HomeMy WebLinkAboutBartusick, Michael & Christie dba Park Bench Cafe - 1997-02-18e sa
luill NO7- rt�,riv
Council/Agency Meeting Held: 9
BA 6,00-&J-
Deferred/Continued to:
;Hpprove ❑ Condit'ona ly Appr v ❑ Denied
bZA)I t Jerk's Signature
i
Council Meeting Date: March 15, 1999
Department ID Number: CS99-011
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator
PREPARED BY: RON HAGAN, Director, Community Services
*11
SUBJECT: APPROVE AMENDMENT NO. 1 TO LEASE AGREEMENT WITH
MICHAEL AND CHRISTIE BARTUSICK D.B.A. PARK BENCH
CAFE
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the city amend the concession agreement with Michael and
Christie Bartusick reducing the percentage rent for the Park Bench Cafe in Huntington
Central Park?
Funding Source: N/A
Recommended Action: Motion to approve the attached .Amendment No. 1 to Lease
Agreement with Michael and Christie Bartusick d.b.a. Park Bench Cafe, and authorize the
Mayor and City Clerk to execute same.
Alternative Action(s): Do not approve Amendment No. 1 to Lease Agreement with Michael
and Christie Bartusick d.b.a. Park Bench Cafe, and direct staff to renegotiate the terms.
Analysis: Since 1988, Michael and Christie Bartusick have operated the Park Bench Cafe in
Huntington Central Park. The Bartusicks took over the concession after several previous
concessionaires were unable to make a success of the business. The facility was built in
1974 when the first phase of Huntington Central Park was developed. The structure was a
fast food stand/bait shop. The Bartusicks have made numerous improvements to the site
over the years to keep up with health and building code changes. However, the time has
come when both the concessionaire and the city must address rebuilding the existing. facility.
The structure has deteriorated to the point where it no longer makes sense to invest major
capital dollars. Staff is currently working with the Bartusicks to develop a proposal for
Council's consideration to rebuild the structure within the same leasehold footprint and
architectural style while meeting new building, safety and health codes for food
establishments.
1EQUEST FOR COUNCIL AC�ON
MEETING DATE: March 15, 1999
DEPARTMENT ID NUMBER: CS99-011
Since this project will take one to two years, there is an immediate need for some temporary
fixes and improvements to continue operation of the facility. These items are related to
electrical, plumbing, and structure. The Bartusicks are willing to invest in these temporary
improvements if the city will reduce the percentage rent to offset the cost. The alternative is
for the city to front the money for the improvements and leave the percentage rent as is. The
rent on the current lease, which runs through 2002, is:
Annual Sales Volume Percentage Rate
$1.00 - $100,000 10.5%
$100,001 - $200,000 12.5%
$200,001 — plus 14.5%
Staff is recommending that the Bartusicks pay a flat 8% on the accumulated annual gross
sales until such time as staff can prepare a new agreement for the rebuilding of the facility.
In exchange, the Bartusicks will make the necessary temporary improvements and continue
to operate the Park Bench Cafe. The cafe is an important and popular amenity to Huntington
Central Park. The Bartusicks' service and food quality have always been exceptional, and
the community has always been very supportive of the concession. Staff has reviewed the
financial records for the Bartusicks' operation and has concluded that the above
recommendation is the best financial option for the city.
The Park Bench Cafe has paid an average, annual rent to the city of approximately $30,000.
According to their income tax records, the business has produced an annual net income to
the Bartusicks of $35,000. This is based on average, annual gross sales for the past five
years of approximately $380,000. Staff believes that a percentage reduction in rent will allow
the concessionaire to continue keeping the cafe open while staff negotiates a new agreement
and process new plans for approval.
Environmental Status: N/A
Attachment(s1:
RCA Author: RH:cr
Documents -2- 02/25/99 2:27 PM
ATTACHMENT*
1
q.COM CERTIFICATR OF. LIABILITY INSUIZ
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A C I C41M`IERCIAL INSURANCE IIv1.nrR. THIS CERI IFICATi,, DOF.S NOT ANil..ND. i_%I w:,`t) UR
1504 BROOKII)LLOW DRIVE # 114 ALTER TII COVLRAGE, Aw•RIKI)V» RV TIIE Mn u:n ; nw:r,()►► .
SAMTA ANA CA 92705 roi►mAnH :c AFFORDUN CQ%T'RAn(;e, _...__..
A C I COMMERCIAL INSURANCE
714-7U.!R4
THE PARK BENCH CAFE
17732 GOLDENWEST STREET
HUNTINGTON BEACH CA 92648
C(IMPnNY
ACOMMERCIAL UNION INSURANCE
CONSPANY
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COMPANY
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THIS IS TO 0:I11IFY THAT" l HE POLICIES OF INSURANCE LISTTT) lll:1.OW HAVE SCL14 ISSUED TV 711E INSURCID NAMED A110W.. I OR 111E POLICY PCkl(SI)
INDICATED, NOTWIT)ISTANDING ANY REQUIREMENT, 11lRM OR CONL11110N OF ANY CONTRACT Ok 01-IICR DOCUMUNT WIT11 F.I SPI-1'"T 7U W111 i WIS
CERTIFICATE MAY BE ISSL!1:0 OR MAY PERTAIN, '111E INSURANCE ATFORDED BY THE POLIC1rS DESCRI10) III.RLIN 1S SU81( ("T 10 ALLIRE -11 RhiS,
EXCLUSIONS AND C014DITIONS OF SUCH POLICIES. LIMOS SHOWN MAY HAVE BEEN RF.UU('LD BY PAID CLAIMS-
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CIiRT1FICATEHOLUf•:R CANCELLATION
CTYH804 SHOULD A%V OT THs: AUtn► utsrklRt.0 IYIt it:H:s or. CAVi I.i u.is ilu via. -1 HF.
EXPIRATION DATE. VlItn 'DF. THF. ISMJ%G L'rJ\{PA%'Y M II 1. MAIL
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RISK MANAGEMENT
2000 MAIN STREET ".
HUNTINGTON BEACH CA 92646 ALTiI(IkllrnkTl'xi"ti{:\lA1lt't r `` `—
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ktORD 1 I. • At:0R0 C()k1•i)1•tATION 19g3
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insured: TUe Park Bunch Cafe COMMERCIAL UNFRAL UAT111.1TY
Policy No, FALK40191
THIS ENDO&SEMENT CHANGES THE POUC:Y. PLEASE READ IT CAW,',FUI,I.Y
ADDITIONAL, INSURED -MANAGERS OR. LESSORS OF
PREMISES
CG 20111 11/85
This cr dorsemcnt modifies insurance provided under the following:
COMMERCIAL GENERAL 1AAI3I1.,>t'f Y COVERAGE PART
SCIIEUUL ,
1. Desi;;nation of Premises (fart leased to you) .
17732 Goldenwcst St., Huntington Beach, Ca.
Name of Person or Organizition (Additional Insured)
City of Huntington Beach, ca.
3. Additional Premium:
WHO 1''.INSURED (Section 11) is amended to include:
as an ins ured the person or organization shown in
the Schedule but only wish respect to liability arising.
out ofthc ownership, maintenance or use of that part
of the premises ]used to you and shown in the
SchedUlt: and subject to the following additional
cxclusimis:
2/11 /99
£0 'd
This insurance does not apply to:
1. Any "acc1111'rucc° which t,AC` plaWe after
you cease to be a tcnaht in fttt preniisca.
