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HomeMy WebLinkAboutC-2003 - Lease city ground for construction of Marine Department shop & garage on Harbor District propertyi o� m CITY OF NEWPORT BEACH CALIFORNIA � City flan � C���FORN�' 3300 W. Newport Blvd. Area Code 714 DATE April 4. 1978 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 2009 Description of Contract -ta F g .. aQe s Maint Facility Authorized by Resolution No. 9274 , adopted on _ Fabruary 19, 1978 Effective date of Contract April 1. 1978 Contract with Orange County Harbors, Bsacbas 6 Parts Dept. Address Rawl Estate Division P.O. Box 4106, Santa Ana, CA 92702 Amount of Contract See Contract City Clerc 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ` QTY C P K F. C CF = YIPORT BEACH 1TQPT BOULEVARD Ncl"iPORT ErAC�i, CALIF, 9250 PM 1002 -30 Lower Newport Bay LEASE THIS IS A LEASE, made this . ' day of .yha"i , 1917f' , by and between COUNTY OF ORANGE and ORANGE COUNTY HARBORS, BEACHES, AND PARKS DISTRICT, a body corporate and politic, hereinafter referred to as "LESSOR ", and the CITY OF NEWPORT BEACH, a body corporate and politic, hereinafter referred to as "TENANT ", without regard to number and gender. I. DEMISED PREMISES (MA3.1 S) LESSOR leases to TENANT that certain property hereinafter referred to as "Demised Premises ", described in "Exhibit A" and shown on "Exhibit B ", which exhibits are attached hereto and by reference made a part hereof; together with the non- exclusive use of LESSOR'S adjacent parking area, also shown on Exhibit B, and reasonable rights of access. 2. USE LESSOR leases to TENANT and TENANT hires from LESSOR the Demised Premises' for the purpose ofconstructing a storage /maintenance facility which shall be used by.-TENANT to store and maintain supplies and equipment used by TENANT in coal }unction with TENANT'S marine safety activities. 3. LIMITATION OF `THE 'LEASEHOLD (MA 5:1"N•) This Lease and the rights,and; privileges granted TENANT in and to the Demised Premises are s'ub`ject to alj.covenants, conditions, restrictions, and exceptions of record'or apparent, including those which are set out in the Tideland Grant by the State of California to the County of Orange (Chapter 415, Statutes'of :1975; S':dte.of California). Nothing contained in this Lease or in any document related hereto shall be construed to imply , the conveyance to TENANT of rights in the Demised Premises which exceed those owned by LESSOR. RLA /afa 76A -1 ` 12.237 w 1 4. TERM (MB2.1 S) 2 The to 10) yPku -.. t fi rst,day o die , ret fu1Y tea[ iii ar month lowing the date :af, execution of the 3 rs m"ent by' 4LESSOR. 4 5. TERMINATION BY LESSOR (N) 5 In the event LESSOR should require the 'Demised Premises in connection 6 with the future expansion and /or operation of LESSOR'S Harbor Patrol Facility, LESSOR may, at any time upon 90 clays' written notice, terminate 7 this Lease. 8 5. CONSIDERATION (N) 9 As consideration for rent -free use of the Demised Premises, TENANT shall 10 provide LES:SOr with assistance in performing LE:SSOR's search anJ rescue operations when such assistance will not interfere with TFNAN`. "s normal 11 marine - safety activities. 12 7. TENANT - REQUIRED CONSTP.L'CTIOPt (N ) 13 TENANT, at no expense or cost to LESSOR, shall cause to be designed and 14 constructed on the Demised Premises a storage /maintenance facility containing approximately 528 square feet of floor area. Said facility 15 shall be constructed in such a way that it will connect to and become an extension of LESSOP'S existing storage shelter which is located directly 16 adjacent to the Demised Premises, as indicated on Exhibit B. TEN ANT'S storage /maintenance facility shall be of a type construction, quality 17 and design equivalent to LESSOR'S existing storage shelter. 18 TENANT acknowledges that TENANT'S construction of the storage /maintenance facility will require the relocation of LESSOR'S existinq trash enclosure 19 which is located within the Demised Premises. 20 TENANT hereby agrees, at no expense or cost to LESSOR, to relocate said trash enclosure to the area directly adjacent to the Demised Premises as 21 indicated on Pxhibit S. Once relocated the new trash enclosure shall contain the same floor area, and shall be of. a type construction, quality 22 and design equivalent to LESSOR'S existing trash enclosure. The new 23 enclosure, upon completion, shall become property of LESSOR. E.NAN,T shall construct said storage /maintenance facility and trash enclo- 24 ure in strict compliance with the designs, plans and specifications which. re ,attached hereto and by reference made a part hereof as Exhibit C. 25 rior to construction TENANT shall obtain all required construction 26 ermits including but not limited to those oermits which may be required 27 y the California Coastal Zone Conservation Commission. 28 LA /afa 6A1 -2 2.017 -2- 1 ?}.UILT" PLANS AND CONSTRUCTION COSTS (MD5.1 S) 2 .Within 60 days fo1110wirn completion of TE'P;ISNT- required construction, TENANT shall furnish LESSOP a complete set of regroducibles and two sets 3 of prints of "AS- Built" olans. 1w addition, TENANT. Shall furnish LtiSSOR. an itemized statement of the actual construction costs. The statement 4 of cost shall be sworn to and signed by TENANT or his ri�snonsiale agent under penalty of perjury. TENANT must obtain LESSOR approval of 5 "As- Built" Plans. I 6 9. 0,�JNIF;PSNIP UPON TERMINATION (N) 7 Upon ter!nlnatlon of thi1P lease, includiriig early termination pursuant to Clause 5 (TER^5I'NA'TIO.,� 3Y LESSOR) , all TFOANT- constructed improvements on 8 the Demised PremiS °s shall 5e:ome the proeerty of LESSOR. 9 10. MAINTENANCE OBLIGATI'?P'.S OF TF A2•" (mr2.2 S) 10 TENANT agrees to maintain t',e Demised premises and all improve ments con - 11 structed thereon in good order and repair, and to keep said premises in a neat, clean, orderly, safe, and Sanitary condition. This includes, 12 but is not limited to, the prevention of accumulation of any refuse or waste materials which mi,jht constitute a fire hazard or a public or 13 private nuisance. Failure of TENANT to properly maintain and repair the Demised Premises shall constitute a breach of the terms of this Lease. 14 15 11. UTILITIES (MEI.1 S) 16 TENANT assumes all obligation to insure that adequate utility service is supplied to the Demised Premises. All utilities supplied to the Demised 17 Premises shall be metered separately from the utilities supplied to LFSSOP.'S adjacent .facilities. 18 TENANT shall be responsible for all costs relating to the installation 19 of utility service to the Demised Premises, and shall pay, prior to delin- quency date, all charges for utilities suoPlied to the Demised Premises. 20 21 12. MAJOR REPAIRS, RECONSTRUCTION AND ALTERATION (7) 22 Before commencing any major repairs, reconstruction or alteration to the storage /maintenance facility, TENANT shall submit to LESSOR'S Director of 23 Environmental :"anagement Agency a set of designs, plans and specifications. LESSOR'S Director of Environmental Manaaement Agency shall have 36 days to 24 review said designs, plans and specifications followina receipt of same from TENANT. LESSOR'S Director of Environmental Management Agency shall 25 not unreasonably disapprove said designs, plans and specifications. Approval or disapproval shall be communicated in writing by LESSOR'S 26 Director of Environmental Management Agency to TENANT. disapproval. shall e accompanied by adequate reasons for such disapproval. Failure to dis- 27 approve within the time limits previously set forth shall be construed by TENANT as approval of said designs, plans, and specifications. 