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HomeMy WebLinkAboutUnion Oil - UNOCAL - Nuevo Energy Company -Torch Operating - 1985-08-20 31 _ gin,,& 0a'1 CI i Y OF HUNTINGTON BEA �)fsvW'f1..,fl MEETING DATE: March 17, 2003 DEPARTMENT ID NUMBER: AS-03-14 Council/Agency Meeting Held:_T/o3 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied City Clerk's SignatLke Council Meeting Date: March 17, 2003 Department ID Number: AS 03-14 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS a SUBMITTED BY: RAY SILVER, City Administrator 6120 PREPARED BY: CLAY MARTIN, Director of Administrative Services SUBJECT: APPROVE SITE LICENSE AGREEMENT WITH NUE ENERGY COMPANY FOR A BOOSTER STATION FACILITY AT A SITE NEAR PACIFIC COAST HIGHWAY AND WARNER BOULEVARD Ea me:nt:o:flssue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) i Statement of Issue: Should the City Council approve the site license agreement between Nuevo Energy Company (NUEVO) and the City of Huntington Beach (CITY) for a booster station facility at a site near Pacific Coast Highway and Warner Boulevard? Funding Source: Not applicable. The agreement will generate revenues of $5,760.00 per year for the first year and will increase annually thereafter. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a site license agreement between NUEVO and the CITY for a booster station facility at a site near Pacific Coast Highway and Warner Boulevard based on the terms and conditions as presented herein. Alternative Action(s): 1. Do not approve the site license agreement between NUEVO and the CITY. 2- Approve the site license agreement between NUEVO and the CITY with alternative terms and conditions. Anal,: In 1964, Union Oil Company (UNION) entered into a lease with the Sunset S nitary District (DISTRICT) for a booster pump location at a site near the intersection of Pacific Coast Highway and Warner Boulevard (see Attachment 1). The booster pump station provides freshwater to an offshore oil platform. The CITY is a successor-in-interest to the HAMike's Project Folder\Torch_Nuevo Energy\Nuevo Energy RCA 03MAR03.doc 3/6/2003 3:43 PM �(� REQUEST FOR ACTION MEETING DATE: March 17, 2003 DEPARTMENT ID NUMBER: AS-03-14 DISTRICT, and UNION assigned their interest in the agreement to NUEVO. Recently, short term extensions were given to NUEVO while the CITY drafted a Letter of Intent to create a more contemporary license agreement that incorporated our most recent risk management and legal requirements and set forth a new rent structure. In January 2003, Real Estate Services received the executed Letter of Intent from NUEVO and the City Attorneys office began crafting the new license agreement. NUEVO reviewed and executed the new license agreement and it is now presented for City Council approval. Staff has prepared a site license agreement with NUEVO (see Attachment 2). The site license agreement provides that NUEVO will pay the CITY an annual fee of$5,760.00 in rent for the first year with provision for extension and annual rent increases thereafter. The term of the site license agreement is for five years with two extensions of five years each, subject to approval by the Director of Administrative Services, for a total possible term of fifteen years. The license agreement also contains a 90-day termination clause, whereby either party can terminate the agreement without cause. NUEVO has agreed to the terms and conditions of the site license agreement. The Real Estate Division of Administrative Services, which is the operating department for site license agreements, along with the City Attorney's Office, recommend the approval of this site license agreement. Environmental Status: Not applicable Attachment(s): ClerW • - Number No. Desdription 1 Location Map of the Booster Station Site 2 Site License Agreement with Nuevo Energy Company RCA Author: M. Heineke x5544 H:\Mike's Project Folder\Torch_Nuevo Energy\Nuevo Energy RCA 03MAR03.doc - 3/6/2003 12:10 PM ATTACHMENT # 1 ti NG o FCTIONA !_ DISTRICT MAP 30-5-11 CITY OF - 1LTTITGTQT BEACH RANGE COli �TY, CALIFORNIA USE OF PROPERTY MAP v acicH •rARxEN nv C l '•, _ ATTACHMENT #2 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NUEVO ENERGY COMPANY FOR BOOSTER STATION AT PCH/WARNER Table of Contents SECTION PAGE 1 Permission................................................................................................................2 2 Term.........................................................................................................................2 3 License Fee ..............................................................................................................2 4 Late Charge and Penalty..........................................................................................2 5 Superseding of Prior License Agreements...............................................................2 6 Reservations, Encumbrances and Rights-of-Way....................................................2 7 Time of Essence.......................................................................................................3 8 Extension..................................................................................................................3 9 Escalator Upon Extension........................................................................................4 10 Termination..............................................................................................................4 11 Maintenance.............................................................................................................4 12 Control of Equipment ..............................................................................................4 13 Removal of the Facility Upon Termination.............................................................5 14 Additions,Alterations and Removal........................................................................5 15 City's Contract Administrator..................................................................................5 16 Indemnification, Defense and Hold Harmless.........................................................5 17 Workers' Compensation Insurance ..........................................................................6 18 General Public Liability Insurance ..........................................................................6 19 Certificates of Insurance; Additional Insured Endorsements ..................................7 20 Insurance Hazards....................................................................................................7 21 Release.....................................................................................................................8 22 Waste........................................................................................................................8 23 Damage, Destruction or Nuisance ...........................................................................8 24 Payment of Obligations............................................................................................9 25 Utilities and Services...............................................................................................9 26 Signs and Advertising..............................................................................................9 27 Assignment ..............................................................................................................9 28 Terms Binding on Success.......................................................................................11 29 Default......................................................................................................................11 30 Remedies..................................................................................................................12 31 Waiver of Claims.....................................................................................................14 32 Hazardous Substances..............................................................................................14 33 