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HomeMy WebLinkAboutC-1688 - Lease agreement for City Hall Annex #2, 503 32nd StreetYe 7l G-✓�C SI... I f i CITY OF NEWPORT BEACH P.U. BOX 1768, NEWPORT BEACH, CA 92663 -3884 OFFICE OF THE CITY CLERK (714) 640 -2251 TO: FINANCE DIRECTOR FROM: CITY CLERK DATE: Sept. 1, 1983 SUBJECT: Contract No. C -1688 Description of Contract Lease of Planning/Building Department Located at 503 32nd Street Effective date of Contract September 1, 1983 Authorized by Minute Action, approved on August 22,_1983 Contract with Tony Shepardson, J.B. Shepardson and William McCook Address P.O. Box 2971 Newport Beach., CA 92663 Amount of Contract $5,191.80 per month (adjusted every 6 mos.) Wanda E. Andersen City Clerk WEA:lr attach. 3300 Newport Boulevard, Newport Beach j CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK (714640 -2251 September 1, 1983 Tony Shepardson & J.B. Shepardson & William McCook P.O. Box 2971 Newport Beach, CA 92663 Gentlemen: Enclosed are three copies of the Lease Agreement for the office building located at 503 32nd Street. This Lease was approved by the City Council on August 22, 1983. These copies are for your records. Sincerely, Wanda E. Andersen City Clerk WEA:lr enclosures (3) City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 To: From: Re: MEMORANDUM OFFICE OF THE CITY ATTORNEY August 17, 1983 YY THE CITY COUNCIL CITY OF NEWPORT BEACH AUG •. 'I -14 —Al City Council Agenda No. F -3(b) Hon. Mayor & Members of the City Council Robert Burnham - City Attorney Lease of City Offices (Building /Planning Dept.) The lease for the office building which houses the Planning and Building Departments expires August 31, 1983. Staff has negotiated the terms and conditions of a proposed lease which would take effect September 1, 1983, if approved by Council. The new lease differs from the existing lease in the following respects: 1. Rental Rate Rent under the proposed lease is calculated on the basis of 85 cents per sq. ft. Under the current lease, the City is paying approximately 78 cents per sq. ft. Both leases permit adjustments of rent based upon increases in the consumer price index; 2. Term /Rights of Cancellation Both leases are for a term of two years, with the lessee having the right to extend the term for one year. However, the proposed lease contains a cancellation provision which gives the lessor the right to cancel the lease, upon 120 days' notice, if the property is sold and the new owner wishes to occupy the property. The 0 0 proposed lease also allows the City to cancel the lease in the event it constructs, or acquires, new facilities to accommodate the personnel and functions of the Planning and Building Departments; 3. Utilities Under the proposed lease, the City will assume payment for water service; and 4. Maintenance and Repairs The proposed lease contains somewhat more limited commitments on the part of the lessor to make repairs to the structure. Except for the differences mentioned above, the two leases are identical. The proposed lease contains terms slights less favorable to the City and reflects concerns of the property owner that they may lose the City as a tenant because of the tentative plans to construct a new facility to house the Building and Planning Departments. This concern has prompted the property owner to list the building for sale. Staff is of the opinion that, under these circumstances, the terms and conditions of the proposed lease are the best that can be negotiated. It is recommended that the City Council authorize the Mayor and City Clerk to execute this lease. RHB /pr 2 Robert H. Burnham 0 0 LEASE OF CITY OFFICES 503 32ND STREET NEWPORT BEACH, CALIFORNIA THIS LEASE is made and entered into this It day of 1983, by and between TONY SHEPARDSON and J. B. SHEPARDSON, WILLIAM R. MCCOOR and THE CITY OF NEWPORT BEACH. 1. CONSIDERATION AND DESCRIPTION OF PROPERTY In consideration of the rents herein reserved and of the performance by the parties of the terms, covenants and con- ditions herein contained, LESSOR hereby leases to LESSEE and LESSEE hires from LESSOR those certain premises situated in the City of Newport Beach, County of Orange, State of California, described as follows: All those areas of the building located at 503 32nd St., City of Newport Beach, California and twenty -four (24) off - street parking spaces located on a portion of Lots 3, 6 and 7, Tract 1117, as recorded in Book 35, Page 48, of Miscellaneous Maps of the records of Orange County, California. The building premises and parking area are shown on the attached plat, marked Exhibit "A ", and incorporated herein by reference. 2. TERM The term of this Lease shall commence on September 1, 1983, and continue for a period of two years to and including August 31, 1985. LESSEE may extend this Lease for a further term of one year, commencing on the expiration of the full term specified above, by giving LESSOR written notice of its intention to do so, at least sixty (60) days prior to the expiration of the full term. In the event LESSEE does not exercise its option to extend the term of this Lease, an additional ninety (90) days ! ! shall be added to the term of this Lease, during which time and subject to prior notice to LESSEE, LESSOR may show the premises to prospective tenants or purchasers; and provided further that LESSOR shall have the right, during this ninety (90) day period, to place, in one or more conspicuous places in or upon the pre- mises, signs indicating the premises are for sale, lease or rent. 3. CANCELLATION OF LEASE It is understood and agreed by the parties hereto that LESSOR and LESSEE, shall have the right to cancel or terminate this Lease prior to expiration of the term, or any extended term, under the following conditions: (a) Cancellation by LESSOR: LESSOR may cancel this Lease at any time on or after January 1, 1984, in the event that LESSOR shall make, or enter into a contract to make, a bonafide sale of the leased premises. LESSOR shall give LESSEE written notice of such contract as well i as written notice to LESSEE to vacate and surrender the premises provided, however, that LESSEE shall have at least one hundred twenty (120) days within i which to vacate the premises. (b) Cancellation by LESSEE In the event that LESSEE constructs, or acquires, ! facilities to accommodate the personnel and func- tions of the Planning & Building Department, LESSEE shall have the right to terminate this Lease upon giving LESSOR written notice of its intention to vacate the premises, such notice to be given at least one hundred twenty (120) days prior to the date on which the premises are to be vacated. 2 0 All of the terms and conditions of this Lease shall apply to any extension of this Lease as provided herein, except that provisions contained in Section 4 shall not apply to in- crease rent in the event the term of this Lease is extended by ninety (90) days as provided herein. 4. RENTAL PAYMENTS The obligation of LESSEE to pay rent for the use of the premises shall commence on September 1, 1983. LESSEE shall pay to LESSOR, and LESSOR shall accept as rent, the sum of Five Thousand One Hundred Ninety One Dollars and Eighty Cents ($5,191.80) per month, payable by the LESSEE in advance on the first day of every month during this period. This sum is cal- culated on the basis of eighty -five (.85 ) cents per square foot and the parties hereto agree that the gross footage of the build- ing, for purposes of this Lease, is Six Thousand One Hundred Eight (6,108) square feet. 5. RENTAL ADJUSTMENTS Except as provided in Section 2, the basic rent provided above shall be adjusted at the end of every six month period during the term of the Lease, and any one year extension of this Lease as provided in Section 2. The amount of adjustment shall be a sum equal to the total percentage increase in the United States Department of Labor Consumer Price Index, all items, Los Angeles -Long Beach area (using 1967, equals 100) for the then current rent as adjusted pursuant to the provisions of this para- graph. Should there be a decrease in the Consumer Price Index, there shall be no corresponding decrease in the rent to be paid by LESSEE. In the event that the Department of Labor shall cease to publish the Consumer Price Index then a similar index published 3 by the United States Government, or other governmental entity as may be agreed upon by the parties, shall be used for the compu- tation of rental adjustments hereunder. If the parties cannot agree upon a substitute index, adjustment of the rent shall be by arbitration in accordance with the arbitration rules of the State of California as supplemented by the rules, then pertaining, of the American Arbitration Association. As an additional adjustment of the rent, LESSEE shall pay to LESSOR a sum equal to any increase in real property taxes assessed against the land or premises described above, over and i above the amount of those taxes as of the end of the fiscal year that ends June 30, 1983. 6. USE OF PREMISES (a) LESSEE agrees to use the premises for City offices and for no other purpose without the consent of the LESSOR. (b) LESSEE agrees not to use the premises or permit the same to be used for any purpose violative of any law, statute or ordinance, or do or permit to be i done any act which will occasion or constitute a i ground for cancellation of any insurance on said property. LESSEE further agrees that it will not commit or allow to be committed any nuisance upon i said premises. 7. UTILITIES. LESSEE hereby agrees to pay for all utilities and services supplied to the premises, including water. 8. TAXES Except as provided in Paragraph 4 herein, LESSOR agrees i to pay all taxes and assessments levied upon the leased premises and any fixtures and /or equipment therein owned by LESSOR. 4 9. MAINTENANCE AND REPAIRS (a) LESSEE agrees to maintain the premises in good and sanitary condition and repair, except for reason- able use and wear. LESSEE hereby waives all rights i to make repairs at the expense of LESSOR as provid- ed in Section 1942 of the California Civil Code; (b) LESSEE agrees to replace any glass in the premises which may become damaged or broken; (c) LESSOR agrees to maintain in good condition and i repair the exterior walls and roofs. LESSOR is i also responsible for any extraordinary repairs to the restrooms' plumbing; (d) LESSEE agrees to maintain the landscaped areas surrounding the building. (e) LESSOR shall, on or before the effective date of this Lease, commence a program of minor repairs to i the interior of the premises which shall include, but not necessarily be limited to, the repair and /or restretching of certain carpets, and the I replacement of all defective plumbing in the womens' restroom on the second floor. 10. DESTRUCTION OF PREMISES In the event of partial destruction of the premises by fire, earthquake or other casualty during the agreed term, LESSOR shall forthwith repair the same, provided such repairs can be made within thirty (30) days. Such partial destruction shall not render this Lease void, except that LESSEE shall be entitled to a proportionate deduction of rent while such repairs are being made. Such proportionate deduction shall be based on the extent to which the making of such repairs shall interfere with the 61 business carried on by LESSEE. If such repairs cannot be made I within thirty (30) days, this Lease may be terminated at the option of either party. A total destruction of the building in which the premises are situated shall terminate this Lease. In the event this Lease is terminated as provided herein, LESSOR shall refund to LESSEE any amounts pre -paid for rental periods occurring after the date of termination. 