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HomeMy WebLinkAboutC-3272(A) - Lido Isle Bayfront Lettered Lots Leasect C'r) FIRST AMENDMENT TO LIDO ISLE BAYFRONT LETTERED LOTS LEASE THIS FIRST AMENDMENT TO LIDO ISLE BAYFRONT LETTERED LOTS LEASE ("Amendment No. One"), is entered into as of this WI day of July, 2012, by and between the CITY OF NEWPORT BEACH, a California Municipal Corporation and Charter City ("City" or "Lessor"), and LIDO ISLE COMMUNITY ASSOCIATION a California non-profit corporation whose address is 701 Via Lido Soud, Newport Beach, California 92663 ("Lessee"), and is made with reference to the following: RECITALS: A. The City of Newport Beach has, since September 1928, held title to certain lots and parcels of real property located on Lido Isle (collectively referred to as the "Premises"). B. Lessee and Lessor first entered into a Tong -term lease of the Premises dated March 4, 1929 (1929 Lease). The 1929 Lease was later renegotiated into a series of new leases in December 1938, June 1951, April 1975 (1975 Lease) and April 14, 2000 ("Antibes Marina Lease" and "Lido Isle Bayfront Lettered Lots Lease"). C. The Antibes Marina Lease effective April 14, 2000 encompasses the tidelands Parcel E. The Lido Isle Bayfront Lettered Lots Lease also effective April 14, 2000 encompasses the uplands described as the Bayfront Lettered Lots, Tots A, B, C, D, E, F, G, H, I, and J in Tract 907 which are used as parks, open -space, walkways and dry boat storage areas. D. Lessor and Lessee mutually desire to amend the Lido Isle Bayfront Lettered Lots Lease to include Parcel C as part of the Premises described in Exhibit A to the Agreement and to and update the City's insurance requirements pursuant to the terms and conditions included below. E. Under the Lido Isle Bayfront Lettered Lots Lease and this Amendment No. One the City receives in -kind services in exchange for the use of the Premises. The in -kind services require the Lessee to maintain the Premises to a high standard of care and to ensure that public access to tidelands is maintained. Both maintenance and public access to tidelands is a matter of general state-wide interest and is furthered both by the Lido Isle Bayfront Lettered Lots Lease and this Amendment No. One. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. DESCRIPTION OF LEASED PREMISES Exhibit A of the Lido Isle Bayfront Lettered Lots Lease is supplemented to include Parcel C, which is more particularly described in Exhibit A and depicted in Exhibit B; both attached hereto and incorporated herein. 2. INSURANCE Section 9 of the Lido Isle Bayfront Lettered Lots Lease is amended in its entirety and replaced by the following: 9. INSURANCE In addition to Lessee's obligations pursuant to Section 10 of the Lido Isle Bayfront Lettered Lots Lease, Lessee shall provide and maintain, at its own expense, policies of liability insurance as follows: Lessee shall procure and maintain for the duration of the Lido Isle Bayfront Lettered Lots Lease insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the Premises. The cost of such insurance shall be borne by the Lessee. A. Minimum Scope and Limit of Insurance Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including property damage, bodily injury and personal injury with limits no Tess than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Workers' Compensation: Insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (for lessees with employees). 3. Property insurance: against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision. If the Lessee maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained B. Other Insurance Provisions: The policies are to contain, or be endorsed to contain, the following provisions: LIDO ISLE COMMUNITY ASSOCIATION Page 2 1. For General Liability, the City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance, or use of that part of the Premises leased to the Lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Each insurance policy required above shall contain, or be endorsed to contain, a waiver of all rights of subrogation against the City. 4. Each insurance policy shall be endorsed to state that coverage shall not be canceled except after thirty (30) days' prior written notice (ten (10) days for non- payment) has been given to the City. 5. The Property insurance shall name the City as Loss Payee as its interests may appear. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII, unless otherwise acceptable to the City. C. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII, unless otherwise acceptable to the City. D. Deductibles and Self -Insured Retentions The City. At the option of the City, either: the Lessee shall obtain coverage to reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. E. Verification of Coverage Lessee shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required above. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Lessee's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. LIDO ISLE COMMUNITY ASSOCIATION Page 3 F. Waiver of Subrogation Lessee hereby grants to City a waiver of any right to subrogation which any insurer of said Lessee may acquire against the City by virtue of the payment of any Toss under such insurance. This provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. G. Special Risks or Circumstances City reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Lido Isle Bayfront Lettered Lots Lease shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] LIDO ISLE COMMUNITY ASSOCIATION Page 4 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. One on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 7 e.3 /, t. By: � (Car ) By: Aaron C. Ha Nancy Gardner City Attorney Mayor ATTEST: Date: 1-24.17— By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California unici al corporation Date: r (e L LIDO ISLE COMMUNITY ASSOCIATION, a nonprofit corporation Date: By: Fred Barnes President Date: By: b,.iA�' Donna M. rtel /. Treasurer [END OF SIGNATURES] Attachments: Exhibit A — Legal Description: Parcel C Exhibit B — Depiction: Parcel C Al2-00153/flappslcaticycomlwpdocsld0171p006100012571.docx cdrk LIDO ISLE COMMUNITY ASSOCIATION Page 5 EXHIBIT A LEGAL DESCRIPTION PARCEL "C", SECTION 1 OF THE BAYFRONT LETTERED LOTS LEASE A parcel of land in the City of Newport Beach, County of Orange, State of California, adjacent to Lot C and lots 20 - 25, Tract 907, per map filed in Book 28, pages 25 — 33 of Miscellaneous Maps, in the office of the County Recorder of said County, more particularly described as follows: Beginning at the southwest corner of said Lot 25; thence N 68° 52' 44" W along the southerly line of said Lots 22-25 a distance of 122.22 feet to the angle point in the southerly line of said Lot 22; thence N 75° 17' 40" W along the southerly line of said lots 20-22 and Lot C a distance of 124.96 feet; thence S 14° 42' 20" W along the prolongation of the westerly line of said Lot C a distance of 38.57 feet to the US Government Bulkhead Line between US Station 172 and US Station 173, as shown on said map of Tract 907; thence S 72° 31' 00" E along said Bulkhead Line a distance of 243.44 feet to the southerly prolongation of the easterly line of said Lot 25; thence N 19° 45' 34" E along said prolongation of the easterly line of Lot 25 a distance of 36.85 feet to the point of beginning. Containing approximately 10,087 sq. ft. Compiled from record information shown on Tract 907 map. Exhibit "B" Parcel "C" Section 1 of Bayfront Lettered Lots Lease 661 9 5 a 0 Tr 0 -4140 Parcel C 10087 sq.ft. ® ■ Lease Area (Parcel C) Lido Isle Community Association Property N 0 10 20 to co M It ,M 40 P.O.B. 01M92otm O:WcMapIP bdc_Wowk 1Survey\Udolelp HOkteese.mxd Feet AWRL EVIDENCE OF PROPERTY INSURANCE CSR: SS DATE (MM/DD/YYYY) 07/24/2012 THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE OF PROPERTY INSURANCE DOES NOT AMEND, EXTEND OR AFFORDED BY THE POLICIES BELOW. AGENCY AJPHONE N o. EM): 714-444-2679 CLARKE GARVEY INSURANCE 245 FISCHER AVENUE, SUITE D-8 COSTA MESA, CA 92626 FAX (A/C, No):714-444-0176 E-MAIL CODE: SUB CODE: AGENCY LIDOI-2 CUSTOMER ID #: INSURED Lido Isle Community Assn 701 Via Lido Soud Newport Beach, CA 92663 PROPERTY INFORMATION COMPANY Philadelphia Insurance Co 27101 Porta Real Suite 200 Mission Viejo, CA 92691 LOAN NUMBER EFFECTIVE DATE 06/01/12 NO RIGHTS UPON THE ALTER THE COVERAGE POLICY NUMBER PHPK849801 EXPIRATION DATE 06101 /13 CONTINUED UNTIL TERMINATED IF CHECKED THIS REPLACES PRIOR EVIDENCE DATED: LOCATION/DESCRIPTION 701 Via Lido Soud Newport Beach, CA 92663 Community Association THE POLICIES OF INSURANCE 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 EVIDENCE OF PROPERTY 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. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION COVERAGE/PERILS/FORMS Clubhouse Building/Contents All Risk, Blanket, Replacement Cost 100% Co -I AMOUNT OF INSURANCE DEDUCTIBLE $1,650,000 $1,000 REMARKS (Including Special Conditions) CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE ADDITIONAL INTEREST NAMED BELOW, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ADDITIONAL INTEREST NAME AND ADDRESS City of Newport Beach P O Box 1768 Newport Beach, CA 92659-8915 ACORD 27 (2006/07) MORTGAGEE X 1 LOSS PAYEE ADDITIONAL INSURED LOAN # AUTHORIZED REPRESENTATIVE ©ACORD CORPORATION 1993-2006. All rights reserved. ACC:70RR® CERTIFICATE OF LIABILITY INSURANCE OP ID: SS DATE(MMIDD/YYYY) 07/24/12 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CLARKE GARVEY INSURANCE 245 FISCHER AVENUE, SUITE D-8 COSTA MESA, CA 92626 INSURED Lido Isle Community Assn 701 Via Lido Soud Newport Beach, CA 92663 714-444-2679 714-444-0176 