HomeMy WebLinkAboutJOHN GUSTAFSON - 1980-05-19h
LEASE ;Yt72UE G'yt'it' RI CCCCCCpp
?IS AGREEMENT is entered in** by and between the GIVY OF
' HUNITINGTON BEACH, a municipal corporaticn of the State of Cali-
.caru?a hereinafter called"LESSOR",and J't3HN GtTSiAFSON (PE-8
and PB-5, The Znd Cafe), hereinafter ca',Lled "LESSEE."
RE CIT.A 3�,'
WHEREAS, LESSOR owns and controls a certain -pier extending
over the Pacific Ocean at the extension o.L Main Street in the
City of Huntington Beach, and LESSEE desires to use f'auilities
on said pier for the purpose of conducting business therefon; and
LESSOR is contemplating future o tha downtown
area, including +'hey ciuy pier, and bas taken steps to effectuate
tlk is process, and
LESSEE acknowledges the contingency that during the terra of
thi8 Agreement, the aforesaid of forts may neaes--
zi.tate to mination of this lease,
NOW, TEEREFORE, -tn consideratloi :)f the a')o4e and the per-
fomanee of the eovenants and conditions herein contained, LESSOR
does hereby lease to LESSEE th„--7, premises located on said pier
as set out i� the atta.che.0 Exhibit "All, which is incorpoea- ter i as p
part of this lease agreement, subject to the following 'terms and
condt'Lions
1rhe 'eased, premises shall be used for the purpose nt
conducting a food and beverage operation. Food saes consist
,
of trot and cold sandwiches, hot and cold breakfast, lunch, din-
ner, beverages, ice cream, sundries (gum, candy, :,.Lgarettes,
peanuts, popcorn, eta.), pastries, and other item- as approved.
by LESSOR.
'
2. TERM AND CANCELLATION
�L
This Icase shall be for a term of five (5) years corn-
mencing; ;.nd 'pirtng
tau..
`.
a, LESSOR may, upon fifteen (15) uµyst ^otice in writing to
LESSEEE, cancel and terminate this Agreement and the lease granted
,.
hercinn without liabilty to the city in the event of failure of
LESSEE to comply with any of the terms or r.onditions or agreements
hereof, or when public necessity so requires, or to suspend opera-
r• -ions immediately hereunder temporarily in the event of public
necessity, as may be determined by the City Administrator.
In addition, the five --year term is subject to cancellation
by LESSOR upon sixty (50) days' written notice if, during the
it
tern hereof, the implementation affecting
oh a T n
the cite pier is imminent, and mandates eycluuicn of the leased
prem sas from their current use prior to expiration of the tern;
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hereof. So far as i s oss i :l.e, LESSEE is granted the right to
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partioi,pa.te it the roaess, and will, be afforded
the opportunity to continue to operate if they, can meet the re-
qui,rements imposed, p... +uant to the
3„ RENT
(A) AMOUNT OP TIME AND PAYMENT
Rental shall to fifteen percent (15%)o;t gross
A
receipts (sales) per month, or $200 per m,)nth, whichever is
greater.
In addition, LESSEE shall pay One Hundc -�d Dollars ($100) for
tha use of Pier Building PB-5, over and above the rent charged on
the gross receipts.
N tip
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LESSEE shall compute all receipts monthly and shall pay x
to 4c;a;SOR on or before the 15th day of each and every month, the _
rental owing to LESSOR as and for rental due and payable under .s
this Agreement. if received after the Lein day but postmarked
on or before th\a 15th 4ay, the ,payment will be accepted without
penalty. LESSEE shall furnish with each remittance to LESSOR, a
repot of all income -lerived under this Agreement, Dn standard-
ized :norms provided by LESSOR to LESSEE.
One day after the last date payment is dues rent shall be
increased ten percent 10?;) for that month it is late.
(B) DEFINITION OF GROSS SALES O`;� GROSS RECEIPTS
The sale price of all goods., wares, merchandise, rentals or
products sold in, at, upon or from the Leaser' premise,3, by LESSEE
or its agents or employees, whether for cash or credit, and in �+
r,
case oil sales on credit, whether payment is actually made or not.
4. RECORDS AND ACCOUNTS
(A) BOGHS AND RBCORDS
LES815F, covenants and agrees that it will, at all times during
the texta of this lease, cep or cause to be k s t true and complete
`nooks, reeorda and accounts of all financial transactions in the
operation of all: buoinesses,-oncessions, services and activities
4 ' ; 0;f whatever nature conducted on or from. said premises. The records
must be jupported by doewnen'k:s From which the original entry of
3.
the transaction was made, including sales sl ps, cash register
tapes and purchase invoices.
All salea and charges shall bi3 recorded by means of cash
,egisters which display to the customers the amounts of the
transactions certifying the amounts recordedr The registers
shall be equipped wits devices which lock in daily sales totals,
and which shall record on tapes the transaction numbers and sales?
details. At the e=. d of each day, the tape will record the total
sales for that; day and the LESSEE will verify the total gross
+
es each da,� by signing his or, her narie on the tape.
LESSEE covenants and agrees that it will comply w.ih and
require all of its sublessees, concessionaires, licensees, agents
and employees to comply with the foregoing-equtrements.
{ ;B) 14ONTHLY REPORTS
Li-RSEE covenant: and agrees to deliver tt LESSOR,
riot later than the tenth day cf each month, a true and Correct
statement of` all gross receipts and gross sales for the preceding
calendar month showing separately.
I. The gros.3 sales and gross receipts from eac`
husiraess, concession, se.rvive, coin --operated machIne or activity
conducted on or from said premises.
2., The total gross sales and gross receipt:
itemized as to each of the separate categories of gross sales and
rosy recelp', s upon which the percentage rentals herein ,eserved
ara based
0) iJCSP.E TION OF REQUORDS
tl
All books, cash register tapes, records and accounts of
every kind or nature kept by the LESSEE, its sublessees; agents ov
employees, licensees or concessionaires relating to the opet ation
of any bisiness, concession, service .or activity ct�nducted on or
from said premises shall, at all reasonable times, be open and
,'q
made available for inspection or audit by LESSOR, its agents ,or
employees or the duly authorized agents and employees of the City
of Huntington Beach, upon: request.
(1 AUDIT
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LESSOR and the duly authorized agents and employees
of the Gity of Huntington Beach shall have the right to audit any
or all such books, records and accounts for the purpose of verify-
ing the peroenta:ge rentals required to be paid to the LESSOR here-
under. If such audit shall show that, the percentage rental re-
quired to be paid the LESSOR is greater t:- n the amount reported
or paid by LESSEN, LESSEE covenants and agrees to immediately pay
the coats of the audit as well as the additional rental shown to
be payable by LESSEE to "LESSOR; otherwise, such costs shall be borne
by LESSOR LE-SSOR reserves the right to Mistall any accounting
device or machi ies , with or without personnel, for, the pure-7--a of
accounting or audit. If such audit shall disclose any wilfull and
substa:rtial ittaccuraciesJ1 this lease, at the option of LESSOR, may
be thereupon cancelled and terminated.
HOLD ffA.RMLESS ARID INDEMNIVICATIO
LESSEE vhall save, hold harmless, indemnify and defend LESSOR,
i.t4 olTicials, officers, employees, agents or representatives from
any and all suits, claims or actions, damages to persons or
property, costs of attorneys' fees resulting from or caused by
the performance of this lease agreement.
6. INSURANCE, ADDITIONAL INSURED
` LESSEE agrees to furnish to LESSOR. in a form acceptable to
the City Attorney, and maintain in force until the termination ofsik`
this lease agreement, a general liability insurance policy in which
LESSOR is named as an additional insured. The policy shall insure
i
"d
r LESSOR, its officers and employees while acting within the scope
of their duties for the acts or omissions of LESSEE in connection
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with this Agreement.The policy shall provide for not less than
the follovaing amounts: Combined single limit b5dily injury and/or
property damage of $300,000 per occurrence. Such policy of insur-
ance shall specifically provide that any other insurance carried
by CITY which may be applicable shall be deemed excess and LESSEE'S
insurance primary despite any conflicting provisions in LESSE.FIS
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policy 4o the contrary.
7. MAINTENANCE OF PREMISES
LESSEE shall ac all times ma ntr..Nln the lea,,;ed premises in
confonaity with all state and local laws and regulations.
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At all timers during the term of this lase agreement, 7.,ESSEE
at its own cost and expense, repair or replace all damages to glass
windows and doors, both: internally had externally. LESSEE further
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agrees, at his owns cost and expense, to keep and maintain the pre-
mises in a neat, clean and orderly condition, and shall keep the
in of the building in good condition and repair and painted
6.
rvteh"etiZ11uY14.r'N.ltiiyaLe63i%o'rNYYkMS�E�7Y¢Nw^u`a _1ffifYn%d+.i'th:. ..: .... ,.....v..anacrasti�. YkXHxv:LmL::,wr;:........ .. ...... .
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as LESSOR shall direct.
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3 Interior and exterior signs, decor, fuzmishings, lights,
4
,.
and colors shall not be added to or altered from present oondi-
tirns without the prior written consent of the. Director of E om--
munity Services for the City of Huntington Reach. hereinafter
called "Director,rr
°x
LESSEE shall permit LESSOR, its c . i8ents or
employees to enter said premises at al.. _zaable tines to con-
d�c,t an internal inspection of the preen{ es or ;he conduct of
LESSEES business..
LESSER shall not obstruct, cause or permit the obstruc-
tion of said pier or any part thereof in any manner whatsoever.
LESSEE shall be responsible for any damage to the leased premises
caused by LESSEE, his officers, agents or employees. The respon-
sibili.ty for damages under this paragraph is separate from any
responsibility or liability for bodily injury or for property
damage cs,us.ed by third parties, against which LESSEE holds LESSOR
harmless under indemnification provi4 ions of this Agreement.
Failure of LBSSEE to comply with written notice served by
LESMR with regard to tha care and maintenance C f the premises,
inaludi.ng the signs, shall result; in temination of this lease.
EMERGt' y CLOSING OR CLOSING TO EFFECT REPAIR/RE-MODS14-
Ma OF THE PRZ111ISES
LESSOR may close the pier at any time it deems necessary for
the protection of V.re,, limb o.^ propertya cep upon reaaonablc rotice
to of"f eet any repair, remodeli7n,g or, rebuilding.
- 7 4
DELIVERIES OF SUPPLIES
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LESSOR shall establieh the days and times deliveries off'
f
supplies may be made ax d advise LESSEE in writii:rg.
10. EMPLOYEE PARKING
LESSOR small establish the days and times when LESSEE'S'.
and employees° automobiles, trucks, and other motorized and non-
mote rized vehicles may park on the pier and advise LESSEE in
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writing.
11. TRASH PICKUP
x
LESSEE agrees to pay a reasonable fee to LESSOR every
month for trash pickup, as established by LESSOR. Such fees
must be paid at the sane time the rental fees for the premises
are paid each month. LESSOR will establish a sohedule of trash
pickups and advise LESSEE in writing.,
12. DAMAGE -- CANCELLATION
In the event, the leased premises shall be damaged through
no fault of LESSOR, LESSOR shall not be required to repair or
rebuild sup h premises. nor shall. LESSEE be entitled to damages
by rF-v,scta of the tai' ure of LESSOR tc. repaii, or rebuild such
pr m sas; however, should said premises remain in condition nat
suitanle ,for LESSEE'S operations for a period of fifteen (15)
J?
�. days, e:ithkc party hereunder shall have the privilege o cancel
t.,
this 4greevent end be relieved of any further 1 .bility :ere-
'•
under«
13. ASSIGNMENT Ot< SUBLEASE
'No assignment or sublease of this Agreemerit hr any of the
rights hereunder shall be valid or binding upon LESSOR without
the written consent of LESSOR first had and obtained. Any attempt
to assIgn this Agreement without such prior written consent of
LESSOR shall cons�lStute a violation of this Agreement and cause a�
for cancellation hereof by LESSOR.
Ir LESSEE, upon w-itter_ consent of LESSOR fir.t had and ;
oblUal.ned, sells or assigns thin lease before termination date ,
hereof, L.S'SOR sh4l! receive a reasonable percentage up to the
maximum tPn the selling price as established
by the LESSOR.:;._
14 UTILITIES
SEATER AND TRASH
LESSSE shall pay as and when the same shall become due and
payable all charges for all public utility services, Including
water used on, said premises and for cost of trash service to be
provided via LE880R.