2, Structural alteration~, nuw constinetion
or demolition operations perrormed by or on
behalf of the person or orgunizaation slsuvvn
in the Schedule
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Insurance Commissioner to the P a oq.insurance olfe in ''f r .' �' ="� �• ='A :`
employer named below f the p . Y �y 0 �1 apj,il;ed.b{''t
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ENDORSEMENT #2005 ENTITLED CERTIFICATE HOLDERS' NOTICE E " t }�tt. r.•L:'' FFEGr1V9, QB/30/88,: XS.'AtT E �IS.' D M'+' `i• ('
FORM$ A PART OF .TMIS`.POLICY. Y^ q`' "
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THE PARK. B�N,Gµ CA1 r• .BIY�,Ii.I M ,.s�LELfY�CEN1D4
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17732 GOLdEF1W1;ST. S�. -RARTOS= it,,.� �•IBYSTxE••LYNy;�,. '1
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THIS
DOCUMENT HAS A BLUE PATTERNED BACKGROUND
RCA ROUTING SHEET
INITIATING DEPARTMENT:
COMMUNITY SERVICES
SUBJECT:
APPROVE AMENDMENT NO. 1 TO LEASE AGREEMENT
WITH MICHAEUCHRISTIE BARTUSICK D.B.A PARK
BENCH CAFE
COUNCIL MEETING DATE:
3-/5-17
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorne) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached
Financial Impact Statement Unbudget, over $5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION.F : R .M:ISSING ATTACHMENTS . .
........ . _.... .........
RCA Author:
Council/Agency Meeting Held:abol
Deferred/Continued to:
❑ Approved ❑ Conditionally A roved ❑ Denied
City Clerk's nature
Council Meeting Date: Febrluary 18, 1997
Department ID Number: 95-024
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL
MEMBERS/REDEVELOPMENT AGENCY MEMBERS
SUBMITTED BY:
PREPARED BY:
UBERUAGA, City Administrator/Exe
FRANZ,Deputy City Administrator
APPROVAL OF THE PARK BENCH CAFE LEASE
Statement of Issue: The renewal of a park concession lease between Michael W. and
Christie L. Bartusick, husband and wife, dba "The Park Bench Cafe" as Lessee and the City
of Huntington Beach as Lessor. A new term of five (5) years is proposed, with three five (5)
year options if mutually agreed by concessionaire and the City Council.
Step Increase Rents as follows:
Annual Sales Volume
$ 1 to 100,000
$100,000 to 200,000
$200,000 - Plus
Funding Source: None
Percentage Rate
10.5%
12.5%
14.5%
Recommended Action: Approve the lease with Michael and Christie Bartusick, H/W, dba
"The Park Bench Cafe" and authorize Mayor and City Clerk to sign Lease Agreement.
REQUEST FOR4�-OUNCIL/REDEVELOPMENT410ENCY ACTION
MEETING DATE: Febrluary 18, 1997 DEPARTMENT ID NUMBER: 95-024
Analysis: Michael and Christie Bartusick have been associated with the City's "The
Park Bench Cafe" concession since they leased this location six years ago. Since that time
Mr. and =Mrs. Bartusick have operated this attractive and popular restaurant successfully.
With the City's approval of this new lease, Mr. and Mrs. Bartusick will proceed with certain
needed improvements and continue their operation of this concession for the benefit of both
the public and the City.
The proposed step increase in the rents will allow the City a greater income return as gross
sales increase. This lease, with renewed terms which are in line with the current concession
lease market, will continue proven good service to the public and maximize profitability for
the City. This lease will further enable the concessionaire to continue improving the present
City owned facility
Environmental Status: n/a
Attachment(s):
1. Proposed Lease Agreement
2. Certificate of Insurance
RCAPKBCH.DOC -2- 02/07/97 8:37 AM
REQUEST FO*OUNCIL/REDEVELOPMENAGENCY ACTION
MEETING DATE: Febrluary 18, 1997 DEPARTMENT ID NUMBER: 95-024
THE PARK BENCH CAFE @ 12.5% RENT
Year
Sales
Revenue to City
1992
$186,843
$23,485
1993
$207, 876
$26,166
1994
$246, 975
$31, 067
1995
$314,443
$39,308
1996 (est.)
$352,000
$44,000
Proposed New Lease Projections
1997 $352,000 $45, 040
1998 $352,000 $45,040
RCAPKBCH.DOC -3- 01/30/97 2:52 PM
CITY OF I-IUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
February 28, 1997
Michael and Christie Bartusick
9685 Pettswood Drive
Huntington Beach California 92648
Dear Michael and Christie Bartusick:
CALIFORNIA 92648
The City Council of the City of Huntington Beach at the regular meeting held
February 18, 1997, approved the lease agreement between the city and Michael
and Christie Bartusick, dba Park Bench Cafe.
Enclosed is a duly executed copy of the agreement for your records.
Sincerely,
67t.�uc,&e'"r
Connie Brockway
City Clerk
CB:jc
Enclosure: Agreement
G:followup:cashcon/ agrmtlrParkBench/jc
1 Telephone: 714.536-5227 )
0
C�
AMENDMENT NO. 1 TO LEASE AGREEMENT
BETWEEN THE CITY OF HUNTINGTON BEACH
AND MICHAEL AND CHRISTIE BARTUSICK,
dba _PARK BENCH CAFE
THIS AMENDMENT is made and entered into this day of ,
1999, by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation
of the State of California (hereinafter referred to as "LESSOR"), and MICHAEL AND
CHRISTIE BARTUSICK, dba PARK BENCH CAFE, (hereinafter referred to as
"LESSEE").
WHEREAS, LESSOR and LESSEE are parties to a Lease Agreement, effective
February 18, 1997, entitled "Lease Agreement Between the City of Huntington Beach and
Michael and Christie Bartusick, dba Park Bench Cafe. LESSOR and LESSEE wish to
amend certain sections of the Lease Agreement. to more precisely define the intent of the
parties.
NOW, THEREFORE, the parties covenant and agree as follows:
1. Section 6 RENT shall read as follows:
LESSEE agrees to pay to LESSOR as rent for the use and occupancy of
said Premises a sum equal to eight percent (8%) of the amount of the cumulative annual
gross sales as defined in the Agreement, with payments made each month by LESSEE in,
on or from said Premises.
2. TERM
This amendment is effective as of - , 1999, and runs
through the term of the original Lease Agreement.
1
jmp/k/agree/parkamnd/02/11 /99
REAFFIRMATION
Except as specifically modified herein, all other terms and conditions of the
original Lease Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their authorized officers the day, month and year first above
written.
LESSEE:
I.11g
Michael B
By: ' I
Christie 1
ATTEST:
City Clerk
REVIEWED AND APPROVED:
42�&o4,-
Ci Administrator
LESSOR:
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of California
— - N4 A 11 1 —
Mayor
APPROVED AS TO FORM:
2(L'
ity Attorney t 'Ci41
INITIATEI A/'N7D APPROVED:
Direet br,,...UKhk uni ty : _ Servi c e s
2
jmp/k/agree/parkamnd/02/ 10/99
i
C
LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND
MICHAEL AND CHRISTIE BARTUSICK, dba PARK BENCH CAFE P R O P E R T Y
Page
1. DESCRIPTION OF PREMISES
1
2. ORIGINAL TERM
1
3. OPTION TO EXTEND
1
4. TERMS AND CONDITIONS
2
5. HOLD OVER
2
6. RENT
2
7. LATE CHARGE
3
8. GROSS SALES DEFINED
3
9. GROSS SALES EXCLUSIONS
4
10. BOOKS AND RECORDS
4
11. STATEMENT OF GROSS SALES
5
12. PERMITTED USE
5
13. PAYMENT OF UTILITY CHARGES
6
14. PERSONAL PROPERTY TAXES
6
15. REAL PROPERTY TAXES
6
16. MAINTENANCE BY LESSEE
6
17. MAINTENANCE OF SHOW WINDOW GLASS
7
18. ALTERATIONS AND LIENS
8
19. INSPECTION BY LESSOR
8
20. SURRENDER OF PREMISES
8
21. INSTALLATION AND REMOVAL OF TRADE FIXTURES
9
21. TRADE FIXTURES AS SECURITY FOR LEASE
9
23. UNREMOVED TRADE FIXTURES
10
24. SIGNS
10
25. PARTIAL DESTRUCTION
10
26. TOTAL DESTRUCTION
11
27. INSURANCE PROCEEDS
11
28. ABATEMENT OF RENT
11
29. CONDEMNATION COMPENSATION
12
30. RELOCATION AND ASSISTANCE
12
31. SUBLEASING OR ASSIGNING AS BREACH
12
32. ABANDONMENT BY LESSEE
13
33. DEFAULT BY LESSEE
14
34. INSOLVENCY OF LESSEE
14
35. CUMULATIVE REMEDIES
15
36. WAIVER OF BREACH
15
37. FORCE MAJEURE - UNAVOIDABLE DELAYS
15
38. CARE OF PREMISES - MAINTENANCE DEPOSIT
15
39. SECURITY DEPOSIT
16
40. EMERGENCY CLOSING OR CLOSING
16
41. DELIVERIES OF SUPPLIES
17
42. PARKING
17
43. NOTICE
17
44. LESSEE'S RIGHT TO RENEGOTIATE
18
45. INSURANCE HAZARDS
18
46. WASTE OR NUISANCE
18
47. COMPLIANCE WITH LAW
18
48. BINDING ON HEIRS
19
49. PARTIAL INVALIDITY _
19
50. SOLE AND ONLY AGREEMENT
19
51. TIME OF ESSENCE
19
52. INDEMNIFICATION/HOLD HARMLESS
19
53. WORKERS COMPENSATION
20
54. INSURANCE
20
55. TERMINATION OF PRIOR LEASE
21
56. ADJACENT PARK AREA
21
57. ATTORNEY FEES
22
7� 11
r 2 7 1996
MANAGEMENT
3parkbenc/3/26/96
PJ
•
LEASE AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
MICHAEL AND CHRISTIE BARTUSICK,
dba PARK BENCH CAFE
THIS AGREEMENT is made and entered into thisi.ELday of F P h r,, a r; , 1991, by
and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of
California (hereinafter referred to as "LESSOR"), and MICHAEL AND CHRISTIE BARTUSICK,
dba PARK BENCH CAFE, (hereinafter referred to as "LESSEE").
