 It would cost $12,000 to rent this fencing and security wire. barbed wire and razor The advantage of purchase is that $6,000 of the $13,200 is for wire the barbed wire and razor wire. This barbed wire and razor wire would be relocated to the permanent site and, therefore, will be a significant net savings of $4,800 and reducing construction costs. Secure and repair $9,500 0 Community Services staff has worked with Public Works. and Caltrans buildings contractors to determine the cost to secure the existing (walls, windows,etc.) Caltrans buildings, including repairing of holes, walls, doors & windows, etc. Trailer for transport of $9,500 0 Community Services staff checked with Public Works if there kickster, forklifts, was a trailer that could be "borrowed" for 1-1/2 years and none sweepers was available. The rental cost over the period would be approximately the same ($9,000). Therefore, it is determined to be better to purchase the trailer. It will be used at the new beach maintenance facility which is an added benefit. Extra personnel to Perm.OT $2,300 0 Existing personnel will be used to box all the items for moving move to interim and Recurr. $1,140 company and unloading and putting away all equipment. permanent site (two moves) Move by professional $18,300 0 In order to avoid Workers Comp injuries, it is more prudent to movers to interim and have professional movers actually lift and move the permanent sites (two equipment, parts, etc. from the current Beach Maintenance moves) site to the interim site. and then to the permanent site. This is especially true since we have an aging beach maintenance crew. This will also avoid any potential time related problems so that the Beach Maintenance crew can continue to maintain their workload while the two relocations take place. This is especially important if it happens between Easter and the end of summer. Electrical $9,000 0 Electrical Building inspector, Public Works, and City's contract Electrician have reviewed the Caltrans electrical. It is grossly inadequate and in disrepair. In order to provide the minimum power required as well as to create a safe environment, the cost will be $9,000. Electrical costs have been saved by not providing electrical to the office building. Telephone service $3,000 0 The City has worked with the telephone company and the City's Telecommunications Section to determine what it would cost to relocate existing system to the Caltrans site. This relocation cost does not include the monthly service cost of $2,700 which has been eliminated. Subtotal $90,540 $85,300 15% Contingency* $13,581 $12,795 Totals $104,121 $97,095 TOTAL $201,216 *Note: 15% Contingency added due to the unknowns related to an interim relocation. JBE:gc cc: Ron Hagan Larry Neishi CALTRANS.DOC 2 0 • Memorandum dated April 5, 1999 4 VIA: Ray Silver, City Administrator FROM: David C. Biggs, Director of Economic Develop ent Ron Hagan, Director of Community Services DATE: April 5, 1999 SUBJECT: Beach Maintenance Facility Relocation to Temporary and Permanent Locations BACKBROUND The existing City Beach Maintenance facility, accessed off of Sunrise, is located on the Waterfront Expansion site. The Disposition and Development Agreement (DDA) with Meyer Financial, LLC, calls for the Redevelopment Agency to relocate the Beach Maintenance Facility. The City owns a site for the permanent relocation of the Beach Maintenance Facility on Edison Way; off of Newland. It will take approximately 18 months to design and construct the new Beach Maintenance Facility. In order to meet our contractual obligation for the hotel expansion project, the Beach Maintenance Facility will have be relocated on a temporary basis. TEMPORARY FACILITY Staff, hasidentified the best -possible temporary facility site available Recently, Caltrans closed its road maintenance facility on the west side of Beach Boulevard between Adams and Yorktown. This site is approximately two miles from the beach, straight up Beach Boulevard. The Economic Development staff is currently working with Caltrans to fmalize alease for the property. The lease payments will be $2,500 per: month or. $45,000 for 18 months, and we expect to present the lease to the City. Council for approval on April 19, 1999. 0 0 Improvements on the site lend themselves to our Beach Maintenance operation, and include a number of buildings which can accommodate the machinery maintenance and other operational needs associated with this use. However, there needs to be a minimal level of improvements made in order to allow for the temporary use of the site for beach maintenance. In addition, this temporary beach maintenance facility will require the lease of some additional equipment, additional staffing and other operational funding for the duration of the temporary relocation. Attached is a memorandum from Jim Engle, Community Services Deputy Director, detailing the costs associated with the temporary relocation of the Beach Maintenance Facility to the Caltrans property. It is estimated that this temporary relocation will cost approximately $250,000 in one-time costs and added expenses for an 18-month period. A small portion of these costs will be for equipment to be reused as part of the permanent facility. PERMANENT FACILITY This complex is proposed to be located on a City -owned site on Edison Way just east of Newland Avenue, behind the former Southern California Edison Power Plant. It will take