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HomeMy WebLinkAboutC-2897 - Employment Agreement City ManagerCA OF NEWPORT B41ACH OFFICE OF THE CITY ATTORNEY P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 (949) 644 -3131 March 8, 1999 Kevin J. Murphy 1101 Nottingham Lane Newport Beach, CA. 92660 RE: Consent to Appraisal and Distribution Dear Kevin: This letter will confirm that the City Council has reviewed and approved the appraisal of your residence conducted by Joseph G. Difilippo. The City Council has also reviewed and approved your calculations relative to the sums to be distributed to the City pursuant to provisions of the Agreement to Resign. This will confirm the City's share of the equity buildup, less costs, is $26,782. The distribution of the "equity buildup" and the $200,000 loan (total distribution of $226,782) will fully satisfy your obligations to the City and the note and lien on the property. Very truly yours, Dennis D. O'Neil Mayor of the City of Newport Beach 3300 Newport Boulevard, Newport Beach Order No. E : ;.sow No. Loan No. WHEN RECORDED MAIL TO: City of Newport Beach Post Office Box 1768 Newport Beach, CA 92659 -1768 Attn: Office of the City Attorney 9 ?_-399365 Recorded HICAGO TITLE COMPANY 40) JUN 121992 1 .Fill. Official Records Orange County, California Recorder C& 0'� ABOVE THIS LINE F 3 `7 DEED OF TRUST WITH ASSIGNMENT OF RENTS (SHORT FORM) -Tai&: is Lion Nt 3 Others A., To al Fri. c. Fees RECOF This DEED OF TRUST, made June // , 199 2 between Kevin J. Murphy and Kristina L. Murphy, husband and wife, as community property herein called TRUSTOR, whose address is 1101 Nottingham Road, Newport Beach, California (Number and Street) (City) (State) FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and City of Newport Beach, a Charter City and Municipal Corporation ' herein called BENEFICIARY, WITNESSETH: That Trustor grants to Trustee in Trust, with Power of Sale, that property in the City Of Newport Beach, County of Orange , State of California, described as: Lot 49 of Tract 3031 as per Map recorded as Book 96, Pages 24 -26, inclusive, in Miscellaneous Maps recorded in the Office of the County Recorder of Orange County, California [The real property is commonly described as 1101 Nottingham Road, Newport Beach, California and is designated as Orange County AP# 07- 045- 117 - 482 -061 Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits. See Rider attached For the Purpose of Securing (1) payment of the sum of $ / hereto with interest thereon according to the terms of a promissory note or date herewith made by Truster, payable to order of Beneficiary, and extensions or renewals thereof, and (2) the performance of each notes of even of Truster incorporated by reference or contained herein (3) Payment of additional sums and interest thereon which may hereafter be loaned to agreement Trustor, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, To protect the security of agrees to and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and adopts and perform forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other and all of the terms and provisions set the Official Records in the office of the county recorder of the county where said property is located, counties August 18, 1964, in the book and at page of noted below opposite the name of such county, namely: COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130 -31 Lake 437 110 Plumes 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solana 1287 621 Butte 1330 513 Los Angeles T -3878 874 Sacramento 5039 124 Sonoma 2067 427 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colo.. 323 391 Maria 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 T Mariposa 90 453 San Francisco A -804 596 Tehama 457 183 Dal Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Mod.. 191 93 San Mate. 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Y.I. 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 lay. 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivision A and B, (identical in all counties, and printed on the reverse side hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Gust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maxioum allowed by law. The undersigned Truster, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth STATE OF CALIFORNIA COUNTY OF before me, the undersigned, a Notary Public in and for said State, per- sonally appeared —_ __. -_— personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons) whose names) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same. WITNESS my hand and official seal. Signature of Truster li, IST i (This ..e. for .Rci.l not.d.d seat) 1158 (6182) The f611owinilts a copy of Subdivisions A and B of utious Deed of Trust a +:urded in eacb county in Calif r es stated in the foregoing Deed of Trust and in corporeted by reference in said Deed of Trust as being[ thereof as it set forth at length therein. A. -To protect the security of this Deed of Trust, Trustor agrees: f1) To keep said property in good condition and repair; nOf to rem we or demolish any building theieun; to complete or resture promptly and in good and workmanlike manner any building which maybe constructed, damaged or destroyed thereon end In pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or imprwemm�ts to be made thereon; not to coolant or permit waste [hereof; nut to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may deternine, or at option Of Sere ficiary the entire amount so collected or any part thereof may be released to Trustor. Such application Or release shell not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3' To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and m pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all incumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, fray: ..hake or do the same in such manner and to such extent as either mhay deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action orr pro, l ion reeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, his nor lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay able fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply w release such moneys received by him in the same numner antl with the same effect as above provided for disposition of proceeds of fire or other insurance. (2) That by accepting payment of any win secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (31 That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the in- debtedness hereby secured, enterupon and take possession of said property or any part thereof, in his own name we for or otherwise collect such rents, issues, and prof- its, including those past due and unpaid, andappfy theseme, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebted ness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then re- quired by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate par- cels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but with- out any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of t.tle in connection with sale. Trustee shall apply the pro- reeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 171 Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, withwtcoweyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor. Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and as. signs. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify env party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE TO FIRST AMERICAN TITLE INSURANCE COMPANY, TRUSTEE: The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, to- gether with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you Of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now .geld by you under the same. Dated Please mail Deed of Trust, Note and Reconveyance to Do not lose or destroy this Deed of Trust OR THE NOTE. r0at_h it seeures. Both nwst be delivered m the 1hu'te far tar , ellation before reconveranee will be trade. Iii- N U N vP u C T LL Q C i (0 w LL w u E :3 to Q H 3 Q _C: CL o 0 Q W = r_ J v' LL + Lu 3 r 0 RIDER TO DEED OF TRUST DATED JUNE 3.992 EXECUTED BY KEVIN J. MURPHY AND KRISTINA L. MURPHY, AS TRUSTORS IN FAVOR OF THE CITY OF NEWPORT BEACH, A CHARTER CITY AND MUNICIPAL CORPORATION, AS BENEFICIARY This Deed of Trust secures the Obligation evidenced by a Promissory Note and Agreement dated June _�L, 1992, which Promissory Note and Agreement provide for a payment by Trustor to Beneficiary of a principal sum of Two Hundred Thousand Dollars ($200,000) plus a percentage of any "Equity Build-up", which Equity Build -up, if any, shall be in addition to the Two Hundred Thousand Dollar ($200,000) principal sum. The Equity Build -up will be computed upon the increase in value, if any of the real property encumbered by this Deed of Trust, as determined by a sale or appraisal pursuant to the terms of an Employment Agreement dated March 6, 1992 by and between the City of Newport Beach and Kevin J. Murphy. THE PROMISSORY NOTE AND AGREEMENT WHICH CREATES THE OBLIGATION WHICH THIS DEED OF TRUST SECURES PROVIDES THAT THE BENEFICIARY SHALL HAVE THE RIGHT, AT BENEFICIARY'S OPTION, To DECLARE ANY OBLIGATION SECURED BY THE PROMISSORY NOTE AND AGREEMENT DUE AND PAYABLE IN THE EVENT THE TRUSTOR, OR ANY SUCCESSOR -IN- INTEREST OF THE TRUSTOR, SHALL SELL, ENTER INTO A CONTRACT TO SELL, CONVEY OR ALIENATE THE REAL PROPERTY WHICH THIS DEED OF TRUST ENCUMBERS, OR ANY PART THEREOF, OR TRUSTOR SHALL HAVE ITS TITLE, OR ANY PORTION THEREOF, TO BE DIVESTED, EITHER VOLUNTARILY OR BY OPERA- TION OF LAW, WITHOUT THE PRIOR WRITTEN CO SENT OF BENEFICIARY. e M rph STATE OF CALIFORNIA ss. COUNTY OF ORANGE On June 11. 1992, before me, the undersigned, a Notary Public in and for Said State, personally appeared Kevin J. Murphy, known to me (or proved to me on the basis of satisfactory evidence) to be the persons whose names are subscribed in this instrument and acknowledged that they executed it. WITNESS my hand and official seal. FFICI SEAL SHAUNA LYN OYIER OIVCwm NOTARY PMUC - CALIFORNIA ORANGE COUNTY Eaalm Jan. 16.1993 STATE OF CALIFORNIA ) ss: COUNTY OF ORANGE ) Notary Public i nd fo said State On June 11. 1992, before me, the undersigned, a Notary Public in and for the State, personally appeared Kevin J. Murphy, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument as the Attorney in fact of Kristina L. Murphy and acknowledged to me that he subscribed the name of Kristina L. Murphy thereto as principal and his own name as Attorney in fact. WITNESS my hand and officiZa 1. I L :I < ;• SHAUNA LYN OYLER NOTARY PU8UC- CALGORNIA Notary Public in nd for aid State o ORANGE COUN 1y 14 Cw m. E*Mn Jan. 16.1993 CERTIFICATE OF ACCEPTANCE Government Code Section 27281 This is to certify that the interest in real property encumbered by the Deed Of Trust, dated June 11, 1992, as set forth above to the City of Newport Beach, a Municipal Corporation, is hereby accepted by the undersigned officer or agent, on behalf of the City Council of the City of Newport Beach, pursuant to authority conferred by the City Council of the City of Newport Beach, and the City of Newport Beach consents to recordation thereof by its duly authorized officer or agent. IN WITNESS WHEREOF, I have hereunto set my hand this 12th day of June, 1992. CITY OF NEVPORT BEACH A Municipal Corporation By: ATTEST: t CITY CLERK bbert H. Burnham ity Attorney • • SECURED PROMISSORY NOTE AND City of Newport Beach, California June 'L, 1992 FOR VALUE RECEIVED, Kevin J. Murphy and Kristina L. Murphy, husband and wife ( "Maker ") promise to pay to the order of the City of Newport Beach, a Charter City and Municipal Corporation ( "Holder ") at 3300 Newport Boulevard, Newport Beach, California, or at such other place as may be designed in writing by Holder, the "Obligation" as herein defined. For the purposes of this Note and Agreement the "Obligation" shall represent (1) the principal sum of Two Hundred Thousand Dollars ($200,000), plus (2) that additional sum, if any, which shall constitute an "Equity Build -up ", as such term is defined in an Employment Agreement dated March 6, 1992 by and between Maker and Holder (the "Employment Agreement ") with the sum of the Equity Build -up to be determined by value of the real property located at 1101 Nottingham Road, Newport Beach, California (the "Real Property ") and computed and payable in accordance with the terms of the Employment Agreement. The Obligation of this Note and Agreement shall become due and payable upon (a) termination of The Employment Agreement, (b) Holder, exercising the right it shall hold, declaring the entire Obligation secured hereby due and payable, by reason of the Maker, including any successor -in- interest of the Maker having sold, entered into an agreement of contract of sale, conveying or alienat- ing the Real Property, or any part thereof, or having suffered Maker's title or interest therein to be divested either voluntarily or involuntarily without Holder's written consent having been first had and obtained, (c) any breach or default by Maker, as the Trus- tor, under the Deed of Trust encumbering the Real Property which secures the obligation of this Promissory Note and Agreement, or (d) occurrence of any event, which under the terms and provisions of Section 9 of the Employment Agreement, shall constitute an event requiring payment of the Obligation. The Obligation shall bear no interest unless or until the Obligation shall become due under the terms of this Promissory Note and Agreement and /or under the terms and provisions of the Employ- ment Agreement and, thereafter if not paid within ten (10) days of becoming due, shall after the due date bear interest at the rate of ten percent (10 %) per annum. Maker does hereby waive presentment, protest and demand, notice of protest, demand and dishonor, and non - payment of this Note and expressly agrees that this Note, or any payment thereunder may be extended from time to time by Holder, without in any way affect- ing the liability of Maker and any subsequent endorser or guarantor hereof. Maker further promises to pay all reasonable attorneys fees and costs incurred by Holder in connection with any default under the terms of this Note and Agreement and in any proceeding brought to enforce any of the provisions of this Note and Agreement. This Note is to be construed in accordance with the laws of the State of California. THE PAYMENT OF THIS NOTE IS SECURED BY A DEED OF TRUST ENCUMBERING THE PARCEL OF REAL PROPERTY COMMONLY KNOWN AS 1101 NOTTINGHAM ROAD, NEWPORT BEACH, CALIFORNIA, WHICH DEED OF TRUST IS IN FAVOR OF FIRST AMERICAN TITLE INSURANCE COMPANY, AS TRUSTEE. ewe Ket M r KristiM�h!Yj� - -2- a STATE FARM INSURANCE COMPANIES POLICY NUMBER EARTHQUAKE POLICY 10 55 -BM- 9384 -1 INSURED: MURPHY, KEVIN J & KRISTINA L 8350/1E B CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY PO BOX 1768 NEWPORT BEACH CA 92658 -8915 - 111Inn11LILn1. 