11. LIABILITY As of the date of the Lease, LESSEE, as a material part of the consideration for this Lease, hereby assumes all risk of injury or damage to persons or property in or about the rented premises from every source. LESSEE further agrees to and will hold and save the LESSOR and the premises harmless on account of and such damage or injury and from any and all liability, loss and /or damage resulting from the use of premises or the operation of LESSEE'S business thereon. 12. LESSOR'S RIGHT OF ACCESS. LESSOR shall have the right of access at all reasonable times to the premises for the purpose of inspecting same, making repairs, posting such notices as LESSOR may deem to be necessary for the protection of the LESSOR on the demised premises, and for the purpose of showing same to prospective tenants, purchasers, mortagees and /or beneficiaries under trust deeds. 13. ALTERATIONS AND ADDITIONS. (a) LESSEE shall have the right, during the existence of this Lease, to make alterations, attach fixtures and erect additions in or upon the premises hereby leased. (b) LESSOR agrees to allow LESSEE to place signs or directories on the leased premises for the location 6 E 0 of City offices and parking facilities. Prior to such placement, LESSEE shall obtain the consent of LESSOR regarding the manner of attachment of said signs or directories to the building on the leased I premises. 14. REMOVAL OF FIXTURES. All locks, bolts, alterations and additions which may be affixed to the premises, except movable furniture and movable fixtures put in at the expense of the LESSEE shall become the property of the LESSOR and shall remain upon and be surrendered with the premises as part thereof at the termination of this Lease. 15. LOSS OR DAMAGE SUSTAINED BY LESSEE. LESSOR shall not be liable to LESSEE, or to anyone claiming under or through LESSEE, for any loss or damage sustain- ed by LESSEE unless said loss or damage is caused by the negli- gence of LESSOR. 16. ASSIGNMENT AND SUBLETTING LESSEE agrees not to sublet the whole or any part of the premises, to assign this Lease or any interest therein (nor may this Lease be assigned by operation of law), to sublease, mort- gage, or in any way create any lien on this Lease or any interest therein without the consent in writing of the LESSOR, but consent will not be withheld without just cause. 17. ATTORNEY'S FEES In the event any suit is brought by either party against i the other to enforce any of the terms or provisions of this Lease, then it is agreed that the successful party in such suit shall be entitled to attorney's fees to be fixed by the court in such action. 7 i i I 18. SUCCESSORS AND ASSIGNS The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the successors, heirs, executors, administrators and assigns of the parties hereto. 19. EFFECT OF HOLDING OVER At the expiration or any sooner termination of this Lease or any extension thereof, LESSEE agrees to quietly quit and surrender the premises to LESSOR, LESSOR's successors, assigns, agent or attorney, without notice of any kind, notice being ex- pressly waived, in as good order, condition and repair as same were at the date of occupancy; reasonable use and wear thereof and damage by the elements and by acts and matters beyond LESSEE'S conrol excepted. 20. NOTICES. All notices, statements, demands, requests, consents, authorizations, offers or agreements under this Lease, by either party to the other, shall be in writing and shall be deemed sufficiently given and served upon the other party if sent by certified mail, return receipt requested, postage prepaid and addressed as follows: To LESSEE, addressed to the City Manager of the City of Newport Beach, City Hall, 3300 Newport Boulevard, Newport Beach, California 92663. To LESSORS, addressed to Robert N. Moodey, 1130 •. West Oceanfront, Newport Beach, California 92661, and to Tony Shepardson and J. B. Shepardson, P.O. Box 2971, Newport Beach, California 92663, respectively. 0 I 21. PRIOR AGREEMENTS This Lease shall supersede all prior leases, agreements and understandings between the parties hereto, except that it is subject to the provisions of that certain "off- street parking agreement" executed March 5, 1968, between EARL G. SAWYER, ELEANOR B. SAWYER, the GRIFFITH COMPANY and the CITY of NEWPORT BEACH. IN WITNESS WFEREOF the LESSOR and LESSEE have executed this Lease as of the day and year first above written. LESSEE CITY OF NEWPORT BEACH By: Malyor ATT ST: City Clerk -APPROVED AS TO F All It J ity Attorney LESSORS i Tony hepardson . I . B. Whepardson i W�llam R. McCook 07/29/83 MSP /CityOffice e e � I / �- CENTRAL AVE � . e e , Z W O O a H O G M G H�3 Mrrtrt (D O�rOH(D 04 ro H (D -P mmzamro / O p O R a roawzi o / �e Xrt�NHN P. (D a (a p P- ft w ftart v • 0m \� ti l e e N 0 e ol 1 \�• o Uj y / -\ x �y' C �� so3 3Z "�- H L r 1 1 ��R 4b o m� CITY OF NEWPORT BEACH CALIFORNIA Pity Hati RN% 1100 W. Newport Blvd. Area Code 714 s ngTr August 29, 1980 TO: FINANCE DIRECTOR FROM: City Clerk SU3JECT: Contract No. 1688 Description of Contract Planning /Building Department Office Lease Authorized by Resolution No.9857 , adopted on August 11, 1980 Effective date of Contract Contract with , -J. A. Shepardson, Robert N. Moodey and Evelyn C. Moodey I Address Robert N. Moodey, 1130 West oceanfront, Newport Beach, CA 92660 . Amount of Contract see contract City Clerc . LEASE OF CITY OFFICES (503 - 32nd Street) THIS LEASE is made and entered into this ,p E-tll day of ' 1980, by and between J. A. SHEPARDSON and ROBERT N. MOODEY and EVELYN C. MOODEY, husband and wife as community property as to an undivided one -half interest, hereinafter collectively referred to as "LESSOR" and the CITY of NEWPORT BEACH, a municipal corporation, hereinafter referred to as "LESSEE." 1. CONSIDERATION AND DESCRIPTION OF PROPERTY. In consideration of the rents herein reserved and of the performance by the parties of the terms, covenants and conditions herein contained, LESSOR hereby leases to LESSEE and LESSEE hires from LESSOR those certain premises situated in the City of Newport Beach, County of Orange, State of California, described as follows: All those areas of the building located at 503 - 32nd Street, City of Newport Beach, Calif- ornia and twenty four (24) off- street parking spaces located on a portion of Lots 3, 6 and 7, Tract 1117, as recorded in Book 35, Page 48, of Miscellaneous Maps of the records of Orange County, California. The building premises and parking area are shown on the attached plat, marked Exhibit "A ", and incorporated herein by reference. 2. TERM. ' The term of this lease shall commence on September 1, 1980, and continue for a period of two years to and including August 31, 1982. LESSEE may extend this lease for a further term of one year, commencing on the expiration of the full term specified above by giving LESSOR written notice Page 1 of 8 0 0 of its intention to do so at least sixty (60) days prior to the expiration of the full term. In the event LESSEE does not exercise its option to extend the term of this lease, an additional ninety (90) days shall be added to the term of this lease, during which time and subject to prior notice to LESSEE, LESSOR may show the premises to prospective tenants or purchasers; and provided further that LESSOR shall have the right, during this ninety (90) day period, to place, in one or more conspicuous places in or upon the premises, signs indicating the premises is for sale, lease or rent. All of the terms and conditions of this lease shall apply to any extension of this lease as provided herein, except that provisions contained in Section 4 shall not apply to increase rent in the event the term of this lease is ext- ended by ninety (90) days as provided herein. 3. RENTAL PAYMENTS. The obligation of LESSEE to pay rent for the use of the premises shall commence on September 1, 1980. LESSEE shall pay to LESSOR, and LESSOR shall accept as rent, the sum of Three Thousand, Nine Hundred and Seventy Dollars and Twenty Cents ($3,970.20) per month, payable by the LESSEE in advance on the first day of every month during this period. This sum is calculated on the basis of sixty -five cents per square foot and the parties hereto agree that the gross foot- age of the building, for purposes of this lease, is Six Thousand One Hundred and Eight (6108) square feet. 4. RENTAL ADJUSTMENT. Except as provided in Section 2 the basic rent provided above shall be adjusted at the end of every six month period during the term of the lease and any one year extension of this lease as provided in Section 2. The amount of adjustment shall be a sum equal to the total percentage increase in the United States Department of Labor Consumer Price Index, all items, Los Angeles -Long Beach area (using 1967, equals 100) for that six month period multiplied by the basic rent, or the then current rent as adjusted pursuant to the provisions of this paragraph. Should there be a decrease in the Consumer Price Index, there shall be no corresponding Page 2 of 8 decrease in the rent to be paid by LESSEE. In the event that the Department of Labor shall cease to publish the Consumer Price Index then a similar index published by the United States Government, or other governmental entity as may be agreed upon by the parties, shall be used for the computation of rental adjustments hereunder. If the parties cannot agree upon a substitute index, adjustment of the rent shall be by arbitration in accordance with the arbitration of the State of California as supplemented by the rules, then obtaining, of the American Arbitration Association. As an additional adjustment of the rent, LESSEE shall pay to LESSOR a sum equal to any increase in real property taxes assessed against the land or premises described above, over and above the amount of those taxes as of the end of the fiscal year that ends June 30, 1980. 5. USE OF PREMISES. a. LESSEE agrees to use the premises for City offices and for no other purpose without the consent of the LESSOR. b. LESSEE agrees not to use the premises or permit the same to be used for any purpose violative of any law, statute or ordinance, or do or permit to be done any act which will occasion or constitute a ground for cancellation of any insurance policy or for any increase in the rate of insurance on said property. LESSEE further agrees that it will not commit or allow to be committed any nuisance upon said premises. 6. UTILITIES. LESSEE hereby agrees to pay for all utilities and services supplied to the premises, except for water service which shall be paid for by LESSOR. 