28 .LA /afa 6A1 -3 2.237 -3- 2 T-FNANIT agrees to Pccce-t the ne'mlrled ­ . Pr-�.-i. in an "as is" condition and shall indemnify and save 8:'LE- its officers, agents, and a-- 3 ployees, from and against any and all cl_�iim.s, demands, loss, legal and investigation exnenses, or liability of any kind or nature whic1h, LESSOR., 4 its officers, agents, anti employees may sustain or incur or which may be h imnosed upon them or any of em for injury to or death of persons, or 5 nama-,e to property as a result o;�,.,a ising,out of, or in anv ln»nnmr con- nected with this Lease or with occuIP1161cy and ?use of the Demised Premises 6 by TE�IANT, its officers, agents, emnlovees, subtenants, licensees, patrons, or visitors. 7 14. (MU5.1 S) 8 TENANT shall maintain insurance accentable to LESS0 OR in full force and 9 effect throughout the term; of this Lease. The policy or policies of insurance -hall name as an additional insured and the entire 10 limits of liability maintained shall he certified, but in no event shall tbev be less than the amounts snecified: 11 A. CoJI.r.1rehensive Public Lial)ility: 12 (1) $5001,1000 bodily injury, each Per7on; 13 (2) $1,000,000 bodily injury, each occurrence.; and (3) $150,000 property damage. 14 B. Fire and Extended Coverage: Not less than 90% of the cost of within the Demise,! Premi,;es. 15 repla Water damage and debris cleanup provisions snall be included. 16 Insurance shall be in force the first day of the term of this Lase. 17 Additional fire insurance in the amount stated above shall he in force upon the date of completion of construction or installation of each ailajor 18 insurable improvement by TENIAT,!T. 19 Each policy of insurance shall contain the following clauses: 20 "IT IS AGREED THAT THIS POLICY SHALL NOT BE CANCELLED NO VtiE COVERAGE REDUCED UNTIL THIRTY DAYS AFTER GSA/REAL FST.Alr,, DIVI53!0`1, 21 COUNTY OF ORANGE, SHALL HAVE RECEIVED 4RIT•E-114 NOTICF, ()F 3oC'i CAN- 'ELLATION OR REDUCTTON. THE NOTICE SHALL BF. SENT F�Y ­S�' IF17D, 1AIL C A C 1. RT :CIF I7 22 OR PEGISTEPED MAIL AND SHALL BE DEEMED EFFECTIVE THE DATE AS EVIDENCED 9Y PROPEPLY VALIDATIEED RUTUR-M RECEIPT." 23 "THE INCLUSION HEREIN OF ANY PFRF.,Dfq OP M-f' =Y AS AN INSURED SHAUL 24 NOT AFFECT ANY 7,,.IGqT SUCR PF,'MSON Of! ENTITY WOLILD 'q,\VF AtS A CL�umAlq,t HEREUODER IF NOT SO 25 TE,'­',%NT agrees to leposit with LESSOR, at or before the times. at 26 reauired to be in effect, certificates of insurance neces-sary to satisf-v LES.-;O-IR that insurance provisions of this 7.ea e have bc�n 27 and to keep such insurance in effect and the certificates therefor on deposit --Sit with LESSOR durinq the entire t°rm of this Lease. 28 P Ir A / a f,ak 76o-A1 -4 12.027 -4- L • 1 LESSOR shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of 2 LESSOR, the insurance provisions in this Lease do not provide adequate Protection for LESSOR and for m4ft bers of the public using the Demised 3 Premises, LES130TZmay require TENANT to obtain insurance sufficient in coveraae, .four,, and amount to provide adequate protection. LESSOR's 4 requirements shall be reasonable but shall be designed to assure protec- tion frog. and against the kind and extent of the risks which exist at 5 the time a change in insurance is required. 6 LESSOR shall notify TENAAiq in writ.inq of changes in the insurance requirements; and if `717,JrNIT 3oes not da -osit copies of acceptable 7 insurance policies with LF93OR incorporating such changes within sixty days of recei.nt of such notice, this Lease shall be in default 8 without further notice to TENANT, and L%:JSOR shall to entitled to all 9 legal remedies. The procuring of such required rol'icv or policies of insurance shall 10 not be construed to limit TEF:ANT'S liability hereunder nor to fulfill the indemnification provisions anti reC7uirei ^e.nts of this Lease.. Not - 11 withstanding said policy or Policies of insurance, 'TENANT shall be obligated for the full and total a•r.ount of. any damage, injurv, or 12 loss caused by negligence or neglect connected with this Lease or with 13 use or occupancy of the Demised .Premises. 14 15. DAMAGE TO OR DESTRUCTION OF IMPROVENIFNTS ( ME4. 1 S) 15 in the event of damage to or destruction of TENANT- constructed improve- ments located within the Demised Premises or in the event TENANT- 16 constructed improvements located within the Demised Premises are declared unsafe or unfit for use or occupancy by a public entity with the 17 authority to make and enforce such declaration, TENANT shall, within 30 days, commence and diligently pursue to completion the repair, renlace- 18 ?;ient, or reconstruction of improvements necessary to r..ermit full use and occupancy of the Demised Premises for the purposes required by this 19 Lease, Repair, renlacemen.t, or reconstruction of improvements within the Demised Premises shall be accomplished in a manner and accorfinq to 20 plans approved by FMA. 21 22 16. ASSIGNING, SUBLETTING, AND EtiCUMBSRING PROHIBITED (`F7.3 S-) Any mortgeae, pledge, hypothecation, encumbrance, transfer, sublease, or 23 assignment (hereinafter in this clause referred to collectively as "Encum- 24 brance ") of TENANT'S interest. in the Demised Premises, or any ^art or Portion thereof is prohibited. Anv attempted Encumbrance shall be null 25 1 and void and shall confer no right, title, or interest in or to this Lease. If the TENANT hereunder is a corporation or an unincorporated association 26 or partner=hip, the Encumbrance of any stock or interest in said corpora - 27 tion, association, or partnershir_ in the aggregate exceeding twenty -five 11 percent (25 %) shall be deemed an assiqnment within the meaning of this clause. 28 RLA /afa 76AI -5 12.017 -5- 4 4 17. NCTICF.S (mF'.1 ..3) All notices pursuant to this Lease shall be addressed as set fort' below or as either tarty may hereafter designate by written notice and shall be be sent through the IInited States mail. TO: LESSOR TO: TEN MTr and County of Orange EMA /Development rivision. P. 0. Sox 1073 Santa Ana, CA 92707 County of Orange GSA /.Real Estate Division P. 0. Box 4106 Santa Ana, California 32702 City of ?aewport Beach Marine Department 3300 Newport soulevar.d Newport Beach, CA 92650 19. ATTACRYIENTS '10 LEASE: (:MF9.1 5) This Lease includes the following, which are attached hereto aad �::ade a -"art hereof: A. GENTERAL CONDITIONS B. EXHIBITS: A - Legal Description B — Plot Plan C - Plans and Specifications RLA /afa 76A1 -5 12.017 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WIT'aFcg WT.: ?EFL'OE, the varties have executed this Lease the day first above written. ATTFST: ti�v�� Ju e Alexan er Clerk of the Board of T- upervisors of Cr3n--Te County, California' APPROVED A,9 TC, County Counsel By WAL-.L i '� U. HY E-31 E 51 PECC3i F_,'?iTc.D FOUR APFROVA.? : Environmental Management Agency y LARRY LEAMA11t PECOMU NDED FOR APPROVAL: General Services Agency Facilities & Real Property Architect /Engineer Division DOUGLAS BEETHAM ry Facilities & Real Property Peal Estate Division By Py RLA /afa 76AI -7 12.017 LESSOR COUNTY CITY OF NEWPORT PEACH By &y,_ -- __ _- .L L� W I. GENERAL CONDITIONS (MG1 -24 N) 1. DEFINITION OF "LESSOR" (MG1 S) The term "LESSOR" shall mean the Board of Supervisors of the political body which executed this agreement or its authorized representative. 