approximately 1 year — 1 %2 years to entitle and construct the project. During that time, the City will have to develop conceptual plans, obtain entitlements, contract for working drawings, bid and construct the project. The City will also be contemplating a series of entitlement actions to construct the permanent Beach Maintenance Facility. This includes, preparing environmental reviews of the project, processing a Conditional Use Permit and Local Coastal Permit. These actions and process will take several months. The Community Services Department has conceptual plans for the permanent Beach Maintenance facility and is ready to proceed with a final design and working drawings. There is a Request for Council Action on the April 5, 1999, Council Agenda (Item E-5) to approve a contract with an architect to undertake this work. Design costs are estimated at $171,360. Cost of constructing the permanent Beach Maintenance Facility is estimated to be $1,570,750. Staff will be working through the entitlement and design process to ensure that a functional facility results at the lowest overall cost. FACILITIES FINANCING Mayer Financial, LLC, is obligated to advance $750,000 to cover a portion of the costs associated with the relocation of the Beach Maintenance Facility. The Redevelopment Agency will repay this amount, together with other amounts advanced by the Developer, out of future project revenues generated by the Hilton Ocean Grand Resort. This $750,000 advance will cover the costs of the temporary relocation as well as some of the costs of the permanent relocation as illustrated below: • 0 Temporary Relocation Caltrans Rent $ 45,000 Temporary Improvements/Costs 250,000 Permanent Facility Design $ 171,360 Construction 1,570,750 Total $ 2,037,110 Developer Advance 750,000 Costs Remaining $ 1,287,110 The cost remaining of $1,287,110 is proposed to be added to the Certificate of Participation (COP) issue that will include the South Beach Improvements. Sufficient revenues in the form of lease parking revenues from the South Beach improvements are anticipated to be sufficient to pay for the COP debt service including those costs associated with the Beach Maintenance Facility. CONCLUSION The relocation of the Beach Maintenance Facility is the critical path item regarding the Waterfront Expansion. While the schedule for the Waterfront implementation necessitates the temporary relocation of the Beach Maintenance Facility and associated costs, the timely construction of the Hilton Ocean Grand Resort and the remainder of the project will ensure the timely generation of substantial public revenues. The Hilton Ocean Grand Resort and residential are expected to generate more than $4 million in public revenues annually shortly after completion. Within the next few weeks the staff of Economic Development and Community Services will bring to you a series of Council Action/Agency Action Requests to implement the various aspects of this project. Please feel free to contact us if we can answer any questions or provide additional information. Dcb:gd Attachment xc: Melanie Fallon, Assistant City' Administrator Jim Engle, Community Services Deputy Director Gus Duran, Housing & Redevelopment Manager Stephen Kohler, Project Manager e cK HUNTINGTON BEACH 0 11 C11Y/ OF HUNTINQTmN BEACH DEP.ARTMF_NT COMMUNICATION To: David Biggs, Economic Development Director From: Jim B. Engle, Director, Community Services Date: March 23, 1999 SUBJECT: COST ESTIMATE TO RELOCATE TO CALTRANS SITE The current Beach Maintenance Facility is located behind Driftwood Golf Course and is part of the property that the Mayer Corporation is developing as Phase II of the Waterfront Project. Therefore, there is a need for the Community Services Department to vacate that site immediately.. The Caltrans Maintenance Facility south of ,Yorktown on Beach Boulevard will be the interim location for the Beach Maintenance Facility until the permanent site is developed on Edison Way, behind the Edison Power Plant. As you know, there are significant constraints to making an interim move rather than relocating immediately to the permanent site. Unfortunately, we were not able to construct the permanent Beach Maintenance Facility prior to approval of Phase II of Waterfront. The biggest challenge is the fact that the Caltrans site is two miles away from the beach. This requires the transporting of all the beach equipment for storage and maintenance along Beach Boulevard. This is a major concern to the Beach Operations because beach cleanup is done at night and there will have to be equipment in transit on Beach Boulevard after midnight when drivers travel at a rapid speed and at times are inebriated. The State Beach has had a couple of accidents in the past transporting on major. arterial highways. This, coupled with the fact that the City Beach Maintenance operation at night consists primarily of part-time, recurrent workers, who have limited experience in driving equipment may cause problems. Use of recurrent staff makes for an effective, low cost beach operation, but creates potential hazards during this interim relocation. We currently stage our equipment behind the Edison Power Plant so it is only a short trip on Newland Street to get to the beach (less than'/ mile). The rest of the trek is over sand, not on major arterials. The other challenge is that the Caltrans facility is in significant disrepair with holes in walls, broken windows, no