7. TAXES. Except as provided in Paragraph 4 herein, LESSOR agrees to pay all taxes and assessments levied upon the leased premises and any fixtures and /or equipment therein ' owned by LESSOR. Page 3 of 8 I 8. MAINTENANCE AND REPAIRS. a. LESSEE agrees to maintain the premises in good and sanitary condition and repair, except for reasonable use and wear. LESSEE i hereby waives all rights to make repairs at the expense of LESSOR as provided in Section 1942 of the California Civil Code. b. LESSEE agrees to replace any glass in the premises which may become damaged or broken. c. LESSOR agrees to maintain in good condition and repair the exterior walls and roofs. LESSOR is also responsible for any extra- ordinary repairs to the restrooms' plumbing. d. LESSOR agrees to make all repairs or additions or changes to the heating system as are recommended by study of the existing facility conducted by Graham Brothers, Inc., • licensed heating and ventilating contractor, • copy of which is attached hereto as Exhibit "B "; upon completion of such repairs, changes or additions, LESSEE agrees to maintain the system in good working order and condition. e. LESSEE agrees to maintain the landscaped areas surrounding the building. f. LESSOR shall on or before the effective date of this lease, commence a program of minor repairs to the interior of the premises which shall include, but not necessarily be limited to, ceiling repairs, the cleaning and re- stretching of carpets as needed, repairs to doors and meter boxes as needed, repair of certain tile floors, caulking of certain windows, interior painting or washing of walls as needed and such other minor repairs as agreed upon. The precise location and Page 4 of 8 extent of such repairs and refurbishing shall be determined by a walk through of the premises by LESSORS and representatives of LESSEE, conducted prior to the first day on which rent is to be paid. 9. DESTRUCTION OF PREMISES. In the event of partial destruction of the premises by fire, earthquake or other casualty during the agreed term, LESSOR shall forthwith repair the same, provided such repairs can be made within thirty (30) days. Such partial destruction shall not render this lease void, except that LESSEE shall be entitled to a proportionate deduction of rent while such repairs are being made. Such proportionate deduction shall be based on the extent to which the making of such repairs shall interfere with the business carried on by LESSEE. If such repairs cannot be made within thirty (30) days, this lease may be terminated at the option of either party. A total destruction of the building in which the pre- mises are situated shall terminate this lease. In the event this lease is terminated as provided herein, LESSOR shall refund to LESSEE any amounts pre -paid for rental periods occurring after the date of termination. 10. LIABILITY. As of the date of this lease, LESSEE, as a material part of the consideration for this lease, hereby assumes all risk of injury or damage to persons or property in or about the rented premises from every source. LESSEE further agrees to and will hold and save the LESSOR and the premises harmless on account of any such damage or injury and from any and all liability, loss and /or damage resulting from the use of the premises or the operation of LESSEE'S business thereon. 11. LESSOR'S RIGHT OF ACCESS. LESSOR shall have the right of access at all reasonable times to the premises for the purpose of inspecting same, making repairs, posting such notices as LESSOR may deem Page 5 of 8 to be necessary for the protection of the LESSOR or the demised premises, and for the purpose of showing same to prospective tenants, purchasers, mortagees and /or benefi- ciaries under trust deeds. 12. ALTERATIONS AND ADDITIONS. a. LESSEE shall have the right, during the existence of this lease, to make alterations, attach fixtures and erect additions in or upon the premises hereby leased. b. LESSOR agrees to allow LESSEE to place signs or directories on the leased premises for the location of City offices and parking faci- lities. Prior to such placement, LESSEE shall obtain the consent of LESSOR regarding the manner of attachment of said signs or directories to the building on the leased premises. 13. REMOVAL OF FIXTURES. All locks, bolts, alterations and additions which may be affixed to the premises, except movable furniture and movable fixtures put in at the expense of the LESSEE, shall become the property of the LESSOR and shall remain upon and be surrendered with the premises as part thereof at the termination of this lease. 14. LOSS OR DAMAGE SUSTAINED BY LESSEE. LESSOR shall not be liable to LESSEE, or to anyone claiming under or through LESSEE, for any loss or damage sustained by LESSEE unless said loss or damage is caused by the negligence of LESSOR. 15. ASSIGNMENT AND SUBLETTING. LESSEE agrees not to sublet the whole or any part of the premises, to assign this lease or any interest therein (nor may this lease be assigned by operation of law), to sublease, mortgage, or in any way create any lien on this lease or any interest therein without the consent in writing of the LESSOR, but consent will not be withheld without just cause. Page 6 of 8 16. ATTORNEY'S FEES. In the event any suit is brought by either party against the other to enforce any of the terms or I provisions of this lease, then it is agreed that the succ- essful party in such suit shall be entitled to attorney's I. fees to be fixed by the court in such action. 17. SUCCESSORS AND ASSIGNS. The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the successors, heirs, executors, administrators and assigns of the parties hereto. 18. EFFECT OF HOLDING OVER. At the expiration or any sooner termination of this lease or any extension thereof, LESSEE agrees to quietly quit and surrender the premises to LESSOR, LESSOR'S successors, assigns, agent or attorney, without notice of any kind, notice being expressly waived, in as good order, condition and repair as same were at the date of occupancy, reasonable use and wear thereof and damage by the elements and by acts and matter beyond LESSEE'S control excepted. 19. NOTICES. All notices, statements, demands, requests, consents, authorizations, offers or agreements under this lease by either party to the other shall be in writing and shall be deemed sufficiently given and served upon the other party if sent by certified mail, return receipt requested, postage prepaid, and addressed as follows: To LESSEE, addressed to the City Manager of the City of Newport Beach, City Hall, 3300 Newport Boulevard, Newport Beach, California 92663. To LESSOR, addressed to the LESSOR, Robert N. Moodey, 1130 West Oceanfront, Newport Beach, California 92661. Page 7 of 8 20. PRIOR AGREEMENTS. This lease shall supersede all prior leases, agreements and understandings between the parties hereto, except that it is subject to the provisions of that certain "off- street parking agreement" executed March 5, 1968, between EARL G. SAWYER, ELEANOR B. SAWYER, the GRIFFITH COMPANY and the CITY OF NEWPORT BEACH. IN WITNESS.WHEREOF, the LESSOR and LESSEE have executed this lease as of the day and year first above written. ATTEST: e City Clerk APPROVED AS TO FORM: r i City Attorney HRC:mm 8/13/80 CITY OF NEWPORT BEACH By: ay LESSEE Me J. ARDSON ROBERT N. MOODEY E LYVC. MOOD Y LESSOR Page 8 of 8 T f; I 4 rl- �Z' ,, ioi OCCU/�s�iucy - 4cr. i5, /9G5 .. p vA. EXHIBIY "A /751 195�. E CA, L.UESCRIPrZOV ' � 4� Ti,�e. Mcsr WESTERLY .. , -' '_.1 `. � �i`� -3.E. Y 'W`Y. ..NOS. � "��' .0.•_ 0 A7g74 i L. �v _ a ).s: V :. —. � �.. y f a!S y� �'l. • v ? n � ..._..� _ 4 T'a'i . �Y. .. � V�.-S ,-.V i � � �L� ];�ZlYN- : "+� ^N 61a���'�V •c9.�i. T f; I 4 rl- �Z' ,, ioi OCCU/�s�iucy - 4cr. i5, /9G5 ' • • ] X BIT "B" Graham Brothers, Inc. Heating, Air Conditioning and Ventilating July 28, 1980 Mr. Ray Schuller, Director Community Development Dept City of Newport Beach ' 3300 Newport Blvd. Newport Beach, Ca. 92663 Dear Mr. Schuller: C•20 248604 2952 CENTURY PLACE ,'OSfA MESA. CA. 92626 n t= x.) CA .o Thank you for inviting us to survey and evaluate the heating and ventilating system on the building at 503 32nd St. presently occupied by your department. BASIC DESCRIPTION OF SYSTEM: Four Payne /Day & Night 200 HO horizontal outdoor gas fired furnaces mounted on roof with 100% outside air intake. 200,000 BTU gas heating input each. (One unit was found to have combustion blower assembly chattering severly). Overhead air delivery throughout various offices is achieved by ceiling supply air registers with adjustable curved blades accessible from within the office area. (Note - many of these blades have been arbitrarily closed by office personnel, some partially, some entirely.) During the heating season this can lower the airflow so as to cause the furnace firebox to overheat and the unit will shut off on "high limit ". OUR RECOMMENDATIONS ARE AS FOLLOWS: 1. A service call on all roof top furnaces to put them all in satisfactory and safe operating condition. 2. Change out all ceiling registers to a type with no adjustments possible by office personnel. 3. Install disc type balance damper in each outlet above the ceiling line.accessible only to competent personnel. 4. Operate all equipment on constant "summer fan switch" position during working hours. The equipment to be controled by "Paragon" time clocks. This will then permit doors and windows to be closed and the outside air will then be filtered by the fiberglass dust -stop filters in the return air plenums on roof, instead of dust -laden air entering building through open doors and windows. I hope you will find this information to be of help. Sincerely, GRAHAM � BROL� } JL Ch' arles H. Campbell Sales Manager CHC /lf •1 .. •2 J;., <YF� �TIONINGetNGRAHAM BR HEATINGAND C. ` f`. 2952.;Centtiry PLBCe COSTA MESA„CALIFORNIA 92626 HEATING oe - VENTILATING -�o• AIR CONDITIONING w. oCom� unity Dev. Dept. Address 32nd St. city Newport Beach Phone wne Job Address same In connection with our letter of July 28, 1980, we propose to furnish and install the following modifications to the existing heating and ventilating system on the building presently-accupied by your department. Change out each ceiling supply air register to a type with no adjustment on the louvers or blades and install a disc.type balancing damper in each outlet above the ceiling line accessible only to competent personnel.. Price for above - -- $94.00 per register.'..(Total.number of outlets has not been..', counted by Graham Brothers)' Install:- Paragon- :24.hour program timers sit ith.lfskip- a- dayll'feature in two (2) of the four (4) 200,000 BTU horizontal.outdoor.gas fired furnaces. Price for above - -- $244.00. Disconnect two (2) of the four (4) outdoor furnaces and reroute ducts on roof so that one (1) furnace serves both first and second floor on half the building and the other furnace serves the other half of the building. Price for above - -- $120.00. If a service call by our service department is desired on the heating furnaces, our nominal service rates would prevail. We are not affiliated with any Union. Unless otherwise specified, the Buyer agrees to do all furring and cutting of wood, concrete or masonry, according to Seller's directions for theinitallatfon of vents, arc. Also, to run gas pipe of proper size and electrical outlet to within 18 inches of furnace location. The Buyer further agrNS to have concrete pit, basement or other suitable enclosure where necessary to comply with the local ordinance for the installation of the abovematerial. Buyer agrees to pay for any changes to this contract so ordered by the architect, contractor or the owner. Salle, reserves the right to stop work at any installation if previous payment, or payments, have not been made according to this agreement, and at this option Sell« shall be entitled to recover for the proportionate part of the work done without completion of this contract. Title to the within described heating appliances and equipment shall remain in the Seller until full purchase price has been paid in cash. Buyer agrees to not remove any of the property from the original place of delivery until full purchase price has been paid, without first securing the written consent of the Seiler. Should the Buyer give a note or notes at any time covering the purchase price, or part thereof, it is distinctly understood that such note or not" are not given,. nor accepted as payment so as to pass title. . Under no circumstances shall title to said