CONTACT NAME: PHONE 1 (A/C, No, Ext): (A/CFAX, No): E-MAIL ADDRESS: PRODUCER LIDOI-2 CUSTOMER ID #: INSURER(S) AFFORDING COVERAGE INSURER A : Philadelphia Insurance Co INSURER B : State Compensation Ins Fund INSURER C : INSURER D : INSURER E : NAIC # INSURER F : COVERAGES CERTIFICATE NUMBER: • THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE 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 POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL INSR, SUER WVD POLICY NUMBER POLICY EFF (MMIDD/YYYY) POLICY EXP (MMIDDIYYYY) LIMITS A GENERAL Xl LIABILITY COMMERCIAL GENERAL LIABILITY I XJ OCCUR X PHPK849801 06/01/12 06/01/13 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED PREMISES (Ea rrn,rrence) $ 100,000 JCLAIMS -MADE MED EXP (Any one person) $ 5,000 I PERSONAL 8 ADV INJURY $ 1,000,000 GEN'L GENERAL AGGREGATE $ 2,000,000 AGGREGATE LIMIT APPLIES PER: PRO- 1 POLICY ' i JECT 1 I LOC PRODUCTS - COMP/OP AGG $ 2,000,000 j $ AUTOMOBILE _._ - LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Ea accident) BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ $ $ A X UMBRELLA LIAB EXCESS LIAB I X I OCCUR PHUB378804 06/01/12 06/01/13 EACH OCCURRENCE $ 4,000,000 I CLAIMS -MADE AGGREGATE $ 4,000,000 DEDUCTIBLE RETENTION $ $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED', (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS Y/ N N / A 1965395-2012 06/15/12 06/15/03 I WC STATU- 1 1 OTH- X I T RY LIMIT E E.L. EACH ACCIDENT $ 1,000 000 below E.L. DISEASE - EA EMPLOYEE S 1,000,000 E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule if more space is required) The City of Newport Beach, its officers, officials, employees and volunteers are named as Additional Insureds Per CG 2026 attached. HOLDER City of Newport Beach P 0 Box 1768 Newport Beach, CA 92659-8915 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2009 ACORD CORPORATION. All rights reserved. POLICY NUMBER: PHPK849801 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of Newport Beach, its officers, officials, employees and volunteers P 0 Box 1768, Newport Beach, CA 92659-8915 Re: Lido Isle Community Association Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. LEASE Lido Isle Bayfront Lettered Lots THIS LEASE, made and entered into this / m day of _ 4 2000 (Execution Date), by and between the CITY OF NEWPORT BEACH, a charter city and municipal corporation ("Lessor"), and the LIDO ISLE COMMUNITY ASSOCIATION, a California non-profit corporation ("Lessee"). RECITALS A. The City of Newport Beach has, since September 1928, held title to certain lots and parcels of real property located on Lido Isle (collectively referred to as the Premises) that are described on Exhibit "A" and depicted on Exhibit "B". The individual lots and parcels are sometimes identified in this Lease by reference to the description in Exhibit "A". B. Lessee and Lessor first entered into a long-term lease of the Premises dated March 4,1929 (1929 Lease). The 1929 Lease was later renegotiated into a series of new leases in December 1938, June 1951, and April 1975 (1975 Lease). The 1975 Lease expires April 14, 2000. C. Lessor and the Lessee intend to enter into two leases that comprise all of the property subject to the 1975 lease except Parcel B (which is the fifty foot strip between the bayward boundary of private property and the bulkhead line bayward of Lot I) and Parcel C (which is a strip between the bayward boundary of private property and the bulkhead line between Lot 19 and Lot 26). This Lease covers the uplands and the tidelands are covered by the Antibes Marina Lease. The "Antibes Marina Lease" covers Parcel E and this Lease covers the "Bayfront Lettered Lots" described in Tract 907 that are used as parks, open -space, walkways and dry boat storage areas. D. The Parties intend to require Lessee to continue to use the same high standards of care and maintenance of the Premises that Lessee used on the Effective Date of this Lease to serve Lido Isle residents and visitors. 1 E. The Parties intend that Lessee's performance of the terms and conditions of this Lease is part of the consideration for the Antibes Marina Lease. F. The Parties intend that Lessee will continue to facilitate public access to the tidelands contiguous to Lido Isle through maintenance and improvement of sidewalks and walkways at the locations specified in Exhibit C (Walkways). G. The Parties intend, through this Lease, to confirm Lessor's right to use any properties held in trust by the Lessor (including tidelands) for the purposes of establishing, maintaining, and operating mitigation bank locations for Eelgrass (zoostera marina) or projects that are intended to enhance the water quality or ecosystem of Newport Bay without infringing on or limiting Lido Isle residents' ability to operate and maintain legal and permitted residential piers. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS hereinafter set forth, it is agreed as follows: 1. DESCRIPTION OF LEASED PREMISES Lessor hereby leases, and Lessee does hereby accept a lease of the Premises subject to the terms, covenants and conditions in this Lease. 2. TERM The term of this Lease shall be for a period of twenty-five (25) years, commencing on April 15, 2000 (Effective Date) and expiring on April 14th , 2025 unless sooner terminated as provided in this Lease. 3 LESSEE DUTIES A. Lessee shall maintain the Premises at substantially the same high standard of care and maintenance that Lessee used as of the Execution Date of this Lease; 2 B. Lessee shall maintain all Walkways in good order, condition and repair and refrain from any action or conduct that restricts public access to the tidelands. 4. RENT The consideration for this Lease is Lessee's performance of its duties and obligations pursuant to the terms, covenants and conditions of this Lease. 5. USE A. Lessee shall use the two one hundred (100) foot by ninety (90) foot portions of Lot A for community recreational facilities and dry boat storage purposes for the benefit of members of Lessee. B. Lessee shall maintain and operate all Walkways in a manner that allows for open public access to the tidelands around Lido Isle. Lessee shall position any signs that limit park access to Lido Isle residents and guests in a manner that does not discourage visitor and public use of any Walkway. Lessor may require Lessee, at Lessee's expense, to relocate any of these signs on any parcel or lot referenced in Exhibit C if the City Manager of Lessor (or his/her designee) determines that relocation is necessary or appropriate to ensure full public use and access. Access to tidelands bayward of the Walkways shall be subject to the same restrictions and limitations applicable to other tidelands granted to the City. C. Lessee shall allow Lessor to use any property owned or held in trust by the Lessor (including tidelands) for the purposes of establishing, maintaining, and operating mitigation bank locations for Eelgrass (zoostera marina) or any other project designed and intended to enhance the water quality or ecosystem of Newport Bay. In developing and maintaining any such project, Lessor shall not infringe upon or limit Lido Isle residents' ability to operate and maintain legal and permitted residential piers subject only to the ordinances and policies adopted by Lessor in its governmental capacity and as grantee of the State of California. 3 6. STRUCTURAL IMPROVEMENTS A. All structural improvements with a cost in excess of five thousand dollars (Capital Improvements) that are constructed during the term of this lease become the property of Lessor upon expiration of the Lease. B. Lessee shall be required to obtain, prior to commencing the construction of any Capital Improvement, all permits, licenses or approvals that may be required by Lessor in its governmental capacity. C. Lessee shall, at all times, indemnify, defend and hold Lessor harmless from any and all claims, liens, damages or fees in any way related to any construction, repair, alteration or installation of any structure, improvement, equipment or facilities on the Premises. Lessee's obligation extends to the costs of defending such claims, including reasonable attorney's fees. Lessee shall not suffer or permit to be enforced against all or any portion of the Premises, any lien or any claim for damage in any way related to any construction, repair, restoration, replacement or improvement on the Premises. In the event any lien or stop notices imposed or recorded on the Premises as a result of the construction, repair or alteration of the facility by or on behalf of Lessee, Lessee shall pay or cause to be paid all such liens, claims or demands before any action is brought to enforce the same against the Premises. Lessee may, in good faith, contest the validity of such lien, claim or demand. In the event of any contest or litigation, Lessee shall, at its sole expense, defend itself and Lessor and shall pay and satisfy any adverse judgment that may be rendered prior to enforcement against Lessor or the Premises. Lessor may require Lessee to furnish a surety bond satisfactory to Lessor in an amount equal to any contested lien, claim or demand. D. Lessee shall give Lessor advance written notice of any construction on or improvement on the premises. Lessee shall coordinate the scheduling of any work with Lessor to minimize any inconvenience to the public. 7. BUSINESS ACTIVITIES Subject to the provisions of this Lease that authorize Lessee to lease or sublease portions of the Premises for the purpose of dry boat storage, Lessee shall not 4 grant any concession, license, permit or privilege for the conduct of any business or other operation for profit on the Premises without the prior written approval of the City Manager. 