Nondiscrimination....................................................................................................15 34 Destruction...............................................................................................................16 35 Eminent Domain......................................................................................................17 G:\AGREEMT\2002\Nuevo Energy.doc/1/8/2003 36 City's Option to Close the Property.........................................................................17 37 Conflict of Interest...................................................................................................18 38 No Title Interest.......................................................................................................18 39 Notice.......................................................................................................................18 40 Compliance with Laws ............................................................................................19 41 Interpretation of this License Agreement ................................................................20 42 Survival....................................................................................................................20 43 Modification.............................................................................................................20 44 Section Headings .....................................................................................................20 45 Attorney's Fees.........................................................................................................21 46 Governing Law........................................................................................................21 47 Duplicate Original....................................................................................................21 48 Entirety.....................................................................................................................21 G:\AGREEMT\2002\Nuevo Energy.doc/1/8/2003 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NUEVO ENERGY COMPANY FOR BOOSTER PUMP FACILITY AT PCH/WARNER This License Agreement is made and entered into on this /7 day of 200.5, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ("CITY") and Nuevo Energy Company, a Delaware corporation("LICENSEE"). WHEREAS, CITY is the owner of certain real property located on the north side of Warner Avenue, east of Pacific Coast Highway in the parking lot just west of the Warner Fire Station in the City of Huntington Beach, Orange County, California, and commonly known as the "Booster Pump Facility at PCH/Warner" (hereafter referred to as "the Property"); and LICENSEE desires to maintain and operate the Booster Pump Facility at PCH/Warner (hereafter referred to as "the Facility") on the Property under the terms contained in this License Agreement; and CITY desires to grant LICENSEE a license (hereafter referred to as "the License") to maintain and operate the Facility on the Property in the manner set forth in this License Agreement; and CITY and LICENSEE wish to enter into this LICENSE AGREEMENT defining their respective rights and responsibilities concerning said License. NOW, THEREFORE, in consideration of the promises and Agreements hereinafter made and exchanged, the CITY and LICENSEE covenant and agree as follows: SECTION 1. PERMISSION Permission is hereby given to LICENSEE to enter upon the Property for the purpose of operating and maintaining the Facility. 1 G:AAGREEMT\2002\Nuevo Energy.doc2/19/2003 SECTION 2. TERM This term of this License is five (5) years, commencing October 1, 2002 through September 30, 2007, unless extended, or sooner terminated, as provided for herein. SECTION 3. LICENSE FEE In consideration of this License, LICENSEE agrees to pay to CITY a fee ("License Fee") of$5,760.00 per year for the use of the Property so that it may operate the Facility. LICENSEE shall pay the License Fee annually in advance on or before October 1st of each year during the term of this LICENSE AGREEMENT to the CITY at the City Treasurer's Office, P.O. Box 711, Huntington Beach, California, 92648, or at such other place or places as CITY may from time- to-time designate by written notice delivered to LICENSEE in the manner set forth in Section 39 of this License Agreement. SECTION 4. LATE CHARGE AND PENALTY If the License Fee is not received by the City Treasurer by October 1 oth of each year during the term of this LICENSE AGREEMENT, or the next business day if October 1 Oth falls on a weekend or holiday, LICENSEE shall pay the following late charge and penalty: (1) a late charge of ten percent (10%) shall be applied to any outstanding balance after any payment hereunder is due but unpaid; and (2) one and a half percent (1 '/2%) penalty per month shall be added for each month the License Fee is due but unpaid. SECTION 5. SUPERSEDING OF PRIOR LICENSE AGREEMENTS This LICENSE AGREEMENT shall supersede and replace any prior agreement(s) for the Property relating to the Facility entered into by and between the parties. 2 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 SECTION 6. RESERVATIONS, ENCUMBRANCES AND RIGHTS-OF-WAY (a) CITY expressly reserves all rights to any natural resources in, on, or two hundred fifty (250) feet under the Property, including, without limitation, oil, coal, natural gas and other hydrocarbons, minerals, aggregates, timber and other geothermal resources, as well as the right to grant any other leases, licenses, or other contractual arrangements in and over the Property for the extraction of such natural resources. However, such leasing, licensing, or other arrangement shall be neither inconsistent nor incompatible with the rights or privileges of LICENSEE under this LICENSE AGREEMENT. (b) CITY expressly reserves the right to convey or encumber the Property, in whole or in part, for any purpose not inconsistent or incompatible with the rights or privileges of LICENSEE under this LICENSE AGREEMENT. In addition, LICENSEE agrees to subordinate this LICENSE to any existing or future CITY financing regarding the Property or any portion thereof. LICENSEE also agrees to cooperate and provide any documentation necessary for CITY to obtain any such financing. (c) The License is subject to pre-existing contracts, licenses, easements, encumbrances and claims affecting the Property, if any, and it is made without warranty by CITY of title, condition or fitness of the land for the stated or intended use. SECTION 7. TIME OF ESSENCE Time shall be of the essence of this LICENSE AGREEMENT and each and all of its terms, covenants or conditions in which performance is a factor. 3 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 SECTION 8. EXTENSION This LICENSE AGREEMENT may be extended for up to two separate successive terms of five (5) years each, with each five (5) year term commencing on the expiration of the prior term. Written notice of LICENSEE's request to extend each term must be provided to the Director of Administrative Services of CITY for approval no fewer than six (6) months prior to the expiration of the then current license term, or extension thereof. The Director of Administrative Services will decide whether LICENSEE's request for each extension will be granted or denied, and will notify LICENSEE of his decision no later than 45 days after receiving the request for extension. If the request for an extension is denied, this LICENSE will automatically terminate at the end of its current term. If the request for an extension is granted, this LICENSE will automatically be extended for an additional five year period. SECTION 9. ESCALATOR UPON EXTENSION Each separate five (5) year extension of the License term authorized by Section 8 above shall result in an increase of ten (10)percent in the License Fee. In addition, annually thereafter, the License Fee shall increase by five (5) percent or by that percentage increase which occurred in the Consumer Price Index as published by the United States Department of Labor Statistics for all consumers for the Los Angeles, Anaheim, Riverside Metropolitan Statistical Area during the preceding one (1) year period, whichever is greater. SECTION 10. TERMINATION This LICENSE AGREEMENT may by terminated by either party without cause on ninety (90) days written notice delivered to the other party to this LICENSE AGREEMENT in the manner set forth in Section 39 of this License Agreement. 