personal property pass from the Seller until the said purchase price has been paid in cash. Should any installment of the purchase price (whether requested by note or otherwise) not be paid when due, then the whole of said purchase price remaining unpaid shalt become Immediately due and payable at Seller's option. .. It a claim hereunder is placed in an attorney's hands for collection, Buyer agrees to pay such sum as the court may allow Seller to reasonable attomay's fees. It the Buyer fails to pay any installment of said purchase price, or upon default hereunder, the Seller shalt have the right of reception and may, retake said per sonal property into in own possession, and for that purpose, it shall have the right and privilege to enter any premises where said personal property may besitu- ated and to remove and retake the same into its own possession, in which case the Buyer waives all claims for damage against the Seiler for any injury that may arise -from reception or removal of said property. If the Seller exercises in right of reception and retakes said property for any reason herein stated or permitted, " it is agreed that the Buyer shall not make any claim for repayment of any moneys paid on the purchase price, and that such moneys shall be considered as having . been paid to the Seiler by the Buyer for the use and possession of said personal property prior to the time of the exercising of the right of reception.. The filing of a petition in bankruptcy by or against the Buyer (voluntary or involuntary) shall be sufficient cause for the exercising, by the Sell«, of its said right of reception, with the same results asprovided for in other cases of reception. This proposal covers all agreements between the within Buyer and GRAHAM BROS. CO. either express or implied, and when approved by said company - at in executive office, becomes a contract between the parties as Buyer and Seller, respectiveWv. Thie proposal shall automatically' become void unless it is accepted by the Buyer and delivered to the Seiler within 30 days- from the date hereof; .' NOTICE.TO BUYER: #I)- Do not sign this agreement, before you read, or if it contains any blank spaces. _ 12) You am entitled to a completely filled incopy of this agreement. Work to be done by GRAHAM BROS., CO. - All electric outlets 1 1, gas outlets 1 I, ventilation switch f I, cutting I I:. framing 1 P, furring 1 1, concrete work I I, trenching and digging necessary to accommodate this installation f I. The Seller will furnish and install the materials for the building noted above, according to specifications: Forthesumof As Shown Ahove DOLLARS As shown Payment for'thlswork phall be .lOn% On r°eptz lat•inn GRAHAM R o is - - We (1) have read the above proposal in its entirety and hereby accept the same together with B - r layout and conditions above; and acknowledge hereby receipt of this contract. V (setter/ Charles ampbell /lf D"S tsT .. This agreement invalid unleit accepted by proper ` -... w official of the company (Architect contractor, or Own «I „ yY Y rt `J+ j lauy «L: i; y IM con trae(or9 are required by faw'to be licens'd afld tegutated by the eolttractofs�.gtati Licensee 06aid. Any questions °g concerning a contractor may be referred to the registrar of the 'boardmflose address is:' Contractors" State License Board 1020 NStreet, Sacramenty, Cafifomia 95814 , r s< yKr August 29, 1980 Mr. Robert N. Moodey 1130 West Oceanfront Newport Beach, CA 92660 Dear Mr. Moodey: Subjects Lease of Planning /Building Department Offices (503 - 32nd Street) Attached for your records are two fully executed copies of subject „agreement. DORIS GEORGE City Clerk DG:bf attachments (2) xcs Gerry Bolint w /attachment Planning Director w /attachment Building Director w /attachment CaW OF NEWPORT + ACH MEMORANDUM: From ASSISTANT TO THE CITY MANAGER lO......_Cit Clerk ... ......:........................ Au9. 4 ?S.t...2.Q......:..._........., INN... SUBJECT: PLANNING /BUILDING DEPARTMENT' OFFICE LEASE Attached please find the original copy of the above- referenced lease as executed by the Lessors. Please follow through in fully executing the document. In addition., could you send two fully- executed copies to Mr. Moodey, one.copy. each to Jim Hewickbr and Ray Schulltir, and one copy to the undersigned. Thank . you GJV mb ATtachment Reply wanted ❑ Reply not N4A necesp ry p B7.....tv C.T.. .. .:...... .. G... tl i CITY OF NEWPORT BEACH U me Z OFFICE OF THE CITY MANAGER <iFOwN`P (714) 640 -2153 August 14, 1980 Mr. Robert N. Moodey 1130 West Oceanfront Newport Beach, CA 92660 Dear Mr. Moodey: SUBJECT: LEASE OF PLANNING /BUILDING DEPARTMENT OFFICES Enclosed please find the original copy of the above - referenced lease agreement as approved by the City Council on August 11, 1980. Please obtain the necessary "Lessor" signatures on Page 8 of the document and return same to the City Clerk's Office, 3300 Newport Boulevard, Newport Beach, California. Following execution by the Mayor and City Clerk, copies of the document shall be transmitted to you for your files. Enclosed also for your use is the original copy of a proposed heating and ventilation system repair contract which was provided by Graham Brothers. Please do not hesitate to contact me if you have questions or co ents. S cere i I GE J. O NT As istan o th "ty Manager GJB /jmb xc: Clerk w/ Attachment Planning Director w/o Attachment Building Director w/o Attachment Attachments (Two) i City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 Ll AUG 111980 RESOLUTION NO. 9857 By 69 CITY COUNCIL CM OF NRVP M W CH A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND J. A. SHEPARDSON, ROBERT N. MOODEY AND EVELYN C. MOODEY IN CONNECTION WITH THE LEASE OF THE BUILDING WHICH HOUSES THE BUILDING AND PLAN - NING DEPARTMENTS OF THE CITY OF NEWPORT BEACH (503 - 32nd Street) WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain Lease Agreement between the City of Newport Beach and J. A. Shepardson, Robert N. Moodey and Evelyn C. Moodey in connection with the lease of the building which houses the Building and Planning Departments of the City of Newport Beach located at 503 - 32nd Street; and WHEREAS, the City Council has reviewed the terms and conditions of said Lease Agreement and finds them to be satis- factory and that it would be in the best interest of the City to execute said Agreement, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the Lease Agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. ADOPTED this 11th day of August, 1980. ATTEST: City Clerk Mayor kv 081180 • a RESOLUTION NO. 9857 // J A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND, CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND J., A. HEPARDSON AND JEAN SHEPARDSON AND ROBERT N. M ODEY AND EVELYN C. MOODEY IN CONNEC�fON WITH THE LEASE OF THE BUILDING WHICH/HOUSES THE BUILDING AND PLANNING DEPARTMEN S OF THE CITY\OF NEWPORT BEACH (503 - 32nd ,Street) WHEREAS, here has been preg(ented to the City Council of the City of Newpor Beach a certain Lease Agreement between the City of Newport Bea h and J. A. Shepardson and Jean Shepardson and Robert N. oodey and Evelyn C. Moodey in connec- tion with the lease of the`bui ding which houses the Building and Planning Departments of he City of Newport Beach located at 503 - 32nd Street; and WHEREAS, the City Counci \be eviewed the terms and i conditions of said Lease Agreement nds them to be satis- factory and that it wtiuld be in thinterest of the City to execute said Agreement, NOW, THEREFORE, BE IT RESOLVED \byth of the City jarov6d, wport Beach that the Lea described i and the Mayor and City authorized rected to execute the same on City of New each. ADOPTED this 11th day of August, 1980. Mayor ATTEST: City Council ement above erk are hereby &half of the City Clerk kv 080480 I,r CITY OF NEWPORT BEACH AUG 1. 119Rn OFFICE OF THE CITY MANAGER w GTi coukQL August 11, 1980 C" i:AGi TO: MAYOR AND CITY COUNCIL FROM: City Manager AGENDA ITEM N0, H2 (f) SUBJECT: RENEWAL OF THE PLANNING- BUILDING DEPARTMENT OFFICE LEASE Background Since September, 1965, the City has rented space in the office building at 503 32nd Street to accommodate various operations, including at one time the City Attorney's Office, and currently the Planning and Building Departments. The current lease was approved on February 10, 1975 between the City as lessee and the parties of Shepardson and Moodey, lessors. Under the terms of that lease, which is due to expire on August 31, 1980, the City was to pay.a total of $1590 per month until August, 1977, when the rent would be adjusted based upon Consumer Price Index (CPI) increases. The current rental paid on the building is $1902 per month. Other important features of the lease include: 1. Premises to be used for office space only. 2. Lessee pays for all utilities except water service. 3. Lessor responsible for maintenance of the exterior walls and roofs as well as for major or extraordinary repairs. 4. Lessee responsible for minor maintenance and repairs including custodial services. Proposed Lease Renewals Due to the impending expiration of the lease agreement, staff held several meetings with the lessor to attempt to negotiate an accepta- ble renewal document. Attachment 1 is a .copy of the lease agreement which is being proposed as a result of the recent negotiations. The basic provisions of the proposed agreement are similar to those in the existing agreement with the following exceptions: 1. Rental - Proposed beginning rent is $3970 per month which ca cu ates to 65e per square foot based upon the gross square footage of the building minus decks. This square footage totals 6108. The beginning rent.to be subject to adjustment at 6 -month intervals based upon C.P.I. increases. TO: MAYOR AND CITY COUNCIL - Page Two 2. Term - Commencing September 1, 1980, the lease would continue . two years and would include an option to renew for one midi tional year. In the event the option is not exercised, an additional 90 days would be added to the initial two -year period. 3. Heating - The lessor would make such major repairs to the eating system as may be required, and the lessee would per- form basic maintenance functions. 4. Bui��ldi_ni�Repgairs - The lessor would initiate a program of uildpairs including the following: a. Minor exterior carpentry b. Ceiling repairs c. Some interior painting; some parts of walls washed d. Rugs cleaned; some restretched e. New handrail on one stairway f. Repair front door squeaking g. Repaint building exterior h. Repair certain non - functioning electrical outlets. Attachment 2 is a letter from Mr. Moodey, one of the lessors, confirming the results of the lease negotiations. Analysis Although the proposed rental increase is fairly significant, it must be noted that the beginning rent approved in 1975 has only been increased by $312 per month since that time. This represents only a 208 increase over the term. Given the inflation in real estate values over the past several years, this increase has not kept pace with market trends. Additionally, a survey of rents in the subject area indicates that a range of between .85 and 1.25 per square foot are currently being charged. The heating system in the subject building is in some substantial need of repair. The lessorsTagreement to make the needed repairs will, of course, be of benefit. With respect to maintenance, the Building Department plans to assign certain personnel the responsi- bility of becoming familiar with the system in order to provide routine adjustment and repair, thereby reducing the cost which might otherwise be associated with calling in an outside system repair firm. The building repairs referred to in this staff report and the lease document are necessary, and their performance by the lessor will be of definite benefit. i - 0 T0; MAYOR AND CITY COUNCIL - Page Three Recommendation 0 Based upon the information contained in this staff report and a review of the terms and conditions of the proposed agreement, it is recommended that the City Council adopt Resolution No. _ authorizing execution of the subject lease. Robert L. Wynn City Manager RLW /GJ8 /jmb Attachments 0 0 LEASE OF CITY OFFICES (503 - 32nd Street) THIS LEASE is made and entered into this day of , 1980, by and between J. A. SNEPARDSON and JEAN SHEPARDSON, husband and wife as joint tenants an to an undivided one -half interest, and ROBERT N. MOODEY and EVELYN C. MOODEY, husband and wife as community property as to an undivided one -half interest, hereinafter collectively referred to as "LESSOR" and the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "LESSEE." 