8. UTILITIES AND TAXES Lessee shall promptly pay all utility services furnished to the Premises and shall pay before delinquent any general and special taxes or assessments or other governmental charges, if any, which may be levied on the Premises as well as any related possessory interest in or to the Premises. Satisfactory evidence of such payments shall be delivered to Lessor within seventy-two (72) hours of a written request for such information. Lessee acknowledges that this Lease may create a possessory interest subject to property taxation and that Lessee may be subject to the payment of property taxes levied on such interest. Lessee shall pay, before delinquency all taxes, assessments, license fees and other charges (Taxes) that are, during the term, levied or assessed against Lessee's leasehold interest in the Premises or any personal property installed on the Premises. 9. INSURANCE In addition to Lessee's obligations pursuant to Section 10, Lessee shall provide and maintain, at its own expense, policies of liability insurance as follows: A. All required policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with Lessor, prior to execution of this Lease. Current certification of coverage shall be provided throughout the term of this Lease. Except for workers compensation, all insurance policies shall include Lessor and its elected officials, officers, agents, representatives and employees as additional insureds. 5 B. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise approved by the City's Risk Manager; C. Lessee shall provide Worker's compensation insurance covering all employees of Lessee, per the laws of the State of California. D. Lessee shall provide Commercial general liability insurance covering third party liability risks, including without limitation, contractual liability, in a minimum amount of $1 million combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to this Lease, or the general aggregate limit shall be twice the occurrence limit. Lessor reserves the right to reasonably increase the minimum coverage specified in this subsection once every five years should the City Manager of Lessor determine that then current coverages do not fully protect Lessor. E. Lessee shall provide Fire and extended coverage for not less than ninety percent (90%) of the cost of replacement of all insurable improvements on the Premises. F. Except for worker's compensation, the policy or policies shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior notice has been given in writing to Lessor. Lessee shall give Lessor prompt and timely notice of claim made or suit instituted arising out of Lessee's operation hereunder. Lessee shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 6 G. Lessee agrees that, in the event of loss due to any of the perils for which it has agreed to provide comprehensive general liability insurance, Lessee shall look solely to its insurance for recovery. Lessee hereby grants to Lessor, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Lessee or Lessor with respect to the services of Lessee herein, a waiver of any right of subrogation which any such insurer of said Lessee may acquire against Lessor by virtue of the payment of any loss under such insurance. 10. HOLD HARMLESS A. Lessee shall indemnify, defend, save and hold harmless Lessor, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, or any other claims arising from any and all negligent acts or omissions of Lessee, its employees, agents or subcontractors in the use and maintenance of the Premises pursuant to this Lease. B. Lessor shall indemnify, defend, save and hold harmless Lessee, its officers and employees, from and against any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, or any other claims arising from any and all negligent acts or omissions of Lessor, its employees, agents or subcontractors in the use and maintenance of the Premises pursuant to this Lease. 11. MAINTENANCE OF IMPROVEMENTS A. Lessee to Maintain All Improvements Lessee covenants and agrees that during the term of this Lease it will, at its own cost and expense, maintain the Premises in good order and repair and in clean, 7 orderly, safe and sanitary condition. Lessee shall be responsible for the repair of any damage. B. Lessor May Elect to Repair and Maintain at Expense of Lessee If, in the judgment of the Lessor, the standards of maintenance and repair required by this Lease are not being maintained, Lessor may elect to correct any deficiency after written notice thereof to the Lessee and Lessee's failure to cure the default . Lessee shall pay to the Lessor on demand any and all sums expended by Lessor in correcting any such deficiency together with interest at the legal rate. If, in the judgment of the