4 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 SECTION 11. MAINTENANCE LICENSEE agrees to care for and maintain the Facility, at LICENSEE's sole cost and expense, during the entire term of this LICENSE AGREEMENT or any extension thereof, in .good and satisfactory condition as acceptable to the CITY. In the event LICENSEE does not maintain the Property in a satisfactory manner, LICENSEE authorizes CITY to perform such maintenance on LICENSEE's behalf. All costs incurred performing said maintenance shall be assessed to and billed directly to the LICENSEE. LICENSEE agrees to pay such costs within ten (10) days of billing. SECTION 12. CONTROL OF EQUIPMENT LICENSEE shall keep any equipment used or brought onto the Property for the purposes of operating or maintaining the Facility under its absolute and complete control at all times and said equipment shall be used on the Property at the sole risk of LICENSEE. SECTION 13. REMOVAL OF THE FACILITY UPON TERMINATION Upon termination of this LICENSE AGREEMENT, LICENSEE will remove the Facility placed on the property and restore the Property to its natural condition to the satisfaction of, and at no cost to,the CITY. SECTION 14. ADDITIONS, ALTERATIONS AND REMOVAL (a) No modifications, alterations or additions to the Property or Facility, including, without limitation, landscape design, construction of additional structures or changes to the structural design of the Facility, shall be constructed or made by LICENSEE without first obtaining the prior written approval of CITY, which may be withheld by CITY in its sole and complete discretion. 5 GA\AGREEMT\2002\Nuevo Energy.docl/8/2003 (b) Except as provided under this LICENSE AGREEMENT, no alteration or removal of the Facility or natural features of the Property shall be undertaken without LICENSEE first obtaining the prior written approval of CITY. (c) LICENSEE's obligation to obtain-CITY's prior written approval is separate and independent of.LICENSEE's obligation to obtain any permits from CITY, such as, without limitation, a building permit. SECTION 15. CITY'S CONTRACT ADMINISTRATOR CITY's Director of Administrative Services, or his designee, shall be CITY's Contract Administrator for this LICENSE AGREEMENT with the authority to act on behalf of CITY for the purposes of this LICENSE.AGREEMENT, and all CITY approvals and notices required to be given herein to CITY shall be so directed and addressed. SECTION 16. INDEMNIFICATION, DEFENSE AND HOLD HARMLESS LICENSEE hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses,judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising directly or indirectly out of the grant of the License under this LICENSE AGREEMENT including that arising from the passive concurrent negligence of CITY, but save and except those which arise out of the active concurrent negligence, sole negligence, or the sole willful misconduct of CITY. LICENSEE will conduct all defense at its sole cost and CITY shall approve selection of LICENSEE's counsel. The CITY shall be reimbursed by LICENSEE for all costs and attorney's fees incurred by CITY in enforcing the obligations set forth in this Section. This indemnity shall apply to all claims and liability 6 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by LICENSEE. SECTION 17. WORKERS' COMPENSATION INSURANCE. Pursuant to the California Labor Code Section 1861, LICENSEE acknowledges awareness of Section 3700 et seq. of said code; which requires every employer to,be insured . against liability for workers' compensation; LICENSEE covenants that it will comply with all such laws and provisions prior operating the Facility on the Property pursuant to this license. LICENSEE shall maintain such Workers' Compensation Insurance in an amount of not less than One Hundred Thousand Dollars ($100,000)bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000)bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars ($250,000)bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to CITY. SECTION 18. GENERAL LIABILITY INSURANCE In addition to LICENSEE's covenant to defend, hold harmless and indemnify CITY, LICENSEE shall carry at all times, on all activities to be performed on the Property and/or the Facility as contemplated herein, general liability insurance, including coverage for bodily injury and property damage. All insurance shall be underwritten by insurance companies in forms satisfactory to CITY. Said insurance shall name the CITY, its officers, agents and employees and all public agencies as determined by the CITY as Additional Insureds. LICENSEE shall subscribe for and maintain said insurance policies in full force and effect during the life of this License Agreement, in an amount of not less than One Million Dollars ($1,000,000) combined single limit coverage. If coverage is provided under a form which includes a designated general aggregate limit, such limit shall be not less than One Million Dollars ($1,000,000). In the event 7 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 of aggregate coverage, LICENSEE shall immediately notify CITY of any known depletion of limits. LICENSEE shall require its insurer to waive its subrogation rights against CITY and agrees to provide certificates evidencing the same. -Under-ace Fha11 said- oue J0, SECTION 19. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENT LICENSEE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this License Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled without thirty (30) days prior written notice to CITY. LICENSEE shall maintain the foregoing insurance coverages in force until this License Agreement is terminated. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by LICENSEE under this License Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. LICENSEE shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of LICENSEE'S insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval upon execution of this License Agreement by LICENSEE. 8 G:WGREEMT\2002\Nuevo Energy.doc1/8/2003 SECTION 20. INSURANCE HAZARDS LICENSEE shall not commit or permit the commission of any acts on the Property or Facility nor use or permit the use of the Property or Facility in any manner that will increase the existing rates for, or cause the cancellation of any liability,property, or other insurance policy for the Property required by this LICENSE AGREEMENT. LICENSEE shall, at its sole cost and expense, comply with all requirements of any insurance carrier providing any insurance policy for the Property and/or Facility or required by this LICENSE AGREEMENT necessary for the continued maintenance of these policies at reasonable rates. SECTION 21. RELEASE LICENSEE hereby releases and forever discharges CITY of and from any and all claims, demands, actions or causes of action whatsoever which LICENSEE may have, or may hereafter have, against the CITY specifically arising out of the matter of the entry of LICENSEE onto the Property or the operation of the Facility. This is a complete and final release and shall be binding upon LICENSEE and the heirs, executors, administrators, successors and assigns of LICENSEE'S use of the Property and Facility under this LICENSE AGREEMENT. LICENSEE hereby expressly waives any rights under or benefit of any law of any jurisdiction whatsoever providing to the contrary. Neither the acceptance of this RELEASE nor any payment made hereunder shall constitute any admission of any liability of CITY. SECTION 22. WASTE LICENSEE shall not alter, damage or commit any kind of waste upon the Property of Facility or any improvement, equipment or personal property thereon and shall not interfere in any