1 oil 66�LLIu...I1.LLdLd..l...{L{ NOTE: DO NOT PAY. THE PREMIUM IS BEING iD BY THE DESIGNATED PARTY. DAT PLEASE PAY THIS AMOUNT THIS IS FOR INFORMATION ONLY IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT Regional Office Use Only 0220 000505100017700 255512239384102512> STATE FARM FIRE AND CASUALTY COMPANY P.O. BOX 25045, SANTA ANA CA 92799 -5048 POLICY NUMBER DATE DUE PLEASE PAY THIS AMOUNT 55 -BM- 9384 -1 PAID BY SPECIFIED PART FULL PAYMENT BY DATE DUE EXTENDS POLICY PERIOD TO JAN 21 96. INSURED: MURPHY, KEVIN J & KRISTINA L LOCATION: 1101 NOTTINGHAM LN NEWPORT BEACH CA 92660-4835 RENEWAL CERTIFICATE PREPARED NOV 23 94 EARTHQUAKE POLICY COVERAGES & PROPERTY A DWELLING DWELLING EXTENSION B PERSONALUPROPERTY ONE LIMIT OF LIABILITY OF $ 100,000 APPLIES AS ONE COMBINED LIMIT FOR ALL COVERAGES AND PROPERTY. MORTGAGEE: CALIFORNIA FEDERAL BANK F.S.B. DEDUCTIBLE: $5,000 ITS SUCCESSORS AND ASSIGNS ( 5% OF LIMIT OF LIABILITY) P 0 BOX 7089 PASADENA CA 91109 -7089 FORKS, OPT IONS _A%W- -ENvO"'ii VE ENT-S ...- EARTHQUAKE POLICY FP -7930 REPLACEMENT COST CONTENTS OPT RC LENDERS LOSS PAYABLE END 438 See reverse side for important information affecting your insurance. Please - keep / t this ��part foor//y��o��ur record. AgentTOM ROMANO INS AGENCY INC T.1—h— 040_CIPA -4ntlf n THIS POLICY DOES NOT PROVIDE GUARANTEED REPLACEMENT COST COVERAGE ON YOUR DWELLING. THIS POLICY DOES NOT INCLUDE EARTHQUAKE BUILDING CODE UPGRADE COVERAGE. ANNUAL PREMIUM $ 177. IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT. IF THIS IS NOT CONVENIENT, PLEASE COMPLETE THE FOLLOWING. Note: It this is a change in insured property, please see y0te Farm Agent. ❑ Mailing address change only ❑ Location change I expect to be here ❑ permanent change ❑ temporary change months. Street or Rural Route Address City — St. /Prov. Zip /Postal Township - County ❑ Inside City Limits ❑ Outside City Limits NOTICE TO POLICYHOLDER List below all other State Farm policies (Auto, Life, Fire or Health) on which premium notices should be sent to the new address. (PLEAMIRINT) Pol. No. _ Insured's Name Pol. No. _ Insured's Name Pol. No.. _ Insured's Name Pol. No. Insured's Name Pal. No..— __— .-- ._._...._.__.__.. _ Insured's Name New Residence Phone No. I—) New Business Phone No. (..._._.__) — .. __ For a comprehensive description of coverages and forms, please refer to your policy Policy changes requested before the "Date Prepared ", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date. If, during the past year, you've acquired anyvaluable property items, made any improvementsto insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy 538 -141.6 Rev. 1 -90 Printed in U.S.A. Policy Number DECLARATIONS PAGE _ r 55 -BM- 9384 -1 O �TE FARM FIRE AND CASUALT OMPANY REPLACES NO. P.O. #OX 25045, SANTA ANA CA 9149 -5048 55 -J8- 5840-4 A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS ,2 2ND MORTGAGEE NAMED INSURED g 8350 -1E B _ CITY OF NEWPORT BEACH MURPHY, KEVIN J & KRISTINA L OFFICE OF THE CITY ATTORNEY 1101 NOTTINGHAM LN V1� PO BOX 1768 NEWPORT BEACH CA 92660 -4835 NEWPORT BEACH CA 92658 -8915 EARTHQUAKE POLICY AUTOMATIC RENEWAL If the POLICY PERIOD is shown as 12 months, this policy will be renewed automatically sub- ject to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we will give you and the Mortgagee /Lien holder written notice in compliance with the policy provisions or as required by law. POLICY PERIOD: 12 MONTHS THE POLICY PERIOD BEGINS AND ENDS AT 12:01 AM EXPIRATION DATE: 01/21/95 STANDARD TIME AT THE RESIDENCE PREMISES LOCATION SAME AS OF RESIDENCE PREMISES INSURED'S ADDRFS& STATE FARM TOM ROMANO, Agent 1129 E. Main St., P.O. Box 1030 Alhambra, CA 91801 INSURANCEE, Phone; Bus. 818-576-1040 LOAN i 02203220730 MORTGAGEE CALIFORNIA FEDERAL BANK F.S.B. ITS SUCCESSORS AND ASSIGNS P 0 BOX 7089 PASADENA CA 91109 -7089 THIS POLICY DOES NOT INCLUDE EARTHQUAKE BUILDING CODE UPGRADE COVERAGE. COVERAGES & PROPERTY A DWELLING DWELLING EXTENSION B PERSONAL PROPERTY C LOSS OF USE ONE LIMIT OF LIABILITY OF $ 100,000 APPLIES AS ONE COMBINED LIMIT FOR ALL COVERAGES AND PROPERTY. DEDUCTIBLE: S 51000 ( 5% OF LIMIT OF LIABILITY) IN CASE OF LOSS UNDER THIS POLICY, THE DEDUCTIBLE WILL BE APPLIED PER OCCURRENCE AND WILL BE DEDUCTED FROM THE AMOUNT OF THE LOSS. FORMS, OPTIONS, & ENDORSEMENTS POLICY PREMIUM $ 177.00 EARTHQUAKE POLICY FP -7930 REPLACEMENT COST - CONTENTS OPTION RC LENDERS LOSS PAYABLE END 438 OTHER LIMITS AND EXCLUSIONS MAY APPLY —REFER TO YO `L R P �s OL Y ssa PREPARED COUNTERSIGNED 19 02/02/94'` FP- 7030.1C BY ^ "�'"`^A AGENT ROMANO INSURANCE AGENCY INC YOUR POLICY CONSISTS OF THIS PAGE, ANY ENDORSEMENTS 818 - 576 -1040 \1 ARIn TUP ISM ICY FnRY_ PLEASE KEEP THESE TOGETHER. _ 6 41 Important Notice ... California law requires us to provide you with information for filing complaints with the State Insurance Department regarding the coverage and service provided under this policy. Complaints should be filed only after you and State Farm or your agent or other company representative have failed to reach a satisfactory agree- ment on a problem. Please forward such complaints to: - - California Department of Insurance Consumer Affairs Division 300 South Spring Streef Los Angeles, CA 90013 Or call toll free 1- 800 -927 -HELP L m- p y � U O ] D 1 d O f"i p d 0 ry O `m 'S E m m pl i U C O O d N •N U N Y N m m Ql .w- N d = a m a o m m E d U Y m wa y d O O d F" GV U C L PROVISIONS W l _ Includes copyrit Copyrig Includes copyright Cop Cc D 0 ■ ■w` v / U J 0 CL �!e 0 m r. n rp d N TABLEOFCONTENTS DECLARATIONS Your Name Location of Your Residence Policy Period Coverages Limits of Liability Deductibles Begins'on Page AGREEMENT } DEFINITIONS 1 COVERAGES 1 . Coverage A - Dwelling 1 Coverage B - Personal Property 1 Coverage C - Loss of Use 2 LOSSESINSURED 3 LOSSES NOT INSURED . 3 CONDITIONS 4 OPTIONAL PROVISIONS 8 I Includes copyrighted material of State Farm Fire and Casualty Company. I I Copyright, State Farm Fire and Casualty Company, 1983. And also. FP -7930 Includes copyrighted material of Insurance Services Office with its permission. (2/87) Printed in U.S.A. Copyright, Insurance Services Office, 1975, 1977. EARTHQUAKE POLICY AGREEMENT We agree to provide the insurance described in this policy, provisions of this policy. You agree to pay premiums when due and comply with the DEFINITIONS "You" and "your' mean the "named insured" shown in the 3. "insured" means you and, if residents of your house - Declarations. Your spouse is included if a resident of your hold: household. "We ". "us" and "our' mean the Company shown in the Declarations. a. your relatives; Certain words and phrases are defined as follows: 1. "business" means a trade, profession or occupation. This includes farming, 2. "Declarations" means the policy Declarations, any amended Declarations, the most recent renewal notice or certificate, an Evidence of Insurance form, or any endorsement changing any of these, COVERAGE A - DWELLING 1. We cover: b. any other person under the age of 21 who is in the care of a person described above. 