Lessor, the disrepair or lack of maintenance constitutes an emergency, the notice shall be a 24-hour notice to remedy; in all other cases it shall be a 5-day notice. C. Lessor's Right of Inspection Lessor reserves the right by its authorized agents, employees or representatives to enter the Premises upon forty-eight (48) hours advance notice, to inspect the same or any part thereof at any time to attend to or protect the Lessor's interest under this Lease. D. Compliance with Laws, Ordinances and Regulations Lessee shall comply with all rules, regulations, statutes, ordinances and laws of the State of California, County of Orange, the City of Newport Beach, or any other governmental body or agency having lawful jurisdiction over the Premises or the business, enterprises, or activities conducted thereon. 12. ASSIGNMENT Lessee shall not assign, transfer, sublease, mortgage, hypothecate or give any grant of control of this Lease or the Premises, or any part hereof, either voluntarily or involuntarily, unless first approved by the City Council. Notwithstanding this Section, Lessee may sublease the dry boat storage areas to tenants wishing to store boats. 8 13. RESTORATION If during the term hereof any building or improvement erected by Lessee on the Premises, or any part thereof, shall be damaged or destroyed by fire or other casualty, Lessee shall, at its cost and expense, repair or restore the same according to the original plans thereof, or, at Lessee's option, Lessee may elect to replace such building or improvement, provided that if Lessee so elects, Lessee shall obtain the approval of Lessor of the proposed architectural plans. Any such work of repair, restoration or replacement shall be commenced within one hundred and eighty (180) days after the damage or loss occurs and shall be completed with due diligence, but not longer than one (1) year after such work is commenced unless delay is caused by events beyond the control of Lessee. If Lessee elects not to repair or rebuild the improvements, it may terminate this Lease by giving Lessor written notice of termination and by assigning all insurance proceeds relating to the premises to Lessor. If Lessee elects to terminate the Lease it shall be obligated to completely clear and restore the building site to its original condition. 14. DEFAULT AND TERMINATION OF LEASE A. Default Time and each of the terms, covenants and conditions hereof are expressly made the essence of this Lease. If the Lessee shall fail to comply with any of the terms, covenants, or conditions of this Lease, including: 1. Failure of Lessee to keep current on all utility payments for the Premises; 2. Failure of Lessee to keep the Premises in state of repair and operation dictated by §3 of this lease ("Consideration") and to keep it in a neat, clean, orderly, safe and sanitary condition; 3. Failure to provide certificates of insurance evidencing insurance coverage as required in paragraph 12 of this Lease; Lessor may, subject to the provisions of Subsectionll(B), terminate this Lease if Lessee fails to remedy any default related to the payment of money within thirty (30) days 9 after service of a written notice from Lessor to do so, or fails to commence the cure of any other default within thirty (30) days and diligently prosecute the same to completion. Lessee may also terminate this Lease if Lessee abandons or vacates the Premises. B. Surrender of Possession upon Termination Lessee shall, upon the expiration or termination of this Lease, peaceably surrender the Premises with all buildings and improvements, in the same condition as when received or constructed, excepting reasonable use and wear thereof, and damage by fire, act of God, or by the elements. The provisions of this Subsection shall be effective upon expiration or termination of this Lease regardless of whether Lessee holds over under the provisions of Subsection E. C. Remedies Cumulative The rights, powers, elections and remedies of Lessor are cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law. Lessor's exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of Lessor's right to exercise any other. D. No Waiver No failure of Lessor to exercise any right or power arising from any omission, neglect or default of the Lessee shall impair any such right: or power or shall be construed as a waiver. E. Holding Over If the Lessee remains in possession after the expiration of this Lease for any cause, Lessee's possession shall be deemed a tenancy from month -to -month upon the same terms, conditions, and provisions of this Lease. 