2. TIME (MG2 S) Time is of the essence of this Lease. 3. SIGNS (MG3 S) TENANT agrees not to construct, maintain, or allow any sign upon the Demised Premises except as approved by LESSOR. Unapproved signs, banners, flags, etc., may be removed by LESSOR. 4. PERMITS AND LICENSES (MG4 S) TENANT shall be required to obtain anv and all permits and /or licenses which may be required in connection with the operation of the Demised Premises as set out herein. 5. LEASE ORGANIZATION (MG6 S) The various headings and numbers herein, the grouping of provisions of this Lease into sep arate clauses and paragraphs, and the organization hereof, are for the purpose of convenience only and shall not be consid- ered otherwise. 6. AMENDMENTS (MG7 S) This Lease sets forth all of the agreements and understandings of the parties and any modification must be written and properly executed by both parties. 7. UNLAWFUL USE (MG8 S) TENANT agrees no improvements shall be erected, placed upon, operated, nor maintained within the Demised Premises, nor any business conducted or carried on therein or therefrom, in violation of the terms of this Lease, or of any regulation, order of law, statute, bylaw, or ordinance of a governmental agency having jurisdiction. GDS /SS 104A2 -1 4.227 ft of any remedy for the subsequent breach or default of any term, covenant, or condition of the Lease. 15. DEFAULT IN TERMS OF THE LEASE BY TENANT (MG17 S) Should TENANT default in the performance of any covenant, condition, or agreement contained in this Lease and such default is not corrected within a reasonable time (as determined by LESSOR) after TENANT receives written notice of default from LESSOR, LESSOR may: A. Terminate this Lease. All rights of TENANT and those who claim under TENANT, stemming from this Lease, shall end at the time of such termination; or B. At LESSOR'S sole option, cure any such default by performance of any act, including payment of money, and add the cost thereof, plus reasonable administrative costs, to the rent. 16. COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT (MG18 S) In the event either LESSOR or TENANT commences legal action against the the other claiming a breach or default of this Lease, the prevailing party in such litigation shall be entitled to recover from the other costs of sustaining such action, including reasonable attorney fees, as may be fixed by the Court. 17. RESERVATIONS TO LESSOR (MG19 S) The Demised Premises are accepted as is and where is by TENANT subject to any and all existing easements and encumbrances. LESSOR reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oil, and gas pipelines; telephone and telegraph power lines; and the appliances and.appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, and along the Demised Premises or any part thereof, and to enter _t.e Demised Premises for any and all such purposes. LESSOR also reserves the right to grant franchises, easements, rights of way, and permits in, over, upon, through, across, and along any and all portions of the Demised Premises. No right reserved by LESSOR in this clause shall be so exercised as to interfere unreasonably with TENANT`S operations hereunder or to impair the security of any secured creditor of TENANT. LESSOR agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of the land shall be restored as nearly as practicable to its original condition upon the completion of any construction. LESSOR further agrees that should the exercise of these rights temporarily interfere with the use of any or all of the Demised Premises by TENANT, the rental shall be reduced in propor- tion to the interference with TENANT's use of the Demised Premises. 18. HOLDING OVER (MG20 S) In the event TENANT shall continue in possession of the Demised Premises after the term of this Lease, such possession shall not be considered a GDS /so 104A2 -3 -3- r� renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease. 19. DISPOSITION OF ABANDONED PERSONAL PROPERTY (MG22 S) If TENANT abandons the Demised Premises or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to TENANT and left on the Demised Premises 45 days after such abandonment or dispossession shall be deemed to have been transferred to LESSOR. LESSOR shall have the right to remove and to dispose of such property without liability therefor to TENANT or to any person claiming under TENANT, and shall have no need to account therefor. 20. QUITCLAIM OF TENANT'S INTEREST UPON TERMINATION (MG23 S) Upon termination of this Lease for any reason, including but not limited to termination because of default by TENANT, TENANT shall execute, acknowledge, and deliver to LESSOR, within 30 days after receipt of written demand therefor, a good and sufficient deed whereby all right, title, and interest of TENANT in the Demised Premises is quitclaimed to LESSOR. Should TENANT fail or refuse to deliver the required deed to LESSOR, LESSOR may prepare and record a notice reciting the failure of TENANT to execute, acknowledge, and deliver such deed and said notice shall be conclusive evidence of the termination of this Lease and of all right of TENANT or those claiming under TENANT in and to the Demised Premises. 21. LESSOR'S RIGHT TO RE -ENTER (MG24 S) TENANT agrees to yield and peaceably deliver possession of the Demised Premises to LESSOR on the date of termination of this Lease, whatsoever the reason for such termination. Upon giving written notice of termination to TENANT, LESSOR shall have the right to re -enter and take possession of the Demised Premises on the date such termination becomes effective without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re -entry of the Demised Premises by LESSOR shall in no way alter or diminish any obligation of TENANT under the lease terms and shall not constitute an acceptance or surrender. TENANT waives any and all right of red <amption under any existing or future law or statute in the event of eviction from or dispossession of the Demised Premises for any reason or in the event LESSOR re- enters and takes possession of the Demised Premises in a lawful manner. TENANT agrees that should the manner or method employed by LESSOR in re- entering or taking possession of the Demised Premises give TENANT a cause of action for damages or in forcible entry and detainer, the total amount of damages to which TENANT shall be entitled in any such action shall be One Dollar. TENANT agrees that this clause may be filed in any such action and that when filed, it shall be a stipulation of TENANT fix- ing the total damages to which TENANT is entitled in such ar. action. GDS /so 104A2 -4 -4- 5.037 PROJECT: Lower Newport Bay DATE: April 12, 1977 ESTATE: Leasehold WRITTEN: C.A.C. CHECKED: R.L.L. PROJECT NO. PM 1002 PARCEL NO. 30 That portion of Orange County Tidelands in Lower Newport Bay, City of Newport Beach, County of Orange, state of California, as shown cross- hatched on a Plot Plan attached hereto and made a part hereof. h la ei:UVED:, HAROLD I. SCOTT Right of Vlay Engineer VJ. H. TALLEY Registered Civil Engineer Certificate No. 16799 EXHIBIT A B. NONDISCRIMINATION (MG9 S) TENANT agrees not to discriminate against any person or class of persons by reason of sex, race, color, creed, or national origin. TENANT shall make its accommodations and services available to the public on fair and reasonable terms. 