15. FEES AND XAXMS
1
Nothing in this lease agreement shall be construed to
relieve LESSEE of any obligation to pay reasonable .fees estab-
lished by LESSOR for services proA Lded by LF. SOR to LESSEE, in
connection with this, lease agreetnt. Further, nothing in this i..
leave agreement shall be conetpued to relieve LESSE r of any
obligation to pay area city l.iconse tax, city tax, or any permit
Vnich may be imposed or payable by reason of any ordinance of
the City of Huntington Beach.
16 A NOTICES
Any written notice given under the terms of this Agreement
� ry
shall be either delivered personally or mailed, Postage prepaid
addressed to the party concerned as follows:
TO TjESSOR: City of Huntington Beach
F Post Office Box 190
r H=intington Beach, CA 92648
TO LLSSEL: John Gustafson
51.61. Pearce Drive
�
Huntington Beach, California 92649
w Phone: (714) 846-3912
.
17. C014PLIANCE WITH LAWS
�'• "
LESSEE shall comply with %11 state, county, city and federal
lairs that 'relate to LESSEEIS operations hereunder.
18. CERTIFICATE OF DEPOSIT
LESSEE shall provide LESSOR with a one -thousand dollar ($1,000)
k
certificate: of deposit, payable to LESSOR with the interest being
paid to the LESSEE to be approved by the City Treasurer, to be
n-ged by LESSOR. to repair and maintain the leased premises as per
Section 7 of this lease agreement, upon LESSEES noncompliance with
I
Li`SSORIS written notice. Within fifteen (15) days of LESSOR'S
written notice to LESSEE that the required work has been enmpleted,
LESSEE shall provides LESSOR with such sums of cash sn as to main-
tain the one -thousand dollao ($1,000) certificate o. deposit,. If
this cash is not received, LESSOR will cash 'the certificate of
deposit and LESSEE will provide a new one --thousand dollar ($1,000)
certificate of deposit wit,rin fifteen (15) days after certificate
has been cashed., 11, at the conclusion of the lease term, any sums
remain on deposit, they shall be refunded to LESS,ZE.
19 . HO UPS �
LESSEE shall maintala opev hours so as to beat serve the
public. LESSEE`S schedule of houra shall be presented to Vve „ x
�4
Director for appr!jval , and any changes or deviati.onz must be
approved in writing by the Director,
20. JOINT AND SEVERAL LIABILITY
} The LESSEES named herein are CO -LESSEES. The liabilities`
and obligati,.,ns of this Agreement are therefore, joint and ?k
several and each LESSEE;, individually or both, way be held liable �
3
for violation of this Agreement,
1N WITNESS WHEREOF, LESSOR has caused Its corporate nam-- and
seal to be hereunto annexed by its mayor and attested by its
City Clerk thereto duly a.uthorl.zed, and LESSEE Las hereunto set
his hand, on the clay, month and year appearing below.
DATED: IP/ho � � �,� , 1980
CITY OF ffUNT2Ftv'Y ON BEACH, a
mun:.ripal. corporation
Mayor
ATTEST: , APPROTED AS TO FORM.
ALICTA M. WENTWORTH., CITY C1,ERk
t
Aepr)ty City Cler'. Gi' - turn
RSVIEWZD MID APZ POM INITIATED A APPRO
CA
its Admixxis 'at, _ pity rvioes Director
la .
19 80
.
DATED:
q
c.
-LESSEE
1
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OCAOU
EA -EVELOP'"E"T DEPARTMENT HARBORS BE -CHIES D L- )VIs- I -v
S S T E t.A,,fi
PIER NUv G
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Pil F, 43 41 '3 3 35 27 23 21 5
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3 7 31 29 19 17
L E G D
PL - PIER LIGH
ZERO - LIFEGUAPr-" ""yER, ZP-90
PB PIER BUILDING
IF
ADDE2iDUM TO LEASE AGREEMENT
WHEREAS, the City ° of Huntington Beach, hereinafter
referred to as LESSOR, entered into a lease agreement, hereinafter`.
referred to as the "Fisherman's Grotto lease," for a structure onx,y:-;
the Huntington Beach municipal pier with CARL MC CULLAH, JR. and
JEANIN.E MC CULLAH for a period of three (3) years, co=rnencin
June 23, 1976, said lease incorporated herein as Exhibit 1; an
11HFREAS, said lease agreement was t-ransferred to JOI N
GUSTAFSON, hereinafter referred to as LESSEE, with the approval
and consent of the City; an(I
in conjunction with the business operation of the de-
mised premises, the LESSEE requires additional storage space, and
LESSOR has a vacant structure on the pier suitable for storage,
NOW, THEREFORE, LESSOR does hereby lease to LESSEE those
premises located on the pier depicted on Exhibit 1, attached hereto
and incorporated by reference and identified in said exhibit as
`i
vier -buildings 5-A, 5-B, 5-D and 5-E,, subject to the following
terms and conditions
i
1. IISE. The leased premises shall be used exclusively
In, conjunction with the lousiness operated under the Fisherman's
Grotto lease agreement referred to hereinabove.
2. TER14 AND CANCELLATION. This lease shall commence
on the date of execution and expire on June 21, 1979.. tIancellation
0C , ahb
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shall be subject to the terms and provisions of paragraph 2 of
s
.
the Fisherman's Grotto lease.
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3, PENT. Rental shall 1�e One Hundred and no/lODtb;�
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I).-.*%f.ars ($100.00) per month, payable simultaneously with the
Fisherman's Grotto lease payments and subject to the penalties
provided in paragraph 3 of the Fisherman's Grotto lease.
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4
4. INSURANCE. LESSEE shall provide and maintain in-
�
surance, naming the LESSOR as additional insured pursuant to
Resolution No. 4337.
5. LESSEP; shall at all times mintain the leased
premises in eonformity wi ti: all state and local lags and vegu-
latons,, :end at all times during the terms of this lease agree-
ment, LESSEE at his oiw cast and expense shall keep and maintain
the premises in a neat, clean and orderly co4dition to the satis-
faction of the Director of Harbors and Beaches for the City of
Huntington Beach.
;
6. DAMAGE —CANCELLATION. In the event the leased
premises shall. be damaged through no .fault of .LESSEE, provisions
of paragraph 7 of the Fisherman's Grotto lease skull be appli-
cable.
;7
7. ASSIGHMM OR SUBLEASE, Assignment or sublease
of this agreement shall be subject to the provisions of pars:-
graph 8 of the Fisheannan's Grotto lease
$. NOTICE, Any notices to be givenunder the terms
of this agreemelat shall be subject to the provisions of paragraph
11 of the Fisherman's Grotto Lease. }�
IN WITNESS WHEREOF the parties have causes: this agree
anent to be exeputed on the dates appearing below.. �
DATED: -~ 4 1977.
USi`AFSGs e
o°
DATED r f � 1 977 - t: .
C?''y OF HUNTINGTON BEACH, a
municipal corporation
T,essor
U
DJ-) %-
ATTEST: APPROVED AS TO FORT
����+�•Y/'�✓ f it f _
City Clerk City tto i
REVIEWED AND APPROVED* INITIATE AND APPR VED
G
City Administrator re arbors and ear his
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(Ix vs
LEASE ASSIGNMENT
i
For value received, CARL MCCULLAH, JR. ADD JEANINE MCCULLAH
LESSEES of that certain lease executed on "L 1976
n
�y and between said LESSEES and the CITY OF HUNTINGTON BEACH, as
i3+
LESSOR of those premises referred to as "Fisherman's Grotto" (a c-py
2
of said lease is attached hereto and incorporated herein)., do here-
4J
by assign to JOHN GUSTAFSON all our r,ght, title and interest in
x.
the referred to lease, and in consideration of consent of the CITY
to this assignment we guarantee performance by GUSTAFSON of all
agreements cif LESSEE in said lease.
In. consideration of the above assignment and written cct
of LESSOR thereto, JOHN G 7STAi+SOX hereby expressly assumes and
agrf ,es to perform all the covenants and conditions herein devolviz;
on LESSEE, to make all payments and perform all conditions and
agreements of said lease.
It is the intent of this assignment to transfor the entire
I unexpired term of LESSEES current lease with the CITY OF HUNTING'","IN
BEACH as described above,
CARL TACCU,LLAA, VTR, Lessee
t r �
7EAXINn MCCUL,wAH, Lessee
QHN GUSTAFSCIT, ASS gnee of Lease.
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LEASE AGREEMENT
THIS AGREEMENT is entered into by and between the CITY
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OF H NTINGTON BEACH, a municipal corporation, hereinafter called
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G1
"LESSOR", and CARL McCULLAH,. JR.. and JEANINE McCULLAH (PB-8,
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Fisherman's Grotto•), hereinafter callea "LESSEE".
W I T N E S S E I H
WHEREAS LESSOR owns and controls a certain crier extending
over the Pacific Ocean at the extension of fain Street in the
City of Huntington Bearh, and LESSEE desires tc Ase facilities
on said pier for the purpose of (onducting business thereon; and
WREREAS, the LESSOR _s contemplating future redevelopment
of the downtown area, including the city pier, and has taken
steps, to effectuate this process; and
WHEREAS, LESSEE acknowledges the contingency that during the
term of this agreement the aforesaid redevelopment efforts may
necessitate termination of thii lease.
NOW, THUEFORI , in consideration of the above and the per-
formance or the convenants and conditions here:n contained,
LESSOR dues hereby Lease to LESSEE those premises located on
said -pier as set out in the attached Exhibit A, which is incor-
t a
porated as part of this lease agreement, subject to the following
terms and, conditions
1, 'USE, The leaeed premises shall be used for the purpose
of ci)nducLing a food and beverage operation. Farad sales consist
4 Y
of riot and cold sandwiches, bot and cold breakfast, lunch, dia-
ner team, beverages, ice oream, sundries (gum, candy, cigarettes,
peanuts, popcorn, etc:.), pastries, and other items as approved
�
by LESSOR.kf
9
2. TER14 AND CANCELLATION. This lease zhall be for a term
of three (3) years conwiencing June 21, �_`6 and expiring
7tine 21, 197 _
.
LESSOR may, upon flftp:ln (15) days notice in Writing to
ems-
LESSEE, cancel: and terminate this agreement and the lease granted
herein without liability to the city in the event of failure of
LESSEE to comply with any of the terms or conditions or agreements
hereof, or when public necessity so requires, or to suspend oper-
ations immediately heeeunder temporarily in the event aV public
necessity, as may oe determined by the City Administrator.
In addition, the three--yva.r term is subject 'to cancellation
by LESSOR with sixty (60) drays notize if, during term hereof,
the Implementation of a redevelopment plan affecting the city pier
is imminent, and mandated exclusion of the leased premises from
'their current use prior to :expiration or the term hereof. So far
as Is possible, LESSEE is granted. the right to participate in the
redevelopment process, and Will be affordod the opportunity to
continue to operate if they can 'meet the requirements Imposed
pursuant to the redevplopment plan.
3Y RENT, A. .AMOUNT AND TIME` OP PAYMENT. Rental shall be
fifteen percent (15) of gross receipts (sales) per month, or
$200.00 peer month, i bichever Is gx•eater,
LESSEE shall oormuta all receipt's monthly and shal'2 pay to
i
i
LESSOR on or b e f the 15th day of each ati R svory month, the
rYntal owing to LESSOR as and ror rental due and parable under
this agreement. If received after the 15th day but postmarked
on cr before the l5th day, the payment will be accepted without
penalty. LESSEE shall furnish with each remittance to
LESSOR, a report of all income derived under this agreement,
.-
on standardized forms provided by LESSOR to LEWBE.
„
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One day after the last date payment is due rent; shall
-'
be raised ten percent (1.0) for that month it is late.
t..'
B. DEFINITION OF GROSS SALES OR GROSS RECEIPTS, The sale
price of all goods, wares, merchandise, rentals or products sold
in, at, upon or from the leased premix ,, by LESSEE or its agents
�atiw.
or erployees, whether for cash or credit, and in case of sales
on credit, whether payment is actually r;ade or not.
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4. RECORDS AND ACCOUNTS
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(a) LESSEE covenants and agrees that it will, at all
times during the term of this Lease, keep or cause to be ;:ept
true and complete books, records and accounts of all financial
transactions in the operation of all huainesses, concessions,
services, and activities of whatsoever nature con(:ucted on or
From said premises. The records must be supported by documents
from which the original entry of t:he transaction was rude, including
sales slits, cash register tapes and purchases it voices.