1. CONSIDERATION AND DESCRIPTION OF PROPERTY. In consideration of the rents herein reserved and of the performance by the parties of the terms, covenants and conditions herein contained, .LESSOR hereby leases to LESSEE and LESSEE hires from LESSOR those certain premises situated in the City of Newport Beach, County of Orange, State of California, described as follows: All those areas of the building located at 503 - 32nd Street, City of Newport Beach, Calif- ornia and twenty four (24) off - street parking spaces located on a portion of Lots 3, 6 and 7, Tract 1117, as recorded in Book 35, Page 48, of Miscellaneous Maps of the records of Orange County, California. The building premises and parking area are shown on the att- ached plat, marked Exhibit "A" and incorporated herein by reference. 2. TERM. The term of this lease shall commence on September 1, 1980, and continue for a period of two years to f and including August 31, 1982. LESSEE may extend this lease for a further term of one year, commencing on the expiration of the full term specified above by giving LESSOR written notice Page 1 of 8 I of its intention to do so at least sixty (60) days prior to the expiration of the full term. In the event LESSEE does not exercise its option to extend the term of this lease, an additional ninety (90) days shall be added to the term of this lease, during which time and subject to prior notice to i LESSEE, LESSOR may show the premises to prospective tenants or purchasers; and provided further that LESSOR shall have the right, during this ninety (90) day period, to place, in one or more conspicuous places in or upon the premises, signs indicating the premises is for sale, lease or rent. All of the terms and conditions of this lease shall apply to any extension of this lease as provided herein, except that provisions contained in Section 4 shall not apply to increase rent in the event the term of this lease is ext- ended by ninety (90) days as provided herein. 3. RENTAL PAYMENTS. The obligation of LESSEE to pay rent for the use of the premises shall commence on September 1, 1980. LESSEE shall pay to LESSOR, and LESSOR shall accept as rent, the sum of Three Thousand, Nine Hundred and Seventy Dollars and Twenty Cents ($3,970.20) per month, payable by the LESSEE in advance on the first day of every month during this period. This sum is calculated on the basis of sixty -five cents per square foot and the parties hereto agree that the gross foot- age of the building, for purposes of this lease, is Six i ''Thousand One Hundred and Eight (6108) square feet. 4. RENTAL ADJUSTMENT. Except as provided in Section 2 the basic rent provided above shall be adjusted at the end of every six month period during the term of the lease and any one year extension of this lease as provided in Section 2. The amount of adjustment shall be a sum equal to the total percentage increase in the United States Department of Labor Consumer Price Index, all items, Los Angeles -Long Beach area (using 1967, equals 100) for that six month period multiplied by the basic rent, or the then current rent as adjusted pursuant to the provisions of this paragraph. Should there be a decrease in the Consumer Price Index, there shall be no corresponding Page 2 of 8 • i decrease in the rent to be paid by LESSEE • In the event that the Department of Labor shall cease to publish the Consumer Price Index then a similar index published by the United States Government, or other governmental entity as may be agreed upon by the parties, shall be used for the computation of rental adjustments .- hereunder. If the parties cannot agree upon a substitute index, adjustment of the rent shall be by arbitration in accordance with the arbitration of the State of California as supplemented by the rules, then obtaining,.of the American Arbitration Association. - As an additional adjustment of the rent, LESSEE shall pay to LESSOR a sum equal to any increase in real property taxes assessed against the land or premises described above, over and above the amount of those taxes as of the end of the fiscal year that ends June 30, 1980. 5. USE OF PREMISES. a. LESSEE agrees to use the premises for City offices and for no other purpose without the consent of the LESSOR, b. LESSEE agrees not to use the premises or permit the same to be used for any purpose violative of any law, statute or ordinance, or do or permit to be done any act which _ will occasion or constitute a ground for cancellation of any insurance policy or for any increase in the rate of insurance on said property. LESSEE further agrees that it will not commit or allow to be committed any nuisance upon said premises. 6. UTILITIES. LESSEE hereby agrees to pay for all utilities and services supplied to the premises, except for water service which shall be paid for by LESSOR. 7. TAXES. Except as provided in Paragraph 4 herein, LESSOR agrees to pay all taxes and assessments levied upon the leased premises and any fixtures and /or equipment therein , owned by LESSOR. Page 3 of 8 8. MAINTENANCE AND REPAIRS. a. LESSEE agrees to maintain the premises in good and sanitary condition and repair, except for reasonable use and wear. LESSEE hereby waives all rights to make repairs at the expense of LESSOR as provided in Section 1942 of the California Civil Code. b. LESSEE agrees to replace any glass in the premises which may become damaged or broken. c. LESSOR agrees to maintain in good condition and repair the exterior walls and roofs. LESSOR is also responsible for any extra- ordinary repairs to the restrooms' plumbing. d. LESSOR agrees to make all repairs or additions or changes to the heating system as are recommended by study of the existing facility conducted by Graham Brothers, Inc., • licensed heating and ventilating contractor, • copy of which is attached hereto as Exhibit "B "; upon completion of such repairs, changes or additions, LESSEE agrees to maintain the system in good working order and condition. e. LESSEE agrees to maintain the landscaped areas surrounding the building. . f. LESSOR shall on or before the effective date i of this lease, commence a program of minor repairs to the interior of the premises which shall include, but not necessarily be limited to, ceiling repairs, the cleaning and re- stretching of carpets as needed, repairs to doors and meter boxes as needed, repair of certain tile floors, caulking of certain windows, interior painting or washing of walls as needed and such other minor repairs as agreed upon. The precise location and Page 4 of 8 extent of such repairs and refurbishing shall be determined by a walk through of the premises by LESSORS and representatives of LESSEE, conducted prior to the first day on which rent is to be paid. 9. DESTRUCTION OF PREMISES. In the event of partial destruction of the premises by fire, earthquake or other casualty during the agreed term, LESSOR shall forthwith repair the same, provided such repairs can he made within thirty (30) days. Such partial destruction shall not render this lease void, except that LESSEE shall be entitled to a proportionate deduction of rent while such repairs are being made. Such proportionate deduction shall be based on the extent to which the making of such repairs shall interfere with the business carried on by LESSEE. If such repairs cannot be made within thirty (30) days, this lease may be terminated at the option of either party. A total destruction of the building in which the pre- . mises are situated shall terminate this lease. In the event this lease is terminated as provided herein, LESSOR shall refund to LESSEE any amounts pre -paid for rental periods occurring after the date of termination. 10. LIABILITY. As of the date of this lease, LESSEE, as a material part of the consideration for this lease, hereby assumes all risk of injury or damage to persons or property in or about the rented premises from every source. LESSEE further agrees to and will hold and save the LESSOR and the premises harmless on account of any such damage or injury ' and from any and all liability, loss and /or damage resulting from the use of the premises or the operation of LESSEE'S business thereon. 11. LESSOR'S RIGHT OF ACCESS. LESSOR shall have the right of access at all reasonable times to the premises for the purpose of inspecting same, making repairs, posting such notices as LESSOR may deem Page 5 of 8 9 to be necessary for the protection of the LESSOR or the demised premises, and for the purpose of showing same to prospective tenants, purchasers, mortagees and /or benefi- ciaries under trust deeds. 12. ALTERATIONS AND ADDITIONS. a. LESSEE shall have the right, during the existence of this lease, to make alterations, attach fixtures and erect additions in or upon the premises hereby leased. b. LESSOR agrees to allow LESSEE to place signs or directories on the leased premises for the location of City offices and parking faci- lities. Prior to such placement, LESSEE shall obtain the consent of LESSOR regarding the manner of attachment of said signs or directories to the building on the leased premises. 13. REMOVAL OF FIXTURES. All locks, bolts, alterations and additions which may be affixed to the premises, except movable furniture and movable fixtures put in at the expense of the LESSEE, shall become the property of the LESSOR and shall remain upon and be surrendered with the premises as part thereof at the termination of this lease. 14. LOSS OR DAMAGE SUSTAINED BY LESSEE. LESSOR shall not be liable to LESSEE, or to anyone claiming under or through LESSEE, for any loss or damage sustained by LESSEE unless said loss or damage is caused by the negligence of LESSOR. 15. ASSIGNMENT AND SUBLETTING. LESSEE agrees not to sublet the whole or any part of the premises, to assign this lease or any interest therein (nor may this lease be assigned by operation of law), to sublease, mortgage, or in any way create any lien on this lease or any interest therein without the consent in writing of the LESSOR, but consent will not be withheld without just cause. Page 6 of 8 a 16. ATTORNEY'S FEES. In the event any suit is brought by either party against the other to enforce any of the terms or provisions of this lease, then it is agreed that the success- ful party in such suit shall be entitled to attorney's fees to be fixed by the court in such action. 17. SUCCESSORS AND ASSIGNS. The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the successors, heirs, executors, administrators and assigns of the parties hereto. 