9. INSPECTION (MG10 S) LESSOR or its authorized representative shall have the right at all reasonable times to inspect the Demised Premises to determine if the provisions of this Lease are being complied with. 10. TAXES AND ASSESSMENTS (MG12 S) All taxes and assessments which become due and payable upon the Demised Premises or upon fixtures, equipment, or other property installed or con- structed thereon, shall be the full responsibility of TENANT, and TENANT shall cause said taxes and assessments to be paid promptly. 11. SUCCESSORS IN INTEREST (MG13 S) Unless otherwise provided in this Lease, the terms, covenants, and condi- tions.contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder. 12. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (MG14 S) If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, restrictive governmental laws or regulations, or other cause without fault and beyond the control of the party obligated (financial inability excepted), per- formance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. However, nothing in this clause shall excuse TENANT from the prompt payment of any rental or other charge required of TENANT, except as may be expressly provided elsewhere in this Lease. 13. PARTIAL INVALIDITY (MG15 S) If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 14. WAIVER OF RIGHTS (MG16 S) The failure of LESSOR or TENANT to insist upon strict performance of any of the terms, covenants, or conditions of this Lease shall not be deemed a waiver of any right or remedy that LESSOR or TENANT may have, and shall not be deemed a waiver of the right to require strict performance of all the terms, covenants, and conditions of the Lease thereafter, nor a waiver GDS /so 104A2 -2 -2- 5.037 Y C V C Y 6 u P �Y Jl Jr\ f \ f , Tx C�Jii is �+•�, �i4vW� �J 221 I � F o r ic J I R I O c u O n T vo o a m s h o m e D IN � ` C 1 N J I R I O c u O n A n e n ti h 0 9 h i Z P' r R EXHIBIT B EXHIBIT C OUNTV O*C:) RANGE GENERAL SERVICES AGENCY FACILITIES & REAL PROPERTY REAL ESTATE DIVISION GEORGE H. CORMACK, MANAGER 400 CIVIC CENTER DR. WEST P.O. BOX 4106 G -7800 SANTA ANA, CA 92702 V (714) 834 -2550 March 29, 1978 PM 1002 -30 Lower Newport Bay David Harshbarger Marine Director Marine Department City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California 92663 T, R. EGAN DIRECTOR STANLEY KRAUSE ASSISTANT DIRECTOR Dave, enclosed is an executed copy of the Lease between The City of Newport Beach and the County of Orange. Also enclosed is a copy of the Minute Order dated March 14, 1978 authorizing execution of the document. Please contact me prior to beginning construction. The lease term commences April 1, 1978• Richard L. Acker Property Management Section RLA:PH Enclosure - Lease & Minute Order cc: Larry Leaman, EMA /Recreation & Open Space MINUTES OF THE BOARD OF SUPENV;SCRS OF CCU TY, CALF` JF Ai'!! \ March 14, 1973 IN RE: REPORT FEi?SIBILIT`Z OF FUNDING HA_;DICAEPED PROJECTS FRO:i HUD GRAN'i FUNDS ENVIRONMENTAL ._...`AGEMENT AGENCY On motion of Supervisor D1edcich, duly seconded and carried o n the following roll call, consideration of the feasibility of funding handicapped projoen from HUD Grant funds is hold for the budget cycle. AYES: SUPERVISORS PAL P i A. DILD R ICI, R6IPt ;. CLARK AND LAUaENCE SCIN if NOES: SUPERVISORS PHILIP L. ANTHONY AND THOMAS F. RILEY ABSENT: SIP ERVISORS NONE IS RE: LEASE LOWER. NEWPORT BAY CITY OF NEWPORT BEACIi On motion of Supervisor Clark, duly seconded and unantmously carried, the Chairman and the Clerk are authorized to sign the Lease, dated March 14, 1978, between the County of Orange and the City of Newport Beach allowing the City to develop a marine safety storage. ma Cntenance facility at Newport Harbor. Patrol Headquarters. PM 1002 -90 40 40 RECEIVED Y OF ORANGE G`iA j RNo! Estate Division MAR 2 1978 AM PM 7i8t9il0,liil2ili2A4A6 s ft ft CITY OFi NEWPORT B; AC11 February 14, 1973 1r. Richard L. Acker Real Property Agent County of Orange General Services Agency 400 Civic Center Drive West Santa Ana, CA 92702 Dear for. Acker: The City Council authorized that the Mayor and City Clerk to execute the Lease that was prepared for the City of Newport Beach regarding the shop /garage storage space at 1901 Bayside Drive. The City Clerk will return the original and two copies of the Lease to you when she has the Mayor's signature. Thank you for your time and efforts in preparing the finalized Lease document. I would hope that these documents can be submitted to the Board of Supervisors very soon so that the City can get started on the actual construction work prior to the end of the fiscal year. Again, thank you for your help. Respectfully, David Harshbarger Marine Director Marine Department DH: 11 ✓Ec: City Clerk City Hall • 3300 Newport Botdcvard, Nc +vport Beach, California 926'U"' " � M FEB 13 1978 By tho CITY COUNCIL CITY pi NWypRF ML*A9 February 13, 1978 MARINE DEPARTMENT TO: MAYOR AND CITY COUNCIL FROM: Marine Department N ITEM NO.: C H -2(b) SUBJECT: LEASE EXECUTION BETWEEN THE CITY OF NEWPORT BEACH AND THE COUNTY OF ORANGE - MARINE DEPARTMENT SHOP /GARAGE STRUCTURE ON COUNTY HARBOR DISTRICT PROPETY - CAPITAL IMPROVEMENT PROJECT #02- 2295 -116 Recommendation If desired, adopt Resolution authorizing the Mayor and City Clerk to execute the attached lease between the City of Newport Beach and the County of Orange Harbors, Beaches and Parks District, leasing the ground for the construction of a Marine Department Shop /Garage structure on the Harbor District property. Discussion The City Council, on October 11, 1977, approved in concept a draft lease for the subject capital improvement project. The draft lease has been changed slightly by the County of Orange, General Services Agency, Real Estate Division. A copy of the finalized lease is attached. County staff have requested formal action by the City Council on the lease prior to final submittal to the Board of Supervisors for signature. The Board of Supervisors, on March 1, 1977, reviewed the proposed project and have given their approval in concept. The draft lease agreement reviewed by the City Council on October 11, 1977 has been changed slightly. The following clauses have been changed or added: Clause 3 (LIMITATION OF LEASEHOLD) Summary of change - notes that the rights and privileges granted to the City are subject to all CC &R's involving those set out by the State Tideland Grant to the County of Orange (Chapter 415, Statutes of 19751 State of California). Clause 6 (CONSIDERATION) Summary of change - allows the City rent free space in consideration for City marine safety service assistance in search and rescue operations when city lifeguard personnel are available. r� PAGE TWO FEBRUARY 13, 1978 LEASE AGREEMENT - SHOP/GARAGE Clause 9 (OWNERSHIP UPON TERMINATION) Summary of addition - upon termination of the lease (10 years) or earlier if County needs the space. the improve- ments become the property of the County. Clause 13 (INDEMNIFICATION) Summary of change - City agrees to accept the property in an "as is" condition .... and hold the County harmless from claims arising out of the City's use of the property. The City staff anticipates County execution of the lease by the end of February. It is anticipated that improvements can begin on the subject site just prior to the end of the 1977 -78 fiscal year. f� �idiCt �1 ti� D. Harshbarger, Director Marine Department DH: II Attachments: 1. Lease 2. City Staff Report October 11, 1977 FEB 13 1978 BY the CITY COUNCIL RESOLUTION NO. 9274 CITY OF NeW►ORT MACt, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE BETWEEN THE CITY OF NEWPORT BEACH AND THE COUNTY OF ORANGE HARBOR, BEACHES AND PARKS DISTRICT IN CONNEC- TION WITH LEASING THE CITY GROUND FOR CONSTRUC- TION OF THE MARINE DEPARTMENT SHOP /GARAGE STRUCTURE ON HARBOR DISTRICT PROPERTY WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain lease between the City of Newport Beach and the County of Orange Harbor, Beaches and Parks District in connection with leasing the City ground for construction of the Marine Department shop /garage structure on Harbor District property; and WHEREAS, the City Council has reviewed the terms and conditions of said lease and finds them to be satisfactory and that it would be in the best interest of the City to authorize the Mayor and City Clerk to execute said lease; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said lease above described is hereby approved, and the Mayor and City Clerk are authorized and directed to execute the same on behalf of the City of Newport Beach. ADOPTED this 13th day of February , 1978. yor ATTEST: City Clerk DDO /bc 2 /S /78 MARINE DEPARTMENT October 11, 1977 ITEM NO TO: MAYOR AND CITY COUNCIL G -5 FROM: Marine Department SUBJECT: PROPOSED LEASE BETWEEN THE CITY OF NEWPORT BEACH AND THE COUNTY OF ORANGE FOR THE CONSTRUCTION OF A SMALL SHOP - GARAGE BUILDING ON COUNTY HARBOR DISTRICT PROPERTY LOCATED AT 1901 BAYSIDE DRIVE, NEWPORT BEACH Recommendation If desired, approve the draft lease and make a finding that the proposed structure is in conformance with the City's General Plan. Background The City Council in the 1976 -77 Fiscal Budget approved a Capital Improvement Project for the construction of a 528 square foot shop - garage building to be located on the Harbor District property at 1901 Bayside Drive. The purpose of this shop - garage building is to provide Marine Safety Rescue Boat personnel a shop and storage space from which to operate and maintain the department's rescue vessels. Since 1958, the Marine Department's maintenance equipment for the rescue boats has been stored on the patrol boats, in storage lockers placed on the docks and in the parking lot, and personal vehicles belonging to the rescue boat staff. Rescue boat personnel, when not on patrol or in inclement weather take shelter in various Harbor Department maintenance shops or offices. This practice has been disruptive to both County staff as well as City staff. In addition, the proposed shop - garage facility will house a City lifeguard jeep during the nighttime. This vehicle is currently parked outside and unprotected. w. The Board of Supervisors, on March 1, 1977, reviewed the proposed City facility on Harbor District property and gave an approval in concept subject to an affirmative recommendation of the Joint Harbor Committee. In addition, they authorized their General Services Agency, Real Estate Division to prepare a draft lease agreement. The Joint Harbor Committee, on March 22, 1977, reviewed the proposed building addition and recommended that the County lease the City ground space for the w SUBJECT: PROPOSED LEASE BETWEEN CITY OF NEWPORT BEACH AND COUNTY OF ORANGE proposed construction. Subsequent to the Joint Harbor Committee recommendation, City staff has prepared plans and specifications for the proposed structure. These plans must be approved by the County prior to the execution of the lease. The County has asked that the draft lease agreement also be reviewed by the City and that a finding be made that the proposed lease, in accordance with Government Code 65402, and has been determined to be in conformance with the City's General Plan. The proposed lease (attached) is a standard form County lease. The lease, in summary, provides: 1. Ground Space for the City to construct a 528 square foot shop - garage. 2. Cost - Rent free 3. Term - 10 years 4. Termination - Lessor may terminate upon 40 days written notice, in the event the Lessor should require space for future expansion. 5. Utilities - City supply separate electrical meter. 6. Insurance, Assigning and Maintenance - Standard provisions. 41-2/14"41 lc� D. Harshbargerr, Director Marine Department DH: 11 Attachment r 5` i OUNTY OF RANGE GENERAL SERVICES AGENCY `\( FACILITIES & REAL PROPERTY rJ REAL ESTATE DIVISION GEORGEH.CORMACK,MANAGER 400 CIVIC CENTER DR. WEST P.O. BOX 4106 SANTA ANA, CA 92702 May 26, 1977 (714)934 -2550 PM 1002 -30 Lower Newport Bay Mr. Dave Harshbarger, Director Marine Department City of Newport Beach 330 Newport Boulevard Newport Beach, California 92660 DIRECTOR STANLEY KRAUSE ASSISTANT DIRECTOR SUBJECT: PROPOSED LEASE BETWEEN THE CITY OF NEWPORT BEACH AND THE COUNTY OF ORANGE AT COUNTY HARBOR PATROL HEADQUARTERS, 1901 BAYSIDE DRIVE, NEWPORT BEACH Dave, as we previously discussed, I need a complete set of designs, plans, and specifications relating to the construc- tion of the City's proposed shop /garage to be located at County Harbor Patrol Headquarters. These plans must be approved by the County prior to the execution of the Lease. In addition, I will need a written statement indicating that the City has reviewed the proposed Lease in accordance with Government Code 65402 and has determined that the lease is in conformance with the City's General Plan. Enclosed is a draft copy of the subject Lease for review by you and your staff. I would appreciate your comments and suggestions relating to this document as soon as possible. Thank you for the assistance which your office has already provided me in preparing this document. If you have any questions or desire further information, please do not hesi- tatelto call me at 844-2550. Ga Smith P ty Management Section GDS /afa Enc. CC: Larry Leaman, Manager, EMA /Recreation Programs 1'. 2 3 4 5 6 7 8 9 10 11 12 13 14 I 151 16 17 181 191 20 2111 22 23 24 25 26 27 28 IV" DRAFT - SU63JECIf -f0 CHANGE PM 1002 -30 Lower Newport Bay LEASE Z., THIS IS A LEASE, made this day of , 19 , by and between the COUNTY OF ORANGE, a body corporate anic, Hereinafter referred to as "LESSOR ", and the CITY OF NEWPORT BEACH, a body corporate and politic, hereinafter referred to as "TENANT ", without regard to number and gender. I. DEMISED PREMISES (MA3.1 S) LESSOR leases to TENANT that certain property hereinafter referred to as "Demised Premises ", described in "Exhibit A" and shown on "Exhibit B ", which exhibits are attached hereto and by reference made a part hereof; together with the non - exclusive use of LESSOR'S adjacent parking area, also shown on Exhibit B. 2. USE LESSOR leases to TENANT and TENANT hires from LESSOR the Demised Premises for the purpose of constructing a storage /maintenance facility which shay be used by TENANT to store and maintain supplies and equipment used oy TENANT in conjunction with TENANT'S marine safety activities. 