electrical, no security, etc. Listed below is the equipment and/or Caltrans modifications .that need to be made whether they are one time costs or an annual rental cost and comments. Task One time cost Annual Cost Comments Relocate storage bin $600 0 The 8' x 40' storage bin at the Newland staging area will have to be relocated to the Caltrans site, followed by a second move to the permanent site. Mobile office building 0 $4,700 To provide power, security and repair to the Caltrans office building would cost $4,400. A more desirable option is to rent a mobile office building and place it adjacent to the garage. Truck & trailer rental Recurr. $53,000 0 Originally 4 truck and trailer units were going to be rented at a Rental $41,600 cost of $163,800. However, with some additional short-term Total: $80,600 recurrent staff, this cost is reduced to $80,600. CALTRANS.DOC 0 Hoist & compressor $24,000 0 The permanent facility was to have two in-gound hoists and a compressor. By purchasing an above ground hoist and compressor now, and reutilizing this equipment in the permanent facility, the cost is transferred from the permanent site construction cost to the interim site cost. Equipment is needed for mechanical maintenance. Security fencing, $13,200 0 It would cost $12,000 to rent this fencing and security wire. barbed wire and razor The advantage of purchase is that $6,000 of the $13,200 is for wire the barbed wire and razor wire. This barbed wire and razor wire would be relocated to the permanent site and, therefore, will be a significant net savings of $4,800 and reducing construction costs. Secure and repair $9,500 0 Community Services staff has workedwith Public Works and Caltrans buildings contractors to determine the cost to secure the existing (walls, windows,etc.) Caltrans buildings, including repairing of holes, walls, doors & windows, etc. Trailer for transport of $9,500 0 Community Services staff checked with Public Works if there kickster, forklifts, was a trailer that could be "borrowed" for 1-1/2 years and none sweepers was available. The rental cost over the period would be approximately the same ($9,000). Therefore, it is determined to be better to purchase the trailer. It will be used at the new beach maintenance facility which is an added benefit. Extra personnel to Perm.OT $2,300 0 Existing personnel will be used to box all the items for moving move to interim and Recurr. $1,140 company and unloading and putting away all equipment. permanent site (two moves) Move by professional $18,300 0 In order to avoid Workers Comp injuries, it is more prudent to movers to interim and have professional movers actually lift and move the permanent sites (two equipment, parts, etc. from the current Beach Maintenance moves) site to the interim site and then to the permanent site. This is especially true since we have an aging beach maintenance crew. This will also avoid any potential time related problems so that the Beach Maintenance crew can continue to maintain their workload while the two relocations take place. This is especially important if it happens between Easter and the end of summer. Electrical $9,000 0 Electrical Building inspector, Public Works, and City's contract Electrician have reviewed the Caltrans electrical. It is grossly inadequate and in disrepair. In order to provide the minimum power required as well as to create a safe environment, the cost will be $9,000. Electrical costs have been saved by not providing electrical to the office building. Telephone service $3,000 0 The City has worked with the telephone company and the City's Telecommunications Section to determine what it would cost to relocate existing system to the Caltrans site. This relocation cost does not include the monthly service cost of $2,700 which has been eliminated. Subtotal $90,540 $85,300 15% Contingency* $13,581 $12,795 Totals $104,121 $97,095 TOTAL $201,216 *Note: 15% Contingency added due to the unknowns related to an interim relocation. JBE:gc cc: Ron Hagan Larry Neishi CALTRANS.DOC 2 STATE OF CAUFORNIA - BUSINESS, TRANSPORTATION AND HOUSING AGENCY GRAY DAVIS, Govemor DEPARTMENT OF TRANSPORTATION SOUTHERN RIGHT OF WAY REGION District 12 R/W Field Office 3347 Michelson Drive, Suite 100 Irvine, California 92612-1692 Phone: (949) 724-2308- " FAX: (949) 724-2411/724-2622 April 21, 1999 Gus Duran City of Huntington Beach Economic Development Dept. 2000 Main Street Huntington Beach, CA 92648 Dear Gus: 12-ORA 100247-0001-01 Beach Blvd. The Lease for the Beach Boulevard property is attached. Please return four copies of the executed document to me for final processing. I can be reached at 714-724-2429, and I will be happy to assist you if you have any questions. Sincerely, Iiidnda Morrison, Chief RAV Real Property Services Irvine Office �/ Southern R/WAegion Los Angeles Field Office 21073 Pathfinder, Suite 100 San Bernardino Field Office 120 South Spring Street Diamond Bar, CA 91765 464 W. 0 Street, 12" floor Los Angeles, CA 90012-3606 Phone: (909) 468-1500 Fax: (909) 468-1501 San Bernardino, CA 92401-1400 Phone: (213) 897-1861 Fax: (213) 897-1962 TDD: (800) 735-2929 Phone: (909) 383-6211 Fax: (909) 383-6877 0 STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each. month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. • LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO NGNMIIZE THE RVIPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. • • LEASE AGREEMENT (Cont'd) Page 3 of 6 RW 11-2 (Rev. 12/98) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary- and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease' shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12/98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. LEASE AGREEMENT (Cont'd) Page 5 of 6 RW 11-2 (Rev. 12198) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Cont'd) Page 6of6 RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: _ Connie Brockwa CONNIE BROCKWAY, CITY CLERK BY Eiel Schubert Deputy City Clerk APPROVED AS TO FORM TTON, CITY ATTORNEY jqj �-z gr rI - flgI STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 11. 