All sale,9 and charters stall be recorded b,, means of cash
registers which display to the oust,arner� the amounts of the
uransact. ions certifying the amounts recorded. The registor-,
shall be equipped isith devices which :lock in daily sales totals,
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75
and which stall c ord on tape., the transact ��t numbers and sales
�
details. At the end of etch day the gape will record the total
4Y`
sales for that day and the LESME will verify the total gross
��
sales_ each day by signing his or her name on the tape.
a
LESSEE' corenants and agrees that it will comply with and
t .gin
require all of ius sublessees, concessionaires, licenseew,
P,gents and er.ployees to comply with the foregoing; requirements.
0'
(b) PIONTHi : REPORTS. LESSE. covenants and ag,-cues to
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deliver t,� LESSOR, not later than the tenth (loth) day of each
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month, a true and ccrre^t statement of all taros,: receipts an:l
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gross sales for the preceding calendar month, ,housing sE rarately:
1. The Cross sales- and grass receipts from each
business, concession, service, coin -operated -machine or activity
,a
conducte,3 on or from said premises.
"be total gross ;7,aiez and gross receipts
itemized as to each of the :separate categories of gross sales
and gra - receipts lxpon which the peroent;ag;e .rentals herein
reserved are based.
(a) 114S°ECTIOia OIL REIGOM>. A:,l books, cash register
tapes, records and accounts of every kind or nature kept by the
LESSEE, its sublessees, agents or employees liennoes, or (-;On-
cessionaiii es relating to the operation of any business, conces-
sion, service or activity conducted on or from said prea?tises
s)iall, at all reasonable time, be open and made available for
inspection or audit by LESSOR, its agert"s or employees or the duly
authorized .agents and employees of the City of Huntington Beach,
upon roquost .
1
(d) AUDIT. LES>OR and the duly authorized agents
'And onp oyees of the City of Huntington Beach ,shall have the
ti
rigInt to auditany or all: such looks, records ar,:1 a,:counts for
the purpose of verifying the percentagr rentals required to
be paid to the LESSOR hereunder. If such audit shall shoiq that the
percentage rental required to be paid Lhe LESSOR is greater than
.�
the amount reported or paid by LESSEE"., LrSSLE covenants and agree6
z
to immediately pay tix(a costs of the audit as well as the aLlditiona.l
k rental shot-;n to be payable by LESSEE" to LLSSOh; othertsi.se such
a costs shall be borne by LES'50R. LESSOR reserves the right to
r� �
F Y
install any accounting; devices or machines, with or withcut
P x
w personnel, for the purpose of accounting or audit. If such, audit
"Y
shall disclose any wilful and substantial inaccu •ac .es, this
lease at the option of LESSOR may be 'thereupon cancellud and
F terminated
i. INSURANCE AND HOLD NARNLE:SS,
` LESSEE shall, provide and maintain innur; nce uaminG
the city as at-► additional insured, t�� ith a hold harmles agree.maent
pursuant to City Restlllrtion Ito. 4013 attached hereV, and incor-
porated herein. These requirements shall, be mqt and proof of
compliance submitted to LLSSOR prior to LESSOR') oxccution of
this lease ,agreement .
�.
6. CARS, OF PREMISES. LESSEE shall at all. times m aintaL.i
the leased Premises in conformity withh all state and local laws
and regulations.
's At all tires during the term of this, lease agreement, LtaSSEE,
at ,his ovin cost and expense, shall keep and ;maintain the premises
in a neat, clean awd orderly condition, and shall keep the
interior of the building in good condition and repair and painted
it
as- olty skrall direct.
Interior and exterior .Pans, decor, furnishings, li frts,
t and colors shall tic' be added to or altered from present condi-
tions Kithout the prior written consent of the Director of
"
Harbors, ;Beaches and Development; for the City of Huntington
Beach, hereinafter called Director.
'
LESSEE shall permit LESSOR, its officers, agents, or
employeez to enter said premises at all reasonable times to view
the state a,d condition thereof, or the conduct- of LESSEE'S
�.
busihess .4.
'
LESSEE shall not obstruct, cause or permit the obstruction
A
of said pier or any part thereof in any manner ;0iatsoever. LESSEE
shall be responsible for any damage to the leased premises caused
E by ,LESSEE, his officers, agents or employees. The responui,bility
�s
for damages under this paragraph 4s separate from any responsi-
bility or liability for bodily injury or for property damage
eaubed by third part lets, against which LESSta` %Ids LESSOR harm-
less under inde>mnificatlon provisions of this agreement.
Failure of LESSEE to comply with written notice served by
LESSOR vilth regard to the care and malntenoe � of the premises,
including the signs, shall result in termination cf this lease.
7 • Df:M& - CANCELLATION. In the evert the xeased premises
shall, be dwnaged through no fault oP LESSEE, LESSOR shall: not be
required to repair or rebuild such premises, nor shall. LESSEE
be entitled to damages by reason of tho failure of LESSOR to
repair orr`rebuild such premises; however, shoald said premises
remain In coadi,tlob not suitable for LESSEE'S operations for a
period of Wt en (1 ) days, either kart,,,, hereunder shall. have
�d
'}
• J
- 1 1
the privilege to cancel this cgreement and be relieved of any
`=
further liability hereunder.
s
3 8. ASSIGNMENT OR SUBLEASE. No assignment or sublease of
� .,.
J'
this agreement or any of the rights hereunder shall be valid or
�,�.�-A
{{,
binding upon LESSOR without the written consent of LESSOR first
had and obtained. Any attempt to assign this agreement without
such prior written consent of LESSOR shall constitute a violation
r�
of this agreement and cause for cancellation hereof by LESSO,
9, UTILITIES: WATER AND TRASH. LESSEE shall pay as and
when the same shall become due and payable all charges for all
public utility services, including water used on said premises
and for cost of trash service to be provided via LESSOR.
10. TAXES. Vothing in this lease agreement shall be con-
strued to relieve LESSEE of any obligation to pay any city license
tax or Pity tax which may be imposed or payable by reason of any
ordinances of thje City of Huntingi.on Beach, and LESSEE agrees to
pay promptly all licenses .a..d taxes and other lawful charges that
f
are imposed by any governmental body or agency. Further, nothing
l
in this agreerent shall be construed to relieve LESSEE of any
obligation to obtain and pay the fee for any permit which may
<"
be required by any ordinance of the Oily of Huntington Beach.
11. NOTICE. Any written notice given under the terms of
tlri.s agreemerit shall be either de' per,;Onally or, mailed,
postage prepaid,, addressed to the party concerned, as follows:
TO �G STY
City of Huntington leach
Post Office Box 190
Huntington Beach, California 92648
Y
3
Garl McCullah, Jr. and jeallin]e tie€.ullv;]:t]
1-,23 Tustin Avenue
Nowporti Beach, California 926G)
r
Pho].te
t
Home: (7111) 5148-37,"
Dus : (714 ) 536-6727
s
12. COMPLIAUCE WITH LAW02 . LESSEE shall comply wth
4
HMV.'
all State, County, City and Federal laws that relate to
V" ,
¢`
LESSEE'S operations hereunder.
13. CERTIFICATE OF LEPOSM LE53EV shall provide LESSOR
with a One thousand dollar ($1, Ctit)) Ctirt if � cage of Deposit, payable
to ?LESSOR with i.t']e interest beim; pall -to the 411.11SBE to be approved
p
by City Treasurer, to be used by LE30"OR to royair and mainLa?nr the
leased premises as per t on 6 Of this lame aj;reement , upon
LESSEE'S noncompliance with LESSOR'f; tbrij t cn not lce. Within
fifteen (15) days of LESSOR'S wr t.teu notice to I.zSS'E that, the
required work Isar- been completed, I,7t.t.+SEt L hall provide USSOR w1th
such sums of cash so as to maintain] tho One Thousand Dollar
( Ix t7fi3 Certi. '; cate of Depositr if' trtpis cash is not received,
the LESSOR will ca:sli the Cortiticate of Pepos t; and ti]e 1sl...")EL
f
will provide a new One `:�'}iC�t,lsaod Voll.as� f�t1�i]�]�1� Cortif'iS.'ato of
E
t
psi
Deposit witktin fifteen] (15) stays aftcr cortif lent o t, rx been cashed,
If, at, the conclusion of the; (vase term, any sums remain orr dopos.it,
they %hall the refunded to LiESSEL.
l.rt.. HOURS. LESM shall maIntain opera hotirs, se as
to best serve the public. s-thodule of hours shall
be prese�tted to the Director for approval, and any changes
or deviat ions must be approved irr writln g by the Director.
., l5 JOINT 3D ST;VI�f�?STr I, .;i�3� l,SI Y . �i'110iS�SE� a namedirerea n
are CO --LESSEES, The Uabilitit=s and obligations of this agreement .,
are therefore joint and several and each LESSEE, individually or
J s
both, may oe held liable for violation of this agreement.
III WITNESS WHEREOF, LESSOR has caused its corporate rzame
and seal to hereunto annexed by its {Tayar and attested by
by its City Clerk thereto duly au:thori,*,d, and UMEH has
hereunto set his hand, on the day, month and year appearing
M, unicipal corporation,
N y1
ATTEST:
Cicj Clem
APPROVED AS TO COUTEt�M, APPROVED AS TO
City Administrator Ci :y : ttorn,
41/1
h1j. , I
r
r
Lessee
—V
t�rANa b! 41.,i {AfM ao01m1 br
mtapEe/ae owl .. •i Att Wi o �,—
Noce ger
`CECRTtPiCATE OF ItdSttHAPiC£ a4ffira�
m — CAVtc6e x
C4tr ,✓! }FrndM.♦m+ ! ''wi" CaV Ctri
A TO
0.
�y 1 ,.-,.�t 4ou ... MY Ante"
V.Cl.Saa 1 CITY OF "UNTii4QTOR &EACH, CALIFORNIA
:.
,
eo
+Srwt ptn+Btoch tl�u o xls Yla�B * +.. A MMIC1PAL CORVibRAYiOPi
Thh is to cs"Ify tia&t ft 1*90 1 of fnrraranem as describad below bm been taued to the iralurrd by the mukt-
dwad arA wta in lotus at ably titna. If dwa pOWO are asncelied or dectotd in such a r www that will stfecf thh artificata, tha
m`li, a. Box NuniirrgTen
t
ku rm= mompany wirraat to give 30 damn prior vmmm noti a, my to City of "Mth+aton Beach, P. 390,
3-14
toil
Ad&* 3Gf Imurcd Ate= _ • -vO S.. I %. 3 _/ ,',
•. .
toortlem* 4aka—t-0"n_a�tabaWomed H.A'/,r•t. A— RE f
}J"`
°st
,Dv=tpdo* of Work or Opus 't � ,r
roarst Fetwca
i
e.
tumtsofLtAMLtr; "
aFFscnva:
Im"TION
AL Works" Comtm "u$c*
t l �
,r/ : �
Stu -
EL PAWk Lfabiiity:
` lYtPt&i,ti6q erMthicwdt 0il+4s
8oeltiY hsjorY'
limit Per oocu fecom i
'- •� i r'
kle .
AAtne4'mstartaa and
Caattw am ❑ !
-3.
: �.,
S Each Pwran.
.
<.att�odmnaTws
0
�_.�Each Ah*.
(tdsrdme ttra kwu mawtolmd
o3taret�tal
PIOPWW DMLVP
S _ Eash Aad ant
C, Auemm"s 040",
fwQwa alsytieQtaS
_i..
fy ltrjary
,.
� : ' ' E� Patsore
r'
ffi„ - Easb Acddaat
Plot-y O'= a
S b9}l ACWl 1!!
p..kkv awl. In"" dwek in Mtu3. one
AN,rAtrwd"7 aertoaiaeiitds¢alsi )Vat i 67ta
i#irai('taittanNoftoumd ¢ n S "I E) Yin f I No
At Wta4tebma sww bd "W Y&o3 if tPWW )
i0,. AxSditJatsai iaaretad Ers�ar*'�++sata C
ibm i %WW *great %tW rha CRY 4# P.snthgt ate: Rfi/+�. Cft�&..i,k Ctty C+� fMg, asd�!_o.3 IM atyyLCMQW aphmkrlW tMM �
aka, commkW414, baot& lks�:a my atbo oty Commit appw:ted i�yi arldIc+ sitca""a Wvn awtow-P
ltwatrta as 9t:t{alaq " at *8 Ow of H4nematm such, whm mkq as lach are stwoomf faewedl hereunder, for the
*m of the tnOVad, *0d /u h fr'S� emu be prkwy to any kmmaacR of the City of fium*gton CtSW A, ..