3. LIMITATION OF THE LEASEHOLD (MA5.1 S) This Lease and the rights and privileges granted TENANT in and to the Demised Premises are subject to all covenants, conditions, testrictions, and exceptions of record or apparent, inclu3inq those which are set out in the Tideland Grant by the State of California to the County of Orange (Statutes of 1919, page 1138, Chapter 526 as amended by statutes of 1929, page 979, Chapter 575; State of California). Nothing contained in this Lease or in any document related hereto shall be construed to imply the convevance to TENANT of rights in the Demised Premises which exceed those owned by LESSOR. GUS /so 76A -1 5.237 3, I 1 4. TERM (MB2.1 S) 2� The term of this Lease shall be ten (10) years, commencing the first day of the first full calendar month following the date of execution of the 3 agreement by LESSOR. 4 5. TERMINATION BY LESSOR 5 In the event LESSOR should require the Demised Premises in connection 6 with the future expansion and /or operation of LESSOR'S Harbor Patrol Facility, LESSOR may, at any time upon 90 days written notice, terminate 7 this Lease. 8 6. CONSIDERATION 9 In consideration of the aid and assistance which TENANT provides LESSOR 10 in the performance of LESSOR'S Harbor Patrol activities, TENANT'S use of the Demised Premises shall be rent -free. 11 12 7. TENANT REQUIRED CONSTRUCTION 13 TENANT, at no expense or cost to LESSOR, shall cause to be designed and constructed on the Demised Premises a storage /maintenance facility 14 containing approximately 526 square feet of floor area. Said facility shall be constructed in such a way that it will connect to and become an 15 extension of LESSOR'S existing storage shelter which is located directly adjacent to the Demised Premises, as indicated on Exhibit B. TENANT'S 16 storage /maintenance facility shall be of a type construction, quality 17 and design equivalent to LESSOR'S existing storage shelter. TENANT acknowledges that TENANT'S construction of the storage /maintenance 18 facility will require the relocation of LESSOR'S existing trash enclosure 19 which is located within the Demised Premises. TENANT hereby agrees, at no expense or cost to LESSOR, to relocate said 20 trash enclosure to the area directly adjacent to the Demised Premises as indicated on Exhibit B. Once relocated the new trash enclosure shall 21 contain the same floor area, and shall be of a type construction, quality 221 and design equivalent to LESSOR'S existing'trash enclosure. The new enclosure, upon completion, shall become property of LESSOR. I 23 TENANT shall construct said storage /maintenance facility and trash enclo- sure in strict compliance with the designs, plans and specifications whicl 241 are attached hereto and by reference made a part hereof as Exhibit C. 25 Prior to construction TENANT shall obtain all required construction 26 permits including but not limited to those permits which may be required by the California Coastal Zone Conservation Commission. 271 GDS /so 76A1 -2 -2- 5.237 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8. "AS BUILT" PLANS AND CONSTRUCTION COSTS (MD5.1 S) L Within 60 days following completion of TENANT- required construction, TENANT shall furnish LESSOR a complete set of reproducibles and two sets of prints of "As- Built" plans. In addition, TENANT shall furnish LESSOR an itemized statement of the actual construction costs. The statement of cost shall be sworn to and signed by TENANT or his responsible agent under penalty of perjury. TENANT must obtain LESSOR approval of "As- Built" plans. 9. MAINTENANCE OBLIGATIONS OF TENANT (ME2.2 S) TENANT agrees to maintain the Demised Premises and all improvements con- structed thereon in good order and repair, and to keep said premises in a neat, clean, orderly, safe, and sanitary condition. This includes, but is not limited to, the prevention of accumulation of any refuse or waste materials which might constitute a fire hazard or a public or private nuisance. Failure of TENANT to properly maintain and repair the Demised Premises shall constitute a breach of the terms of this Lease. 10. UTILITIES (NE1.1 S) TENANT assumes all obligation to insure that adequate utility service is supplied to the Demised Premises. All utilities supplied to the Demised Premises shall be metered separately from the utilities supplied to LESSOR'S adjacent facilities. TENANT shall be responsible for all costs relating to the installation of utility service to the Demised Premises, and shall pay, prior to delinquency date, all charges for utilities supplied to the Demised Premises. 11. MAJOR REPAIRS, RECONSTRUCTION AND ALTERATION Before commencing any major repairs, reconstruction or alteration to the storage /maintenance facility, TENANT shall submit to LESSOR a set of designs, plans and specifications. LESSOR shall have 30 days to review said designs, plans and specifications following receipt of same from TEN.I NIT . LESSOR shall not unreasonably disapprove said designs, plans and specifications. Approval or disapproval shall be communicated in writing by LESSOR to TENANT. Disapproval shall be accompanied by adequate reason'. for such disapproval. Failure to disapprove within the time limits previously set forth shall be construed by TENANT as approval of said designs, plans and specifications. GDS /so 76A1 -3 -3- 5.237 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12. INDEMNIFICATION TENANT shall indemnify and save harmless LESSOR, its officers, agents and employees from and against any and all claims, demands, loss, or liabilities of any kind or nature which LESSOR, its officers, agents and employees may sustain or incur or which may be imposed upon them or any of them for injury to or death of persons or damage to property as a result of, or arising out of the sole negligence of TENANT, its officers, agents, employees, subtenants, licensees, patrons, or visitors, in connection with the occupancy and use of the Demised Premises by TENANT. 13. INSURANCE (ME5.1 S) TENANT shall maintain insurance acceptable to LESSOR in full force and effect throughout the term of this Lease. The policy or policies of insurance shall name LESSOR as an additional, insured and the entire limits of liability maintained shall be certified, but in no event shall they be less than the amounts specified: A. Comprehensive Public Liability: (1) $500,000 bodily injury, each person; (2) $1,000,000 bodily injury, each occurrence; and (3) $150,000 property damage. B. Fire and Extended Coverage: Not less than 908 of the cost of replacement of all insura e improvements within the Demised Premises, Water damage and debris cleanup provisions shall be included. Insurance shall be in force the first day of the term of this Lease. Additional fire insurance in the amount stated above shall be in force upon the date of completion of construction or installation of each major insurable improvement by TENANT. Each policy of insurance shall contain the following clauses: "IT IS AGREED THAT THIS POLICY SHALL NOT BE CANCELLED NOR THE COVERAGE REDUCED UNTIL THIRTY DAYS AFTER GSA /REAL ESTATE DIVISION, COUNTY OF ORANGE, SHALL HAVE RECEIVED WRITTEN NOTICE OF SUCH CAN- CELLATION OR REDUCTION. THE NOTICE SHALL BE SENT BY CERTIFIED MAIL OR REGISTERED MAIL AND SHALL BE DEEMED EFFECTIVE THE DATE DELIVERED, AS EVIDENCED BY PROPERLY VALIDATED RETURN RECEIPT." "THE INCLUSION HEREIN OF ANY PERSON OR ENTITY AS AN INSURED SHALL NOT AFFECT ANY RIGHT SUCH PERSON OR ENTITY WOULD HAVE AS A CLAIMANT HEREUNDER IF NOT SO INCLUDED." TENANT agrees to deposit with LESSOR, at or before the times at which required to be in effect, certificates of insurance necessary to satisfy LESSOR that insurance provisions of this Lease have been complied with and to keep such insurance in effect and the certificates therefor on deposit with LESSOR during the entire term of this Lease. GUS /so 76AI -4 -4- 5.2.37 i III . 