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. • 0 LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12/98) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MIN MIM THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. 0 i LEASE AGREEMENT (Cont'd) Page 3 of 6 RW 11-2 (Rev. 12/98) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee farther agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, 0 • LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12198) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury• and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. • • LEASE AGREEMENT (Cont'd) Page s of 6 RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. • • LEASE AGREEMENT (Cont'd) Page 6 ors RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockway CONNIE BROCKWAY, CITY CLERK 01 BY edw���� vel n Schubert De utyy Ciy tClerk APPROVED AS TO FORM GAIL HUTTON, CITY ATTORNEY Vz- STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION i • STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of s LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California. by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the I ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee. in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12/98) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO NflNUv= THE Il1IPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT (Cont'd) Page 3 of RW 11-2 (Rev. 12/98) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee fin-ther agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, 0 0 LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12198) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. • 0 LEASE AGREEMENT (Cont'd) Page 5 of 6 RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants. the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Cont'd) Page 6 ors RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockwa CONNIE BROCKWAY, CITY CLERK BY Evelyn chubert Deputy City Clerk APPROVED AS TO FORM GAIL TTON, CITY ATTORNEY �'i ��-������ ' -" q1 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION • • STATE OF CALIFORNIA . DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO. CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay, to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINRv= THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. CJ LEASE AGREEMENT (COnt'd) Page 3 of 6 RW 11-2 (Rev. 12/98) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, LEASE AGREEMENT (COnt'd) Page 4 of 6 RW 11-2 (Rev. 12/98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf: It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. LEASE AGREEMENT (Cont'd) Page 5 of 6 RW 11-2 (Rev. 12198) That in the event of breach of anv of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter I 1 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. 0 0 LEASE AGREEMENT (Cont'd) Page 6 of 6 RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended kv mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockway �ONNEE BRO KWAY, CITY CLERK BY Evelo Schubert Deputy City Clerk APPROVED AS TO FORM J �'" f HUTTON, CITY ATTORNEY 1' STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By BRENDA MORRISON, CHIEF REAL PROPERTY SERVICES IRVINE OFFICE By CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES SOUTHERN RIGHT OF WAY REGION 0 0 STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12198) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this ist day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee.. 9 0 LEASE AGREEMENT (COnt'd) Page 2 of s RW 11-2 (Rev. 12/98) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINM IZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT (Cont'd) Page 3 of 6 RW 11-2 (Rev. 12198) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, • LEASE AGREEMENT (Cont'd) Page 4 of 6 RW 11-2 (Rev. 12/98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION:. The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. • LEASE AGREEMENT (COnt'd) Page 5 of 6 RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon airy notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter I 1 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Cont'd) Page 6 of 6 RW 11-2 (Rev. 12198) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: CONNIE BROCKWAY, CITY CLERK APPROVED AS TO FORM GAIL HUTTON, CITY ATTORNEY STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By BRENDA MORRISON, CHIEF REAL PROPERTY SERVICES IRVINE OFFICE By CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES SOUTHERN RIGHT OF WAY REGION STATE OF CALIFORNIA - BUSINESS, TRANSPORTATIONWOUSING AGENCY � GRAY DAVIS, Govemor DEPARTMENT OF TRANSPORTATION SOUTHERN RIGHT OF WAY REGION District 12 R/W Field Office 3347 Michelson Drive, Suite 100 