EE 4 id}4asrctasn +9eerYo[$ evmu"ds1-1 R} -✓^ I } t
%4'""
fRs WWW-d wg ." ao Wotm, ctatardl, raw tai+dd� tow t�y of K.,Cktgton Beach #Wnat too, davwp oc �
tag me by ,rwsasrt o4 say Waite, ddm4 &mw dt4 Jk*-tt,4z &M ammo *I action --d by n-rat, his mptoy� agnnrtn
or *ay McontzltW of hm =f" tholl paM erit" out o¢ of lin cartwoanot icf Ow performat+ce of ail a aat+ opoutlot m
oaglred by the cmrMata oCkwowkm
t
r:.
F taa t m dta0 eay rtrovi ett, twra ar oa++e>dt " at say m nice at Qatar ftvA.Ate' AS TO FO
+as_ st wah at#�ecd to Maw tbta.onrtlSi" x fn sairietsr3ai+ot Tawxrao¢a ame tra ir�ad §. G t' . U"
4 l*
an *Waaetla ai'W A 6area! is r<styoK,ta
am"IWIMIM, all
Cky
tAws + ri,i6il�#f lZCQjp REME�SEtd ATIV90Fst
C94S c
Piet of Fna7mnaarst i:W tams»t ��
, ... _ w.W.. �ei'1`kyY a""tiii$i P r ti.. t . , .�'' �5 � e: ? 3 M c t .• Cs° ��
w «
g ,
M
Rut,"qn oe r;,;nal and th'L-4 copies of Distribution:
completed certificate to: Yellow
Original —Originating Dept,
''" CERTIFiCAT!_ OF)PJSURANt;`E; After Approval Yellow —Risk Manager
1Y C+tY AtiorneY City of Huntington Bs�och TO Pink - City Clerk
DDept,.._. Gold —City Attorney
Dept.
x tea CiTY OF HUNTINGTON BEACH, CALII`ORNIA
Huntington Beach. California 92"8 A MUNICIPAL CORPORATiOf1
This is to certify that the policies of insurance as described below have been issued to the insured by the under-
signed and are in force at this time. if these policies are cancelled or changed in such a manner that will affect this certificate, the
I company agrees to give 30 days prior written notice, by mail, to City of Huntington Beach, P, O. Box 190, Huntington
Beach, California 92648,
flame of Insured, JGiYN GUSTAFSON D,BA: END CAFE
Address of Insured PIER BLDG. 8 HUNTINGTON BEACH MUNICIPAL PIER r HUNTINGTON BEACH, CA
Location of Warirur Operations to be performed 317 I?P,C'XEIC COAST MVY . HUNTINGTON BEACH
Di•scription of Work or Operations & PIER 8 , RUNTYNGTON BEACH PIER.
POLICIES IN FORCE
POLICY
A UMBER
Q
LIMITS OF LIABILITY
._ _
EFFECTIVIE
EXPIRATION
A, Workers Compensation
Statutory
Emplovers' Liability
S
where applicable;
8. Public'tiabi)ity:
Bodily Injury -
Manufacturers and
Contractors 13
$ Each Person
Comprehensive
General RRI
5951218
8-7-78
8-7-81
gi 300 r 000 Each Accident
(Including products completed
operations)
Property Damage
S " CSL' Each Accident
C. Automobile Liability:
(where applicable)
Bodily Injury
S Each Person
Each. Accident
Property Damage
S Each Accident
Does policy cover. (Please check at lean one)
All owned automobiles { j Yes { { No
Non -owned automobiles (X ) Yes { I € o
Hired automobiles { Yes { l No
At least one box must be checked YES if automobele insurance app m
D. Additional Insured Endorsement;
The insurer agrees that the City of Huntington Beach and its City Council, and/or all City Council appointed groups,
committees, commissions, boards and any other City Council appointed body., and/or elective and appointive officers,
servants or employees of the City of Huntington Beach, when arcing as such are additionalinsureds hereunder, for the
acts of the insured, and such insurance shall be primary to any insurance of the City of Huntington Beach,
E. Hold Harmless Agreement: By Insured:
The insured agrees to protect, de en , indemnify and sa less the City of Huntington Beach against loss, damage or
expense by reason of any suits, claims, demands, ju gm s and causes of action caused by insured, his employees, agents
or, any subcontractor or by any third party arising out of or in consequence of the performance of all or any operations
covered by the certificate of insurance.
Remarks: This certificr to is not an insurance policy and does not APPROVED A5 TO FORM
F, amend, extend or alter the coverage afforded by the policy.
GAIL HUTTON
City A rney
* Deputy City .attorney
Date JLM 29, 1979 AUTHORIZED REPRESENTATIVE OF INSURANCE COMPANY
WStlRARtCE COMPAIV F i3y %a
Namd I ,1SSURMCE COMW OF TM PACIFIC COAST S,gnature at Authorized Represent—alive/Agent
A66tss . a . 200 Address 369 Sant MiicNel Dr4 r Suite 305
City N!" Bl it CA -92660' Telephone Newport lk�act r CA 92660 644- 5522
p
Return original and three copies of Distribution, Original - Originating Dept,
completed cerrilicafeto'' CERTIFICATE OF INSURANCE After Approval Yellow - Risk Manager
B C A
City of Huntington Beach rO y Ity ttarney Pink - City Clerk
Dept Gold —City Attorney
P. o. Box 190 CiTY OF HUNTiNGTON BEACH, CALIFORNIA
Huntington Boach, California 92M AMUNICIPAL CORPORATION
This is to certify that the policies of insurance as described below hayn been issued to the insured by the under,
signed and are In force at this time. If these policies are cancelled or changed in such a manner that will affect this certificate, the
insurance company agrees to give 30 days prior written notice, by mail, to City of Huntington Beach, P, O, Box 190, Huntington
Beach, California 92648.
Name of Insured JOHN GUSTAFSON DBA END CAFE 8/OR MAXWELL'S BAREFOOT INN
Address of Insured 5,161 PEARCE DP,., HUNTINGTON BEACH, 'CALIFORNIA 92647
Location of Work or Operations to be performed HUNTINGTON BEACH MUNICIPAL PIER, HUNTINGTON BEACH,
/CA.
Description of Work or Operations
POLICIES INFORCE
POLICY �
NUMBER
--
LlPtli7SOFLtA81UTY
._.__.S1
EFFECTIVE
expiRATiOfI
A. Workers Compensation
NC
Statutory
504666
8/7/79
8/7/80
Employer' Liability
S
(where applicable)
B. Public. Liability'
Bodily Injury.
Manufacturers and
Contractors ❑
NOT .
A'PPL) CA
LE
S * Each Person
Comprehensive
General F1
Each Accident
(including products completed
operations)
Property Damage
S Each Accident
C. Automobile Liability'
lwhere 3pplicablel
Bodily lnjairy
NOT
A'PPL i CA
E
S Each Person
$ _ Each Accident
Property i?arnaL-1
$ Each Accident
Hoes policy cover (Please check at least one)
All owned automobiles ( ) Yes { ) No
Non -owned automobiles f )Yes ( ) No
Hired automobiles l ) Yes ) No
At least one box mv;t be checked YES If automobile insurance applies,
D, Additional Insured Endorsement:
The Insurer, agrees that the City of Huntington Beach and its City Council, andlor all City Council appointed groups,
committees, commissions, boards and any other City Council appointisd body, and/or elective and appointive officers,
servants or employees .of the City of Huntington Beach, when acting as such are additional insureds hereunder,, for the
acts of the insured, and such insurance shall be primary to any insurance of the City of Huntington Beach.
E. Hold Harmless Agreement,: By Insured«
Ufa)
The. The. insured agrees to protect, en�Zemnqwify=e7-1
mless the City of Huntington Beach against loss, damage or
expense. by reason of any suits, claims, demands,, jnd reuses of action caused by insured, his employees, agents
or any'subcontractor ontractor or by any third party arising out of or in consequence of the performance of all or any operations
coveted:by•the certificate of insurance,
R*darks: This certific3tersnctaninsurancepoticyend does not µ APPROVEOASTOFGtRM'
F. amoo, extend or alter the ;cavera2e afforda: by the pa:lcy,
GAIL HUTTON-
a----------•--. - Ci tornay
f
By
it ttorney
'Date � S � � � AUT14ORIZED REPRESENTATIVE OF INSURANCE COMPANY
JINSURANCE COMPANY 6y �>g t "
natUfa of A�1 orizod Representative/AgentName REPUBLIC INDEMNITYCOMPANY(3l? AMiXAr
Addra '16I'VENTURA BLVD...
City 1: tG'Xh O CALIFORNIA, felephona (213) '990-9860
}� dill
�4
ram,+
Return or"tgin4l and three coplet of
completed certificate to.
City of Huntington Beach
Dept. Harbors ix.. Beaclhesr
P. O. Box 180
Huntington. Beach, California 92648
CERTIFICATE OF INSURANCE
TO
CITY OF HUNT'INGTON BEACH, CALIFORNIA
A MUNICIPAL CORPORATION
Only City of ffunungion Beach's arm
of Certificate of insurance will ha
;accepted -
This is to certify that the policies of insurance as described below have been issued to the insured by the under-
signedand are in force at this time. if these policies are Cancelled or Changed in such a manner that will affect t:tis rertsficate, fha
insurance company agreesto give 30 slays prior written nonce, by hail, to City of Huntington Reach, P. O, Box 190, 'Huntington
Beach, California 92648.
Name of Insured ,John: Gustafson dba Fisherman:rs Grotto
Address of Insured 5l6]. L-earce Drive, Huntington Reach, Calif , 92649
Location of Insured Operations Pier ii]d€,. 8, M mic pal Pier, Rmt ngton Beach, Ca,
Pier Bl PB-5Municypal P. err, Huntington Beach, Calif.
Description of Operations auua11 _
f'Cit tC1ES IN FORCE
POLICY
NUMBER
�ti1Al7S OF LIABILITY
EFFECTIVE
EXPIRATION
A Workmen's Compensation
C1 186
Statutory
Employers' Liability$
8733
8/7/77
8;/7/78
��� (Casa
B. Public 0abilityr
* $300, 000 Combined single
Bodily injury-
GA592
8/7,/77
8/7/7 �l
limit per occurrence,
Manufacturers and
9184
Contractors .
S Each Person
Comprehensive
General Q
3 Each Accident
(including products completed
operations)
Property Damage
5 ' Each Accident
C. Automobile Liability,
_
Bodily injury
GA5929�
a/7I77
s/�/7s
S - i- -- — Each Perswi
-
84
Each Accident
Property Damage
S —" Each Accident
Does policy cover.
All owned automobile$ Yes } No
(lion -owned automobiles t Xi Yes
Hired automobiles ( l Yes (X )No
l7 Add .'=onal Insured Endorsement
The insuraAagrees that the City of Huntington Beach City Council, and/or all City Council appointers groups r mmittees ,
commissions, boards and any other City Council appointed body, and/or elective and appointive officers, '4E.rYrnt$ or
employees of the City of Huntington reach, when acts,, as Such are additional assured$ hereunder.
E. Hold Harmless Agreement;
The insureAagrees to protect, defend, indemnify and save harmless the City of Huntington Beach against loss damage or
expense by reason of any suits, claims, demands, judgements and causes of action caused by insured, her employees, agents
or any st140ontractor arising out of or in conserluevice of th a performance of all ar any operations roueriW by the certificate
of igsumnce,:and such insurance shall be primary to any insurance of the city.
1F. Minimum f.in:itx Required:
Combined Single Limit. Bodily Injury and/or Property Damage including Products Uability; � 0 combined
single limit per, occurrence, s i .i s TO i+'£li Mr
Maw—
G. Remarks Cit t r3 eq
cit/,AttQr0e3r
,Ct7l1A� EANY� 1) XnS. Co., of-- No. AMerica PSPRESENTATIVE
Namir i xrt Co of the Pf.. By ....
5 Ins4trance CornPM6t r Coa St Si"tue of Authorized RepresentativeiA0ent
Acct:, J;'71 Cer~L1tbe
i
3 Addits, 1140510 Wilshi- "far L.A. 900,0, Addre$s J7dQQ R 11rqf,Ai—
Fountain ..