WHEREAS, LESSOR owns certain real property (hereinafter referred to as the
"Premises"), in the City of Huntington Beach, and LESSEE desires to lease the aforesaid
Premises in the manner set forth below.
NOW, THEREFORE, the parties covenant and agree as follows:
SECTION 1. DESCRIPTION OF PREMISES
LESSOR hereby leases to LESSEE that certain real property commonly known and
described as THE PARK BENCH CAFE, located in the City of Huntington Beach, and as
outlined on the attached map marked as Exhibit A.
SECTION 2. ORIGINAL TERM
This lease shall be for a term of five (5) years commencing at 12:01 A.M. on
1991 and ending at 12:01 A.M. on fLIJ, -9- , unless
sooner terminated as herein provided.
SECTION 3. OPTION TO EXTEND
LESSEE is hereby granted, subject to City Council approval and if not then in, nor been
in, a default that has not been cured during the initial term or the current option of this lease,
an additional period of five (5) years. LESSEE may exercise this option by giving LESSOR no
less than six (6) months prior written notice during the last year of the initial term or an option
term of LESSEE's intention to exercise such option. LESSEE shall be allowed no more than
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•
•
three (3) such option periods on the same terms, covenants and conditions and subject to the
same exceptions and reservations contained in this lease.
SECTION 4. TERMS AND CONDITIONS
LESSOR may upon three (3) days notice in writing to LESSEE for rent and thirty (30)
days notice in writing to LESSEE for covenants, terminate this agreement and the lease
granted herein without liability to the LESSOR 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.
In the event of termination, LESSEE shall be allowed fifteen (15) days after notice
within which to cure the failure or default which gave rise to such termination; provided, further
that if the nature of LESSEE's default is such that more than fifteen (15) days are reasonably
required for its cure, then LESSEE shall not be deemed to be in default if LESSEE
commences such cure within said fifteen (15) day period and thereafter diligently prosecutes
such cure to completion.
SECTION 5. HOLD OVER
Should LESSEE hold over and continue in possession of said Premises after expiration
of the terms of this lease or any extension thereof, LESSEE's continued occupancy of said
Premises shall be considered a month -to -month tenancy subject to all the terms and conditions
of this lease.
SECTION 6. RENT
LESSEE agrees to pay to LESSOR as rent for the use and occupancy of said Premises
a sum equal to the following percentages of the amount of the cumulative annual gross sales
as defined in this Article, with payments made each month by LESSEE in, on or from said
Premises.
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•
411
Annual Sales Volume
$1.00 - $100,000
$100,001 - $200,000
$200,001 - plus
Percentage Rate
10.5%
12.5%
14.5%
The rent specified in this section shall be paid by LESSEE to LESSOR at 2000 Main
Street, Huntington Beach, California, 92648, or at such other place or places as LESSOR may
from time to time designate by written notice within fifteen (15) days after the end of each.
calendar month during which the cumulative annual gross sales on which it was computed
were made.
SECTION 7. LATE CHARGE
In the event that any rental payment is not received by the LESSOR on or before the
due date as herein provided, a late charge of ten percent (10%) of the amount of each rental
payment shall be assessed. If received after the 15th day, but postmarked on or before the
15th, the payment will be accepted without penalty. This charge will compound monthly.
SECTION 8. GROSS SALES DEFINED
For the purposes of this Article, the term "gross sales" shall mean the cumulative
annual selling price of all merchandise or services sold or rendered in, or property rented on, or
from said Premises by LESSEE, their sublessees, licensees, or concessionaires, whether for
cash or on credit, and if on credit whether or not paid, and shall include, without limitation:
(a) Proceeds from all automatic vending, weighing, and other machines
owned and operated by LESSEE in or on said Premises;
(b) Commissions received by LESSEE from such automatic vending,
weighing, and other machines not owned by LESSEE but operated in or on said
Premises;
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(c) Commissions received by LESSEE from the operation of public
telephones in or on said Premises;
(d) Proceeds from sales based on orders solicited or taken from, in, or on
said Premises for merchandise or services to be delivered or rendered off, or from
sources outside, said Premises.
SECTION 9. GROSS SALES EXCLUSIONS
Notwithstanding the provisions of Section 8 of this lease, the term "gross sales" shall
not include the following items, and such items may be deducted from "gross sales" to the
extent they have been included therein or have been included in a prior computation of "gross
sales" on which a percentage rental has been paid under this lease to LESSOR:
(a) Any sales or excise taxes otherwise includable in "gross sales" as
defined in this Article become part of the total selling price of merchandise or services
rendered in, from, or on -said Premises where LESSEE must account for and remit the
taxes to the government entity or entities by which they are imposed; and
(b) Any transfer of merchandise from said Premises to the manufacturer or
supplier from whom it was obtained by LESSEE.
SECTION 10. BOOKS AND RECORDS
LESSEE shall at all times keep or cause to be kept on the said Premises full, complete,
and accurate records and books of account showing the total amount of gross sales as
defined in this Article made each calendar month in, on, or from said Premises. Furthermore,
LESSEE shall at the time of sale and in the presence of the customer cause the full selling
price of each piece of merchandise and each service rendered in, on, or from said Premises to
be recorded in a cash register or cash registers that have cumulative totals and are sealed in a
manner approved by LESSOR. LESSEE agrees to maintain on said Premises for a period of
three (3) years following the close of each calendar month all records and books of account
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and all cash register tapes showing or in any way pertaining to the gross sale made in, or from
said Premises during such calendar month.
SECTION 11. STATEMENT OF GROSS SALES
At the time specified in Section 6 of this lease for the payment of the rent specified in
thatisection, LESSEE shall deliver to LESSOR a true and accurate statement signed by
LESSEE or by an authorized employee of LESSEE showing the total gross sales made during
the preceding calendar month in, on, or from said Premises and the amount of rent then being
paid calculated on the cumulative annual gross sales pursuant to this lease. LESSOR may at
any time within three (3) years after receiving any such statement, at their own cost and
expense, cause all books, records, and cash register tapes described in Section 10 of this
lease for the calendar month purportedly covered by the statement to be audited by a public or
certified public accountant selected by LESSOR. LESSEE shall on receiving written notice of
LESSOR's desires for such an audit deliver and make available all such books, records, and
cash register tapes to the public or certified public accountant selected by LESSOR.
Furthermore, LESSEE shall promptly on demand reimburse LESSOR for the full cost and
expense of the audit should the audit disclose that the questioned statement understated
gross sales or the rent payable because of gross sales by five (5) percent or more.