15. EMINENT DOMAIN In the event the whole or part of the Premises is condemned by a public entity in the lawful exercise of the power or eminent domain, this Lease shall cease as to the part condemned upon the date possession of that part is taken by the public entity. If only a part is condemned and the taking of does not substantially impair the capacity of the 10 remainder to be used for the purposes required in this Lease, Lessee shall continue to be bound by the terms, covenants and conditions of this Lease. If only a part is condemned and the taking of that part substantially impairs the capacity of the remainder to be used for the purposes required in this Lease, Lessee shall have the election of: (a) terminating this Lease and being absolved of obligations that have not accrued at the date possession is taken by the public entity; or (b) continuing to occupy the remainder of the Premises and to be bound by this Lease. Lessee shall give notice in writing of his election hereunder, within thirty (30) days of the date possession of the part is taken by the public entity. Lessor shall be entitled to receive and shall receive all compensation for the condemnation of all or any portion of the property by exercise of eminent domain. Lessee shall be entitled to receive and shall receive all compensation for the condemnation of all or any portion of the improvements constructed by Lessee on the Premises by the exercise of eminent domain. 16. NOTICES Any notice or notices required by this Lease or by law, to be given or served upon the Lessee, may be given or served by mail, registered or certified, with postage prepaid, and if intended for the City of Newport Beach, addressed to the City Manager,P.O. Box 1768, Newport Beach, California 92659, or at such other address as may be furnished to the Lessee in writing, and if intended for the Lessee, addressed to its Association President, 701 Via Lido Soud, Newport Beach, California 92663, or at such other address as may be furnished to the Lessor in writing. In the alternative, notice may be served personally upon any corporate officer of Lessee and that any notice or notices provided by this Lease or by law to be served upon Lessor may be served personally upon the Mayor of the City of Newport Beach or the City Clerk of Newport Beach. Notice mailed pursuant to this Section shall be deemed given forty- eight (48) hours from and after the deposit in the United States mail. 11 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written. LESSOR: ATTEST: By: � (4)1n,E ° ° l do-keb,j) City Clerk LESSEE: By: CITY OF NEWPORT BEACH oyes Mayor APPROVED AS TO FORM AND CONTENT 4 By: , �'- obert H. Burnham City Attorney Lido Isle Community Association By: Hugh Helm LICA President 12 EXHIBIT A Description of Leased Premises Bayfront Lettered Lots The following lots and parcels comprise the Lease Premises: Lots A, B, C, D, E, F, G, H, I and J of Tract 907 as per the map recorded in Book 28, Pages 25 to 36 of Miscellaneous Maps in the Office of the County Recorder of the County of Orange, State of California. 14 PARCEL E EXHIBIT B Depiction (MAP) of Leased Premises Bayfront Lettered Lots NOTE: MAP shows Parcel B, Parcel C, and Parcel E with Lettered Lots. The Premises for this Bayfront Lettered Lot Lease DOES NOT include Parcel B, Parcel C, or Parcel E. \ a_I LOT A (1 - 5) Z\ ACJ� B 3 oiJc,c LOT B LOT J \ \ LOT C & PARCEL C LOT I(1- 6) & PARCEL B LOT D LOT H LOT G LOT F \\ LOT E EXHIBIT C Description of Access Points (exhibit includes 2 pages) Bayfront Lettered Lots As stated in Recitals of this Lease and within Section 5 of the Lease, the following points of access must be maintained as points of access throughout the duration of the Lease: Lot A: The easterly four (4) feet of the westerly forty (40) feet of Lot A. Lot B: The westerly four (4) feet of the easterly eight (8) feet of Lot B. Lot D: The westerly four (4) feet of the easterly fifteen (15) feet of Lot D. Lot E: The westerly four (4) feet of the easterly twelve (12) feet of Lot E. Lot G: The westerly four (4) feet of the easterly twenty two (22) feet of Lot G. Lot H: A path four (4) feet in width the centerline of which is described as follows: Commencing at a point on the southerly line of said lot thirty five (35) feet distant from the easterly line of Lot H, then northerly for a distance of seventy eight (78) feet along a line parallel to the easterly line of Lot H, then easterly a distance of seven (7) feet along a line parallel to the southerly line of Lot H, then northerly to the north line of Lot H along a line parallel to the easterly line of Lot H. 16 Lot J: A path four (4) feet in width the centerline of which is described as follows: Commencing at a point on the southerly line of Lot J thirty (30) feet distant from the easterly line of Lot J then northerly a distance of sixty three (63) feet along a line parallel to the easterly line of Lot J then westerly a distance of seven (7) feet along a line parallel to the southerly line of Lot J then northerly to the north line of Lot J along a line parallel to the easterly line of Lot J. 17