Irvine, California 92612-1692i� Phone: (949) 724-2308 e� FAX: (949) 724-2411/724-2622 April 21, 1999 V Gus Duran City of Huntington Beach Economic Development Dept. 2000 Main Street Huntington Beach, CA 92648 Dear Gus: 12-ORA 100247-0001-01 Beach Blvd. The Lease for the Beach Boulevard property is attached. Please return four copies of the executed document to me for final processing. I can be reached at 714-724-2429, and I will be happy to assist you if you have any questions. Sincerely, IWnda Morrison, Chief R/W Real Property Services Irvine Office 2 lQcg d Southern R/W Region Los Angeles Field Office 21073 Pathfinder, Suite 100 San Bernardino Field Office 120 South Spring Street Diamond Bar, CA 91765 464 W. 4's Street, 12'b floor Los Angeles, CA 90012-3606 Phone: (909) 468-1500 Fax: (909) 468-1501 San Bernardino, CA 92401-1400 Phone: (213) 897-1861 Fax: (213) 897-1962 TDD: (800) 735-2929 Phone: (909) 383-6211 Fax: (909) 393-6877 - --� I. STATE OF C I . DE RTMENT OF TRANSPORTAT LEASE AGREEMEN?vACCI 6Lc/r-' RW 11-2 (Rev. 12198) COP�I �QR�roin r�2 19BEACH BOULEVARD (MAINTENANCE YARD) 100427-0001-01 6 i✓er1 Tz) Page 1 of 6 &C'Day File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. LEASE AGREEMENT (Cont'd) Page 2of6 RW 11-2 (Rev. 12/98) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MQNIMIZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. 0 coPY LEASE AGREEMENT Cottt'di Page 3 of 6 RW 11-2 (Rev. 12198) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person. or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, • 0 enoy LEASE AGREEMENT (COnt'd) Page 4 of 6 RW 11-2 (Rev. 12/98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. ` spy LEASE AGREEMENT (C-'d) Page 5 of RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Nnt'd) Pages CePY RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockway CONNIE BROCKWAY, CITY CLERK BY Evelyn Schubert Deputy City Clerk APPROVED AS TO FORM AEL HtTTON, CITY ATTORNEY STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION ! • afy STATE OF CALIFORNIA . DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this 1st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 11, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of. any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. • 0 (2a10y LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINIIv= THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof to giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT *nt'd) Page 39 00y RW 11-2 (Rev.12198) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and, equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease,' Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, � LEASE AGREEMENT ftnt'd) Page4 caPy RW 11-2 (Rev. 12198) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or am, member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. LEASE AGREEMENTfont'd) Page RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter 11 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Ipont'd) RW 11-2 (Rev. 12198) Page 6 9 AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the proNisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockway CONNIE BROCKWAY, CITY CLERK BY Evelyn Schubert APPROVED AS TO City Cl e r FORM G HUTTON, CITY ATTORNEY -z5_syc �r� vl—�7fgr STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION 0 0 G/'/ STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/%) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this l st day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1 ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the I ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary-, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. �J LEASE AGREEMENT (Cont'd) RW 11-2 (Rev. 12198) • &1Page 2 of 6 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MININ[IZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. . 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine. Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT (Cont'd) s ° RW 11-2 (Rev. 12/98) 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, Paged LEASE AGREEMENT (Cont'd) RW 11-2 (Rev. 12198) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor, its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. LEASE AGREEMENT (Cont'd) paw50 RW 11-2 (Rev. 12/98) That in the event of breach of anv of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all tunes have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter I 1 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENT (Cont'd) RW 11-2 (Rev. 121%) Page 60 1 y AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: Connie Brockway CONNIE BROCKWAY, CITY CLERK BY Evelyn Schubert Deputy City Clerk APPROVED AS TO FORM 4L� GAIL TTON�, CITY ATTORNEY q� - 29 �l STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By BRENDA MORRISON, CHIEF REAL PROPERTY SERVICES IRVINE OFFICE 4OW By CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES SOUTHERN RIGHT OF WAY REGION 0 0 (�c STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this ist day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation- Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. LEASE AGREEMENT (Cont'd) Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of $ 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit ary waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS, AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINIMIZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT 1S FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION: This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine, Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. LEASE AGREEMENT (11ont'd) RW 11-2 (Rev.12198) Page A al" 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and. equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, LEASE AGREEMENTfont'd) Pages RW 11-2 (Rev. 12/98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof, from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth above regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor. its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. LEASE AGREEMENT Pont'd) Page COO RW 11-2 (Rev. 12/98) That in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter I 1 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENTIont'd) Pages RW 11-2 (Rev. 12/98) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH AM ATTEST: Connie Brockway CONNIE BROCKWAY, CITY CLERK BY Evelyn Schubert Deputy City Clerk APPROVED AS TO FORM Gl� HUTTON, CITY ATTORNEY y-2 F-'�;l �( Z STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION W STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION 19601 BEACH BOULEVARD Page 1 of 6 LEASE AGREEMENT (MAINTENANCE YARD) RW 11-2 (Rev. 12/98) 100427-0001-01 File Reference 100427-0001-01 THIS LEASE, made this ist day of MAY, 1999, in ORANGE, California, by and between the State of California Department of Transportation, Lessor, and CITY OF HUNTINGTON BEACH, a municipal corporation, Lessee, of 2000 MAIN STREET, HUNTINGTON BEACH, CA. 92648. WITNESSETH 1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee, and the covenants and agreements herein contained, does hereby Lease, demise, and let unto Lessee that certain property in the County of ORANGE, State of California, the address of which is 19601 Beach Blvd., Huntington Beach, Ca. 92646, and legally described as: REFER TO ATTACHED RIGHT OF WAY MAP. 2) TERM: This Lease shall be for a term of one year, commencing on the 1ST day of MAY, 1999, and ending on the 30TH day of APRIL, 2000, thereafter on a month to month basis for a period of six months ending on the 31 st day of October, 2000. With the right of cancellation and termination in both Lessor and Lessee as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee monthly, in advance, on the 1 ST day of each month during said term, in lawful money of the United States, as follows: AT A RENTAL RATE OF $ 2,500.00 PER MONTH COMMENCING MAY 1, 1999 Rent payable or refundable hereunder for any period of time less than one month shall be determined by prorating the monthly rental herein specified based on a 30-day month. 4) RECEIPT OF RENT PAID: Receipt is hereby acknowledged by the Lessor of the sum of $ 5,000.00 from the Lessee, in payment for the first month's rent and the security deposit under this Lease. 5) SECURITY DEPOSIT: Lessee shall deposit with the Department $ 2,500.00 as a guarantee for faithful performance of the conditions of this Agreement. Department may use such amounts as are reasonably necessary to remedy Lessee's default in the payment of rent to repair damages caused by Lessee, or by a guest or a licensee of the Lessee, to clean the premises, if necessary, upon termination of tenancy, and to replace or return personal property or appurtenances exclusive of ordinary wear and tear. If used toward rent or damages during the term of tenancy, Lessee agrees to reinstate said total security deposit upon five days written notice delivered to Lessee in person or by mail. No later than two weeks after the Lessee has vacated the premises, the Department shall furnish the Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the Lessee. ITYLEASE AGREEMENT Cont'd Page 2 of 6 RW 11-2 (Rev. 12198) 6) RENTAL PAYMENTS: All rental payments shall be made payable to the Department of Transportation and delivered to the Department of Transportation at P.O. BOX168019, SACRAMENTO, CA. 95816-3819 7) LATE PAYMENT CHARGE: Lessee hereby acknowledges that late payment by Lessee to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Department within ten (10) days after such amount shall be due, lessee shall pay to Department a late charge of S 50.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of late payment by Lessee. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder. 8) RETURNED CHECK CHARGE: Lessee hereby agrees: a) That for personal checks returned for insufficient funds, Lessee shall pay to the Department a fee of $10.00 plus any and all fees Department must pay for the returned check. b) That if the Lessee has two returned checks within any twelve-month period, the Department shall accept no more personal checks for payments due under this Lease. 9) UTILITIES: Lessee shall pay when due all water, electric, gas, and other lighting, heating, and power, rents and charges accruing or payable in connection with said property during the term of this Lease. 10) USE: a) Lessee shall use the property for the following purposes only: AS MAINTENANCE STATION CITY OF HUNTINGTON BEACH, CA. 92648 b) Lessee shall not commit, suffer, or permit any waste on said property and shall comply with all State laws and local ordinances concerning said property and the use thereof. 