LESSEE shall also furnish to CITY copies of its quarterly California sales and use tax
returns at the time each is filed with the State of California.
SECTION 12 PERMITTED USE
The Premises are let for the purpose of operation of a park concession for the sale of
merchandise, food, and other such uses as may from time to time be approved in writing by.
LESSOR. LESSOR reserves the right to prohibit the sale of any item or article which is
objectionable or beyond the scope of the merchandise necessary for proper service to the
public or public safety. The prices for the merchandise sold shall be fixed by LESSEE, and
LESSOR reserves the right to establish and revise a schedule of maximum prices for any or all
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•
items sold or rented to the public by LESSEE; provided, however, that such schedule of
maximum prices established by LESSOR shall be reasonable and in accordance with the best
interests of the public, the LESSEE, and the LESSOR.
SECTION 13. PAYMENT OF UTILITY CHARGES
LESSEE shall pay, and hold LESSOR and the property of LESSOR free and harmless
from, all charges for the furnishing of gas, water, electricity, telephone services, and other
public utilities to said Premises during the term of this lease or any extension thereof and for
the removal of garbage and rubbish from said Premises during the term of this lease or any
extensions thereof.
SECTION 14. PERSONAL PROPERTY TAXES
LESSEE shall pay before they become delinquent all taxes, assessments, or other
charges levied or imposed by any governmental entity on the furniture, trade fixtures,
appliances, and other personal property placed by LESSEE in, on, or about said Premises
including, without limiting the generality of the other terms used in this section, any shelves,
counters, vaults, vault doors, wall safes, partitions, fixtures, machinery, plant equipment, office
equipment, television or radio antennas, or communication equipment brought on said
Premises by LESSEE.
SECTION 15. REAL PROPERTY TAXES
All real property taxes or possessory interest taxes and assessments levied or
assessed against said Premises by any governmental entity, shall be paid, before they
become. delinquent by LESSEE.
SECTION 16. MAINTENANCE
LESSOR shall, at their own cost and expense, maintain in good condition and repair
the items as follows:
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Exterior roof
Exterior walls
Structural supports
Sewers
Foundation of said Premises
Electrical from power pole to circuit breaker
Installation of gas service to the Premises, up to the meter.
LESSEE shall, at their own cost and expense, maintain in good condition and repair the
items and work as follows:
Painting of the interior of the Premises
Painting of the exterior of the Premises
All windows/glass
Removal of Graffiti
Repairs of damage caused by vandalism
Rugs and carpeting
Tenant improvements
Electrical, downflow of circuit breaker
LESSOR shall promptly be reimbursed by LESSEE for the full cost of any such repairs
made by LESSOR.
Except as otherwise expressly -provided in Sections 16 and 17 of this lease, LESSEE
shall at their own cost and expense keep and maintain all portions of said Premises as well as
all improvements on said Premises and all facilities appurtenant to said Premises in good order
and repair and in as safe and clean a condition as they were when received by LESSEE from
LESSOR, reasonable wear and tear also excepted.
SECTION 17. MAINTENANCE OF WINDOW GLASS
LESSEE shall, at their own cost and expense, repair and replace any glass in any
window on said Premises that becomes broken regardless of cause, including window glass
that is broken by fire, by act of God, except by fault of LESSOR, or by fault of some employee
or agent of LESSOR. Should LESSEE fail to repair or replace any glass broken in a window,
LESSOR may replace or repair the broken glass and LESSEE will promptly reimburse
LESSOR for the cost thereof and pay LESSOR interest on such costs at the rate of ten (10)
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•
•
percent per annum from the date the costs were incurred by LESSOR to the date they are
reimbursed to LESSOR by LESSEE.
SECTION 18. ALTERATIONS AND LIENS
LESSEE shall not make or permit any other person to make any alterations to said
Premises or to any improvement thereon or facility appurtenant hereto without the written
consent of LESSOR first had and obtained, unless such alteration is at a cost of under
$5,000.00. LESSEE shall keep the Premises free and clear from any and all liens, claims, and
demands for work performed, materials furnished, or operations conducted on such Premises
at the instance or request of LESSEE. Furthermore, any and all alterations, additions,
improvements, and fixtures, except furniture and trade fixtures, made or placed in or on said
Premises by LESSEE or any other person shall on expiration or sooner termination of this
lease become the property of LESSOR and remain on said Premises provided, however, that
LESSOR shall have the option on expiration or sooner termination of this lease of requiring
LESSEE, at LESSEE's sole cost and expense, to remove any or all such alterations, additions,
improvements, or fixtures from said Premises.
SECTION 19. INSPECTION BY LESSOR
LESSEE shall permit LESSOR or LESSOR's agents, representatives, or employees to
enter said Premises at all reasonable times for the purpose of inspecting said Premises to
determine whether LESSEE is complying with the terms of this lease and for the purpose of
doing other lawful acts that may be necessary to protect LESSOR's interest in said Premises
under this lease or to perform LESSOR's duties under this lease.
SECTION 20. SURRENDER OF PREMISES
On expiration or sooner termination of this lease, or any extensions or renewals of this
lease, LESSEE shall promptly surrender and deliver said Premises to LESSOR in as good
condition as they are now at the date of this lease, reasonable wear and tear and repairs
herein required to be made by LESSOR excepted.
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SECTION 21. INSTALLATION AND REMOVAL OF TRADE FIXTURES
LESSEE shall have the right at any time and from time to time during the term of this
lease and any renewal or extension of such term, at LESSEE's sole cost and expense, to
install and affix in, to, or on said Premises such items, herein called "trade fixture", for use in
LESSEE's trade or business as LESSEE may, in their sole discretion, deem advisable. Any
and all such trade fixtures that can be removed without structural damage to said Premises or
any building or improvements on said Premises shall, subject to Section 22 of this lease,
remain the property of the LESSEE and may be removed by LESSEE at any time prior to the
expiration or sooner termination of this lease.
SECTION 22. TRADE FIXTURES AS SECURITY FOR LEASE
Subject to and to be subordinated to any security interest which LESSEE may give to
any leading institution and/or financing source for the purpose of obtaining financing for the
purchase of trade fixtures and equipment or the operation of said Premises, LESSEE hereby
grants to LESSOR a security interest in all trade fixtures and equipment owned by LESSEE
and now or hereafter placed on said Premises by LESSEE as security for the faithful
performance of all the terms, conditions and covenants of this lease to be performed by
LESSEE. Any rights or rights of removal of trade fixtures given LESSEE by the provisions of
Section 21 of this lease shall be exercisable only if, at the time of removal, LESSEE is not in
default in performance of this lease. LESSEE may, however, at any time they are not in
default in performance.of this lease, trade in or replace any trade fixture free of the security
interest created by this section and this security interest will then attach to the item that
replaced such trade fixture. On default in performance of any obligation of this lease to be
performed by LESSEE, LESSOR shall immediately have as to the trade fixtures the remedies
provided to a secured party under the Uniform Commercial Code as enacted in the State of
California.
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SECTION 23. UNREMOVED TRADE FIXTURES
Any trade fixtures described in this Article that are not removed from said Premises by
LESSEE within thirty (30) days after the expiration or sooner termination, regardless of cause,
of this lease shall be deemed abandoned by LESSEE and shall automatically become the
property of LESSOR as owner of the real property to which they are affixed and not simply
because of the lien described in Section 22 of this lease.
SECTION 24. SIGNS
LESSEE shall.not place nor maintain, nor permit any other person to place or;maintain,
on or in any exterior door, wall, or window of said Premises any sign, awning, canopy,
marquee, or other advertising without the express written consent and approval of LESSOR.
Furthermore, LESSEE shall not place any decoration, lettering, or advertising matter on the
glass of any interior or exterior shop window of said Premises without the written approval and
consent of LESSOR. Should LESSOR consent to any such sign, awning, canopy, marquee,
decoration, or advertising matter, LESSEE shall maintain it at all times during this lease in
good appearance and repair. On expiration or sooner termination of this lease, any of the
items mentioned in this section not removed from said Premises by LESSEE on such
expiration or termination of this lease may, without damage or liability, be destroyed by
LESSOR. This lease is expressly contingent upon approval of all signs by both LESSOR and
LESSEE.