1� 2I 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 W (O LESSOR shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. If', in the opinion of LESSOR, the insurance provisions in this Lease do not provide adequate protection for LESSOR and for members of the public using the Demised Premises, LESSOR may require TENANT to obtain insurance sufficient in coverage, form, and amount to provide adequate protection. LESSOR'S requirements shall be reasonable but shall be designed to assure protec- tion from and against the kind and extent of the risks which exist at the time a change in insurance is required. LESSOR shall notify TENANT in writing of changes in the insurance requirements; and if TENANT does not deposit copies of acceptable insurance policies with LESSOR incorporating such changes within sixty days of receipt of such notice, this Lease shall be in default without further notice to TENANT, and LESSOR shall be entitled to all legal remedies. The procuring of such required policy or policies of insurance shall not be construed to limit TENANT'S liability hereunder nor to fulfill the indemnification provisions and requirements of this Lease. Not- withstanding said policy or policies of insurance, TENANT shall be obligated for the full and total amount of any damage, injury, or loss caused by negligence or neglect connected with this Lease or with use or occupancy of the Demised Premises. 14. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS (ME4.1 S) In the event of damage to or destruction of TENANT- constructed improve- ments located within the Demised Premises or in the event TENANT - constructed improvements located within the Demised Premises are declared unsafe or unfit for use or occupancy by a public entity with the authority to make and enforce such declaration, TENANT shall, within 30 days, commence and diligently pursue to completion the repair, replace- ment, or reconstruction of improvements necessary to permit full use and occupancy of the Demised Premises for the purposes required by this Lease. Repair, replacement, or reconstruction of improvements within the Demised Premises shall be accomplished in a manner and according to plans approved by EMA. 15. ASSIGNING, SUBLETTING, AND ENCUMBERING PROHIBITED (ME7.3 S) Any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, or assignment (hereinafter in this clause referred to collectively as "Encumbrance ") of TENANT'S interest in the Demised Premises, or any part or portion thereof is prohibited. Any attempted Encumbrance shall be null and void and shall confer no right, title, or interest in or to this Lease. If the TENANT hereunder is a corporation or an unincorporated association or partnership, the Encumbrance of any stock or interest in said corpora- tion, association, or partnership in the aggregate exceeding twenty -five GDS /so 76A1 -5 5.237 -5- 7, ij percent (258) shall be deemed an assignment within the meaning of this clause. 16. NOTICES (MF8.1 S) All notices pursuant to this Lease shall be addressed as set forth below or as either party may hereafter designate by written notice and shall be sent through the United States mail. TO: LESSOR TO: TENANT and County of Orange EMA /Develop, »ent Division P. 0. Box 1078 Santa Ana, CA 92707 County of Orange GSA /Real Estate Division P. 0. Box 4106 Santa Ana, California 92702 City of Newport Beach Marine Department 3300 Newport Boulevard Newport Beach, CA 92660 17. ATTACHMENTS TO LEASE (MF9.1 S) This Lease includes the following, which are attached hereto and made a part hereof: A. GENERAL CONDITIONS B. EXHIBITS: A - Legal Description B - Plot Plan GDS /so 76A1 -6 5.237 IM. C IN WITNESS WHEREOF, the parties have executed this Lease the day first above written. LESSOR ATTEST: June Alexander Clerk of the Board of Supervisors County of Orange APPROVED AS TO FORM: County Counsel M RECOMMENDED FOR APPROVAL: Environmental Management Agency By RECOMMENDED FOR APPROVAL General Services Agency Facilities & Real Property Architect /Engineer Division By Manager Facilities & Real Property Real Estate Division By Real Property Agent By Manager GDS /so 76A1 -7 5.047 COUNTY OF ORANGE By C airman, Board of Supervisors O TENANT CITY OF NEWPORT BEACH By By A `=i 49 0 I. GENERAL CONDITIONS (MG1 -24 N) 1. DEFINITION OF "LESSOR" (MG1 S) The term "LESSOR" shall mean the Board of Supervisors of the political body which executed this agreement or its authorized representative. 2. TIME (MG2 S) Time is of the essence of this Lease. 3. SIGNS (MG3 S) TENANT agrees not to construct, maintain, or allow any sign upon the Demised Premises except as approved by LESSOR. Unapproved signs, banners, flags, etc., may be removed by LESSOR. 4. PERMITS AND LICENSES (MG4 S) TENANT shall be required to obtain any and all permits and /or licenses which may be required in connection with the operation of the Demised Premises as set out herein. 5. LEASE ORGANIZATION (MG6 S) The various headings and numbers herein, the grouping of provisions of this Lease into separate clauses and paragraphs, and the organization hereof, are for the purpose of convenience only and shall not be consid- ered otherwise. 6. AMENDMENTS (MG7 S) This Lease sets forth all of the agreements and understandings of the parties and any modification must be written and properly executed by both parties. 7. UNLAWFUL USE (MG8 S) TENANT agrees no improvements shall be erected, placed upon, operated, nor maintained within the Demised Premises, nor any business conducted or carried on therein or therefrom, in violation of the terms of this Lease, or of any regulation, order of law, statute, bylaw, or ordinance of a governmental agency having jurisdiction. GDS /SS 104A2 -1 4.227 B. NONDISCRIMINATION (MG9 S) TENANT agrees not to discriminate against any person or class of persons by reason of sex, race, color, creed, or national origin. TENANT shall make its accommodations and services available to the public on fair and reasonable terms. 9. INSPECTION (MG10 S) LESSOR or its authorized representative shall have the right at all reasonable times to inspect the Demised Premises to determine if the provisions of this Lease are being complied with. 10. TAXES AND ASSESSMENTS (MG12 S) All taxes and assessments which become due and payable upon the Demised Premises or upon fixtures, equipment, or other property installed or con- structed thereon, shall be the full responsibility of TENANT, and TENANT shall cause said taxes and assessments to be paid promptly. 