4. "insured location" means the residence premises. 5. "residence premises" means the one, two, three or four - family dwelling, other structures, and grounds or that part of any other building where you reside and which is shown in the Declarations. COVERAGES a. the dwelling used principally as a private residence on the residence premises shown in the Declara- tions. This includes structures attached to the dwelling; b. materials and supplies located on or adjacent to the residence premises for use in the construction, alteration or repair of the dwelling or other struc- tures an the residence premises; c. wall -to -wall carpeting attached to the dwelling on the residence premises; and d. outdoor antennas. 2. Dwelling Extension. We cover other structures on the residence premises, separated from the dwelling by clear space. Structures connected to the dwelling by only a fence, utility line, or similar connection are con- sidered to be other structures. FP -7930 (2/87) We do not cover other structures: a. not permanently attached to or otherwise forming a part of the realty;' h. used in whole or in part for business purposes; or c. rented or held for rental to a person not a tenant of the dwelling, unless used solely as a private ga- rage. COVERAGE B - PERSONAL PROPERTY We cover personal property owned or used by an in- sured while it is anywhere in the world. This includes structures not permanently attached to or otherwise forming a part of the realty. At your request, we will cover personal property owned by others while the property is on the part of the residence premises oc- cupied exclusively by an insured. At your request, we will also cover personal property owned by a guest or a residence employee, while the property is in any other residence occupied by an insured. We cover personal property usually situated at an insured's residence, other than the residence prem- Printed in U.S.A. ises, for up to $1,000. This limitation does not apply to personal property in a newly acquired principal resi- dence for the first 30 days after you start moving the property there. If the residence premises is a newly acquired principal residence, personal property in your immediate past principal residence is-not subject to this limitation for.the first 30 days after the inception of this Policy. Special Limits of Liability. The special limit for each of the following categories is the total limit for each loss for all property in that category. a. $200 on money, bank notes, bullion; gold other than goldware, silver other than silverware, platinum, coins and medals. b. $200 an property used or intended for use in a business, other than electronic data processing equipment or the recording or storage media used with that equipment. " c. $1,000 on securities, checks, cashier's checks, traveler's checks, money orders and other negoti- able instruments, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, tickets and stamps. d. $1,000 on watercraft of all "types and outboard mo- tors, including their trailer's, furnishings and equip- ment. . e. $1,000 an trailers not used with watercraft f. $3,000 on electronic data processing equipment and the recording or storage media used with that equipment. There. is no coverage for said equipment or media while located away from the residence premises except when said equipment or media are removed from the residence premises for the pur- pose of repair, servicing or temporary use. An in- sured student's equipment and media are covered while at a residence away from home. 2'. Property Not Covered. We do not cover: a. articles separately described and specifically in- sured in this or any other insurance; 2 b. animals, birds or fish; c. any engine or motor propelled vehicle or machine, including the parts, designed for movement on land. We do cover those used solely for the service of the insured location and not licensed`for.use on public highways; d. devices or instruments for the recording or reprod- uction of sound permanently installed in an engine or motor propelled vehicle. We do not cover tapes, wires, records or other,mediums that may be used with these devices or instruments while in the ve- hicle; e. aircraft and parts; ` f. 'property of roomers, boarders and other tenants, except property of roamers and, boarders related to an insured; g. property regularly rented or held for rental to others by an insured. This exclusion does not'apply'fo property of an insured in a sleeping room rented to others by an insured; h., property rented or held for rental to others away from the residence premises; i. any citizens band radios, radio telephones,' radio transceivers, radio transmitters, radar detectors, antennas and other similar equipment. This exclu- sion applies only while the property is located in or upon an engine or motor propelled vehicle, whether attached or not; j. books of account, abstracts, drawings;_card index .systems. and other records. This exclusion does not apply to film, tape, disc, drum, cell and other mag- netic recording or storage media for electronic data processing. We will cover the cost.of blank books; cards or.other blank material plus the cost of labor you incur for transcribing or copying such records; k., recording or storage media for electronic data processing that cannot be replaced with.other of like kind and quality on the current retail market; farm personal property 0 J COVERAGE C - LOSS OF USE 1. Additional Living Expense. If a Loss Insured causes the residence premises to become uninhabitable, we cover the necessary increase in cost to maintain your standard of living. Payment is for the shortest time re- quired (a) to repair or replace the premises or (b) for your household to settle elsewhere, but not to exceed 12 months. This period of time is not limited by expira- tion of this policy. 2. Fair Rental Value. If a Loss Insured causes that part of the residence premises rented to others or held for rental by you to become uninhabitable, we cover its fair rental value. Payment shall be for the shortest time re- quired to repair or replace the part of the premises rented or held for rental but not to exceed 12 months. This period of time is not limited by expiration of this policy. Fair rental value shall not include any expense that does not continue while that part , of the residence premises rented or held for rental Js uninhabitable. 