SECTION 25. PARTIAL DESTRUCTION
Should said Premises of the building on said Premises be partially destroyed by any
cause not the fault of LESSEE or any person in or about said Premises with the consent,
express or implied, of LESSEE, this lease shall continue in full force and effect and LESSOR,
at LESSOR's own cost and expense, shall promptly commence and diligently continue and
complete the work of repairing and restoring said Premises to their prior condition providing
such work can be accomplished under all applicable governmental laws and regulations within
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s
one hundred eighty (180) working days; provided, however, LESSEE may terminate this Lease
if LESSEE gives LESSOR written notice of LESSEE's intention to do so within sixty (60) days
following such a partial destruction.
SECTION 26. TOTAL DESTRUCTION
"-Should said Premises or the building on said Premises be so far destroyed by any
cause not the fault of LESSEE or any person in or about said Premises with the consent,
express or implied, of LESSEE that they cannot be repaired or restored to their former
condition within one -hundred eighty (180) working days, LESSOR may, at LESSOR's option:
(a) Continue this lease in full force and effect by repairing and restoring, at
LESSOR's own cost and expense, said Premises to their former condition; or
(b) Terminate this lease by giving LESSEE written notice of such termination.
(c) LESSEE may, however, terminate this Lease if LESSEE gives LESSOR written
notice of LESSEE's intention to do so within sixty (60) days following such total destruction.
SECTION 27. INSURANCE PROCEEDS
Any insurance proceeds received by LESSOR because of the total or partial
destruction of said Premises or the building on said Premises shall be the sole property of
LESSOR, except LESSEE shall be compensated for loss to leasehold improvements and
fixtures beyond any and all insurance proceeds including business interruption insurance
which would ordinarily flow to the benefit of LESSEE.
SECTION 28. ABATEMENT OF RENT
Should LESSOR elect under Section 26 of this lease or be required under Section 25
of this lease to repair and restore said Premises to their former condition following partial or full
destruction of said Premises or the building on said Premises:
(a) LESSOR shall have full right to enter said Premises and take possession
of so much of said Premises, including the whole of said Premises, as may be
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reasonably necessary to enable LESSOR promptly and efficiently to carry out the work
of repair and restoration; and
(b) The percentage rent described in Section 25 of this lease shall be not
abated for the time LESSEE is prevented from using the whole of said Premises.
*SECTION 29. CONDEMNATION COMPENSATION
All compensation and damages awarded for a total taking of the PREMISES shall
belong to and be the sole property of LESSOR, and LESSEE shall have no claim to any
amount or part of any award except, -however, that LESSEE shall be entitled to receive the
portion of any award attributable to the taking of those leasehold improvements and fixtures
that LESSEE has the right to remove under this lease but does not remove from the
PREMISES; or when LESSEE does remove the fixtures or improvements, a reasonable
amount for removal and relocation expenses, provided that amount does not exceed the
market value of the improvements and fixtures.
This Lease shall have no condemnation value to LESSEE.
SECTION 30. RELOCATION AND ASSISTANCE
In the event this lease is terminated for any legal reason by LESSOR, LESSEE shall
not be entitled to any relocation rights or benefits and, except those itemized in Section 29,
expressly waives such benefits and rights under City, State or Federal Relocation Assistance
Plans. LESSEE shall be entitled to receive non -monetary relocation benefits and LESSOR
shall make every effort possible to relocate LESSEE to another available comparable site.
However, if another comparable site is not available upon which to relocate LESSEE, then, in
that event, LESSEE shall have no rights to receive monetary assistance and/or monetary
benefits.
SECTION 31. SUBLEASING OR ASSIGNING AS BREACH
LESSEE shall not encumber, assign, or otherwise transfer this lease, any right or
interest in this lease, or any right or interest in said Premises or any of the improvements that
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may now or hereafter be constructed or installed on said Premises without the express written
consent of LESSOR first had and obtained. Neither shall LESSEE sublet said Premises or
any part thereof or allow any other person, other than LESSEE's agents, servants, and
employees, to occupy said Premises or any part thereof without the prior written consent of
LESSOR. A consent by LESSOR to one assignment, one subletting, or one occupation of
said Premises by another person shall not be deemed to be a consent to any subsequent
assignment, subletting, or occupation of said Premises by another person. Any encumbrance,
assignment, transfer, or subletting without the prior written consent of LESSOR, whether it be
voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of
LESSOR, terminate this lease. The consent of LESSOR to any encumbrance, assignment
including occupation or transfer hereof of LESSEE's interest in this lease or the subletting by
LESSEE of said Premises or parts of said Premises shall not be unreasonably withheld;
however, LESSOR shall have the right of first refusal to meet any bona fide offer of
assignment, sale, sublease or transfer of LESSEE's interest in this Lease on the same terms
and conditions of such offer and, agrees to exercise or refuse such right in writing within thirty
(30) days of notice by LESSEE. Such right shall not apply, however, to assignments,
transfers, or sublettings to immediate family members of LESSEE, a family trust, or to any
corporate entity of which LESSEE, or any of LESSEE's immediate family, are sole
stockholders.
If LESSOR does not exercise this right, LESSOR shall approve LESSEE's request for
assignment, sale, sublease, or transfer provided that LESSEE is not in default at the time of
request.
SECTION 32. ABANDONMENT BY LESSEE
Should LESSEE breach this lease and abandon said Premises prior to the natural
expiration of the term of this lease, LESSOR may:
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(a) Continue this lease in effect by not terminating LESSEE's right to
possession of said Premises, in which event LESSOR shall be entitled to enforce all
their right and remedies under this lease, including the right to recover the rent
specified in this lease as it becomes due under this lease;
(b) Terminate this lease and recover from LESSEE:
(1) The -worth at the -time of award of the unpaid rent which had been
earned at the time of termination of the lease;
(2) The worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination of the lease until the time
of award exceeds the amount of rental loss that LESSEE proves could have been
reasonably avoided;
(3) The worth at the time of award of the amount by which the
unpaid rent for the balance of the term of this lease after the time of award exceeds the
amount of rental loss that LESSEE proves could be reasonably avoided; and
(4) Any other amount necessary to compensate LESSOR for all
detriment proximately caused by LESSEE's failure to perform their obligations under
this lease.
SECTION 33. DEFAULT BY LESSEE
Should LESSEE default in the performance of any of the covenants, conditions, or
agreements contained in this lease, LESSEE shall have breached the lease and LESSOR
may, in addition to the remedy specified in the subparagraph (b) of Section 36 of this lease, re-
enter and regain possession of said Premises in the manner provided by the laws of unlawful
detainer of the State of California then in effect.
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SECTION 34. INSOLVENCY OF LESSEE
The insolvency of LESSEE as evidenced by a receiver being appointed to take
possession of all or substantially all of the property of LESSEE, or the making of a general
assignment for the benefit of creditors by LESSEE, or filing a petition in bankruptcy shall
terminate this lease and entitle LESSOR to re-enter and regain possession of said Premises.
SECTION 35. CUMULATIVE REMEDIES
The remedies given to LESSOR in this Article shall not be exclusive but shall be
cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere
provided in this lease.
SECTION 36. WAIVER OF BREACH
The waiver by LESSOR of any breach by LESSEE of any of the provisions of this lease
shall not constitute a continuing waiver or a waiver of any subsequent breach by LESSEE
either of the same or another provision of this lease.
SECTION 37. FORCE MAJEURE - UNAVOIDABLE DELAYS
Should the performance of any act required by this lease to be performed by either
LESSOR or LESSEE be prevented or delayed by reason of an act of God, strike, lockout,
labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any
other cause except financial inability not the fault of the party required to perform the act, the
time for performance of the act will be extended for a period equivalent to the period of delay
and performance of the act during the period of delay will be excused; provided, however, that
nothing contained in this section shall excuse the prompt payment of rent by LESSEE as
required by this lease or the performance of any act rendered difficult solely because of the
financial condition of the party, LESSOR or LESSEE, required to perform the act.