11. SUCCESSORS IN INTEREST (MG13 S) Unless otherwise provided in this Lease, the terms, covenants, and condi- tions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder. 12. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (MG14 S) If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, restrictive governmental laws or regulations, or other cause without fault and beyond the control of the party obligated (financial inability excepted), per- formance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. However, nothing in this clause shall excuse TENANT from the prompt payment of any rental or other charge required of TENANT, except as may be expressly provided elsewhere in this Lease. 13. PARTIAL INVALIDITY (MG15 S) If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby: 14. WAIVER OF RIGHTS (MG16 S) The failure of LESSOR or TENANT to insist upon strict performance of any of the terms, covenants, or conditions of this Lease shall not be deemed a waiver of any right or remedy that LESSOR or TENANT may have, and shall not be deemed a waiver of the right to require strict performance of all the terms, covenants, and conditions of the Lease thereafter, nor a waiver GDS /so 104A2 -2 -2- 5.037 M 0 of any remedy for the subsequent breach or default of any term, covenant, or condition of the Lease. 15. DEFAULT IN TERMS OF THE LEASE BY TENANT (MG17 S) Should TENANT default in the performance of any covenant, condition, or agreement contained in this Lease and such default is not corrected within a reasonable time (as determined by LESSOR) after TENANT receives written notice of default from LESSOR, LESSOR may: A. Terminate this Lease. All rights of TENANT and those who claim under TENANT, stemming from this Lease, shall end at the time of such termination; or B. At LESSOR'S sole option, cure any such default by performance of any act, including payment of money, and add the cost thereof, plus reasonable administrative costs, to the rent. 16. COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT (MG18 S) In the event either LESSOR or TENANT commences legal action against the the other claiming a breach or default of this Lease, the prevailing party in such litigation shall be entitled to recover from the other costs of sustaining such action, including reasonable attorney fees, as may be fixed by the Court. 17. RESERVATIONS TO LESSOR (MG19 S) The Demised Premises are accepted as is and where is by TENANT subject to any and all existing easements and encumbrances. LESSOR reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oil, and gas pipelines; telephone and telegraph power lines; and the appliances and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, and along the Demised Premises or any part thereof, and to enter the Demised Premises for any and all such purposes. LESSOR also reserves the right to grant franchises, easements, rights of way, and permits in, over, upon, through, across, and along any and all portions of the Demised Premises. No right reserved by LESSOR in this clause shall be so exercised as to interfere unreasonably with TENANT'S operations hereunder or to impair the security of any secured creditor of TENANT. LESSOR agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of the land shall be restored as nearly as practicable to its original condition upon the completion of any construction. LESSOR further agrees that should the exercise of these rights temporarily interfere with the use of any or all of the Demised Premises by TENANT, the rental shall be reduced in propor- tion to the interference with TENANT's use of the Demised Premises. 18. HOLDING OVER (MG20 S) In the event TENANT shall continue in possession of the Demised Premises after the term of this Lease, such possession shall not be considered a GDS /so 104A2 -3 -3- 5.037 ft M 1a. renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease. 19. DISPOSITION OF ABANDONED PERSONAL PROPERTY (MG22 S) If TL'NANT abandons the Demised Premises or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to TENANT and left on the Demised Premises 45 days after such abandonment or dispossession shall be deemed to have been transferred to LESSOR. LESSOR shall have the right to remove and to dispose of such property without liability therefor to TENANT or to any person claiming under TENANT, and shall have no need to account therefor. 20. QUITCLAIM OF TENANT'S INTEREST UPON TERMINATION (MG23 S) Upon termination of this Lease for any reason, including but not limited to termination because of default by TENANT, TENANT shall execute, acknowledge, and deliver to LESSOR, within 30 days after receipt of written demand therefor, a good and sufficient deed whereby all right, title, and interest of TENANT in the Demised Premises is quitclaimed to LESSOR. Should TENANT fail or refuse to deliver the required deed to LESSOR, LESSOR may prepare and record a notice reciting the failure of TENANT to execute, acknowledge, and deliver such deed and said notice shall be conclusive evidence of the termination of this Lease and of all right of TENANT or those claiming under TENANT in and to the Demised Premises. 21. LESSOR'S RIGHT TO RE -ENTER (MG24 S) TENANT agrees to yield and peaceably deliver possession of the Demised Premises to LESSOR on the date of termination of this Lease, whatsoever the reason for such termination. Upon giving written notice of termination to TENANT, LESSOR shall have the right to re -enter and take possession of the Demised Premises on the date such termination becomes effective without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re -entry of the Demised Premises by LESSOR shall in no way alter or diminish any obligation of TENANT under the lease terms and shall not constitute an acceptance or surrender. TENANT waives any and all right of redemption under any existing or future law or statute in the event of eviction from or dispossession of the Demised Premises for any reason or in the event LESSOR re- enters and takes possession of the Demised Premises in a lawful manner. TENANT agrees that should the manner or method employed by -LESSOR in re- entering or taking possession of the Demised Premises give TENANT a cause of action for damages or in forcible entry and detainer, the total amount of damages to which TENANT shall be entitled in any such action shall be One Dollar. TENANT agrees that this clause may be filed in any such action and that when filed, it shall be a stipulation of TENANT fix- ing the total damages to which TENANT is entitled in such an action. GDS /so 104A2 -4 -4- 5.037 �3. PROJECT: Lower Newport Bay DATE: April 12, 1977 ESTATE: Leasehold WRITTEN: C.D.C. CHECKED: R.L.L. PROJECT NO..PM 1002 PARCEL NO. 30 That portion of Orange County Tidelands in Lower Newport Bay, City of Newport Beach, County of Orange, state of California, as shown cross- hatched on a Plot Plan attached hereto and made a part hereof. l,rkOVED:� , HAROLD I. SCOTT Right of Way Engineer W. H. TALLEY Registered Civil Engineer Certificate No. 16799 EXHIBIT A c V 's 3 E S 6 L s a P r-� �rrV �• V P F T Z � 4 s m y m o 1' i � m U EXHIBIT B 0 P 0 f J 1 c� l i ✓ J R Z 0 n ° P n I E