3. Prohibited Use. If a civil authority prohibits your use of the residents promises because of direct damage . to a neighboring premises by a Loss Insured, we cover any resulting Additional Living. Expense and Fair Rental Value. Coverage is for a period not exceeding two weeks while use is prohibited. We do not cover loss or expense due to cancellation of a lease or agreement. LOSSES INSURED We insure for direct loss, 'except as provided in LOSSES 2. One or more volcanic eruptions that occur within a NOT INSURED, to the property described in Coverages A seventy-two hour period shall constitute a single and B caused by Earthquake and Volcanic Eruption. Cover- age C will also apply. ' 1. One or more earthquake shocks that occur within a We do not insure for any ensuing lass to property covered seventy -two hour period shall constitute a single under Coverage A or B. earthquake. LOSSES NOT INSURED 1. We do not insure: or demolition of a building or other structure, unless a.' for loss to exterior masonry veneer. The value of specifically provided under this policy. damaged exterior masonry veneer shall be deducted b. Earth Movement (other than earthquake and from the loss before applying the deductible clause volcanic eruption), meaning the . sinking, rising, provided in the Declarations. For the purpose of shifting, expanding or contracting of earth, all this exclusion, stucco shall not be considered whether combined with water or not. Earth move - masonry veneer; or ment includes but is not limited to landslide, b. ' land or any costs required to replace, rebuild, sta- mudflaw, sinkhole, subsidence and erosion. bilize or otherwise restore the land. c. Water Damage, meaning: 2. We do not insure under any coverage for any loss which would not have occurred in the absence of one or more of the following excluded events. We do not insure for such loss regardless of: (a) the cause of the excluded event; or (b) other causes of the loss; or (c) whether other causes acted concurrently or in any sequence with the excluded event to produce the loss: a. Ordinance or Law, meaning enforcement of any ordinance or law regulating the construction, repair (1) flood, surface water, waves, tidal water, over- flow of a body of water, or spray from any of these, all whether driven by wind or not; (2) water which backs up through sewers or drains, or water which enters into and overflows from within a sump pump, sump pump well or any other system . designed -to remove subsurface water which is drained from the foundation area: or (3) natural water below the surface of the ground, including water which exerts pressure on, or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or' other structure. d. Neglect, meaning neglect of the insured to use all reasonable means,to save and preserve property at and after the time of a loss, or when property is endangered. e. War, including undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose. and including any consequence of any of these. Discharge of a nuclear weapon shall be deemed a warlike act even if accidental. f. Nuclear Hazard, meaning any nuclear reaction, ra- diation, or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these. 3. We do not insure under any coverage for any loss con- sisting of one or more of the items below. Further, we do not insure.for lass described in Paragraphs 1. and 2. immediately above regardless of whether one or more of the following: (a) directly or indirectly cause, con- tribute to or aggravate the loss; or (b)' occur before, at the same time, or after the loss or any other cause of the loss: a. conduct, act, failure to act, or decision of any per - son, group, organization or governmental body whether intentional, wrongful, negligent, or without fault; b. defect, ' weakness, inadequacy; fault or unsoundness in: , (1) planning; zoning. development, surveying, sit- ing; (2) design, specifications,.: workmanship, con- struction, grading, compaction; (3) materials used in construction or repair; or (4) maintenance; of any property (including land; structures, or im- provements of any kind) whether on or off the res -_ ideate premises. However, we do insure for any ensuing loss from items a. and b. unless the ensuing loss. is itself a Loss .Not Insured. _. CONDITIONS 1. Insurable Interest and Limit of Liability; Even if c. prepare an inventory of damaged personal property.' more than one person has an insurable interest in the Shaw in detail the quantity, description;` actual cash property covered, we shall not be liable: value and amount of loss. Attach to the inventory a: to the insured for an amount greater than the insured's interest; nor d. b. for more than the applicable limit of liability, 2. Your Duties After Loss. After a loss to which this in- surance may apply, you shall see that the following du- ties are performed`. a, give immediate notice to us or our agent; b. protect the property from further damage or, loss, make reasonable and necessary repairs required to Protect the property, keep an accurate record of repair expenditures; all bills, receipts and related documents that sub- stantiate the figures in the inventory; . as often as we reasonably require: (1) exhibit the damaged property; (2) provide us with records and documents we re- quest and permit us to make copies: (3) submit to examinations under oath and sub- scribe the same; and (4) produce employees, members of the insured's household or others for examination under oath to the extent it is within the insured's power to do so; i 4 n v` e. submit to us,. within. 60 days after the loss, your signed,,sworn proof of loss which sets forth, to.the best .of.your knowledge and belief: (1) the time and cause of loss; (2) interest. of the insured and all others in the property involved, and all encumbrances on the property: (3) other insurance which may cover the loss: (4) changes in title or occupancy of the property during the term of this policy; (5) specifications of any damaged building and de- tailed estimates for repair of the damage; (6) an inventory of damaged personal property de- scribed in 2:6:; (7) receipts for additional living expenses incurred and records supporting the fair rental value loss. 3. Limit of Liability. In the event of a loss caused by Earthquake or Volcanic Eruption, the limit of liability in any one occurrence.will not exceed the Iimitshown in the Declarations. Other provisions of this policy will not increase this limit. 4.,..Loss, Settlement. Covered property losses are. settled as follows; a. Personal property and structures that are not "buildings at actual cash value, up to the applicable limit of liability, at the time of loss. We will not pay an amount exceeding that necessary to repair or replace; h. Carpeting, domestic appliances, awnings and out - door antennas, whether or not attached to buildings, at actual cash value, up to the applicable limit of liability, at the time of loss. We will not pay an amount exceeding that necessary to repair or replace: c.. Buildings under Coverage A at replacement cost at the time of,loss without deduction for depreciation, subject to the following: (1) We will pay the cost of repair or replacement. without deduction for depreciation, but not ex- ceeding the smallest of the following amounts: (a) the limit of liability under this policy apply- ing to the building; (h) the replacement cost of that'part of the building damaged for equivalent con- struction and use on the same premises; or (c) the amount actually and necessarily spent to repair or replace the damaged building. j (2) We will pay the actual cash value of the damage to the buildings, up to the policy limit, until ac- tual repair or replacement is completed. (3) You may disregard the replacement cost loss settlement provisions and make claim'under this policy for loss or damage to buildings on an ac- tual cash value basis and then . make claim within 180 days after loss for any additional li- ability on-a replacement cost. basis. 