Valley, Calif. 92708
Ciro 2) fi�ygxt tt't3 .. t fir. � M. ialepht�t►enr�„nrs,
Newport Be.. Calif.
t-
Uy
�w
RESOLUTION NO. 4292
A RESOLUTION OF THE CITY COUNCIL OF THE CITY �.
OF HUNTINGTON BEACH APPROVING ASSIGNMENT OF
LEASE
WHEREAS, ,he City is lesson of certain property
t Y �rti ert described
as "Fisherman's Grotto" a copy of the lease attached hereto; and
3 The current lessee of subrject property desires to assign
same to one John Gustafson; and �c
Said: assignment of said lease is not -alid without the written r
consent of the lessor.
NOW, THEREFORE, the Pity Council of the City of Huntington "
Beach does hereby approve and consent to the assignment of subject
x
lease pursuant to the terms of the assignment form attached hereto
as executed by and between the current lessees and their assignee.;
PASSED AND ADOPTED by the City Council of the City of Huntington
Beach at a regularmeeting thereof held on,2nd day of
August 1976.
VFW
ayor pro ` wpoxe
ATTEST,,
City Berk
APPROVED As TO CONTENT.*. APPROVED AS TO FORM
" r
ty Administrator City Attorney_
APP A 'IN A A T%TEf32.
II
1
Res. No, 4292
STATE OF CALIFORNIA
CCiitM OF ORA GZ ve.
CITY 'a "iSU INGT N BEACH a
i, ALICIA It. 3EYviT'WflRSH, the duly elected, quaiifled City
Merl,, of the city of Huntington Beach, and a —officio Clerk of the
City Council of said City, do hereby certify that the whole numb'. r of
z Hers of the City Council of the City of Huntington Beach is seven',
that the foregoing resolution was passed and adapted by the affirmative
vote of more than s majority of all the mmbers of said. City Council
� t
at a regular meaiing the held an the _ .. . day
w .°
of August I975 , by the following vote:
'
AXES. Couneilven
]3 rtlettk P&ttinson.< Coen .ibbs
VMS Councilmn;
None
MUM- Councilmen
if eder
City Clerk and ex-officio Clerk
of the City Council of the City
Of Huntington Beach, California
1
CITY OF RUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATIONHe
^'
: HUS1*GTa4 BEACH ¢ -
t'
To DARREL CAHOON From VINCW G. MOORHOI3SE,DIRECMF
xA,k
AUv=TSA TM ANALYST HAREORS, BEACHES, & DEVEMPYFINT
Subject LMTI.'ER OF TRANS=AL-MCCfTLLAH LEASE Date JULY 27, 1976
-' Pursuant to lease conditions between the city of Huntington Beach and
Carl McCullah, Jr., who operates the Fisherman's Grotto on the municipal c
pieer, Mr. McDiUah has submitted a letter requesting, the city's permi:ssic
to transfer the. Lease to Mr. John Gustafson, who is purchasing the busi-
ness from Mr. McCullah. This wor.rld require ass gr7rient of the present
lease to Ns. Gustafson. Yr. McCullah has been negotiating with Mr. Gus- k
tafson, for sane time for the sale of his business.
There has been a serious illness in Mr. McCullah°s family and he must`
relocate to a more desirable c7izrrate to insure speedy recovery of a mersber
of his family.
Yr. Gustafson and his wife are residents and property owners of the city
of Amtington reach, have lived in this comer i.ty for sour- time and aro
reasonably financially sound. He has a background in business management
as a General Production wager with Johnston: Foods, Incorporated, located
Glendale, California. Re has many new ideas to upgrade and expand the
operation and he is agreeable to all conditior:s of the lease. ,Mr. Gustaf-
son has expressed a willingness to work with the city in the future development
of pier and be- 4i front.
The Contracts Administrator, Art De La Loza, raised the question as to bid
procedure and this matter. has 'been referr-ed to the 'City Attorney who ruled
that an assignment of a lease which requires consent of the council Is ex-
eiVt from, the bidding ;.procedure of the, city. 9berefore, the lease procedure
would not be applicable in this case.
r %Veld r crcrrend assent of the Fisheryrr n's Grotto lease of Mr. Carl Mc-
Cud ., to 34V t son.
j c G fl use, 'D:l reetor
bps, fiches;, Dvelowent
t Vowpr
tlr-�
RLTNRA. ORIOrw.L AND TNRrr top -its of ONLY city or muNTrN4TON PcAcws row
COMPLET90 CGRTIIIr.Tr TOI CERTIFICATE OF INSURANCE ,tm"f. ,ir PAtI Ic.TL Of IRBVR.RCL .,ILL -ar
10.
CITY of MVNTIFOToN finch TO
P,p. A ,C
eC4CN, CALIFORNIA02�48
City CZexk
mU4TINF TOE CIiY OF HUNTINGTON BEACH, CALIFORNIA
A MUNICIPAL CORPORATION
Thisis to certify that the policies of insurance as described below have been issued to the insured by the under-
signed and are in force at this time. :f these policies are cancelled or changed in such a manner that will affect this
certificate, the insurance company agrees to give 30 doy_ prior written notice, by mail, to City of Huntington Beach,
P.O. Sox 190, Huntington Beach, California 92648.
Name of Insured JOHN GUSTAFSON DBA: FISHE;RWLNS GROTTO
PIER BLDG. d HUNTINGTON BEACH MUNICIPAL PI
Address of Insured HUNTINGTON BEACH CALIF 92649
PIER BLDG. 8 HUNTINGTON BEACH MUNICIPAL PIER
Location of Insured Operations HUNTINGTON -BEACH, CAT.TP_ OP61. 9
Description of Operations RESTAURANT
POLICIES IN FORCE
POLICY
NUMBER
-DATE
LIMITS OF LIABILITY
EFFECTIVE
EXPIRATICN
A. Workmen's Compensation
Statutory
Employers' Liability
$
B. Public Liability:
* $1,000,000 combined single
Bodily injuryt
limit per occurrance.
Manufocturers and
Cantractors
$ * Each Person
Comprehensive
General M GA
591 383
8_7-76
8-7-77
$ Each Accident
(including products completed
operations)
Property Damage
$ * Each Accident
C. Automobile Liability:
Bodily Injury
$ ,r Each Person
$ e Each Accident
Property Damage
$— A Each Accident
Does policy cover:
All awned automobiles ( } Yes ( ) No
Non -owned automobiles ( X ) Yes ( )NO
Hired automobiles ( ) Yes ( ) No
D. Additional Insured Endorsements
The insured agrees that the City of Huntington Beach City Council, and/or all City Council appointed groups, committees,
commissions,'boards:and any other City �Douncil appointed body, and/or elective r-id appointive officers, servants or employees of
the City of Huntington Beach, when acting as such are additional assureds hereunder.
E. Hold Harmless Agreement:
'The insured' agrees to protect, defend, indemnify and save harmless the City of Huntington Beach against loss,
dombge or expense by reason of any suits, claims, demands, judgements and causes of action caused by insured, his
employe s, agents or any subconeic,ttor arising out of or in consequence of the performance of all or any operations.
covered by the certificate of insurance, and such insurance shall be primary to any insurance of the city.
F. Minimum Limits Required:
Combined Single Limit Bodily injury and/or Property Damage including Products Liability: $1,000,000 combined single limit
per occurrence.
G. Remarks
D t>u 9-2-76
COZeAM y REPRESMATIVE
wmeINS. CO. OF THE PACIFIC COASTBy BAYLY MARTIN & FAY. INC-
. Insurance Company - SIGNATUR T t2 PR
ARldremma, 620 NEGtPOR7' CENTER Address. FO ,':` MAIN VALLEY, CA. Y
City: n003T BEACH. CA. Telephone (714) 963-8961
APPROVED AS T :
DON P. 01�FA
City t otney
Deputy City Attorney
Rr"uFk am 0r 44 &NO TkP(r C01.115 or . (� aPb,. r; ITT b". MUNTimirbN ox4cws roNu
t. C•P'attrn rVt T+x+r-"C To. CERTIFICATE OF INSURANCE 4r IN"AAyct WILL 40V
AWIPT0.
4
L+rs or M.'IrT+wyYflP yG*Ck TO
HUNItM�'A IIer� CiiY OF HUNTING. N BEACH, CALIFORNIA
N4tit/k.�.Yoh (j lAC+f.. r„XCtr6P PI /,. 02641
A MUNiCIPA.L CORPORATION
This is to certify that the policies of insurance as described below have been issued to the insuredby the under-
signed and are in farce at this time. If these policies are cancelled or changed in such a manner that will affect this
certificate, the ir,suronce company agrees to give 30 days prior written notice-, by mail, to City of Humington Beach,
P.O. Be 190, Huntington Beach; California 926J9.
Name of Insured John si mtafson as PirSht~Y];ft°n's Grotto
Address of Insured 5161 PegrCe Drt s tttnf.�n re- Beach, Calif. 92649
Location of Insured Operations Pier Bldg, 8, Runigip;d Pigj. h3sxtttingtM &achy ra
Description of Gperotions Ret UTant
POLICIES IN FORCE
POLICY
NUMBER
DATE
LIMITS OF LIABILITY
EFFECTIVE
EXPIRATION
A, WorJ Men'S' C.ompen SQtion
C1 0981
Statutory
Employers' Liability
83�-9
B-7-76
8-7-77
100,000.
B. public Liabilityz
* $1.,000,000 combined single
Bodily Injury:
#
i
zizit; per occ=ranee.
Manufacturers and
Contractors 0$
*_Each Person
Comprehensiv►
General F—
$ * Each Accident
(Including prs .d
operations)
Property C ...zge
S - *- _ Each Accident
C. Automobile Liability:
Bodily Injury
a Each Person
5 s Each Acciden>
Property Damage
$ e Each Accident
Does policy covert
All owned automobiles ( ) Yes ( )NO
E; Pion -owned automobiles { ) Yes i ) No
fi+red outanxrbiles t ) Yes { ) No
D, Additional Insured Endorsement:
The insured agrees that the City of Huntington Beach City Council, and/or all City Council appointed groups, committees,
commissions, boards and any other City Council appointed] body, and/or elective and appointive officers, servants or employees of
I; the. City of Huntington Beach, when acting as such are additional assureds hereunder,
E. Hold Harmless Agreemenf
Thy inr red' agrees to protect, defend, indemnify and save harmless the City of Huntington Beach agairlet foss,
-40mage'at expense by reason of any suits, claims, demands, judgements and cwj..ses of action caused by insured, his
employees, agents or any subcontractor arising, out of or in consequence of the performance of all or any operations
covered by the certificate of iowran", and such insurance shall be primary to any Insurance of the city.
F. fTtinimnum Limits Required:
Combined Swingle Limit Bodily Injury and/or Property Damage including Products liability: SI,0W,0W combined single limit
per occurrence
G, Rtn,,arks:
bat` _ 9�9�76
�Alr`y. R"RESENTA"C Ph
htELtn� of rth Sy
tkgt,ra a G paA}r sraaAa uRE OF AUTHarrm7tOPEatcESENtATW Agent
$0 WiUhiVlvd-, xa ,Inc. ~
,tIfieSt# ,�.,�� Adttfrss
ei C�« 90610 Ountaln Valley, CA 92708
City � .... lep t763 8981
r' J'If'i.'I;;LiM AS TO FORD:
City torney
d
R1s.SC)Lt3'i',LOP 1,t0. 4013
t A RESOLUTION OP 'I'ICf': G I'i'Y i.'01Jtd0 J t, QI,, '3,`s&'. tR l'.t'Y
,.
OF HUNTINGTON t3E=1 � TABLI8111tdt'j A VilUiritim
{ LIABILITY INSURANCE LIMIT
WHEREAS, there at ,c r�;UrrEL t?ri( ti rr Invar�lot.ts act ivities
in the city which subject the city tct liability for
�
damage to property and injury to persorin; and
For the protection of the public hi-salf,h, .safety and wel-
fare,, the city requires such persons L-u maintaln insurance,
naming the city additional insured; and
The city desires to establish unil'ortn mirtiPAum liability
'.
limits for all such pet,sons engaiye is it, :-;ild var^toss activities
x,n`
Who are required by ordinance, resolution or otherwise to
provide such liatillLy insurance,
I
! }j NOW, THEREFORE, BE 19' RESOLVED by the Cl y Council of the
t City of Huntington Beach that the aiinitium liatillity limits
t shall be as follows
1. Combined 8ln ,1e 'Amlt, t odI ly Injury and/or Property
Damage includi ,Produc;t:� Liability, n11,000,000 combined
single limit per occurrence.
