HomeMy WebLinkAboutC-1688 - Lease agreement for City Hall Annex #2, 503 32nd StreetYe 7l G-✓�C SI... I
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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
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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
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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
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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
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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.
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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
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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
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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
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done any act which will occasion or constitute a
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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
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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
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to pay all taxes and assessments levied upon the leased premises
and any fixtures and /or equipment therein owned by LESSOR.
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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
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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
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repair the exterior walls and roofs. LESSOR is
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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
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the interior of the premises which shall include,
but not necessarily be limited to, the repair
and /or restretching of certain carpets, and the
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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
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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
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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.
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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.
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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
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Tony hepardson .
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. B. Whepardson
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W�llam R. McCook
07/29/83
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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
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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
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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-
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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.
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SAWYER
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- 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