5. - Loss to a Pair or Set. In case. of loss to a pair or set.. we may elect to: .. a. repair or replace any, part to restore the pair or set to its value before the loss: or b. pay the difference between actual cash value of the property before and after the loss.. 6. Glass Replacement. Loss for damage to glass caused by a Loss Insured shall be settled on the basis of re- ,.placement with safety glazing materials when required by ordinance or law. 7. Appraisal. If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal. If either makes a written. de- mand.for appraisal, each shall select a competent, in- dependent appraiser. Each shall notify the other of the appraiser's identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two,appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in. the state where the residence premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers submit a written report of an agreement to us, the amount agreed_ upon shall be the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any two of these three shall set the amount of the loss. Each appraiser shall be paid by the party selecting that ap- praiser., Other expenses of the appraisal and the com- pensation of the umpire shall be paid equally by you and us. 6. Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only our share of the loss. Our share is the proportion of the loss that the applicable limit under this policy bears to the total amount of insurance covering the loss. 9. Suit Against Us. No action shall be brought unless' there has been compliance with the policy provisions. The action must be started within one year after the date of loss or damage. 10. Our Option. We may repair or replace any part of the property damaged with equivalent property. Any prop- erty we pay for or replace becomes our property. 11. Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment'. Loss will be payable 60 days after we receive your proof of loss and: _ a. reach. agreement with you; b. there is an entry of a final judgment; or c. ,there.is a filing of an appraisal award with us. 12. Abandonment of Property. We need not accept any property abandoned by an insured. 13. Mortgage Clause. The word "mortgagee" includes trustee: a. If a mortgagee is named in this policy, any loss payable under Coverage A shall be paid to the mortgagee and you, as interests appear. If, more than one mortgagee is named, the order of payment shall be the same as the order of precedence of the mortgages. b. If we deny your claim, that denial shall not apply to a valid claim of the mortgagee, if the mortgagee: (1) notifies us of any change in ownership, occu- pancy or substantial change in risk of which the mortgagee is aware; - (2) pays any premium due under this policy on de- mand if you have neglected to pay the premium; (3) submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Policy conditions relating to Appraisal, Suit Against Us and Loss Payment apply to the mortgagee. c. ' If this policy is cancelled by us, the mortgagee shall be notified at least 10 days before the data cancel- lation takes effect. d. If we pay the mortgagee for any loss and deny pay- ment to you: (1) we are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or (2) at our option, we may pay to the mortgagee the whole principal on the mortgage plus any ac- crued interest. In this event; we shall receive a full assignment and transfer 'of, the mortgage and all securities held as collateral to the mort- gage debt. e. Subrogation shall not impair the right of the mortgagee to recover the full amount of the mortgagee's claim. 14. No Benefit to Bailee. We will not recognize an as- signment or grant coverage for the benefit of a person or organization holding, storing or transporting property for a fee. This applies regardless of any other provision of this policy. 15. Intentional Acts. If you or any person insured under this policy causes or procures a loss to property covered under this policy for the purpose of obtaining insurance benefits, then this policy is void and we will not pay you or any other insured for this loss. m N 16. Policy Period. This policy applies only to loss which occurs during the period this policy is in effect. 17. Concealment or Fraud. This policy is' Void as to you and any other insured, if you or any other insured un- der this policy has intentionally concealed or misrepre- sented any material fact or circumstance relating to this insurance, whether before or after a loss. 18. Liberalization Clause. If we adopt any revision which would broaden coverage under this policy without ad- ditional premium, within 60 days prior to or during the period this policy is in effect, the.broadened coverage will immediately apply to this policy. 11 Waiver or Change of Policy Provisions. A waiver or change of any provision of this policy must be in writing by us to be valid. Our request for an appraisal or exam- ination shall not waive any of our rights. 20. Cancellation. a. b. You may cancel this policy at anytime by notifying us in writing of the date cancellation is to take ef- fect. We may waive the requirement that the notice he in writing by confirming the date and time of cancellation to you in writing; We may cancel this policy only for the reasons stated in this condition. We will notify you in writing of the date cancellation takes effect. This cancel- lation notice may be delivered to you, or mailed to you at your mailing address shown in the Declara- tions' Proof of mailing shall be sufficient proof of notice: (1) When you have not paid the premium, we may cancel at any time by notifying you at least 10 days before the date cancellation takes effect. This condition applies whether the premium is payable to us or our agent or under any finance or credit plan. (2) When this policy has been in effect for less''than 60 days and is not a renewal with us, we'may cancel for any reason. We may cancel by noti- fying you at least 10 days before the date can- cellation takes effect (3) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel. if there has been:` (a) conviction of a crime having as one of its necessary elements an act increasing the hazard insured against: (b) discovery of fraud at material misrepresen- tation; (c) discovery of grossly negligent acts or omis- sions substantially increasing any of the hazards insured against: or (d) physical changes in the property insured which result in the property. becoming uninsurable. We may cancel this policy. by :notifying you at least 45 days before the date cancellation takes