2. Additional Insured Endur,xtment:: The 'insured agrees
that the City of huntington beach City �.ouncil, arid/or all City
Council appointed groups, committees, oonttnissions, boards and
any other City Council appointed body, and/car elective and
appointive officers, servants or employee cs of the City of
Huntington Beacb,when &.Nti,ng ,as :such are addi :ional assureds
hereunder,
3. Any person enGaging In any ac t, t v i ty determined by
ord1nance, resolution or the City AdtnirilsLvatur to subject the
city to a possibility of liabillty+ shall pvovl�de the city with
r
a ce,rti leate of Insurance containing the additional Insured
endorsement and the hold harmless agreement.
who
s, ..
At,x a.a rat:: f 11c insured agrees t o pro- 4. hold Parralc:�:> _ � � a=�r x�
teat, defend, i.ndemnif'y and save lrarinjes> Lhe pity of Huntingtt).l
Beach against loss,, damage or expetn,, by mason of any suits,
claims, demands, judgments and causes r)f action caused by
insured, his employees, agents or any sukrc.ontractor, arising
Ar,
out of or in consequence othe performance of all or any
operations covered by the certificate of insurance, and such
insurance shall be primary to any irY-wanee of the city.
SECTION 1, Resolution No. 3887 adopted June 3, 19711, is
hereby repealed.
°PASSED AND ADOPTED by the City Council of the City of
a
HuntingtonBeachat a regular meeting ttrereof held on the 20th
�
day of January, 1975.,jt'"
ATTEST: t
ayor
City Clerf.
r
APPROVED AS TO CONTENT: APPROVkD AS TO FORM:
z
r'
City Admini:ctrator -- C y Ate . _.� tom'
Vt
No.401.l
S'fte'rE OF CALIFORNIA
( OUNITY OF ORAi10E
CITY OF HWITINGTON BEACH
I, ALTCIA
U. WENTWORTH, the duly elected, qualified City
%r
Clerk of the City of
Huntington Beach,, and ex,-officio Clerk of the
City Council of said
City, do hereby certify that the whole number of
members of the City
Council of the City of Huntington Beech is seven,
�
that the foregoing resolution
was passed and adopted by the affirmative
vote of more than a
majority of all the members of said City Council
at fa regular
meeting thereof held on the 20th day
€ of January ,
19 75 , by the following vote:
2'
AXES. Councilmen:
.G.
Shipley,
Battlett, Gibbs, Platt]cy, tyieder, Duke, Caen
NOES'. Councilmen;
i None
ABSENT.: Councilmen:
None
City Clerk and ex-offloio Clerk
Of the City Council of the Cite
of Huntington Beach, California
+/-e�SSC CSCYrS GJ7'i [L 4o [�t-Ay
CITY OF U[ TING"! O EACH t
2000 MAIN STREET CALIFORNIA 92648 `=
P. O, Box 190 COMMUNITY SERVICES DEPARTMENT 1714) 536-5486a
Vincent G. Moorhouse, Director.°
March 7, 1983
Mr. John Gustafson
7746 Sea1*reeze
Huntington Beach, CA 92648
Dear
Re Termination'Of lease Agreement - End Cafe ,
The storm and Curl" of 1983 will be rememberee by the city,
not only for the damage they caused, but also for ending
what.has been a frost rewardin-, relationship with you. `?•toe
world famous End la fe will, to sorely missed by everyone who
has ever had the pleasure of enjoying the food and atmos-
pbere found there.
In accordance with your lease, we are hereby exercising
Clause 12 thereof and advizing that your lease agreemen
r, reference pier buildings 5 and 8 is cancelled az of f4arch 1,
103. Any rent prior to that date is due and payable.
If the city ;should contemplate rebuilding a concession at
the end of the pier, rest assured you will be considered a
a lessee. I'm sorry I can't give you more definite informa-
tion at thle time but, as l mentioned to you, we are having
the pier studied by a marine engineer to determine its long
range future. We will steep yop advised of the results.
Please feel free to get in touch with me, John, if ;fit a have
any questions or concerns reea.rdi.ng the cancellation.
Sincerely,
'I
Director,, ommun�y Services
7bY�--
MELVIN 14. BOWMAN
Deputy. Director
t -0e; Acting OhieP, Adt ini.atrat.ive Services, Ilan. Vill;ella
Principal, .Accountant, MarX Amb`ozi ch
:sty ler't, Al,ixei a 'lentwort tv-
'deal. Property Manager, ban Drennan
... .. .
:ry n N.
t V oc e W.
Submitted to: The Honorable Mayor and City Council
Submitted by: Charles W. Thompson, City Administrat
Prepared by: Vincent G. Fioort3ouse, Director, Communi
Subject: Renewal of Lease Agreement with Mr. S. Mrs. John Gustafson
for Breakfast in the Park Food Concession in HCP
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Action., Attachments: r4l
STATEMEENT OF ISSUE
The lease agreement .for the Food concession in HuntJngton Central
Park known as Breakfast in the Park expires on June 30, 1982.
RECOMMEENDATIO;t
Approve the attached five-year lease agreement with Mr. & Mrs. John
Gustafson and authorize Mayer to execute same,
x.
ANALI YSIS
In July of 1980, the present lessee entered into a two-year lease
agreement to provide food and sundry items in Huntin;tan Central
Park in the building formerly known as Huck's Hangout and presently
r`. mined Breakfastn the Park.The intent ofthe two-year lease was
toseeif the concession would be a viable foetid concession. Also,
in the agreement, lessee was to provide $12,000 of improvements to
the building for which he received rent credit. In the past two
years, the lessee has proved that the concession has sufficient gross
sales to warrant year-round operation. The lessee has requested a
rive --year Lease agreement to enable him to amortize approximately
2 $25,000 of interior improvements. Rental for the building will by
as in the previous agreement, 15 percent of gross receipts. it is
estimated that the city will receive between $15,000 to t25,000_.1per year in
revenue .from this arrangement. During the past two years:, tie lessee
has done an excellent job in providing service to park patrons.
FUHMING SOURCE
None.
c
ALTERNATIVE ACTIONS
1.. ContlInue present lease on a month -to -month basis;
2, Go ovt to bid for new lessee for a higher percentage rate.
ATTACHMENTS
Agreement,
U y of Huntington Beach
P.03 Box 190 CALIFORNIA. 92640
OFFICE OF THE CITY CLFRK
June 11, 1900
fPaul de Pfyffer
C. Assessor's
Office
'
.e i
P. 0, Box 14
Santa Ana, U 9270
Attn: Real .Property Dept,
r Dear Sir:
Enclosed are the substituted copies of Page 2 of the lease agreements for
City_owntd. property which, were approved by the City Council of the City
of Huntington Beach on May 19, 1480.
We, had inadvertently stated the date of the leases as 1981 instead of
1985 for the -fo'€low n businesses:
The Cfd We w John Gustafson, Lessee
Tackle Sox r Ella Christensen or Joy Smith, Lessees
Neptune's Locker w Ella Christensen or Jay Smith, Lessees
If you have any questions, please call the Office of the City Clerk, 535-5227.
Sincerely,
Alicia M, Wentworth
City Clem "
nclosure$
City of Hu i . " Beach
r. .. 1. Grp. y� j CALIFORNIA
{�(,{
°f OFFICE OF THE CITY CLERK
May 30, 1980 x �
Paul de Pfyffer tee•-
C� C,, Assessor's Office '4
P. Q. Box 14
Santa hna, CA. 92702
Attu: Real Property Dept.
Bear Sirs
Enclosed are copies of lease agrei nt.s for City awned property which were
approved by the City Council of the City of Huntington Dpach on May 19, 1980
r
The End Cafe w John Custafsont Lessee
Captains Galley - Ella Christensen and Roger Cowdrey, Lessees
Tackle Box Ella Christensers or Joy Smith, Lessees
Neptune's Locker - Ella Christensen or Joy Smith, Lessee
If you have any questions, please call the Office of the City Clerks 536-5227,
.Sincerely,
Alicia M. Wentworth
City Clerk
AMart
Enclosures
c
REMEST FOR ITT COUNCIL ACTION
Stub r�itted by 1�FI�CEril G. 1�CQRi Qi3SEOlp, DIRECTOR r)epartmetnc �C?h4E(i1NiTY SERVICES
Date Prepared_ May 9 , i,9_LO Backup Material Awchad y t yet No
Su bj t RENEWAL 6F PIER CONCESSION LEASES
. .,
9t
City Ad " : .
19C�i✓ j
Approve as r2camended,
'QTY CLERK,
j' Staternent of ls*ue, Recommendation, Analysis, Funding Source, ,Aiternazive Actions: � ^
STATEMENT OF ISSUE
The pier concession leases expired ,on dune 21, 1979. These leases include:
The End Cafe -- John Gustafson, Lessee
Captain's Galley Ella Christensen and Roger Cowdrey, Lessees
Tackle Sax - Ella Chris�--ensen or Jay Smith, Lessees
Neptune's Locker - Ella.-Aristensen or Joy Smith, Lessees
RECOMMENDATION
Approve the four pier concession leases and authorize the Mayor to execute salve:
ANALYSIS
subject rases 'have been reworked to include well defined responsibilities on the part of
the lassees regarding replacing, repairing and cleaning the promises, and also to better
prvtea the City"s interests... The leases are made for a term of five years subject to
termination by the City within sixty days if redevelopment plans would affect the pier.
Mrs, ;Christensen and Mr. $ustafson have been City lessees since 1976 when the leases were
assigned to them. They have been excellent Tessees. fir. Roger Cowdrey was added to the
Captain's Callay lease byiMrs, Christensen. This addition has been reviewed and approved
by the. City Attorney's Offiro in that Mr.. Cowdrey is a Cite employee (see attached opinion).
FUNDI C SOURCE
lio t appl i cabl e.
AQERNATtVE ACTIONS �
Do not opprove new leases
3
��ds
} . a INTER -DEPARTMENT COMMUNICATION
tit '-tGVC.14�Y 3lAl,IF..
�
p4
To VINCENT G. MOORHOUSE , From GAIL HUTTON
Director, Community Services City Attorney
Subject EMPLOYEE INTEREST Its Date March 19, 1980
PIER CONCESSION LEASE
MEMORANDUM PINION
Question: stay a city employee (Roger Cowdrey, Pol"'P,
Department) acquire an jnterest in an exist-
Ing city lease for a pier'concession
(Captain's Galley)?
Answer: Yes.
DISCUSSION.
The Califarnia Government Code states generally that city officers
and employes must not be financially intererted in any contract
(lease) which is made by them in their official capacity or by any
body or board of which they are members.. Ca 1. t ov t.. Co Je § 1090 ,
Vurther, any contract made contrary to such prohibition is void.
Capron v.. Hitchcock (1893) 98 Cal.1427; 33 P. 131.
However, the Government Code provides further that art officer or
employes" is not deemed to be interested in a contract if his
interest Is t-hat of a landlord or tenant of the contr:.act;ing party
if, generally, such contracting; party is a federal, state, or local
department, agency, district, or public corporation. CL,,,.Govt,
Code §1091.5,
In tha situat~ioai pres,'�nted, the city employee does not, irake or
negotiate leases on behalf of the city; further, the emjl loy,.-e l s
interest Mould be only that of a tenant of .a public corporation,
and, therefore, allowed sander Section 1091.5 of the Government
Ccd e
CONCLUSION:
Mr. Cowdrey may acquire an interest in the : xi:sting lease for the
pieo1ToeS4XC.
Y
GAIL RUW0
City Attorney
,
I
:July IO, 1978
City of Huntington Beach,
M*
P. O. BOX 190 - CALIFORNIA 92648 • TELEPHONE (714) 536-5281
103 PACIFIC COAST HIGHWAY
DEPARTMENT OF HARBORS AND BEACHES
WNCENT G. MOORHOUSE, DIRECTOR
�c
Mr. John Gustafson
5? 61 Pearce Drive*
o-
Huntington Beach, CA 92649
Re End of the Pier Cafe
Dear John..:.ri
Our records indicate that the liability insurance and Warker's
Compensation insurance on the above -named concession expires
on August 7, 1978.
In order to keep our files up to date and in conformance with
Resolution No. 4337, please Have your insurance agent fill out
the enclosed Certii:ica.te of Insurance form to the City of
Huntington Beach. Upon completion of the city insurance farm,
please return it to this office.