11) RIGHT OF ENTRY: Lessee shall permit Lessor or its agents to enter upon the property at any reasonable time to inspect same and for the purpose of showing the property to prospective purchasers or tenants. IT IS AGREED AND UNDERSTOOD THAT CITY WILL PROVIDE STATE ACCESS TO THE LEASED PROPERTY FOR HAZARDOUS WASTE TESTING AND CLEAN UP, TO CONDUCT SCHEDULED PRE - SALE SITE INSPECTIONS. AND FOR APPRAISAL INSPECTIONS. STATE AGREES TO SCHEDULE ANY AND ALL HAZARDOUS WASTE CLEAN-UP WORK SO AS TO MINIMIZE THE IMPACT TO CITY'S USE OF THE SITE. IF THIS PROPERTY IS SOLD DURING CITY'S OCCUPANCY, IT IS FURTHER AGREED THAT STATE, BUYER AND BUYER'S AGENTS SHALL HAVE ACCESS FOR PLANNING, DEVELOPMENT, AND APPRAISAL ACTIVITIES. 12) TERMINATION- This Lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving the other party notice in writing at least 90 days prior to the date when such termination shall become effective. 13) NOTICES: All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To the Lessee at the address above stated and to Lessor c/o Department of Transportation, at 3347 Michelson Dr. Suite 100 Irvine. Ca. 92612-1692. The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal senice. l� LEASE AGREEMENT11ont'd) Page RW 11-2 (Rev. 12198) L/ 14) CONDITION AND REPAIRS: Lessee shall not call on Lessor to make any improvements or repairs on the property, but Lessee hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee's cost and expense. Lessee further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair. Lessor agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs as deemed necessary and in the best interest of Lessor. 15) ASSIGNMENT AND SUBLETTING: Lessee shall not assign or sublet this Lease without the written consent of the Lessor. 16) ALTERATIONS: Lessee shall not make or suffer any alteration to be made in or on the property without the written consent of the Lessor. 17) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable Attorney's Fees in addition to costs and necessary disbursements. 18) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this Lease, Lessee shall quit and surrender possession of the property and its appurtenances to Lessor in as good order and condition as the property was delivered to the Lessee, reasonable wear and tear and damage by the elements excepted. 19) HOLD OVER: Should the Lessee hold over after the expiration of the term of this Lease with the consent of the Lessor, express or implied, the Tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this Lease so far as applicable. 20) FIRE INSURANCE: Lessor will not keep the property insured against fire or any other insurable risk, and Lessee will make no claim of any nature against Lessor by reason of any damage to Lessee's property in the event it is damaged or destroyed by fire or by any other cause. 21) PREVIOUS AGREEMENTS: In the event there is any existing Lease or rental agreement between Lessee and Lessor (or its predecessor in interest) covering the property, it is agreed and understood that this Lease shall cancel and terminate said prior Lease or rental agreement as of the effective date of this Lease. 22) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commenced occupancy of the premises after Lessor acquired title to it, Lessor acquired the premises for a public project, Lessee may be required to vacate the premises to allow construction of the public project, and Lessee is not entitled to receive any payments under either the state or the federal Uniform Relocation Assistance Act. (Gov. Code, Section 7260, et seq.; 42 U.S.C., Section 4601, et seq.) 23) NON -LIABILITY OF LESSOR: Nothing in the provisions of this Lease is intended to create duties of obligations to or rights in third parties not parties to this Lease or affect the legal liability of either party to the Lease by imposing any standard of care respecting the duties and obligations under this Lease different from the standard of care imposed by law. It is understood and agreed that this Lease is made upon the express condition that State of California and any officer or employee thereof is to be free from all responsibility, liability, claims, suits or actions of every name, kind and description, brought for or on account of injury to any person or persons, including Lessee, or to property of any kind whatsoever, and to whomsoever belonging, e LEASE AGREEMEN�ont d) Pa 9*6 � RW 11-2 (Rev . . 12J98) including Lessee, occurring on or about the premises or from any cause or causes resulting from the operations and/or use of the premises, or the sidewalks adjacent thereto, by Lessee, its agents, customers, business invitees and/or any persons acting on Lessee's behalf. It is also understood and agreed that Lessee shall defend, indemnify and save harmless State of California, all officers and employees thereof; from all liability, claims, suits, or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property arising from any aforesaid cause or causes during the term of this Lease. Lessee waives any and all rights to any type of express and implied indemnity against State of California, its officers or employees. It is the intent of the parties that Lessee will indemnify and hold harmless State of California, its officers or employees from any and all claims, suits, or actions as set forth ab(n a regardless of the existence or degree of fault, on the part of State of California, other than its active or sole negligence. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee's expense, take out and keep in force during the within tenancy: General liability insurance providing coverage in the amount of $1,000,000 per occurrence for Bodily Injury and Property Liability combined, in a company or companies to be approved by the Lessor, to protect Lessor, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this Lease, including any and all claims, suits or actions for damage to vehicles on the property. With respect to third -party claims against the Lessee, the Lessee waives any and all rights to any type of express or implied indemnity against the Lessor, its officers or employees. It is the intent of the parties that the Lessee will indemnify, defend and hold harmless the Lessor, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of the Lessor, the Lessee, the officers or employees of either of these, other than the sole negligence of the Lessor. its officers and employees. Nothing in this Lease is intended to create the public or any member thereof a third -party beneficiary hereunder, nor is any term or condition or other provision of the Lease intended to establish a standard of care owed to the public or any member thereof. Said policies shall name the Lessor as an additional insured and shall inure to the contingent liabilities, if any, of the Lessor and the officers, agents and employees of Lessor and shall obligate the insurance carriers to notify Lessor, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee shall furnish to Lessor either a certified copy of each and every such policy or a fully executed "CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY" within not more than ten (10) days after the effective date of the policy. Lessee agrees that if Lessee does not keep such insurance in full force and effect, Lessor shall have the right to immediately terminate this Lease. 25) NONDISCRIMINATION: The Lessee, for itself, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that the Lessee shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. W Page 60 LEASE AGREEMENT �ont d) RW 11-2 (Rev. 12198) That in the event of breach of anv of the above nondiscrimination covenants, the State of California shall have the right to terminate the Lease and to re-enter and repossess the premises and the facilities thereon and hold the same as if said Lease had never been made or issued. 26) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by the Department, the remaining portions of this Lease shall remain in full force and effect. The receipt by the Department of rent with the knowledge of any breach of a provision of this Lease shall not constitute a waiver of such breach. 27) ENCUMBRANCES: Lessee shall not encumber the Leased premises in any manner whatsoever. 28) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee's assets, Lessee's general assignment for benefit of creditors, or Lessee's insolvency or taking or suffering action under the Bankruptcy Act is a breach of this Lease and this Lease shall terminate. 29) POSTING OF PROPERTY: Lessor or its agents shall at all times have right to go upon and inspect the Leased premises and to serve or to post thereon any notice required or permitted by law for protection of any right or interest of Lessor. 30) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet the toxicity, reactivity, corrosivity or flammability criteria of Division 4.5, Chapter i 1 of the above Code, as well as any other substance which poses a hazard to health or environment. Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted. In no case shall Lessee cause or allow the deposit or disposal of any such substance on the Leased premises. However, household products necessary for routine cleaning and maintenance of the property may be kept on the Leased premises in quantities reasonable for current needs. Lessor, or its agents or contractors, shall at all times have the right to go upon and inspect the Leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and materials present for testing, and/or testing soils or underground tanks on the premises. Breach of any of these covenants, terms and conditions shall give Lessor authority to terminate this Lease upon 30 days written notice or as otherwise provided by law. It is the intent of the parties hereto that the Lessee shall be responsible for and bear the entire cost of removal and disposal of hazardous materials or waste introduced to the premises during Lessee's period of use and possession as owner, operator or Lessee of the premises. The Lessee shall also be responsible for any cleanup and decontamination on or off the Leased premises necessitated by such materials or waste. Lessee shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during the Lessee's period of use and possession. LEASE AGREEMENkont'd) Pagee9f6 coy RW 11-2 (Rev. 12198) AMENDMENTS: Anything herein contained to the contrary notwithstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, altered, changed, or amended by mutual consent of the parties hereto. 31) HEADINGS: The marginal or clause headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO TERMINATE THIS LEASE PROVIDED, HOWEVER, EXCEPT FOR PAYMENT OF RENT, LESSEE SHALL HAVE 30 DAYS TO CURE A BREACH. CITY OF HUNTINGTON BEACH PETER GREEEN, MAYOR CITY OF HUNTINGTON BEACH ATTEST: CONNIE BROCKWAY, CITY CLERK APPROVED AS TO FORM GAIL HUTTON, CITY ATTORNEY STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By By BRENDA MORRISON, CHIEF CAROL DEVORKIN, MANAGER REAL PROPERTY SERVICES REAL PROPERTY SERVICES IRVINE OFFICE SOUTHERN RIGHT OF WAY REGION