effect. (4) When this policy is written for a period longer than one year, we may cancel for any reason at anniversary.. We may cancel tiy. notifying you at least 45 days before the date cancellation takes effect. c, this policy is cancelled,- the'premmm for the period from the date of cancellation to the expira- tion date will be refunded. When you request can- cellation, the return premium will be based on out rules for such cancellation -The return premium may be less than a full pro rata refund: When we cancel, the return premium will be pro rata.' ' d. The return premium may not be refunded with the notice of cancellation or when the policy is returned to us. In such cases, we will refund it within. a rea- sonable time after the date cancellation takes ef- fect. 21. Non - Renewal. We may elect not to renew this policy. If we elect not to renew; a written notice will be deliv- ered to you, or mailed to you at your mailing address shown in the Declarations. The notice will be mailed ar delivered at least 45 days before the expiration date of this policy. Proof of mailing shall be sufficient proof of notice. 22. Assignment. Assignment of this policy shall not be valid unless we give our written consent:. 23. Subrogation. An insured may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of re- covery for a loss to the extent that payment is made by us. If an 'assignment is sought, an insured shall sign and deliver all related papers and cooperate with us in a reasonable manner. 24 Death If any person named in the Declarations or the premises and property of the deceased.covered un- der this policy at the time of,death; b. insured includes: (1) any member of your household who is an in- sured at the time of your death, but only while a resident of the residence premises; and (2) with respect to your property, the person having proper temporary custody of the property until appointment and qualification -of'a legal repre- sentative. spouse, if a resident of the same household, dies: 25. Conformity to State Law. When a policy provision is a. we insure the legal representative of the deceased, in conflict with the applicable law of the State in which This condition applies only with respect to the this policy is issued, the law of the State will apply. OPTIONAL POLICY PROVISIONS Each Optional Provision applies only as indicated in the Declarations. Option Al - Additional Insured. With respect to Coverage A, the definition of insured in this policy includes the person or organization named in the Declarations as an additional insured or whose name is on file with us. Option MV - Masonry Veneer. Paragraph 1.a. is deleted from LOSSES NOT INSURED. Option RC - Replacement Cost - Contents. Items a. and b. of the Loss Settlement Condition are replaced with the following: a. (1) Fences and the following personal property at actual cash value at the time of loss: (a) antiques, fine arts, paintings, statuary and similar articles which by their inherent na- ture cannot be replaced with new articles; (b) articles whose age or history contribute substantially to their value including but not limited to, memorabilia, souvenirs and col- lectors items; (c) property not useful for its intended purpose. (2) We will not pay: (a) an amount exceeding that necessary to re- pair or replace the property; or (b) an amount in excess of the limit of liability applying to the property. b. Other personal property, carpeting, domestic appli- ances, awnings and outdoor antennas, whether or not attached to buildings, and other structures (ex- cept fences) that are not buildings under Dwelling Extension, at the cost of repair or replacement at the time of loss without deduction for depreciation, subject to the following: (1) We will pay the cost of repair or replacement but not exceeding the smallest of the following amounts: (a) replacement cost at time of loss; (b) the full cost of repair; lc) any special limit of liability described in the policy; or (d) any applicable limit of liability. (2) Loss to property not repaired or replaced within one year after the loss will be settled on an ac- tual cash value basis. a N IN WITNESS WHEREOF, this Company has executed and attested these presents; but this policy shall not be valid' unless countersigned by the duly authorized Agent of this Company at the agency hereinbefore mentioned, Secretary President !. The Board of Directors, in accordance with Article VI(c) of this Company's Articles of Incorporation, may from time to time distribute equitably to the holders of the participating policies issued by said Company such sums out of its earnings as in its judgment are proper. i I s S.F. FORM LENDER'S LOSS PAYABLE ENDORSEMENT Form 4388FU NS (Rev. May 1. 1842)X 1. Loss or damage, it any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns, hereinafter referred to as 'the Lender,' in whatever form or capacity its interest may appear and whether said in- terest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a nominee or trustee of said Lender. 2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its suc- cessors and assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting the ownership, description, possession, or location of the subject of the insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust dead; (c) by any breach of warranty, act, omission, neglect, or non - compliance with any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any of them or by the happening of any event permitted by them or either of them, or theicagaots, or which they failed to prevent; whether occurring before or after the attachment of this endorsement, or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the named insured, excluding herefrom, however any acts or omissions of the Lender while exercising active control and management of the property. 3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to the Lender of such non - payment of premium after sixty MM days from within one hundred and twenty (120) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten 110) days following receipt of the Company's demand in writing therefore. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be terminated before tan it 0) days after receipt of said written notice by the Lender. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefore exists, this Company, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest not accrued), and this Company, to the extent of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as collateral thereto. b. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the Lander for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Cause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards, other then fire and compliance with such Contribution Clause is made a pert o1 "the cdhsideration 1-or insuring-such other nazards: The Cinder Upon the payment to it of the full amount of its claim, will subrogste this Company (pro rate with all other insurers contributing to said payment to all of the Lender's rights of contribution under said other insurance). ' B. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten it 0) days after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender. 