18. EFFECT OF HOLDING OVER. At the expiration or any sooner termination of this lease or any extension thereof, LESSEE agrees to quietly quit and surrender the premises to LESSOR, LESSOR'S successors, assigns, agent or attorney, without notice of any kind, notice being expressly waived, in as good order, condi- tion and repair as same were at the date of occupancy, reason- able use and wear thereof and damage by the elements and by acts and matter beyond LESSEE'S control excepted. 19. NOTICES. All notices, statements, demands, requests, consents, authorizations, offers or agreements under this lease by either party to the other shall be in writing and shall be deemed sufficiently given and served upon the other party if sent by certified mail, return receipt requested, postage prepaid, and addressed as follows: To LESSEE, addressed to the City Manger of the City of Newport Beach, City Hall, 3300 Newport Boulevard, Newport Beach, California 92663. To LESSOR, addressed to the LESSOR, Robert N. Moodey and Evelyn C. Moodey, 2239 Vista Hogar, Newport Beach, California 92660. Page 7 of 8 20. PRIOR AGREEMENTS. This lease shall supersede all prior leases, agreements and understandings between the parties hereto, except that is is subject to the provisions of that certain "off- street parking agreement" executed March 5, 1968, bet- ween EARL G. SAWYER, ELEANOR B. SAWYER, the GRIFFITH COMPANY and the CITY OF NEWPORT BEACH. IN WITNESS WHEREOF, the LESSOR and LESSEE have executed this lease as of the day and year first above written. CITY OF NEWPORT BEACH By: Mayor LESSEE ATTEST: J. A. SHEPARDSON City Clerk JEAN SHEPARDSON ROBERT N. MOODEY EVELYN C. MDODEY LESSOR APPROVED AS TO FORM: City Attorney HRC;mm Page 8 of 8 8/6/80 WORKS DIRECTOR- .. - " R.E. NO. ---" W- SODS =L ";: .y Occu �grucY Ocr, i5, /9G5 -F /RST FLOOR LEASE-. _.9042 'Sp FT,°- (7brsL) 4 - oCGitlFi4.VCV �. s a $ECONO FLOO,p : %TOTgL' LEASE AREA ' g r FLOOR ''PL Alv.S WORKS DIRECTOR- .. - " R.E. NO. ---" W- SODS =L ";: 10 • • EXHIBIT "B" Graham Brothers, Inc. Heating, Air Conditioning and Ventilating July 28, 1980 Mr. Ray Schuller, Director Community Development Dept. City of Newport Beach 3300 Newport Blvd. Newport Beach, Ca. 92663 Dear Mr. Schuller: C -20 248604 2952 CENTURY PLACE MESA, CA. 92626 4* 1653 D _ C -cam Thank you for inviting us to survey and evaluate the heating and ventilating system on the building at 503 32nd St. presently occupied by your department. BASIC DESCRIPTION OF SYSTEM: Four Payne /Day & Night 200 HO horizontal outdoor gas fired furnaces mounted on roof with 100% outside air intake. :200,000 BTU gas heating input each. (One unit was found to have combustion blower assembly chattering severly). Overhead air delivery throughout various offices is achieved by ceiling supply air registers with adjustable curved blades accessible from within the office area. (Note - many of these blades have been arbitrarily closed by office personnel, some partially, some entirely.) During the heating season this can lower the airflow so as to cause the furnace firebox to overheat and the unit will shut off on "high limit ". OUR RECOMMENDATIONS ARE AS FOLLOWS: 1. A service call on all roof top furnaces to put them all in satisfactory and safe operating condition. 2. Change out all ceiling registers to a type with no adjustments possible by office personnel. 3. Install disc type balance damper in each outlet above the ceiling line.accessible only to competent personnel. G. Operate all equipment on constant "summer fan switch" position during working hours. The equipment to be cont'roled by "Paragon" time clocks. This will then permit doors and windows to be closed and the outside air will then be filtered by the fiberglass dust -stop filters in the return air plenums on roof, instead of dust -laden air entering building through open doors and windows. I hope you will find this information to be of help. Sincerely, GRAHAM BRO=. Charles H. Campbell Sales Manager CHr..iic IRN Moode Y & Associates City of Newport Beach City Hall Newport, Beach, .CA ., 92663 Attachment 2 Real Estate & Investments August 4, 1980 ATTN: Robert Burnham, Assistant.City Attorney RE: Renewal of lease on property at 503 32nd Street, Newport Beach, -CA Gentlemen: At the conclusion of our recent meeting, it was agreed that Mr'. Shepardson and I would respond to your proposal which is subject to Council approval. Accordingly, we would agree to a new lease, generally in the form of the existing one, with the following changes: RENTAL: 654 per square foot per month based on a square footage of 6,108 which we have confirmed to be the gross footage of the building minus decks and counting stair area only once. TERM: Commencing September 1, 1980, continuing for two years and including an option to renew for one additional year. In the event the option is not exercised, an additional 90 days would be added to-the initial two -year period, during which time we would be allowed, within reason, to show the property. ADDITIONAL RENT: At the end.of each six months, rent would be increased in accordance with a formula based on the Consumer Price Index. The form of this provision is is the present lease. UTILITIES: Continue payment of utilities as in present lease. HEATING: Landlord to make such major repairs to the heating system as may be required; tenant to do maintenance as discussed. MINOR REPAIRS: Upon commencement of the new lease, landlord will begin a program of minor repairs generally agreed to be as follows, but to be con- firmed by a "walk through ": 1. Minor carpentry outside 2. Ceiling repairs 3. Some interior painting; some parts of walls washed 4. Rugs cleaned; some restretched >, 1130 W Ocean Front Newport Beach, CA 92661 (714) 03 -2199 12RN Moodey & Assoc4hes Real EALte & Investments City of Newport Beach, City Hall August 4:, 1980 ATTN.. Robert Burnham, Assistant City Attorney . S. New handrail on one stairway 6. Repair front door squeak 7. Repaint exterior S. Repair certain non- functioning electrical outlets As'you know, this lease has been the subject of three meetings and lengthy discussions, and we would hope the matter could now be quickly resolved on the above basis. CC:` Tony Shepardson Po Box 2791 Newport Beach, CA 92663 I 1130 W Ocean Ftont Newport Beach, CA 92661 (714) 6- %3.2199 y . r i FOOffices in all three Pacific Coast states t THE BANK OF CALIFORNIA National Association SAN BFd1NARDINO MAIN OFFICE. 293 NorM D Strut, San Bernardino, California . (714) 889.9931 Mailing Address. Past Office Box 851, 92403 i May 27, 1975 City Manager City of Newport Beach City Nall 3300 Newport Beach Boulevard Newport Beach, California 92660 Gentlemen: 9r t ''b? r9! We enclose a General Security Agreement dated May 7, 1975 executed by J. A. Shepardson and Jean Shepardson and Robert N. Moodey and Evelyn C. Moodey granting The Bank of California, N.A. a Security Interest in the Lease executed by the Mayor of the City of Newport Beach, dated February 10, 1975 and Mr. and Mrs. Robert N. Moodey and Mr. and Mrs. J. A. Shepardson, on property located at,,,, -32nd Street, City of Newport Beach, California. As indicated in the enclosed letter from the Lessors, all payments are to continue to be directed to The Bank of California, N.A. P.O. Box 851, San Bernardino, California 92403. Please acknowledge receipt of this notice by signing and returning the enclosed copy of this letter. t ' ("'0/ MK:gf Enclosures Very truly yours, Mel Kubisdty / Commercial ajL Officer Date JUN 3 1975 G' ES , 1? TO: A'zorney P W Director `.j CcraDu Di' t� f 0th Ie � 0 councilmen 11. If1wiv Oo,'tn one Bono:"er signs l eir llabilih' is joint .. a#1 s,rei:il. Anv Iorrower who is a i woman agrees to recourse against her separate prop1'Ir the Debt. Dis- charge of any Borrower except for full payment, or any exten- sion, forbearance, change of rate of interest, or acceptance, release or substitution of Collateral or any impairment or suspension of Bank's rights against a Borrower, or any trans. fer of a Borrower's interest to another, shall not affect the liability of any other Borrower. Until the Debt shall have been paid or performed in full. Bank'- ,iglus shall continue even if the Debt is outlawed. All Borrowers waive: (a) any right to require Bank to proceed against any Borrower before any other, or to pursue any other remedy; (b) presentment. protest and notice of protest, demand and notice of nonpay. ment, demand of performance, notice of sale, and advertise• ment of sale; (c) any right to the benefit of or to direct the application of any Collateral until the Debt shall have been paid; (d) and any right of subrogation to Bank until Debt shall have been paid or performed in full. 12. On Borrower's default, at Bank's option, without de- mand or notice, all or any part of the Debt shall immediately become due. Bank shall have all rights given by law, and may sell, in one or more sales, Collateral in any county where Bank has an office. Bank may purchase at such sale. Sales for cash or on credit to a wholesaler, retailer or user of the Col. lateral, or at public or private auction, are all commercially reasonable. Bank may require Borrower to assemble the Col. lateral and make it available to Bank at the entrance to the location of the Collateral, or a place designated by Bank. 13. Defaults are: (a) Borrower's failure to pay or perform this or any agreement with Bank or breach of any warranty herein. (b) Any change in Borrower's financial condition which in Bank's judgment impairs the prospect of Borrower's pay. ment or performance. (c) Any actual or reasonably anticipated deterioration of the Collateral or in the market price thereof which causes it in Bank's judgment to become unsatisfactory as security. (d) Any levy or seizure against Borroweror any of the Collateral. (e) Death, termination of business, assignment for cred. itors, insolvency, appointment of receiver, or the filing of any petition under bankruptcy or debtor's relief laws of, by or against Borrower or any guarantor of the Debt. 14. Bank's acceptance of partial or delinquent payments or failure of Bank to exercise any right shall not waive any obligation of Borrower or right of Bank or modify this agree- ment, or waive any other similar default. 