manner with the operations or activities of CITY. LICENSEE shall not cause any workmen's or materialmen's liens to be placed upon the Property or Facility and agrees to 9 G:\AGREEMT\2002\Nuevo Energy.doc1/8/2003 indemnify and hold CITY harmless against any such liens including but not limited to the payment of attorneys' fees. SECTION 23. DAMAGE, DESTRUCTION OR NUISANCE LICENSEE shall not.commit or permit the .commission by others of any damage or destruction of, on, or to the Property or Facility. LICENSEE shall not maintain, commit or permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section 3480 of the California Civil Code on the Property; and LICENSEE shall not use or permit the use of the Property or Facility for any unlawful purpose. SECTION 24. PAYMENT OF OBLIGATIONS LICENSEE shall promptly pay, at its sole cost and expense, before they become delinquent, any and all bills, debts, liabilities and obligations incurred by LICENSEE in connection with LICENSEE's use of the Property and operation of the Facility. Upon request, LICENSEE shall promptly furnish to CITY satisfactory evidence establishing such payment. SECTION 25. UTILITIES AND SERVICES LICENSEE shall be responsible for the payment of all utility charges, including, without limitation, gas, electricity, water, telephone service, cable TV service, and the furnishing of all necessary refuse and garbage containers and the removal and disposal of all rubbish, refuse and garbage resulting from the operation of the Facility. All such rubbish, refuse and garbage removed shall be disposed of in accordance with applicable laws and local ordinances. All trash containers and/or trash bins shall be adequately screened and located to the satisfaction of CITY. For the purposes of this Section, sewage disposal shall be construed as a utility. All such charges shall be paid by LICENSEE directly to the provider of the service and shall be paid as they 10 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 become due and payable. Upon request, LICENSEE shall promptly furnish to CITY satisfactory evidence establishing such payment. SECTION 26. SIGNS AND ADVERTISING CITY shall have the .right to approve in its sole discretion and at any.time require LICENSEE to change or remove signs, names, placards, decorations or advertising placed on, or inscribed, painted or affixed upon the Facility. Should CITY approve of any sign, name, placard, decoration or advertising, LICENSEE shall maintain the same at all times during the entire term of this LICENSE AGREEMENT or any renewals or extensions thereof. All signs, names, placards, decorations or advertising must comply with all requirements of any governmental authority with jurisdiction. SECTION 27. ASSIGNMENT (a) Prohibition of Assignment. The parties acknowledge that CITY is entering into this LICENSE AGREEMENT in reliance upon the experience and abilities of LICENSEE and its principals. Consequently, LICENSEE shall not voluntarily assign, encumber or otherwise transfer its interest in the LICENSE AGREEMENT or allow any other person or entity (except LICENSEE's authorized representatives) to occupy or use all or any part of the Property or Facility without the prior written consent of CITY, which consent may be withheld at CITY's sole discretion. Provided, however, that CITY's consent shall not relieve LICENSEE from any and all of its obligations, liabilities, duties or responsibilities under this LICENSE AGREEMENT. Any assignment, encumbrance, occupation or use of the Property or Facility without such consent 11 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 shall be voidable and, at CITY's sole discretion, shall constitute a Default of this LICENSE AGREEMENT. (b) Consent to Transfer. CITY's consent to any assignment, use, or other transfer the rights under this LICENSE AGREEMENT is subject to LICENSEE providing CITY with evidence satisfactory to CITY that the proposed, assignee, user, or other transferee has suitable financial strength, experience and character for operation and control of the Facility and that the use of the Property by the proposed assignee, user, or other transferee is consistent with that specified herein, and is commercially reasonable. Any proposed assignee, user, or other transferee shall agree to abide by the terms and conditions of the LICENSE AGREEMENT including, without limitation, all the obligations, liabilities, duties and responsibilities of LICENSEE, and other conditions imposed upon it pursuant to law. An approval by CITY to one assignment, use, or other transfer shall not be deemed to be an approval to any other assignment, or other transfer. (c) Voluntary assignment defined. Except as otherwise expressly provided herein, any dissolution, merger, consolidation or reorganization of LICENSEE, or the sale or other transfer resulting in a transfer of a controlling percentage of the capital stock of LICENSEE shall be deemed a voluntary assignment. SECTION 28. TERMS BINDING ON SUCCESSORS All the terms, covenants and conditions of this LICENSE AGREEMENT shall inure to the benefit of, and be binding upon, the parties and their successors, including, without limitation, their assignees, users, or other transferees. The provisions of this Section shall not be 12 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 deemed as a (1) waiver of any of the prohibitions and conditions against assignments, or uses, or other transfers hereinbefore set forth, or(2) CITY's consent thereto. SECTION 29. DEFAULT The occurrence of any one or more of the following events shall constitute a:material default and breach("Default") of this LICENSE AGREEMENT by LICENSEE: (a) LICENSEE's failure to make any payment of the License Fee or other payment required to be made by LICENSEE at the time required for payment under this LICENSE AGREEMENT. (b) LICENSEE's failure to obtain or maintain the insurance required under this LICENSE AGREEMENT. (c) LICENSEE's vacating or abandonment of the Facility during the entire term of this LICENSE AGREEMENT or any renewals or extensions thereof, during any holdover period. (d) LICENSEE's violation of Section 16 (Indemnification, Defense and Hold Harmless), Section 27 (Assignment), Section 32 (Hazardous Substances), Section 33 (Nondiscrimination), Section 37 (Conflict of Interest) or Section 40 (Compliance with Laws). (e) The insolvency of LICENSEE as evidenced by a receiver being appointed to take possession of all or substantially all of LICENSEE's assets located at or on the Property or of LICENSEE's interest in this LICENSE AGREEMENT, or the making by LICENSEE of a general arrangement or assignment for the benefit of creditors, or LICENSEE's filing a petition in bankruptcy, whether voluntary or involuntary, or the attachment, execution or the judicial seizure of substantially all 13 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 of LICENSEE's assets located at or on the Property or of LICENSEE's interest in the LICENSE AGREEMENT. (f) LICENSEE's failure to observe or perform any other term, covenant, obligation, duty, responsibility,or condition of this LICENSE AGREEMENT to be observed or performed by LICENSEE when such failure shall continue for a period of thirty (30) days after CITY's giving written notice to LICENSEE, or such earlier period if specifically set forth in this LICENSE AGREEMENT; however, if the nature of such failure is such that more than thirty (30) days are reasonably required for its cure, then LICENSEE shall not be deemed to be in Default if LICENSEE notifies CITY of the length of the additional time required to cure and receives CITY's written approval of the additional time required, which approval will not be unreasonably withheld, and commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion during such additional time period approved by CITY. SECTION 30. REMEDIES (a) Cumulative Nature of Remedies. In the event of any Default by LICENSEE, CITY shall have the remedies described in this Section in addition to all other rights and remedies provided by law or equity, to