Should you have any questions please call me at 536--5281. Thank
you for your cooperation in this matter.
Sincerely
Vincent G. Moorhouse, Director:
Harbors and :Beaches
By
Melvin 9. ,Bowman
Assistant Director
harbors and Beaches
VGM * hIMB cs
May 9, 1977
w
P. 0. BOX 190 + CALIFORNIA 92648 . TELEPHONE (7I4) 536-5281
103 PACIFIC COAST HIGHWAY
DEPARTMENT OF HARBORS AND BEACHES
MCENT G—MOORHOUSE, DIRECTOR
PD
11
Honorable Mayrr and j
City Council Members MAY1 4 1977
City of Huntington Beach �� CITY OF
P. 0. BOX 190 zsr �j b n . HCIN-- CrCJN BFA .,
wf
: Huntington Beach, California 92648 ��, FFICE
Attention Floyd G. Belsito, City Administrator rg7',7
Dear Council Members
zTy
Subject: Addendum to Lease Agreement
Fisherman's Grotto Lease - John Gustafson
Attached is the Addendum to Lease Agreement between the City of Huntington
Beach and John Gustafson to include in his present Fisherman's Grotto lease
the rental of pier buildings SA, 5B, 5D and SE uh.ich comprise an area of - j_
approximately 300 square feet at a total rental fee of $100 per month. Pier
buildings SA, 5B and 5D have been vacant and have not been utilized for over
three years. They are very small rooms and they serve no purpose to this
department: or to the City. Pier building .SE was previously under the rental
agreement of the Tackle Box lease to Ella Christensen and Joy Smith which was
used as a lire bait operation apprc>ximatel.y tivo ;years ago. They have recently
relinquished all vested rights in that building. During the past three years
it has not been used and serves no purpose to this department.
Therefore, it is recommended that pier buildings SA, SB, SD and 5.E be leased
to ter. Gustafson for the remainder of his lease at a total rental fee of $100
per math. All department requirements have been finalized. and ADZ-. Gustafson
will provide the necessary liability insurance im ediately once the addendum
has been appr ed by the ity Council.
Respe u1l su e
iaazse
Director
i
Harbors, Beaches 4 Development
�tG�t�eh
AttadmIent ,
Address aik ,r0m U4k*s 0A% to the Vire"Or, HArbors Srd Reaches Orp4t hcnt
M
City of Huntington Beach
zM
a
€ FFIOF THE CITY CLERK'.
August 9.
19 i'
Mr. 1>4ul deFPfyffer
sessorlu +'Sfflot
P. 0. i3oz 149
Santa Ana, ca. 92702
ATUNTIO ., Rea, property inept.
F'i3ear Mt. de Pfytfart
TbA City council of the City of Huntington Beach at its regular
meeting held $doday, August 2r 1976, adopted Rassolution No. 4292
ar,V ovzng an aasigmaeAt of lei on HcCUI-lsh Vishitrrnan*s Grotto
to John Gustafsoo. We art closing a certified r.Vy of said
Pe -solution for Your infbx ton.
sincerely yvurA
�.,.tw�
Alicia M. *mtWorth
cler
�l�sure.
1
CITY OF lHUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION '
To FIM-D G', BEt $ITO From VMMY T C. ADOW JSE, DIRECTOR
ACrINC, CI7Y AAWNISTRATOR R c$Tti3C?R-, BEAMES, DEk'fii.X}ROW
Subject NJCaJLLAB LF:ASh TMWM Date JULY 19, 1976
Over the weeks ago, I submitted to you a request from Carl Mc'Cullah, .Jr. r
to trwisf er his lease to Mr. John Gustafson of 1-ktatington Beach.
A copy of my original letter was sent to the various affected departments,
and I have received no commication in opposition to the transfer.
The Contracts Administrator, fix. De La Loza, died raise the question as
to bid procedure, but in discussing the matter with attorneys Bonfa and
Miller, it was not applicable in this case,
have attactsed the appropriate legal document, as prepared by at}vrncy
Miller.
In that there is sow urgency in effectuating this transfer, with your
approvnl and concurrence, I wcxild recom nd that this matter he placed
on the agenda on August 2, 1976.
If you have .any further questions concerningt this matter, please contact
I have already given you. the background info m:rtion on Mr. Gustafson.
Thetefort*, I will not
c3[.1pIicate it in this c:otwLmieation.
Viniceiat C. Worhouse
Director
Harbors, Beaches, & 3evel.opiwnt
Vt�4�pr
cc * ti, c l It. t�i l tor, fk rcrty City Attorney
Art De La %,owaa, Contracts Administrator
Carl A�Opllah, Jr., Lessee, FishemanIs Crottd
John Custafsoa, S161 I>ear e DriVe, Hwztington Beach, CA 92f4;i
JUL 27 1916 �*
CITY CW HUNTING DFACH
INTER -DEPARTMENT COMMUNICATION
To DON P. BONFA From MICHAEL If. MILLER
City Attorney Deputy City Attorney
Subject RR MaCullah Lease Assign mentDate July 15, 1976
g (see attached materials)
Par y in view of our May 10, 1976 memorandum ttr.-'.CCullah did not
trap er his interest to Mr. Oustaf'son as originally nontemnlated,
but. ra her entered into the three year agreement with the City
re�e.nty. ed by the City Council. NoW, the inevitable appears
to be Inen .e* the current transfer of the McCullah Interest
to
OU C.. sore. Now, this interest is at least a three year lease.
Query: in view oP Mr. De La. Lozat.s query what is our position
particularly with reference to the 40 ,000,00?
Of course, if approvod the assignment doaument's
abould be !!!pared by the City.
In vier of our May 10 joint memorandum I would appreciate discussing
this with you as soon as possible
PiICHR � N F MILLBR
Deputy City Attoraey
MIN bt
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CITV OFHUNTINGTO" BEACH
4.. INTER -DEPARTMENT COMMUNICATION
s,^w
tt4;leYtVfvlYii?3Y2iC7!
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To City Attorney from A. DeLaLoza
Contracts Administrator
.
Subiect Nctullah Lease Assignment Date July 14, 1976
i�.
�s
dt
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Please review and render an o fnion on; P) whether the
lease is subject to termination and bid procedures, or
6) whether any of the compensation being paid (approx-
imately $40�000) should be claimed by ;he city.
k
A. DeLaLoza
Contracts Administrator
/sdp
cc: DIrector of 'Harbors and 8eaci -_s
k ' CITY O TING N BEACH
INTE'R-DEPARTMENT COMMUNICATION k .
To I,WYIr 4, BhISIM, ACTT
Subject CAM MCCIiIJAH, JR. LEASE,
From V.INCE'�iI' G. Ni OPSOUSF,, DIPWWH
HAIlDC RS, BFACMS, x {lEVELDt' 14M
Date JUG 29, 1976
ft% Carl PltaCullah, Jr. ha.s mst recently received renewal of h-ts lease
!*a)r the P sherrmn's Grotto. He has subrdtted a letter, requester the
,; I:ty 1 s perir is-sion to transfer the Lease to Mir. John Gustafson, who I --
purchasing this lease. I ha�xe attached a copy of that letter for yotu,
pursual
-Ir. zfccullah has negotiated the sale of his operation to Mr. Gustafson,
arr3 this does require authorization by the City Council. Mr. 1cGul,lah
has, been negot atinF, with Mr. Gustafson for some time, but mDst recent-
ly mi-s . mcamah underwent extensive lung surgery for cancer. Due to
t i" s r4et, the PtCullahs need to relocate and have asked that this
transfer be expodited as score as possible
Attact xyJ Is bac round in orfiatim on tor. John G l"a"tairs 7n; he is a r esi...
derjt (if Hwitin ton Beach. I have Bret with W. Gustafson and di.scumA
his intervst in the business. He bas mmy new ideas to upgrade and
expand the operatic Fie is also agiveable to all the conditions of
the :lease ar-4 he very much would litre to wont with the city In its
suture development plan., for the pier and mach Pront.
11his propoml is being forwarded to the contracts administrator and:
other derx% toent heads affected by this lease, and l would .sincerely
reccrmierd to you that the City Council approve t1 is transfer at the
earliest (late ppssible,
le l ouAy quest t
At
nt G ryt e, . Y ire for
yarbors, ile ches,, & veloptr t
�tl�tTl�t�%
et:: zAMe el R. Miller., Wjuty City Attt;*rmy *
Art 13a 1A tmao Contmets Adrtrin'irtrator'Pm 0 ,1976
It 2!i
Girl "Cctl t Yt; Ir.
MIA
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
Don P. Bonfa
City Attorney
To Vincent G. Moorhouse From Michael H. Miller
Director, Harbors & Beaches Deputy City Attorney
Subject McCullah Lease Tranc-fer Date May 10, 1976
This office has been informed that Carl McCullah desires to
transfer his interest in the pier operation called Fisherman's
Grotto to a Mr. Gustafson. As you know, -",- this point
Mr. McCullah has a thirty day tenancy with the City.
Mr. McCullah is also aware of the fact that the City has
prepared and is contemplating three year agreements for the
pier lessees. Prev.Lously, we have advised you that as long
as the current lessees are interested in the three year agree-
m,,�nts, in view of their qualificaticns and "track record" it
would not be necessary to invoke a bidding pror�edure. However,
since McCullah contemplates a transfer to a new lessee, it is
advised -that the three year agreement be sent out i-or competi-
tive bids. If you proceed otherwise, particularly in view of
the contemplated purchAse by Mr. Gustafson of McCvllabl,%
"Interest," it would give the appearance of trying to avoid
the salutary effects of open bidding. Accordingly, x,otice
should be sent to McCullah that no assignment can be approved
at this time in that a three year agreement will be subject to
bid proposals.
D014 P. BONFA MICHAEL 11, VILI,LE R
City Attorney Deputy City Attorney
DPB: 14HMT I- r, s
cc: Art delaLoza
N
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May 5, 1976
}
MEMO TO FILE., McCullah Bros Lease Transfer
t:
The current pier lessees are on a month to month tenancy.,
Their prior leases expired:, but they were held over an a
rff
month to month basis subject to the terms of the farmer
leases. One �f the terms is city approval with regard to
any assignment of the lease."
Pre,%ently the City is contemplating a three year agreement
at an increased rental, to the lessees. One of the lessews
Carl, McCullah, with knowledge of the pending three ,year
agreement, has negotiated with a Mr. Gustafson for Hie
purchase of the McCullah interest. At this time this
`
interest would be a thirty, clay tenancy. It has been reported
�° {
that the negotiated price that Custal'son is going to pray
McCullah is aT�1 l{ ,} 0(j0�{ T C .
Yk �' o�timately 'F�-�,VV0+ tL:.e V�4� oir �l i3 ai� iii a.4n""
tams the leased premises. Only the equipment and "good
will" would presumably constitute the value of the purchase,
The dz-�sable location (pier), maintenance of the structure,
etc,., is attributable to the City.
In view of the above �;:he questior has arisen as to the City's
poswure in t1his matter:
lw Sbould we apvrove of the current assignment to Gustafson?
Z4 Sfw-,, 1d we cancel the MaCullah lease and provide for bid
PF°rposal s`
. Do we have any right or interest in view of the $45,000
pr�lspecti.ve purchase arrangement?
Th L mp.tter Is tscrow pending City approval
Xx',x: t.',r.
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B CITY F' UN T N BEACH
t.
tNTER-DEPARTMENT COMMUNICATION
WNIVi4104-UACH
TO M CAM R. MH , CITY ATMFJM From VINCW Cr. PWFOiOUSE, DI WWR
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HARBOFtS, WACiSS, £s DEVMI R4=
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Subject W=JAH JEAM Date AEG 27, 1976
Attached Is a ct py of a letter received. gated: April 23, 1976, from mr.
�
and Mrs. Carl ttCulllah, Jr. requesting a nmw cbange on the leases,
as per uV letter to the Mc{iullahs dated April q, 1976,
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,As you know, saa a years ago, Pt'. Wull.ah, Jr had the City Council
,
approve a name orange the NtCullabs to a corporation. Apparently,
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the corporatim vras disbanded a year ago, and certain agreements W
e between the s mvholders. to dk -44e the assets back to the original
�3.ch vaa.s Vw. and Mrs • i ovillah Sri . tr nl d= on operation,
�
the Captain's _. - EY��
the tai 'si i.7Gile
x;,;, �,(,�r+,'��c�.,
Gmtto. f 0te. c s 1'a. 10-1 .t' 'E ::11
iF3 that Mr., McCullah, Jr. bmas masted peraLssion to sell bi s interest
and 'PrIpperty to 3orvi GQStafs has prepared his letter of
April 23 z^ques of the trans€ otiom sae made at one time.