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SECTION 38. CARE OF PREMISES - MAINTENANCE DEPOSIT
(a) LESSEE shall paint, stain or seal the Premises' wood, trim, etc., a
minimum of every five years, unless it is mutually determined by LESSOR and
LESSEE, that such work shall be needed sooner than five years. All exterior metal
surfaces shall be painted no less than once each year except the roof.
(b) Any and all graffiti shall be removed by LESSEE at their own expense
from the leased Premises within forty-eight (48) hours of notice thereof.
(c) LESSEE shall not obstruct, cause or permit any obstruction surrounding
the Premises or any part thereof in any manner whatsoever.
(d) LESSEE shall comply with all written notice served by LESSOR with
regard to the care and maintenance of the Premises.
Any written notice hereunder shall specify the work to be done, the estimated cost
thereof, and the period of time deemed to be reasonably necessary for completion of such
work. Should LESSEE fail to comply with LESSOR's written notice within fifteen (15) days, or
within a time deemed reasonably necessary of the time specified therein, LESSEE shall pay
over to LESSOR the estimated cost of such work as set forth in the notice. Upon receipt of
such sum, LESSOR shall then proceed to cause the required work to be performed.
SECTION 39. SECURITY DEPOSIT
Upon execution hereof, LESSEE shall continue to maintain at all times hereunder, a
security deposit with LESSOR as previously deposited in a sum of Two Thousand Five
Hundred Dollars ($2,500) to guarantee the repair and maintenance of the leased Premises as
provided hereinabove. Such deposit may be in the form of cash or an assignment of
certificate of deposit or savings account. The form of any such assignment shall be approved
by the City Attorney. The interest accrued on said deposit shall be paid to LESSEE annually.
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SECTION 40. EMERGENCY CLOSING OR CLOSING TO EFFECT
REPAIR/REMODELING THE PREMISES.
LESSOR may close the park without liability therefore at any time it deems necessary
for the protection of life, limb or property, or upon reasonable notice to effect any repair,
remodeling or rebuilding deemed necessary by LESSOR.
SECTION 41. DELIVERIES OF SUPPLIES.
LESSOR shall establish the days and times deliveries of supplies may be made and
advise LESSEE in writing thereof.
SECTION 42. PARKING.
LESSEE shall be permitted to erect signs at the twenty (20) parking spaces adjacent to
the restaurant, which signs shall indicate parking for restaurant patrons on Saturdays, Sundays
and holidays.
LESSOR shall establish the days and times when LESSEE's and LESSEE's employees
and number of automobiles, trucks, and other motorized and non -motorized vehicles may park
and where and advise LESSEE in writing thereof.
SECTION 43. NOTICE.
Any written notice, given under the terms of this agreement, shall be either delivered
personally or mailed, certified mail, postage. prepaid, addressed to the party concerned, as
follows:
CITY OF HUNTINGTON BEACH:
Mr. Ron Hagan
Director of Community Services
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
LESSEE:
Michael and Christie Bartusick
9685 Pettswood Drive
Huntington Beach, CA 92648
3/k/parkbenc/3/27/96
17
•
•
SECTION 44. LESSEE'S RIGHT TO RENEGOTIATE LEASE.
If, in the event, LESSOR shall at some future time within the term of this lease or any
extension thereof, redevelop the immediate area on which said Premises is situated, or the
immediate adjacent surrounding area thereto, to the extent that one or more new eating
facilities are constructed and situated either on said immediate area or adjacent thereto, and,
in such event, LESSEE can demonstrate that such has or will cause them to be detrimentally
affected thereby, then, in such event, LESSEE shall have the right to request that the terms,
conditions, and provisions of this lease be renegotiated. The parties agree that -each shall deal
with the other in good faith.
SECTION 45. INSURANCE HAZARDS.
LESSEE shall not commit or permit the commission of any acts on said Premises nor
use or permit the use of said Premises in any manner that will increase the existing rates for or
cause the cancellation of any fire, liability, or other insurance policy insuring said Premises or
the improvements on said Premises. LESSEE shall, at their own cost and expense, comply
with any and all requirements of LESSOR's insurance carriers necessary for the continued
maintenance at reasonable rates of fire and liability insurance policies on said Premises and
the improvements on said Premises.
SECTION 46. WASTE OR NUISANCE.
LESSEE shall not commit or permit the commission by others of any waste on said
Premises; LESSEE shall not maintain, commit, or permit the maintenance or commission of
any nuisance as defined in Section 3479 of the California Civil Code on said Premises; and
LESSEE shall not use or permit the use of said Premises for any unlawful purpose.
SECTION 47. COMPLIANCE WITH LAW.
LESSEE shall at LESSEE's own cost and expense comply with all statutes, ordinances,
regulations, and requirements of all governmental entities, both federal and state and county
or municipal, relating to LESSEE's use and occupancy of said Premises whether such
18
3/k/parkbenc/3/27/96
•
f�
U
statutes, ordinances, regulations, and requirements be now in force or hereinafter enacted.
The judgment of any court of competent jurisdiction, or the admission by LESSEE in a
proceeding brought against LESSEE by any government entity, that LESSEE has violated any
such statute, ordinance, regulation, or requirement shall be conclusive as between LESSOR
and LESSEE and shall be ground for termination of this lease by LESSOR.
SECTION 48. BINDING ON HEIRS AND SUCCESSORS.
This lease shall be binding on and shall inure to the benefit of the heirs, executors,
administrators, successors and assigns of the parties hereto.
SECTION 49. PARTIAL INVALIDITY.
Should any provision of this lease be held by a court of competent jurisdiction to be
either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full
force and effect unimpaired by the holding, so long as the reasonable expectations of the
parties hereto are not materially impaired.
SECTION 50. SOLE AND ONLY AGREEMENT.
This instrument constitutes the sole and only agreement between LESSOR and
LESSEE respecting said Premises, the leasing of said Premises to LESSEE, or the lease term
herein specified, and correctly sets forth the obligations of LESSOR and LESSEE to each
other as of its date. Any agreements or representations respecting said Premises or their
leasing by LESSOR to LESSEE not expressly set forth in this instrument are null and void.
SECTION 51. TIME OF ESSENCE.
Time is expressly declared to be the essence of this lease.
SECTION 52. INDEMNIFICATION, DEFENSE, HOLD HARMLESS
LESSEE shall indemnify and save and hold harmless LESSOR, its officers and
employees, from any and all liability, including any claim of liability and any and all losses or
costs arising out of the negligent performance of this agreement by LESSEE, their officers or
19
3/k/parkbenc/3/27/96
•
0
employees or from any willful misconduct of LESSEE, their officers or employees while
engaged in the performance of this -agreement.
SECTION 53. WORKERS' COMPENSATION
LESSEE shall comply with all of the provisions of the Workers' Compensation
Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and
5 of the California Labor Code and all amendments thereto; and all similar state or federal acts
or laws applicable; and shall indemnify, defend and hold harmless LESSOR from and against
all claims, demands, payments, suits, actions, proceedings and judgments of every nature and
description, including attorney's fees and costs presented, brought or recovered against
LESSOR, for or on account of any liability under any of said acts which may be incurred by
reason of any work to be performed by LESSEE under this Agreement.
LESSEE shall obtain and furnish evidence to LESSOR of maintenance of statutory
workers' compensation insurance and employers' liability in an amount of not less than
$500,000 bodily injury by accident, each accident, $500,000 bodily injury by disease, each
employee, and $1,000,000 bodily injury by disease, policy limit.
SECTION 54 INSURANCE
In addition to the workers' compensation insurance and LESSEE's covenant to
indemnify LESSOR, LESSEE shall obtain and furnish to LESSOR the following insurance
policies covering the PREMISES:
(a) General Liability Insurance. A policy of general public liability
insurance, including motor vehicle coverage. Said policy shall indemnify LESSEE, their
officers, agents and employees, while acting within the scope of their duties, against any and
all claims of arising out of or on or in connection with the Premises, and shall provide coverage
in not less than the following amount: combined single limit bodily injury and property damage,
including products/completed operations liability and blanket contractual liability, of $1,000,000
per occurrence and in the annual aggregate. Said policy shall name LESSOR, its officers, and
20
3/k/parkbenc/3/27/96
•
n
LJ
employees as Additional Insureds, and shall specifically provide that any other insurance
coverage which may be applicable to the PREMISES shall be deemed excess coverage and
that LESSEE'S insurance shall be primary.