15. On transfer of all or any part of the Debt, Bank may transfer all or any part of the Collateral. Bank may deliver all or any part of the Collateral to any Borrower at any time. Any such transfer or delivery shall discharge Bank from all liability and responsibility with respect to such Collateral transferred or delivered. This agreement benefits Bank's successors and assigns and binds Borrower's heirs, legatees, personal repre. sentatives, successors and assigns. Borrower agrees not to as. sert against any assignee of Bank any claim or defense he may have against Bank. Time is of the essence. This agreement and supplementary schedules hereto contain the entire security agreement between Bank and Borrower. Borrower will execute any additional agreements, assignments or documents reason- ably required by Bank to effectuate this agreement. Collateral not des red is finnrring slate meats, sched- ules, or in Bank ession: C-1. Sncings aecoll . time deposit: Depositor(s) Depository _ Account No. — To the extent of: [check one] ❑ $ ❑ The total balance therein. Borrower warrants and represents that the balance of said account is now at least $ and revokes any tentative trust created by said account to the extent of Bank's security interest therein. Should Bank's security interest be satisfied, Borrower intends that the terms of said tentative trust should again take full effect. G2. Crops or timber: All crops or timber now or hereafter planted or growing on the following described real property: [describe] Borrower agrees to prepare such crops or timber for market and thereupon immediately notify Bank and follow Bank's instructions as to holding, shipping, storing, and marketing them and Bank, regardless of default, may take possession of the crops or timber as soon as harvested and market or other- wise handle them at Borrower's expense. G3: Contract rights: [describe] Borrower warrants and represents that the amount which he will be entitled to receive under said Collateral is at least Borrower agrees that he will fully perform any such contract and do whatever Bank may require to assure payment to Bank of all money to be paid or benefits to be derived thereunder. Bank is not bound by any such contract or bound to perform any obligations of Borrower thereunder. C-4. Other: LEASE OF CITY OFFICES (503 -32nd St) Executed by Mayor of City of Newport Beach, Lessee -dated 2 -10 -75 and J.A. Shepardson, Jean Shepardson, Robert N. Moodey and Evelyn C. Moodey, - Lessor Dated: May 7, 1975 - Third Party Security Agreement F Eve Y i e is The undersigned grants to Bank a security interest to all of the Collateral described above on the terms above stated to secure payment to Bank of the Debt of the above named Borrower. The term "Borrower" as used above means the undersigned in any t, provision dealing with the Collateral, and means Borrower in any provision dealing with Debt. Dated: AL au.roo�� I I "? Offices in all three Pacific Coast states ITIE BAN I: OF 0AEIF0B NIA Xational Association SIN BERNARDI.VO MAIN OFFICE: 293 North D Street, San Bernardino, Catifornia - (714) 889.9931 Mailing Addras: Post OficeBox 851, 92403 May 7, 1975 I City Manager City of Newport Beach City Hall 3300 Newport Beach Boulevard Newport Beach California 92660 Reference: Lease of City Offices (503 32nd Street) Gentlemen: This is to inform you that we have transferred and assigned to The Bank of California, N.A. the Lease Agreement dated February 10, 1975 executed by the Mayor of the City of Newport Beach and our - selves covering real property located at 503 32nd Street, City of Newport Beach, California. Please continue to make your monthly payments to The Bank of California, N.A. P.O. Box 851, San Bernardino, California under Collection #17401. Sincerely, J. A. Shepardson Jean Shepardson Robert N. Moodey Evelyn C. Moodey cc: The Bank of California CITY OF NEWPORT BEACH TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 1688 Description of Contract CALIFORNIA City Hall 3300 W. Newport Blvd. Area Code 714 673-2110 DATE February 14, 1976 Leese of 503 - 32nd Street Authorized by Resolution No. 8439 , adopted on February 10, 1975 Effective date of Contract February 10, 1975 Contract with J. A. Shepardson and Jean Shapard$cn Address Hobert N. Fboday and Evelyn C. Amount of Contract $1,590.00 per month , . ; I LEASE OF CITY OFFICES (503 32nd Street) THIS LEASE is made and entered into this M 7-tor- day of F6f3pdo.eY , 1975, by and between J. A. SHEPARDSON and JEAN SHEPARDSON, husband and wife as joint tenants as to an undivided one -half interest, and ROBERT N. MOODEY and EVELYN C. MOODEY, husband and wife as community property as to an undivided one -half interest, hereinafter called "LESSOR," and the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter called "LESSEE." 1. CONSIDERATION AND DESCRIPTION OF PROPERTY. In consideration of the rents herein reserved and of the performance by the parties of the terms, covenants and conditions herein contained, Lessor hereby leases to Lessee and Lessee.hires from Lessor those certain premises situated in the City of Newport Beach, County of Orange, State of California, described as follows: All those areas of the building located at 503 32nd Street, City of Newport Beach, California, and twenty - four (24) off - street automobile parking spaces located on a portion of Lots 3, 6 and 7, Tract 1117, as recorded in Book 35, Page 48, of Miscellaneous Maps of the records of Orange County, California. The building premises and parking area are shown on a patch plat marked Exhibit "A," attached hereto for reference purposes. 2. TERM. The term of this lease shall commence the day and year first above written and continue through August 31, 1980, unless sooner terminated, as provided in Paragraph 3 below. 3. RENTAL PAYMENTS - RENTAL ADJUSTMENT AND TERMINATION. The obligation of Lessee to pay rent for the use of the premises shall commence on the day and year first above written. Lessee shall pay to Lessor, and Lessor shall accept from Lessee, rental payments as follows: a. From the commencement of this lease 1 agreement until ninety (90) days thereafter, or until the notice of completion is filed concerning the improvements to be constructed by the Lessor in the building located at 503 32nd Street are completed, which - ever event occurs first, the sum of One Thousand Seventy -Five Dollars ($1,075.00) per month, payable by the Lessee in advance on the first day of every month during this period; b. After said ninety (90) day period has passed, or the notice of completion is filed as provided in Paragraph "a" above, Lessee shall pay to Lessor, and Lessor shall accept as rental payments, the sum of One Thousand Five Hundred Ninety Dollars ($1,590.00) per month, with the first fractional month's rental being appropriately prorated, payable by Lessee in advance on the first day of every month from the date of said rental obliga- tion to August 1, 1977. C. On or before September 1, 1977, in the event the Consumer Price Index as defined below exceeds the base of January, 1975, Lessor may deliver to the City Manager of the City of Newport Beach a Notice of Rental Change. Said rental change shall be an adjustment of said rental payment of One Thousand Five Hundred Ninety Dollars ($1,590.00) per month, which bears the same relation to the sum of One Thousand Five Hundred Ninety Dollars ($1,590.00), as the United States Department of Labor, Consumer Price Index, all items, -2- L-7 Los Angeles -Long Beach area (1967 equals 100) as of July, 1977, or the latest then available Labor Consumer Pric Index, bears to said Consumer Price Index as of Janu- ary 1, 1975, (hereinafter called the "BASE "), which is agreed to be $ If the 1967 equals 100 calculation of Consumer Price Index should thereafter be changed, then the Base shall be adjusted to correspond to such change in the Consumer Price Index. In the event the Department of Labor shall cease to publish such index figures, then a similar index published by the United States Government or such other government entity shall be mutually agreed upon by the parties hereto and such new index shall be used for the computation hereunder. If the parties cannot agree upon a substitute index, adjustment of rent hereunder shall be by arbitration, in accordance with the arbitration laws of the State of California, as supplemented by the rules then obtaining of the American Arbitration Association. The Lessor may elect, in the event said Consumer Price Index increase exceeds the Base year by twenty -five percent (25%) or more, to limit the increase provided hereunder in rental payments to twenty -five percent (25%), or, in the alternative, may submit to the Lessee the Notice of Rental Change representing the entire increase of the Consumer Price Index as referred to above. In the event Lessor notifies Lessee that the rental change shall exceed twenty -five percent (25%), the City may elect to terminate this lease agreement, provided Lessee gives -3- • 0 Lessor a ninety (90) day notice of cancel- lation, and at said time, pays to Lessor Nine Thousand Four Hundred Sixty -Four Dollars and Thirty -Six Cents ($9,464.36), which amount represents the unamortized cost to Lessor of the improvements constructed by Lessor in said building. The Lessee must, however, serve said notice of cancellation upon Lessor not later than forty -five (45) days after service upon Lessee by Lessor of said Notice of Rent Change. 4. RENTAL ADJUSTMENT. In the event the real property taxes assessed against the land and /or building containing the leased premises are increased during the term of this lease or any extension thereof over and above those taxes assessed for the fiscal year ending June 30, 1974, Lessee shall reimburse Lessor the amount of said increase upon written demand by Lessor. 5. USE OF PREMISES. a. Lessee agrees to use the premises for City offices and for no other purpose without the consent of the Lessor. b. Lessee agrees not to use the premises or permit the same to be used for any purpose or purposes in violation of any law, statute or ordinance, or do or permit to be done any act which will occasion or constitute a ground for cancellation of any insurance policy or for any increase in the rate of insurance on said prcperty. Lessee further agrees that it will not commit or allow to be committed any nuisance upon said premises. 6. UTILITIES. Lessee hereby agrees to pay for all utilities and services supplied to the premises, except for water service which shall be paid for by Lessor. -4- 46 7. TAXES. Except as provided in Paragraph 4 herein, Lessor agrees to pay all taxes and assessments levied upon the leased i premises and any fixtures and /or equipment therein owned by Lessor. 8. MAINTENANCE AND REPAIRS. a. Lessee agrees to maintain the premises in good and sanitary condition and repair, except for reasonable use and wear. Lessee hereby waives all rights to make repairs at the expense of Lessor as provided in Section 1942 of the California Civil Code. b. Lessee agrees to replace any glass in the premises which may become damaged or broken. C. Lessor agrees to maintain in good condition and repair the exterior walls and roofs. Lessor is also responsible for any extraordinary repairs to the restrooms' plumbing. d. Lessor agrees to assume all costs incurred in the maintenance of the cooling, ventilating and central heating system. Lessee shall be respon- sible for the periodic replacement of the filters for the system. e. Lessee agrees to maintain the landscaped areas surrounding the building. f. Lessor shall retain the services of a licensed building contractor to install certain, improve- ments in and modifications to the leased building, to be in conformance with certain plans and specifications in the possession and control of the City of Newport Beach Building Official, which plans have been reviewed and accepted by the Lessor. The work of improvement shall be completed within ninety (90) days after the execution of this lease. 9. DESTRUCTION OF PREMISES. In the event of partial destruction of the premises -5- 0 by fire, earthquake or other casualty during the agreed term, Lessor shall forthwith repair the same, provided such repairs can be made within thirty (30) days. Such partial destruction shall not render this lease void, except that Lessee shall be entitled. to a proportionate deduction of rent while such repairs are being made. Such proportionate deduction shall be based on the extent to which the making of such repairs shall interfere with the business carried on by Lessee. If such repairs cannot be made within thirty (30) days, this lease may be terminated at the option of either party. A total destruction of the building in which the premises are situated shall terminate this lease. In the event this lease is terminated as provided herein, Lessor shall refund to Lessee any amounts pre -paid for rental periods occurring after the date of termination. 