Ttds -could be accaq alished by toe comoil action, but it could prove
confusire to the cnmo l .
We have do alternatives; one, of np the rt> ms on the existing con-
,cessions to the two different Wallab femilies and� at a later time
nJ;L qbis would all be deperdent upon count ap-
proval, of course.
It is W persowl feeling that sInce all of this Is ctming to a bean
at approximately the sam time, we & Id transact all the actions at
one t ... 1X...t ty Council decides not to a�:ze the ale _of
tyre p rty, then we would i ca.�ve td e r the rj_Vtke
aces crss ,rc tl haves to be out ec3 bythe e dep-
2merit 1 tile trait aCtirE' n.
I would appreciate your revi.evding this ratter and waki rig yoI teats
as try t I. i ty, and t vim, reco mendat ons Would be on hcxv
to this tter
r CR Ouse, Director
csM, eachtisb ; . Development °
tkr
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erg, Dwi/� gyp` yy �e �'y{�}.. ¢�Inia�✓y�y� {�
D. P y Ada
Art, De ta Iama, ttacts Administrator
RZ'4 '
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�
April 23, 1976
j
Mr. Vincent 'G G. turf souse , ira rct:toar
Marbors, Beaches, & Development
P. 0, Box 190
1hzit ingtoti Beach, California 92648
War kfr. Moorhouse
k ,
1ti'c� rct 7 reusst C change the nary of th lrs
�atid
1771 eta 's and t n s rotto f cm! DRA Carl
A—anine Attu a to the Y c ' motto-Juhn rtafs ' 5101
Pearco Drive, fiiultingtcn Beach, Call.formni ! SLSf!ject to legal
require vents through perking escrtmv) and tt�aptain's Galley to
f 1.4ic Mt:cul Ih, "Y't - ? s'iR, Ca12 i imia 92663,
�. )f yotl have any questions, please feel free to contact we.
tiinee m y }ours,
5tI
C el l Ii , f
�r
N BEACH
INFER-tDOARTMENT COMMUNICATION A.
�sunu:caan ec+oa
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To MICPAa iI, MLER, 1�eputy From W i�. 1,DORWJSE, Director
City Attorney Harbors, Beaches, F Developent
f
Subject WCULLAH BROS., IM. Date Apiil 16, 1976
As you kno-v, Mr. kkCullah has aske to tr zs��r his .ease er a sai � boo a.
tentzal a aml we have bier working on- as new cease, not or:ly for Via. x
l� Iah, but for the other les.,fts on p.iera
N reviewlzg Mr, M.-Cullah¢s lease and pursuant to recent discussions with
Mr.. WCullah, it has come to our attention ?ghat Mr, �� _ullah apparently
di:--alinued the opera ' -ion 7�f h'kt5a3.I& Brothers, Inc. , and reverted back
Nr. �zCulkah Wiled to cawmnicate his .final: aztjons concerning to corpora-
tion xe did not ask the city for a naiw cha;,ge on the lease. his it stands
=i, 4err lease is Frith; Mc lah Brothers, Inc., Carl, McCull.ah, Jr., Presi-
dent. This is a defter carporction. The -.ease cleirly states that and
saxage of era a r 1 b CY� aunc� apt royv .& Se :care any tra iex'
c "d occur. tur D to.. be r"c`tItlea. ---- - -
I havt also enclosed copies of aLnttez submitted to use by Mr. W-Cul4ah on
April 1S, 1076. These z:Wutes reflect Actions taken. by the Board of
Dirz;ctor.5 of the corporation i.ndicaki.Ag certain ownership of assets and
agreeaaents to assua liabilities for as sets.
I resoec"tfully request your pursual of this ynatter frm a legal standpoint
yi i r rxim-.eiations for a lee.. solutico to bring the lease and its
4(#)ditions into per pers-pc-cti.ve. At this ti ,J-- Mr.�s��.�a�
...� _4x3 1L4qnral1 request a x nle Chan e it the lima,;: refl.Lcrirtz
dzssozu ions . the corporat o� ar new osti '' t-t xis%
Mega. s o ease.
To perfo m tFdas task, %Ut kind of Legal Tequinmnts shovdd ra a be of Mr.
' -t:u3;lan to prowproof of the a tioaz he has taken --a let rr, copies of
,TrOutes of *oration, or wlaat>
1�isl , pars"w-t to o - tel,e#;One ccoversa.tion of Veil 15, plcase cover this
matter relatli£. to e infomation. I I.= -ven you. I will look fo and
/55
Likso, "Director
rbr r`�, Bea sY tL-VVloPWnt
t lit: t��5
cc. Art De La Ld7a, 00&tact�, Adl�d-ai.strator ,
Itr fit. Bma=, Assistant Dii-ect:oT
iiaxlt.,s and $aacb%� Dept,
r ,"
ti:�.:,�•w ��'�' :�, f)jjf �; {"/j/J}�J��1j,J jf (y � � , 3, y
Ci ty of Huntingtone9, r J
far7X 194 CALIFORNIA92049 - rUF ONF, (7 14) 53rr-52!
°• r n3 PAc;r rWI COAST HIGHWA
I)kiF'AR! 1lF;N"'F 11 tK)'?)it5 ANDiif;ri.(;titS
vrrtctrt'r (t.A<_t t'at{tSc)t`: , 7>irar,:rOtt � HUNTp,i,
Mr- Carl WaillAh, Jr,
r a3 'Tustin Avenue
F Newport Beach, California 92660
,M
4;objcct; t)zssolvemont of #tCulltdi Incorporated
t'ttrstwnt to its` %-lelahone convm ation on ?�-)ril S, WO, I rclatee to 1-fct ,
that mi T tcrrrbor b, 1971 the City towici.) of Huntington iteach adopted they
Cxalif eat to Assignment of Capt4in,'salley and Fisherman`s Grotto, l)icr con.
ves �it;:i to WO.itlah I:nco rated which according L,i otir records, i
made m. oTr-ar , is m. lalt, ,Sr., an Robert lti~Cttila
You stated You c;)tt)tl prove to the city that Robert NtCul lah ha:: terminated
all of filq intert±st!. in both t>;e Captain's Gallev and !`ishe)-Inanls Grotto
le, %, and Mat ,WCullah Inn l)oratod business )tad l oen dissolwd. You
also stated thn)ra,ert, +r*}„rnrd as the I�,�iosse of both ahCt 'olis.
I w1sli it) po*,mll out Ovit you had been advised by Mr. >k;ttrliou-;t itre it)tts v
on We proper pri vedure to it)ilo�t when you proposed to disbud the c4�rlxc�ra
t lar, \prla rrrlt i y You t1roc ooded wi tii flint action and did not adv i ;e they
laic,*rvrore, if ;°rxr b'm if) ract, tii+ c)ntiri?1C`ll tht colpor3tlt)li, lour i',msc
t,ould require that you optify the cite* by lc'ttor tfmt this trtiol) haQ, ca ell
Place .apt; Viat ritt: re tt::-,t Ox, Lease t,,) W ank nded to reflect the t rutr owner-
,hzti.
P, ADVI` 00 t ? t )r t;M1 CO t i tlUO 14 the, pY'ta`,:es'; of 7
two tonce "Ootlr) Grotto and C.iptaln's rxi levli �tltr ntu5t prove
to the city
tli •51z :1.a +;tbat.srou . a t.lra s:Ivs► r . n. �ittc ir�ti .
Plea w thiw inr-lirt TiOP 1)), tyril at.), 197o,. 1 .,ease c r ter-4-i .ysrt.
Uncerely yours,
�)##t Lnt r,. Akx)t tl'�t', lli i('t« tciC
ltleh�wr ;, P ches, h Resit."Jovixmrlt
71
lclC'j fit ), ilt)vtrtttr), M7,0 *it°ant' M %.tor
lk*rbors and lioacbv*q lkpartw,ant
r��� rt I` I;t &Ets�xt, �ai'ruti',�c'ts l;t�ttft27�ti'xttc'ii
wltaol ll, Miller, MIPIfy City At'torlieY
Mclslttnt �t' ctarr.nun,caatiat� TO the llkrow. 11wi " uAd ikj%( >e,� r>t-polflou ol
r..
City of Huntington Beach
K 0. %OX 190 • CALIFORNAA 92,�iR • TELEPHONE (714) $36-SM
103 PACIM COAST HIC HWAY
DEPARTMENT OF ffA6 BORS AND BEACHES
rit+G:','.h"� `v., 3{CHSR}iG57JS�. 171FtL'GTUR
Jai wx7 8, 1974
ice. Carl NtCull.ah, Jr.
P-Cullah -'ems. , xnc
Hunt:i:rf,ton Beach :Pier Cares
1.2202 Bums Drive
Carden Gr ve, 6,, "ccr�a. 9?,-f;40
,tGYE-CII. Captain's Galley
Fi.shezvan's Grotto
Dear 'l « h
T-n accordance with our past telephone conversations concernirZ the
nont#nuation of youx- lease on the mnicipal pier, this is to i.rTorm
you that your, present lease �, being contlymed on .a nbnth to nth
basis urttIl we can a3 aft a proposal, that ww1d allow us to continue
the, Leases on a year-to-year basis.
.s Please, be advised that the conditions of your present lease arr: in
S'or :e ard this action is being acccvpllshed tl=ugh the provisions
of the C.al ifora - Civil Code Section 1945 wtdeh wads: as follows
111q. l 945. renew -al of Leases by Lessee s s Contlr v
Possession. If a lessee of real property remirss
In possession t�4reof after the expiration of the hiring,
WO the lessor accepts rent from him, the parties a
pressawd to havv remed. the hir-Ing on ttL- za tuns
for the =re tim, not exceeding one mirth when the
rant is Mvabl- nmthiy,; nor Its any ease one year.',
ds letter is rely to eAvise you that we am- prosentl y wDrki.np on
a lease praposaij ard 1, will be ampleied iuthin a mo th or, tNo. r
At �*Js tim, these Is m urgency, you have bier adv'.ised verbally
of cut inteM�jo�s pertaining to the =rti.cipal p:er arxi ti leases
on that Ixter. W-4 ales intend to drai'r a year -tag -gear leasa that
can bl-- renewed ad�trati vely and, also, allow us the 1atittlde
+,o ter irate xhoe leases at s"h tim as we have prepmNad an
acceptable develapmmt proVt m.
Aq, as we have pmpared our p lImx ,7 proposals, %v will. n4eu
.. �tou to x4--view the docszwnt a:~ a solict y,> 4, ri:�mWi tions
4 X c..+tWont G. *Mta+w*se, DJ,r%tgnr
co: rated Z lbwlatidp., City A&AnIstrator
tMehae! s zee City A torrey's C}i`.Ptoe
MArtwAt to w Wm x, 0%** I 04+n 0"t7t4`ot
0�I
O.Ly i, as NO."wW 6(.a•s. foiu
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asAYuklP 0n1if94 r`,1'o ruiS as Or
erarfrk.*irot CimI1 motaP *LAIR, C.E :air T '"Is er ri+p,ucr �'SLsr
a i'- .
ij; w A '�1Yt e[i.etr•Ma�Clirii+ca �
k
~ "o.0.3 t Do K�GIiLSi1A
O ! OF'PFIni ��i
/f, �LC.ALIP"'M1i
A I&t*CL CORPMATKW1
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H u
This is to s,it f* that the pal"etiv, ; insatanc ai: descfib" below have bserc issued to the f,asaitad 6y the un iar
x r
signed apd are in fame at this time, if these pQkles we co"Otted of CIWVad in such a manner tfrit v111 affect this
A -
certtfic+ite,,the inswant. Q moony ;stoat to gave 30 days pc (' WA"*ft, oa!ice, by moil, to City of Hutdir4ton Beach,
SOCA,. 'rIM&
PA, liox 190, Hunti:gton C,plifornia
t,tf ' L JR 0t3Aa F1 RMANtS GROTTO AND OR CVTA:NtS BALL**"'
Wane of lesoted,.LA-8L r ", A.t.�
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VxO. box 190 ,
A-44vmt Hvmt , lfton Bo aoh, Calif., 9264E
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