which CITY may resort cumulatively or in the alternative: (1) Termination. In the event of a Default by LICENSEE, CITY may at CITY's sole discretion terminate this LICENSE AGREEMENT by giving LICENSEE written notice of termination. In the event CITY terminates this LICENSE 14 G:WGREEMT\2002\Nuevo Energy.docl/8/2003 AGREEMENT, LICENSEE is obligated to remove the Facility as provided hereunder. If LICENSEE fails to remove Facility within ten (10) days, CITY may remove the Facility. CITY also shall be entitled to recover as damages all of the following: (A) The worth at the time of the award of any unpaid LICENSEE FEE or other charges which have been earned at the time of termination; (B) Any other amount necessary to compensate CITY for the detriment proximately caused by LICENSEE's failure to perform .its obligations, liabilities, duties or responsibilities under this LICENSE AGREEMENT; and (C) At CITY's sole discretion, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable California law. (b) Election of Remedy. The election of one remedy for any one item shall not foreclose an election of any other remedy for another item or for the same item at a later time. (c) Right to Cure. Upon continuance of any Default, CITY may in its sole discretion, but is not obligated to, cure such Default at LICENSEE's sole cost and expense. If CITY at any time, by reason of such Default by LICENSEE, pays any sum or does any act, the sum paid by CITY plus the reasonable cost of performing such act, together with a penalty thereon at the penalty rate set forth in Section 4 above from the date the costs were 15 GAAGREEMT\2002\Nuevo Energy.doc 1/8/2003 incurred or the act performed by CITY to the date they are reimbursed to CITY by LICENSEE, shall be due not later than five (5) days after service of a written demand therefor on LICENSEE, including reasonably detailed documentation of the amount owed. No such payment or act shall constitute a waiver of Default or of any remedy for Default or render CITY liable for any loss or damage resulting from any such act. (d) Other Rights. No act of CITY, including, without limitation, CITY's entry on the Property, efforts to lease the Property, or maintenance of the Property, shall be construed as an election to terminate this LICENSE AGREEMENT unless a written notice of such intention is given to LICENSEE by CITY or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding if CITY elects to continue the LICENSE AGREEMENT in full force and effect after a Default by LICENSEE, CITY may at any time elect to terminate this LICENSE AGREEMENT for any such Default. SECTION 31. WAIVER OF CLAIMS LICENSEE hereby waives any claim against CITY, its officers, elected or appointed officials, employees, agents or volunteers for damage or loss caused by any suit or proceeding directly or indirectly attacking the validity of this LICENSE AGREEMENT, or any part thereof, or caused by any judgment or award in any suit or proceeding declaring this LICENSE AGREEMENT null, void or voidable, or delaying the LICENSE AGREEMENT or any part thereof from being carried out. 16 G:\AGREEMT\2002\Nuevo Energy.doc 1/8/2003 SECTION 32. HAZARDOUS SUBSTANCES LICENSEE represents and warrants that its use of the Property or operation or maintenance of the Facility shall not generate any Hazardous Substance (as defined below in this Section), and that LICENSEE shall not store or dispose on the Property nor transport to or over the Property any Hazardous Substance during the entire term of this LICENSE AGREEMENT or any extensions thereof. The foregoing restrictions shall not be deemed to restrict or prohibit the use by LICENSEE of ordinary cleaning products as customarily used in LICENSEE's ordinary course of operation or maintenance of the Facility, provided that LICENSEE complies with all provisions of law as to the use, storage and disposal of such products. LICENSEE . further agrees to clean up and remediate any such Hazardous Substance on the Property, and agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses,judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising out of or in connection with any such Hazardous Substance and any damage, loss, or expense or liability resulting from any such Hazardous Substance including, without limitation, all attorney's fees, costs and penalties incurred as a result thereof except any release caused by the sole negligence or willful misconduct of CITY. CITY shall be reimbursed by LICENSEE for all costs and attorney's fees incurred by CITY in enforcing LICENSEE's obligations set forth in this Section. LICENSEE will conduct all defense at its sole cost and expense and CITY shall approve selection of LICENSEE's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by LICENSEE. "Hazardous 17 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 substance" shall be interpreted broadly to mean any substance or material defined or designated as a hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term, by any Federal, State or local environmental law, regulation or rule presently in effect or promulgated in the future, as such law, regulation_or rule may be amended from time to time; and it shall be interpreted to include, without limitation, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. SECTION 33. NONDISCRIMINATION In the performance of this LICENSE AGREEMENT, LICENSEE shall not discriminate against any employee hired by LICENSEE to operate or maintain the Facility, because of race, religion, color, ancestry, sex,:age, national origin or physical handicap. LICENSEE shall take affirmative action to ensure that all such employees are employed and that employees are treated during employment, without regard to their race, religion, color, ancestry, sex, age, national origin or physical handicap. Such action shall include, without limitation, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including, without limitation, apprenticeship. LICENSEE shall permit access to its records of employment, employment advertisements, application forms, and other pertinent data and records by CITY, the State Fair Employment Practices Commission or any other agency with jurisdiction over these matters, for the purpose of investigation to ascertain compliance with this Section. CITY may determine a violation of this Section to have occurred upon receipt of a finial judgment having that effect from a court in an action to which LICENSEE was a party, or upon 18 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 receipt of a written notice from the State Fair Employment Practices Commission or other government agency with jurisdiction over these matters that it has investigated and determined that LICENSEE has violated the Fair Employment Practices Act or other applicable discrimination law and has issued an order which has become final, or obtained an injunction. In the event of violation of this Section, CITY shall have the right to terminate this LICENSE AGREEMENT, and any loss of revenue sustained by CITY by reason thereof shall be borne and paid for by LICENSEE, at its sole cost and expense. SECTION 34. DESTRUCTION Should the Property or Facility be partially destroyed, this LICENSE AGREEMENT shall continue in full force and effect, and LICENSEE, at LICENSEE's sole cost and expense, shall complete the work-of repairing and restoring the Property and Facility to their prior condition providing such work can be accomplished under all applicable governmental laws and regulations within one hundred eighty (180) days. Should the Property or Facility be so far destroyed that in CITY's reasonable judgment they cannot be repaired or restored to their former condition within one hundred eighty (180) days, CITY shall give LICENSEE notice of such determination in writing and each party may, in that party's sole discretion: (a) Continue this LICENSE AGREEMENT in full force and effect in which case LICENSEE shall repair and restore, at LICENSEE's sole cost and expense, the Property and Facility to their former condition; or (b) Terminate