(b) Fire Insurance. In order that the business of LESSEE and the gross
sales of LESSEE as defined in this lease may continue with as little interruption as possible,
LESSEE shall, during the full term of this lease and any renewals or extensions thereof,
maintain at LESSEE'S own cost and expense an insurance policy issued by a reputable
company authorized to conduct insurance business in California insuring for their full insurable
value all fixtures and equipment and, to the extent possible, all merchandise that is, at any
time during the term of this lease or any renewal or extension thereof, in or on the Premises
against damage or destruction by fire, theft, or the elements.
LESSEE shall also maintain in force during the entire term of this agreement, a
standard broad form fire insurance policy in which the LESSOR is named and which any and
all losses are made payable to LESSOR. The face amount of the policy shall be for ninety
(90) percent of the replacement value of the Premises, and be in a form acceptable to the City
Attorney.
SECTION 55. TERMINATION OF PRIOR LEASE
Concurrently with the parties' execution of this Lease, the previous Lease for this
Premises, executed in or about 1987 by LESSOR and LESSEE's deceased husband, shall be,
and the same hereby is, terminated.
SECTION 56. ADJACENT PARK AREA
By permit and approval of the Director of Community Services, the LESSEE may use
the park area adjacent to the PARK BENCH CAFE structure as is reasonable and necessary
to serve the public demand. The LESSOR will, at all times, retain the authority to determine or
restrict use of this park area.
21
3/k/parkbene/3/27/96
SECTION 57. ATTORNEY FEES
In the event suit is brought by either party to enforce the terms and provisions of this
agreement or to secure the performance hereof, each party shall bear its own attorney's fees.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their authorized officers the day, month and year first above written.
LESSEE:
By:
Michael Bartr ick
By:
31
Christie Bartusick
ATTE
City Clerk
REVIEWED AND'APPROVED:
�--,
e
City A ministrator
LESSOR:
CITY OF HUNTINGTON BEACH, a municipal
corporation of the State of California
Mayor
APPROV D AS TO FORM:
City Attorney3I 12,1�'RL
IN D D P R ED:
Deputy City A mi 'strator/Adminis ati Services
22
3/k/parkbenc/3/27/96
SUBJECT
I B
Hv+n.cea+ KACK
W I BIT A'
BY DATE CC NO.
--....... _...._...... - dC�T't`R- AVF
- �LT � fie` L`-'�: �• _� . -i _ -� . .._..- a�—. � : .__ : \ ��__� R:-Z.�i:"�.�T�IL.:��Y'S.: �..�C�9�T�:�ZTZC.T •_
_. _._.._.`... y _..... NOT TO
HS
/'4 A
3-31 -9't
P.S. L
CHKO. BY DATE SHEET NO. OF
6
Z
W
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CO
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PARK 13ENC H cAFE
I, N 70
0 , q'
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JAN-28-97 TUE�02:45 PM HAVE A GREAT DAY
1 CORD,M
'CERTIFICA OF LIABILITY INSU
PRODUCER 1'
A C I; COMMERCIAL'`INSURANCE
1504 BROOKHOLLOW.ORIVE # 114
SANTA ANA CA 92765` ! I
MICHAEL B, CONDY I ' I '
vtR y,. 714.755_-1575`11; , ..rya 714.755.4124
INSURED
THE PARK BENCH _ CAFE
17732 GOLDENWEST:STREET
HUNTINGTONjBEACH CA 92648
FAX NO. 714 755 4124
P. 01
rr++
VVWW DATE(uul /DDf
CEpasEN 01/28/97
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
COMPAAA COMMERCIAL UNION INSURANCE
OOMPANY �•�
e
COMPANY
C
COMPANY
D
COVERAGES
THIS IS TO CEATIF'YTHAT;THE POLICIES OPINSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE -ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDIT 16NS OF SUCH POUCIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO . POUCYEFFECTIVE POUCYEXPIRA71ON
TYPE OF INSURAlICE•:.w POLICY NUMBER UYITS
I.TR •;;•(.} •^;t DATE 111M/DDMtI I DATE (LeN/DD/YY)
4ENERAL LIABILITY
A X COMMCROIAL GENkAAL UA81UTY FALK40191
CLAIMS MADE EclOCCUR
DWNENS 4 CONTRACTOR'S PROT
AUTOMOBILE LIADILITY
ANY AUTO
ALL OWNCO AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON•OWNFO AUTOS
6ARADE ►IABIUTY
ANY AUTO
D(CESS LIABILITY ''t'.' - - L liv y,
UMBRELLA FORM i',.U3
OTHER THAN UMBFIi "u FORM -
WORKERS COMPENSATION AND
KMPLOVERS' LIABILITY"
THE PROPRICTOW INCL
PA"ERS/EXECU71VE f
orrlcEPIS ARE.; R 6rCL
APPPr,I JF,D AS
GAIL HUTT N
CITY ATi'ORIC
By/ 1 A1j /
t�i] ti�GOhS�fv;E
A I BUILDING I FALK40191
A CONTENTS FALK40191
GENERAL AGGREGATE _II L . UUU .
09/20/96
09/20197
PRODUCTS -COMP/OPAGG
51.000.
PERSONAL & ADV INJURY
EACH OCCURRENCE
FIRE DAMAGE (Any one 11m)
$1. 000 .
3 1.000.
3 ^ 100 .
MED EXP (Any one pawn)
COMBINED SINGLE LIMIT
i 51
3
FORM : BODILY INJURY i
(PC, person)
BODILYINJURY 3
f (Per M1¢CWent
PROPERTY DAMAGE i
ey AUTO ONLY - EA ACCIDENT S
OTHER THAN AUTO ONLY;
EACH ACCIDENT 3 R_
AGGREGATE S
EACH OCCURRENCE $
AGGREGATE 3
EACH ACCIDENT i
ISEASE • POLICY LIMIT 3
ISEASE • EL
EMPLOYEE i
09/20/96 ! 09/20/97 I $79,000 $250. DEO
09/20/96 09/20/97 I $30,000 $250. DED
1f1W66ENMTESTREfNURTINGTONS$EACH. �pNDLOR�GZOlIEATTACRED
CERTIFICATE HOLDER CANCELLATION
CTYH804 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WU NAIL
CITY OF HUNTI NGTON BEACH. 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT.
RISK MANAGEMENT
2000 MAIN STREET
HUNTINGTON BEACH CA 92646
AUTHORIZED REPRESENTATI
MICHAEL B. CONDY
ACORD 25•S
�.t
CORPORATION 1988
JAN-28-97 TUE42:46 PM HAVE A GREAT DAY FAX NO. 714 755 4124
Insured;°THE PARK BENCH CAFE
Policy; 4ALK40191 COMMERCIAL GENERAL LIABILITY
' THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY
ADDITIONAL INSURED -MANAGERS OR LESSORS OF
PREMISES
CG 201111/85
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
1. Designation of Premises (Pa:t Leased to you)
17732 GOLDENWEST ST., HUNTINGTON BEACH
2. N'ame of; Person or Organi ation (Additional Insured)
,,
THE CItY OF HUNTINGTON BEACH, ITS OFFICERS, EMPLOYEES, AND AGENTS
3. Additional Premium:
WHO 1S INSURED ($onion 11) is amended to include
as an insured the person or organifation shorn in
the Schedule but only with respect to liability arising
out of the ownership, maintenance or use of that part
or the premises leased to you and shown in the
Schedule and subject to the following additional
exclusions:
11/26/96
This insurance does not appty to:
I . Any "occurrence" which takes place After
,you cease to be a tenant in that premises.