10. LIABILITY. As of the date of this lease, Lessee, as a material part of the consideration for this lease, hereby assumes all risk of injury or damage to persons or property in or about the rented premises from every source. Lessee further agrees to and will hold and save the Lessor and the premises harmless on account of any such damage or injury and from any and all liability, loss and /or damage resulting from the use of the premises or the opera- tion of Lessee's business thereon. 11. LESSOR'S RIGHT OF ACCESS. Lessor shall have the right of access at all reas- onable times to the premises for the purpose of inspecting same, making repairs, posting such notices as Lessor may deem to be necessary for the protection of the Lessor or the demised premises, and for the purpose of showing same to prospective tenants, purchasers, mortgagees and /or beneficiaries under trust deeds. During the last three (3) months of the term of this lease, or during the period after notice of termination has been delivered by Lessee to Lessor should Lessee elect to terminate pursuant to Paragraph 3 above, or any extension or renewal thereof, Lessor shall have the right to place and maintain in or upon the premises aM. in one or more conspicuous places "For Rent," "For Lease," and /or "For Sale" signs. 12. ALTERATIONS AND ADDITIONS. a. Lessee shall have the right, during the existence of this lease, to make alterations, attach fixtures and erect additions in or upon the premises hereby leased. b. Lessor agrees to allow Lessee to place signs or directories on the leased premises for the purpose of providing information regarding the lcoation of City offices and parking facilities. Prior to such placement, Lessee shall obtain the consent of Lessor regarding the manner of attachment of said signs or directories to the building on the leased premises. 13. REMOVAL OF FIXTURES. All locks, bolts, alterations and additions which may be affixed to the premises, except movable furniture and movable fixtures put in at the expense of the Lessee, shall become the property of the Lessor and shall remain upon and be surrendered with the premises as part thereof at the termination of this lease. 14. LOSS OR DAMAGE SUSTAINED BY LESSEE. Lessor shall not be liable to Lessee, or to anyone claiming under or through Lessee, for any loss or damage sustained i by Lessee unless said loss or damage is caused by the negligence of Lessor. 15. ASSIGNMENT AND SUBLETTING. Lessee agrees not to sublet the whole or any part of the premises, to assign this lease or any interest therein (nor may this lease be assigned by operation of law), to sub- lease, mortgage, or in any way create any lien on this lease or any interest therein without the consent in writing of the Lessor, but consent will not be withheld without just cause. -7- i 16. ATTORNEY'S FEES. In the event any suit is brought by either party against the other to enforce any of the terms or provisions of this lease, then it is agreed that the successful party in such suit shall be entitled to attorney's fees to be fixed by the court in such action. 17. SUCCESSORS AND ASSIGNS. The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the successors, heirs, executors, administrators and assigns of the parties hereto. 18. EFFECT OF HOLDING OVER. At the expiration or any sooner termination cf this lease or any extension thereof, Lessee agrees to quietly quit and surrender the premises to Lessor, Lessor's successors, assigns, agent or attorney, without notice of any kind, notice being expressly waived, in as good order, condition and repair as same were at the date of occupancy, reasonable use and wear thereof and damage by the elements and by acts and matter beyond Lessee's control excepted. 19. NOTICES. All notices, statements, demands, requests, consents, authorizations, offers or agreements under this lease by either party to the other shall be in writing and shall be deemed sufficiently given and served upon the other party if sent by certified mail, return receipt requested, postage prepaid, and addressed as follows: To Lessee, addressed to the City Manager of the City of Newport Beach, City Hall, 3300 Newport Boulevard, Newport Beach, California, 92660. To Lessor, addressed to the Lessor, Robert N. Moodey and Evelyn C. Moodey, 2239 Vista Hogar, Newport Beach, California, 92660. 20. PRIOR AGREEMENTS. This lease shall supersede all prior leases, agreements and understandings between the parties hereto except that it is subject to the provisions of that certain "off- street parking agreement" executed March 5, 1968, between EARL G. SAWYER, ELEANOR B. SAWYER, the GRIFFITH COMPANY and the CITY OF NEWPORT BEACH. A true copy of that agreement is attached hereto as Exhibit "A" and is, by this reference, incorporated herein as if fully set forth. IN WITNESS WHEREOF, the Lessor and Lessee have executed this lease as of the day and year first above written. ATTEST: i C ty Clerk CITY OF NEWPORT BEACH By: 21a6���' Mayor LESSEE �. A. SHEPAR ON J EVEL N C. OODEY LESSOR HRC:kb 2 -7 -75 ,1 r EEIV G Ay ,. OFF- STREET PARKING AGZEEMENT •3_C3 1,i • (Property located at "503. 32nd f 3 Street, Newport Beach) 311: THIS AGREEMENT is entered into this day of 51� 9 19682 by EARL G. SAWYER and ELEANOR B. 6I' :SAWYER, husband and wife, hereinafter called "Sawyer ", GRIFFITH 7��COMPANY, a California corporation, hereinafter"called "Company ", 811 and the CITY OF NEWPORT BEACH ,`ia.municipal•corporation, herein -.. 9'� after called. "City" 101 ' Recitals: A.. Chapter 20.38. ofs,the Newport Beach Municipal Code 22 .•.,.13I entitled "' -H' DISTRICT" establishes off -street parking require- 14�� meats for property located'in• all_ "C and!M' zoning districts within the City which are combined with. " -H" districts. 15,1 B. Sawyer holds fee title to a parcel of real property "upon ;inich there is an office building located at 503 - 32nd i 17 Street in the City'of Newport Beach,_more particularly described -� x•.18 . .. as follows: 19� Lot 6, Tract 1117, as recorded in Book 35, page .20I 48 of Miscellaneous Maps of the records of Orange �I•. County, excepting therefrom.the easterly 114, feet, 21' _ hereinafter referred to as Parcel A.. • C.'' Parcel A is' located in a C-1 -H zone of the City. • D. 'Pursuant to. the off - street parking formula applica- -�� ble to office buildings in " -H" districts, twenty -four (24) .251 . I off- street parking spaces aie'required to be'furnished in connec- 26 1 2!� tion with "the present:useiof Parcel-,A (Section 20.38.030 (b) za .• 11 E. Company •is `a'; former owner of Parcel A, which it 29 it . sold to John S. Mason; a predecessor in title of Sawyer. At the , i; time it sold Parcel A to Mason, Companyy agreed by letter dated I April 1, 1954•that -it ' would provide sufficient off - street paricing II; . spaces to• meet * the * City's zoning requirements 'in nearby park;::. 1 I� EXHIBIT "A" i i•1 i.: I" i a're5ti utld @Y its control.. At that time Parcel A was-hounded by 2 ,privately owned streets ;. which'.• the parties-.contemplated using +`... 3 � to accommodate a considerable, amount ;• of ;:,the required parking, 4 •''',in conjunction with a certain portion of the•area designated 5 as Parcel B for purposes of this agreement and which is Bore'•' 6 I., -particularly.-described'-as follows: ' A portion of Lots 3,6 and 7, Tract-1117, as r -recorded in Book 35, page 48 of Miscellaneous 8 Maps of the, records of Orange County.- ; 9 :',The areas of private streets:; bounding Parcel A were su5sequeatly . ".' 10' dedicated as.public- streets,`thus eliminating a certain.portion 111 :,of. off -site` ark contemplated, for use b Parcel A. ,..;:. �. p mP y 12 F. For reasons unknown, the commitment by Company to %13 =,provide the required parking was not embodied in a'recorded :`., 14, agreement., as re.yuired by Chapter:; 20.38:x; ..After.. this omission .:15! was brordght to .thm attention. of Company' by City, Company expressed 16 its'willinguess.to formalize its :previous commitment by a written 17 ;agreement.. .'181:: NOW THEREFORE, the'.,parties.hereto agree as follows: .+ 191. 1. For'so.long as the office building presently 201 :'located on•Parcel A continues to exist!-Company agrees to wake'` 21 '. available tte tatjfqur , _(24) parking spaces located on Parcel B P)ALOwiM ESTATE 22 : for the personal use-of the owner'in fee of Parcel A and for the I i C I I / of A) UJP0zr 23� use by customers and business invitees of the tenants or occu- !y 1 R,42XWG24�I p�antts_of'said office building. The' parties hereto agree that the 25''' right to use said parking.spaces -Is nonexclusive and'it shall not Ik 'P . <?NG 2611. include the right "of personal'.:uSe of said spaces ' for parking by G1-,,. 2711j lessees, tenants or occupants •of'said building or their employees, f 28!1 except,insofar as%.such.�person or persons are also the fee.owaers 3rtl. �LV29I; of Parcel A. ?• 30�� 2. . As between Sawyer.':and Company, or the lessees o'f ' �1i1 :Company which have' the. right 'to use parking spaces in Parcel 3, 3Fi it is agreed that they.'wi1l :;share'in, the cost',of mainteaar :ce,. .J J;J . 31 ..'.S2 upkeep and rep:._r of Parcel. B, including but not limited to reasonable hazard insurance premiums and taxes thereon, costs of sweeping, striping, bumpering, lighting,'relamping, etc.', in the ratio as the twenty -four (24) parking spaces bear to the total'. number of parking spaces in Parcel B. 3. . Company agrees to.maintain said parking lot on Parcel .B and to provide thereord. the. •number . of spaces herein agreed upon-for as long as Parcel A or the office building presently located thereon is used'for any purpose which under. the laws and ordinances of City requires that number of off - street parking spaces in connection with such use. City is not hereby restricted from legislative, administrative,-'executive, or. quasi-judicial action with respect to. either parcel \,of property as such *action' may now or hereafter be authorized''or undertaken. Should a change j' • in use or additional use of eith . cr•parcel be proposed, .the I'applicable regulations -ef City shall apply.:- � ' 4. This agreement.'shall run with_a11_1and herein !E de—,-- and shall bind the successors..of the '`present . owners , thereof and shall beM�recorded in.IFthe:office . of the .County Recorder :. of Orange"County: IN WITLESS WHEREOF, the parties hereto have executed•• this:,agreement.as..of . the;day' Ld. ear. firstab�e written. A > •.N : ea. f::: • +• y „' • EARL $A4IY R i 1 '••1•• 1: :.. G.� VJ• 1 �,.: ,,:: • i'.E A11`OR. B r . SAWYER. . I i \ •Vd �'•} J. J. SAWYER \ 1 IS IFFIxx. COMPANY .1 ;. ....;. ,c Attest: ..Y' Its •�2 i. J:C nclr tip' COMPAN i Ll Al� th b. Cl$ UVUIYI u 45. E V AW Z > TR NO Lq VILLA WAY O I) 'lop X 0' ' i VIA VIA O C i ok -� ok con' -4 Ll Al� th b. Cl$ UVUIYI u 45. I - 356 RESOLUTION NO. Jf RESOLUTION OF THE CITY COUNCIL.OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY y FEB 10195 CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE / CITY OF NEWPORT BEACH AND J. A. SHEPARDSON AND By the CITY COUt4CII: R. N. MOODEY FOR THE LEASE OF CITY OFFICES AT CITY OF NEWPORT VACH503 32ND STREET WHEREAS, there has been presented to the City Council of the City of Newport Beach a lease agreement between the City of Newport Beach and J. A. Shepardson and R. N. Moodey for the lease of City offices at 503 32nd Street; and WHEREAS, the City Council has considered the terms and conditions of said lease agreement and found them to be fair and equitable, and in the best interests of the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said lease agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. l ADOPTED this 10th day of February 1975. Mayor ATTEST: City Clerk ' ` �. i i