this LICENSE AGREEMENT by giving the other party thirty (30) days' written notice of its election to terminate the LICENSE AGREEMENT. In the event that either party elects to terminate this LICENSE AGREEMENT, the entire amount of any insurance proceeds, if any, shall be paid to CITY. The 19 GAAGREEMT\2002\Nuevo Energy.docl/8/2003 proceeds of any such insurance payable to CITY may be used, in the sole discretion of CITY, for rebuilding or repair as necessary to restore the Property or for any other such purpose(s) as CITY sees fit. In addition, if LICENSEE elects to terminate the LICENSE.AGREEMENT, LICENSEE must still comply with all of its obligations, liabilities, duties and responsibilities under the LICENSE AGREEMENT, including, without limitation, paying any License Fee up to the time of termination. SECTION 35. EMINENT DOMAIN If, during the term of this LICENSE AGREEMENT or any renewals or extensions thereof or during any holdover period, the Property is taken in eminent domain, the entire award (that is, all forms) of compensation, other than as provided herein, shall belong to and be paid to CITY. In the event of condemnation, LICENSEE shall not be entitled to an award of compensation from the condemning authority including any: compensation for loss of business goodwill; compensation for the value of any of this License Agreement; compensation for the value of any of LICENSEE's personal property; compensation for the value of any of LICENSEE's trade inventory; and compensation for relocation benefits as authorized by law. All compensation shall belong to and be paid to CITY. In the event of condemnation, unless LICENSEE is allowed by the condemning authority to continue its operations on the Property, the LICENSE AGREEMENT shall terminate on the earliest of the following dates: the date the condemning authority obtains a prejudgment order for possession; the date title to the Property vests in the condemning authority; or the date when LICENSEE is required by the condemning authority to cease its operations. 20 GAAGREEMT\2002\Nuevo Energy.docl/8/2003 SECTION 36. CITY'S OPTION TO CLOSE THE PROPERTY CITY may close the Property without liability and without advance notice to LICENSEE therefor at any time as CITY in its sole discretion deems necessary for the protection of life, limb or property, or for public health, safety or welfare purposes, or upon reasonable notice to effect any repair, remodeling or rebuilding deemed necessary by CITY in its sole discretion. The length of time of any closing of the Property by CITY longer than two (2) weeks during a period when the Facility would otherwise be operating shall extend the term of the LICENSE AGREEMENT by the same amount of time. If this occurs, LICENSEE and CITY shall memorialize this extension in writing. SECTION 37. CONFLICT OF INTEREST LICENSEE warrants and covenants that no official or employee of CITY, nor any business entity in which an official or employee of CITY is interested, (1) has been employed or retained by LICENSEE to solicit or aid in the procuring of this LICENSE AGREEMENT; or (2) shall be employed by LICENSEE in the performance of this LICENSE AGREEMENT without the immediate written divulgence of such fact to CITY. In the event CITY determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of CITY, LICENSEE, upon request of CITY, shall terminate such employment immediately. For breaches or violation of this Section, CITY shall have the right both to terminate this LICENSE AGREEMENT without liability and, in its discretion, recover the full amount of any such compensation paid to such official, employee or business entity. No official or employee of CITY shall have any financial interest in this LICENSE AGREEMENT in violation of the applicable provisions of the California Government Code. 21 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 SECTION 38. NO TITLE INTEREST No title interest of any kind is hereby given and LICENSEE shall never assert any claim or title to the Property. SECTION 39. NOTICE All notices, certificates, or other communications required to be given hereunder shall be in writing and made in the following manner, and shall be sufficiently given and deemed received when (a) personally delivered; or (b) three (3) business days after being sent via United States certified mail — return receipt requested; or (c) one'(1) business day after being sent by reputable overnight courier, in each case to the addresses specified below; provided that CITY and LICENSEE, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent: CITY: LICENSEE: CITY of Huntington Beach Nuevo Energy Company ATTN: Director of Administrative Services ATTN: Arthur R. Boehm, Jr. 2000 Main Street, P.O. Box 190 1200 Discovery Drive Huntington Beach, CA 92648 Bakersfield, CA 93309 SECTION 40. COMPLIANCE WITH LAWS LICENSEE, at its sole cost and expense, shall comply with all statutes, ordinances, regulations and requirements of all governmental entities, including, without limitation, Federal, State, county or municipal, relating to LICENSEE's use of the Property and/or operation of the Facility whether such statutes, ordinances, regulations and requirements be now in force or hereinafter enacted. This LICENSE AGREEMENT is expressly subject to the laws, regulations and policies of CITY. LICENSEE shall deliver to CITY a copy of any notice from any governmental entity received by LICENSEE regarding any alleged violation of law regarding the LICENSE AGREEMENT, the Property or the Facility or from any person allegedly entitled to give notice under any conditions, covenants, or restrictions binding or affecting the Property or 22 G:\AGREEMT\2002\Nuevo Energy.doc 1/14/2003 Facility. The judgment of any court of competent jurisdiction, or the admission by LICENSEE in a proceeding brought against LICENSEE by any government entity, that LICENSEE has violated any such statute, ordinance, regulation or requirement shall be conclusive as between CITY and LICENSEE and shall be grounds 1for termination of this LICENSE AGREEMENT by CITY. SECTION 41. INTERPRETATION OF THIS LICENSE AGREEMENT The language of all parts of this LICENSE AGREEMENT shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this LICENSE AGREEMENT is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this LICENSE AGREEMENT. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this LICENSE AGREEMENT, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this LICENSE AGREEMENT which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. SECTION 42. SURVIVAL Terms and conditions of this LICENSE AGREEMENT, which by their sense and context survive the expiration or termination of this LICENSE AGREEMENT, shall so survive. SECTION 43. MODIFICATION No waiver or modification of any language in this LICENSE AGREEMENT shall be valid unless in writing and duly executed by both parties. 23 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 I SECTION 44. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this LICENSE AGREEMENT are merely descriptive and are.included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this LICENSE AGREEMENT. SECTION 45. ATTORNEY'S FEES Except as expressly set herein, in the event suit is brought by either party to construe, j interpret and/or enforce the terms and/or provisions of this LICENSE AGREEMENT or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. SECTION 46. GOVERNING LAW This LICENSE AGREEMENT shall be governed and construed in accordance with the laws of the State of California. SECTION 47. DUPLICATE ORIGINAL The original of this LICENSE AGREEMENT and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who signed it. SECTION 48. ENTIRETY The parties acknowledge and agree that they are entering into this LICENSE AGREEMENT freely and voluntarily following extensive arm's length negotiations, and that each has had the opportunity to consult with legal counsel prior to executing this LICENSE AGREEMENT. The parties also acknowledge and agree that no representations, inducements, promises, License Agreements or warranties, oral or otherwise, have been made by that party, or anyone acting on that party's behalf, which are not embodied in this LICENSE AGREEMENT, and that that party has not 24 G:\AGREEMT\2002\Nuevo Energy.docl/8/2003 RL-QUEST FOR COUNCIL ACTh A MEETING DATE: January 16, 1996 DEPARTMENT ID NUMBER: AS-95-019 Analysis: The original lease with Sunset Sanitary District as lessor was dated April 1, 1964 and May 13, 1964. Since May 1, 1970, UNOCAL was granted five year leases at $1,000.00 per year with this amount remaining the same through subsequent five year periods up to April 30, 1985. From May 1, 1985 to April 30, 1990, the lease amount was $2,000 per year. The 8' by 8' lease parcel is located at the intersection of Pacific Coast Highway and Warner Avenue in the parking lot just west of the Warner Fire Station. From May 1, 1990 to April 30, 1995, the lease amount was $4,000 per year. The City will receive $4,800 per year for a further five year period from May 1, 1995 to April 30, 2000. Environmental Status: Attachment(s): 1. Lease Agreement 2. Plat Map RCAUNOCL.DOC -2- 01/04/96 1:44 PM (- TInNAI- DISTRICT MAP 30-5-11 CITE' OF - ILU -TINGTON BEACH RANGE COU -N-TY, CALIFORNIA- USE OF PROPERTY MAP .VI/ it /c, 'ARNE co .01 1. IT 1 TM2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERIC CONNIE BROCKWAY CITY CLERK January 24, 1996 Orange County Assessor's Office P. O. Box 149 Santa Ana, CA 92702 Attention: Real Property Department Enclosed is a lease agreement between the City of Huntington Beach and Union Oil Company of California, dba UNOCAL for a portion of city-owned property located at the intersection of Pacific Coast Highway and Warner Avenue which was approved by the City Council of the City of Huntington Beach on January 16, 1996. If you have any questions, please call the Office of the City Clerk at (714) 536-5227. Connie Brockway, CIVIC City Clerk Evelyn Schubert, CIVIC Deputy City Clerk Enclosure (Telephone:714-536-5227) 56726.9 AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND UNION OIL COMPANY OF CALIFORNIA THIS AMENDMENT is entered into this 1st day of May , 1995, by and between the CITY OF HUNTINGTON BEACH, hereinafter referred to as "CITY" and UNION OIL COMPANY OF CALIFORNIA, dba UNOCAL, a California corporation (hereinafter "UNOCAL-). WHEREAS, CITY and UNOCAL, are parties to that certain lease agreement, dated June 2, 1970, and March 12, 1990; and Since the execution of the lease agreement, CITY and UNOCAL desire to extend the term of the lease and to increase the annual payment by twenty percent (20%) to Four Thousand Eight Hundred Dollars ($4,800) per year; NOW, THEREFORE, it is agreed by and between CITY and UNOCAL as follows: 1. TERM The term of this agreement shall be for a period of five (5) years beginning May 11 1995 and ending April 30, 2000. 2. DELETION The 25'x 25'water storage tank is deleted from the agreement in that the tank has been removed from the site. 3. REAFFIRMATION Except as otherwise specifically modified-herein, all other items and conditions of the lease agreement shall remain in full force and effect. 1 3/k/unocal/6/22/95 RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Lease Agreement for Water Booster Pump Site located on City Property which services UNOCAL Offshore Oil Island COUNCIL MEETING DATE: January 16, 1996 RCA ATTACHMENTS STATUS 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 Attached Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Appoved as to form by City Attorney) 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 FOR MISSING ATTACHMENTS REVIEWED RETURNED ,, FORWARDED. Administrative Staff PE Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: - (BelowA . a • 56726.9 AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND UNION OIL COMPANY OF CALIFORNIA THIS AMENDMENT is entered into this 1st day of May , 1995" by and between the CITY OF HUNTINGTON BEACH, hereinafter referred to as "CITY" and UNION OIL COMPANY OF CALIFORNIA, dba UNOCAL, a California corporation (hereinafter "UNOCAL"). WHEREAS, CITY and UNOCAL, are parties to that certain lease agreement, dated June 2, 1970, and March 12, 1990; and Since the execution of the lease agreement, CITY and UNOCAL desire to extend the term of the lease and to increase the annual payment by twenty percent (20%) to Four Thousand Eight Hundred Dollars ($4,800) per year; NOW, THEREFORE, it is agreed by and between CITY and UNOCAL as follows: 1. TERM The term of this agreement shall be for a period of five (5) years beginning May 1, 1995 and ending April 30, 2000. 2. DELETION The 25'x 25'water storage tank is deleted from the agreement in that the tank has been removed from the site. 3. REAFFIRMATION Except as otherwise specifically modified herein, all other items and conditions of the lease agreement shall remain in full force and effect. 1 3/k/unocal/6/22/95 IN WITNESS WHEREOF, the parties hereto have executed this amendment as of the date first above written. UNION OIL COMPANY OF CALIFORNIA, dba, UN AL CITY OF HUNTINGTON BEACH, A municipal corporation of the State of By: �`- California K.JEMISON GENERAL MANAGER REAL ESTATE r��V L "► ITS: {circle one) hairma Presiders ice President °' ��.-- Mayor Attested By: ,,.�Q- � /[.�.�� /'► t)E ft /�f�Cr print name APPROVED AS TO FORM: ITS: (cirGe ecretary/Chief Financial Office As-t. Secrets Treasurer p City Attorney ATTEST: INITI ED D AP� VIED: City Clerk Director of Adm' .istr tive Servi s R D AND APPROVED: City Administrator 2 3/k/unocal/2/2/95 !� NG a � C T InNAL DISTRICT MAP 30-5-11 �= CITY OF - -TiUNTINGTON BEACH , RANGE COUI TY, CALIFORNIA USE OF PROPERTY MAP ----------------- 'rARNER Brit Bvr cam, 2 . Term The term of this agreement shall be for a period of five years beginning May 1, 1990 and ending April 30, 1995. 3 . Renewal Upon mutual agreement by City and Unocal, this agreement may be renewed for additional periods of five years each after May 1, 1995. 4. Termination This agreement may be terminated by either party on 90 days written notice. 5. Removal of Facilities Following termination of this agreement, Unocal will remove the facilities maintained under this agreement. 6. Annual Payment Unocal will pay City the sum of Four Thousand Dollars ($4, 000. 00) on or before May 1 of each year during the term of this agreement. Upon early termination under Paragraph 4 above, City agrees to refund to Unocal the unused portion of the advance annual rental. 7. Indemnification Unocal hereby releases and discharges City from all claims and demands by Unocal for loss of or damage to City's property, and agrees to indemnify and defend City against and save City harmless. from all costs and expenses, including attorney's fees, and all liability, and claims and demands of others, for loss of or damage to property, or injury to or death of persons, which may result directly or indirectly from the giving, use or termination of, or operations -2- '!ANNING �a o- TlnNA ! DISTRICT MAP 30-5-11 -E CITY OF - HU TTING TOOT BEACH ORANGE COUNTY, CALIFORNIA USE OF PROPERTY MAP 20 lLLAOON 7i ocoy ` �C WARNER AVE i_ `� y ON OIL COMPANY OF CALIFOIO4A CERTIFICATION I, R. E. Jenkins, an Assistant Secretary of Union Oil Company of California, do hereby certify that the following is a true and correct excerpt of a resolution adopted at a meeting of the Executive Committee of the Board of Directors of Union Oil Company of California held at its principal office on Friday, the 16th day of December, 1988, at which meeting a quorum of said Committee was at all times present and voting and that said excerpt is now in full force and effect: "RESOLVED, That R. K. Jemison, Unocal Real Estate Division, be and he hereby is authorized to execute, deliver, accept, amend, extend, assign, terminate, and cancel, in the name of and on behalf of Union Oil Company of California, the following: 1. Easements, Licenses, Rights of Way, Franchises, Consents to any of the foregoing, Permits, Bills of Sale and other similar Agreements covering, in connection with or relating to pipe lines, pole lines, conduits, wire attachments, microwave systems, roadways and related operations which have been approved by the Board of Directors or the Executive Committee or which involve consideration of less than TWENTY-FIVE THOUSAND DOLLARS ($25,000) . 