2. Structural alterations, new construction
or demolition operations performed by or out
behalf of the person or organization shown
in the Schedule
P. 02
STATE P.O. BOX 420807. SAN FRANCISCO, CA 94142-0807
COMPENSATION
INSURANCE
FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
DECEP BER 10, 1996 POLICY NUMBER: 109I554 - SS
CERTIFICATE EXPIRES: ,
CITY OF HUNTINGTON BEACH
RISK MANAGEMENT
2000 14,AI N STREET
HUNTINGTON BEACH, CA 92643 ''' JOB: ALL CPERATICNS
`ty Attorney
L
This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California
Insurance Commissioner to the employer named below for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon den days' advance written notice to the employer.
30
We will also give you J�N days' advance notice should this policy be cancelled prior to its normal expiration.
'This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which, this certificate of insurance may be issued or may pertain, the insurance afforded by the policies
described herein is subject to all the terms, exclusions and conditions of such policies.
AUTHORI? REP'Ir NTATIVE PRESIDENT
EMPLOYER'S LIABILITY LI►M"IT IkXLUDINCZ DEFZNSE COSTS: Q,00,ODG PE{ OCCUR%Ei•C;
EN00RSE'r�ENT ;rN" 2065-ETI TLEO C E P T IFIC;°:7E i^0Lt ETj 0 S` TICE EirFECi irG
03/0119. IS ATTACHED TO at 0 FORNS n i?AJ:T OF THIS POLICY.
•
STATE /"'ATE P.O. BOX 420807, SAN FRANCISCO, CA 94142-0807
compENSATION
INSURANCE
FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
D E C E i%f B E R 10, 19 9 C POLICY NUMBER: 10 916 5 4 —: b
CERTIFICATE EXPIRES-
r
CITY OF HUNTINGTON BEACH At°ti ...;-_ .: 10 N`uRM:
erISK MANAGEMENT GAIL, HUTT101q
2000 f•,AIN STREET 01TY ATTORNEY
HUNTINGTON BEACH, CA 92645 JOB: ALL OPERATIOMS
)',-;;Yry City Attorney
L
This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California
insurance Commissioner to the employer named below_for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon Oa days' advance written notice to the employer.
We will also give you JFN days' advance notice should this policy be cancelled prior to its normal expiration.
%This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding. any requirement, term, or condition of any contract or other document with
-respect to which. this certificate of insurance may be issued or may pertain, the insurance afforded by the policies
described herein is subject to all the terms, exclusions and conditions of such policies.
AUTHORIZED REPeNTATIVE
PRESIOENT
EMPLOYER'S LIASILITY 01-11T I6:CLUDING DEFENSE COSTS: $1,C'00,000 PLR G:%l;�'ZriCF
E1'OORS'E 1ENT 1#2065'EN'TITLED. CE.RTIFICATIE "HOLDERS' NOTICE EFFECTIVE
03/01/96 IS ATTACHED TO AND FORMS A PASS OF THIS POLICY.
1;-'03/199E 14:40 7147554124 HAVE A GREAT DAY!! PAGE 02
AC`ORD ERTtFi AT OF LIABILITY 1.NSUR CEmkat
11/26/96
PRODUCER THIS CERTIFICATE IS ISSU :D AS A MATTER OF INFORMATION
ONLY AND CONFERS NO R GHTS UPON THE CERTIFICATE
A C I COMMERCIAL INSURANCE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
1504 BROOKHOLLOW DRIVE # 114 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
SANTA ANA CA 92705 COMPANIE! AFFORDING COVERAGE
MICHAEL B. CDNDY COMPANY
A COMMERCIAL UAION INSURANCE
PIWn�NO, 714.755-1575 I•,�,Na714--7. -4.�24 -. _ -,..- .... _ - -
. ...... ....... _
INSURED
COMPANY
COMPANY
THE PARK BENCH -CAFE C
17732 STREET
COMPANY
HUNTINGTON BEACH CA 92648 D
COVERAGES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMI'D ABOVE FOR THE POLICY PFRIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AI_I. THE TEAMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
i
co Policy OF INSURANCE POLICYNUMBER POi1CY EFFEC"4 POLICY EXPIRATION! LIMITS
LTA DATE (MM/)D/YY) DATE (MM/DD,MY)
GENERAL
LIABILITY
1 o F
I GENERAL AGGREGATE S 2000000
A
x I.
COMMERCIALGENERAL UAQ1LITY
FALK40 1o',] i�r AS 1
09/20/96 09/20/97 `PRODUCTS • COMP;OP AGO j s .1000000
CL.NM0 MADE I •• 100oun,
Ap tU'i 1C Lv'�
PERSONAL a ADV INJURY S 1000000
Oft £R'9ACONTRACTOR'9PROT
GAST'' TiOr�SZ�'Y
EACH OCCURRENCE j S 1000000
al
rn0y FIRE DAMAGE Any one fire) S 100000
t1.........
<; ity A
— ...--
MED EXP (Any one person) $ 5000
AUTOMO&LELIABILITY
J
ANY AUTO
U
COMBINED SINGLE LIMIT S---
i
- - -
ALL OWNED AUTOS
SOD1lY INJURY i S
SCHEDULED AUTOS
(Par pardon)
HFrEb AUTOS
BODILY INJURY S
NON -OWNED AUT06
I (Per accidentj
I I
PROPERTY DAMAGE : S
i
GARAGE 1L4B1UTY
i AUTO ONLY . EA ACCIDENT 1 S
ANY AUTO
OTHER THAN AUTO ONLY;
EACH ACCIDENT 3
AGGREGATE S
EXCESS UABIUTY
i EACH OCCURRENCE j S
UMBRELLA FORM
AGGREGATE S
OTHER THAN UMBRELLA FORM
;
is
WORKERS COMPENI ATION AND ;
WC STATU• ;OTH
T I IT -L _ ER
ED
EMPLOYERS' UAOILITY
ADD�L• IN3,./,;L✓ LI ✓"
,J Li I r, , •v i
EL EACH ACCIDENT I S — -
THE PROPRIETOR/ I INCL
PARTNERS/'EXECLMVE
EL DISEASE - POLICY LIMIT y
OFFICERS ARE: EXCL
EL DISEASE - FA EMPLOYEE S
---- - - --- -
I
OTHER
DESCRIPTION OF OPERAT1~1 ^CATk0wmwrwLSLEs/S"c1AL (TENSLAN
17732FGOlDENWE STREET-AUFTTINGTONS CH, C DLO CGNBTTACRED
CERTIFICATE HOLDER . CANCELLATION
C 1T1V HB04 SHOULD ANY OF THE ABOVE DESCIISEO POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE II:SUING COMPANY WILL MAIL
CITY OF HUNTINGTON BEACH w
DAYS WRITTEN 1411 TO -HE CERTIFICATE HOLDER NAMED TO THE LEFT,
RISK MANAGEMENT
2000 MAIN STREET
HUNTINGTON BEACH CA 92646
A R P TAT1
IC L C
ACOp025S (1lt�bj — E'rACOFiD O ORATION 1888
r
,.j 1996 14:40
M
7147- = i2'4
i
HAVE A GREAT DAY!!
•
PAGE 03
Imured: THE PARK BENCH CAFE
Policy: FALK40191
COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
ADDITIONAL INSURED -MANAGERS OR LESSORS OF
PREMISES
CG 2011 11/95
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
1. Designation of Premises (Part Leased to you)
17732 GOLQENWEST Sr., HUN? MGTON BEACH
2. Name of Person or Orgamzadon (Additional Insured)
THE CITY OF HUNTINGTON BEACH, lTS OFFICERS, EMPLOYEES, AND AGENTS
3. Additional Premium:
WHO IS INSURED (Section II) is amended to include
as an insured the person or organization shown in
the Schedule but only with respect to liability arising
out of the ownership, maintenance or use of that part
of the premises ]cased to you and shown in the
Schedule and subject to the following additional
ezchisions:
This insurance does not apply to:
1. Any "occurrence" which takes place after
you cease to be a tenant in that premises.
2. Structural alteratOns, new construction
or demolition operations performed by or on
behalf of the person x orgAnization shown
in the Schedule
11/26/96