2 . Agreements for, in connection with or relating to the use, furnishing, handling, acquisition, or disposal of water, waste water, and public utility services and facilities. 3 . Leases to others of the right to use the surface of lands owned by the Company, and buildings and facilities located thereon, which said leases do not exceed two (2) years and are terminable upon notice of not more than ninety (90) days on the part of the Company. 4 . Consents to Subdivisions, and Contracts for Services which have been approved by the Board of Directors or the Executive Committee or which involve amounts of less than THIRTY THOUSAND DOLLARS ($30, 000) . 5. Applications (including all Instruments in connection therewith or supplementary thereto) for Permits or Authorizations as may be required by the Federal Government or by any state, county, or municipality or other government body, or any agency, department, bureau, commission or division thereof, for or in connection with or relating to the operation,, use or maintenance of the Company's lands or operating facilities, including, but not limited to, requests for Zoning variances. 6 All manner of Deeds covering the sale and/or trade of property which are approved by the Board of Directors or the Executive Committee or which involve a sale or trade of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125, 000) or less in value. " I further certify that pursuant to the foregoing R. K. Jemison is acting within the scope of his authority in executing a Deed Restriction, dated May 30, 1990 between Union Oil Company of California, a California corporation, and the California Coastal Commission, covering the property described on Exhibit 01B1° attached hereto records of County of San Luis Obispo, State of California. WITNESS my hand and the seal of said corporation this 31st day of May, 1990. UNION OIL C Y OF CALIFORNIA E;727 7 . Jenkins Assistant Secretary Unocal Real Estate Divisio- PROPERTY Unocal Corporation 1201 West 5th Street, P.O. , 7600 Los Angeles,California 90051 Telephone(213)977-5021 JUL 2 S 1990 MART-AGEMERT, V Ift X L 56726.8 July 24, 1990 W.H.Cotrei Manager,Property Services City of Huntington Beach City Hall 2000 Main Street Huntington Beach, CA 92648 Attn: Mr. Dar. M. Brennan Real Property Manager Dear Dan: Certification As requested by Mr. Paul Larkin, enclosed is a copy of the certificate of resolution authorizing Mr. R. K. Jemison, Unocal Real Estate Division, to execute lease agreements on behalf of Union Oil Company of California dba Unocal. Best regards. Very truly yours, W. H. COTREL By Arne T. Adams Assistant Manager, Property Services ATA:mh Enclosure J, CITY OF HL, NTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK July 26, 1990 Orange County Assessor' s Office P. 0. Box 149 Santa Ana, CA 92702 Attn: Real Property Department Enclosed is a lease agreement between the City of Huntington Beach and Unocal Corporation for a portion of city-owned property located at the intersection of Pacific Coast Highway and Warner Avenue which was approved by the City Council of the City of Huntington Beach on July 17, 1990. If you have any questions, please call the Office of the City Clerk at 536-5405. Connie Brockway City Clerk CB:bt Enc. (Telephone:714-536-5227) J, CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK July 26, 1990 Unocal Real Estate Division Unocal Corporation P. 0. Box 7600 Los Angeles , CA 90051 Attn: R. K. Jemison Enclosed is an executed copy of a Lease Agreement between Unocal and the City of Huntington Beach which was approved by the City Council of the City of Huntington Beach on July 16, 1990. Connie Brockway City Clerk CB:bt Enc. (Telephone: 714-536-5227) CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK December 13, 1985 Orange County Assessor's Office P. 0. Box 149 Santa Ana, CA 92702 Attn: Real Property Department Enclosed is a copy of a lease agreement betweEn the City of Huntington Beach and Union Oil Company for a portion of city-owned property located at Warner Avenue, east of Pacific Coast Highway which was approved by the City Council of the City of Huntington Beach on August 8, 1985. If you have any questions, please call the Office of the City Clerk at 536-5227. Alicia M. Wentworth City Clerk AMW:bt Enclosure (Telephone:79 4-536-5227) J. CITY OF HUNTINGTONEAR 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK August 21 , 1985 Union Real Estate Division Union Oil Company of California P. 0. Box 7600 Los Angeles, CA 90051 The City Council of the City of Huntington Beach at its regular meeting held Monday, August 19, 1985, approved a Lease Agreement between the City and your firm for lease of a portion of City property located on Warner Avenue, east of Pacific Coast Highway. at $2,000 yearly rent. Enclosed is an executed copy of said agreement for your files. Alicia M. Wentworth City Clerk AMW:bt Enclosure CC: Dan Brennan, Real Property Manager Wayne Lee, Finance (Telephone:714-536-5227) REQUER FOR CITY COUNCIL ACTION Date August 8, 1985 Submitted to: Honorable Mayor and City Council APPROVED BY CITY COUNC.— Submitted by: Charles W. Thompson, City Administrato ��n 9 -111 Prepared by: Dan T. Villella for Robert J. Franz, Chief of Admini �S Lease Agreement for Water Booster Pump Site L IT CLERK Subject: which Services Union Oil Offshore Oil Island Consistent with Council Policy? [X] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: G - Statement of Issue: The City of Huntington Beach, the successor to Sunset Sanitary District, the original Lessor, has been leasing this booster pump site to Union Oil Company for their supplying fresh water to their offshore oil island. Recommendation: Approve the attached agreement and the new sum of $2,000 yearly rent and authorize the Mayor to execute same. Analysis: The original lease with Sunset Sanitary District as lessor was dated April 1, 1964 and May 13, 1964. Since May 1, 1970, Union Oil has been granted five year leases at $1,000 per year with this amount remaining the same through subsequent five year periods up to April 30, 1985. The 8' x 8' leased parcel is located at the intersection of Pacific Coast Highway and Warner Avenue in the parking lot just west of the Warner Fire Station. The City will now receive $2,000 per year from the lease-for the next five year period, May 1, 1985 and ending April 30, 1990. Funding Source: None Alternative Actions: 1. Disapprove agreement. 2. Charge dollar amount of agreement. Attachments: 1. Lease Agreement 2. Plat Map 1544 j PIO 4/84 56726 .7 LEASE AGREEMENT This agreement is between CITY OF HUNTINGTON BEACH, "City" , and UNION OIL COMPANY OF CALIFORNIA, "Union" , Recitals Pursuant to the term of Lease Agreement dated June 2, 1970 granted to Union by Sunset Sanitary District, City' s predecessor in interest, Union leased a portion of City' s property located along the northerly side of Warner Avenue east of Pacific Coast Highway, comprised of two parcels of land, one 8 ' x. 8 ' and one 25 ' x 251 , which were used for construction and maintenance of a water booster pump ,and water storage tank respectively. The water storage tank was removed in 1980 . It is the purpose of this agreement to extend the term of the lease and to revise the annual payment . 1. Covers This agreement covers the continued maintenance, operation and removal of the water booster pump located on the above mentioned parcel of land . 2 . Term The term of this agreement shall be for a period of five years beginning May 1, 1985 and ending April 30 , 1990 . 3 . Renewal Upon mutual agreement by City and Union, this agreement may be renewed for additional periods of five years each after May 1, 1990 . 4 .a, Termination This agreement may be terminated by either party on 90 days written notice. 5 . Removal of Facilities Following termination of this agreement, Union will