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents; insurance under this policy shall continue for the term thereof for the benefit of the Lander but, in such event, any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this policy end /or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. B. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender or its office or branch described on the first page of this policy. Approved: Board of Fire Underwriters of the Pacific, California Bankers' Association, WS -344 Committee on Insurance O STATE FARM INSURANCE COMPANIES POLICY NUMBER 5- J4- 5859 -5 HOMEOWNERS EXTRA FORM POL L MPP ACCOUNT NO: K72748 ,2 INSURED: MURPHY, KEVIN J & KRISTINA L 8350/1E 8 CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY P 0 BOX 1768 NEWPORT BEACH CA 92658 -8915 I-- ILI���JdJL�ddJ��LL�LLL����ILLI��ILtL�L�JLI NOTE: DO NOT PAY - PREMIUM BILLED THROUGH ,STATE FARM PAYMENT PLAN. DATE D_ PLEASE PAY THIS AMOUNT THIS IS FOR INFORMATION ONLY IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT 4``kk CF-- �vE_E) JUN 1.8 i99,' C,i) Hi]OriNE+ .. ;)p h!El4"aOBT nr Use Only 0805 312 700321700000000 6555020458595025 > OSTATE FARM FIRE AND CASUALTY COMPANY P.O. BOX 25045, SANTA ANA CA 92799 -5048 FULL PAYMENT BY DATE DUE EXTENDS POLICY PERIOD TO JUN 12 94. INSURED: MURPHY, KEVIN J & KRISTINA L LOCATION: 1101 NOTTINGHAM RD NEWPORT BEACH CA 92660-4835 MPP NO: K72748 MORTGAGEE: HOME SAVINGS OF AMERICA FSB P 0 BOX 7075 PASADENA CA 91109 -7075 See reverse side for important information affecting your insurance. Please keep this part for your record. AgentROMA 0 INSURANCE AGENCY INC relep7rorre 818- 576 - 1049.::,...,..,,:....0 RENEWAL CERTIFICATE PREPARED JUN 16 93 HOMEOWNERS EXTRA FORM POLICY THIS POLICY DOES NOT INCLUDE BUILDING CODE UPGRADE COVERAGE. ANNUAL PREMIUM f 482.0( THE PREMIUM HAS ALREADY BEEN REDUCED BY $174.00 FOR: HOME ALERT DISCOUNT RENEWAL DISCOUNT 6+ YEARS a 5 2 IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT. IF THIS IS NOT CONVENIENT, PLEASE COMPLETE THE FOLLOWING. Note: If this is a change in insured property, please aVlate Farm Agent. ❑ Mailing address change only ❑ Location change I expect to be here ❑ permanent change ❑ temporary change months. Street or Rural Route Address City Zip /Postal Township —__ Coun ❑ Inside City Limits ❑ Outside City Limits NOTICE TO POLICYHOLDER List below all other State Farm policies (Auto, Life, Fire or Health) on which premium notices should be sent to the new address. P PRINT) Pol. No. Insured's Name Pol. No. Insured's Name Pol. No. _ Insured's Name Pol. No. Insured's Name Pol. No. Insured's Name New Residence Phone No. I—) New Business Phone No. I_) For a comprehensive description of coverages and forms, please refer to your policy Policy changes requested before the "Date Prepared ", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date. If, during the past year, you've acquired any valuable property items, made any improvements to insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy 538 -141.6 Rev. 1 -90 Printed in U.S.A. O STATE FARM INSURANCE COMPANIES POLICY NUMBER • .5 -J8- 5840 -4 EARTHQUAKE POLICY MPP ACCOUNT NO: K72748 INSURED: MURPHY, KEVIN J 16 KRISTINA L NOTE: DO THROUGH, T PAY - PREMIUM BILLED TE FARM PAYMENT PLAN. THIS IS FOR INFORMATION ONLY 10 9 8350/1E B CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEYR���� P 0 BOX 1768 NEWPORT BEACH CA 92658 -8915 JUN 18199-1 �- ILL���LLIL��LId��Id�ddJ����JIJJ�JLJ�J��Jhh�. a,n,,,Ne,. '4 i JF NE :VVD0RT BEAC>. Regional Office Use Only 0805 312 700321700000000 7555020858404025 > STATE FARM FIRE AND CASUALTY COMPANY RENEWAL CERTIFICATE P.O. BOX 25045, SANTA ANA CA 92799 -5048 PREPARED JUN 16 93 POLICY NUMBER DATE DUE PLEASE PAY THIS AMOUNT I EARTHQUAKE P OL I C Y 55 -J8- 5840 -4 BILLED THROUGH SFPP FULL PAYMENT BY DATE DUE EXTENDS POLICY PERIOD TO JUN 12 94. INSURED: MURPHY, KEVIN J 9 KRISTINA L LOCATION: 1101 NOTTINGHAM RD NEWPORT BEACH CA 92660 -4835 MPP NO: K72748 MORTGAGEE: HOME SAVINGS OF AMERICA FSB P 0 BOX 7075 PASADENA CA 91109 -7075 See reverse side for important information affecting your insurance. Please keep this part for your record. lgentROMA 0 INSURANC AGENCY INC "e/ephone 818- 576. -104Q THIS POLICY DOES NOT PROVIDE GUARANTEED REPLACEMENT COST COVERAGE ON YOUR DWELLING. THIS POLICY DOES NOT INCLUDE EARTHQUAKE BUILDING CODE UPGRADE COVERAGE. ANNUAL PREMIUM S 177. 9 6 5 3 IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT. IF THIS IS NOT CONVENIENT, PLEASE COMPLETE THE FOLLOWING. Note: If this is a Change in insured property, please seelf,tate Farm Agent. ❑ Mailing address change only ❑ Location change I expect to be here ❑ permanent change ❑ temporary change months. Street or Rural Route Address City Township _ ❑ Inside City Limits County ❑ Outside City Limits List below all other State Farm policies (Auto, Life, Fire or Health) on which premium notices should be sent to the new address. (PI" PRINT) qw Pol. No. Insured's Name Pol. No. Insured's Name Pol. No. Insured's Name Pol. No. Insured's Name Pol. No. Insured's Name New Residence Phone No. I—) New Business Phone No. (_) NOTICE TO POLICYHOLDER For a comprehensive description of coverages and forms, please refer to your policy. Policy changes requested before the "Date Prepared ", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date. If, during the past year, you've acquired any valuable property items, made any improvements to insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy. 538 -141.6 Rev. 1 -90 Printed in U.S.A. STATE FARM INSURANCE COMPANIES a • POLICY NUMBER 5 -J4- 5859 -5 HOMEOWNERS EXTRA FORM POL ,S I ,o 9 INSURED: MURPHY, KEVIN J & KRISTINA L 8350/00 B CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY P 0 BOX 1768 NEWPORT BEACH CA 92658 -8915 IId����LIdI���LLL�LL�LLL����ILI�LdI��L�L��ILI NOTE: DO NOT PAY. THE PREMIUM IS BEING P D BY THE DESIGNATED PARTY. DATE PLEASE PAY THIS AMOUNT THIS IS FOR INFORMATION ONLY IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT 0712 312 800319300048200 6555020458595025 > OSTATE FARM FIRE AND CASUALTY COMPANY P.O. BOX 25045, SANTA ANA CA 92799 -5048 POLICY NUMBER DATE DUE PLEASE PAY THIS AMOUNT 55- J4- 5859 -5 PAID BY SPECIFIED PART FULL PAYMENT BY DATE DUE EXTENDS RENEWAL CERTIFICATE PREPARED APR 15 93 HOMEOWNERS EXTRA FORM POLICY COVERAGES /LIMITS POLICY PERIOD TO JUN 12 94. SECTION ING $ INSURED: MURPHY, KEVIN J & KRISTINA L DWELLING EXTENSION a C PERSONALUPROPERTY $ LOCATION: 1101 NOTTINGHAM RD NEWPORT BEACH CA 92660 -4835 DEDUCTIBLES - SECTION I ALL LOSSES MORTGAGEE: HOME SAVINGS OF AMERICA FSB P 0 BOX 7075 PASADENA CA 91109 -7075 SECTION II L PERSONAL LIABILITY DAMAGE TO PROPERTY OF OTHERS M MEDICAL PAYMENTS TO FORMS, OPTIONS, AND ENDO.°.SC!SCti ye, OTHERS(EACH PERSON) EXTRA FORM 5 FP- 7925.CA JEWELRY AND FURS $2,500/$5,000 OPT JF LENDERS LOSS PAYABLE END 438 RECEIVED APR 19 1993 CH Y ATI ORNEY (j' V OF NEWPORT BEACH INFLATION COVERAGE INDEX: 149.2 See reverse side for important information affecting your insurance. Please keep this part for your record. /RAz�d& �i>t uA�ewe rM* . AgentROMA 0 INSURANCE AGENCY INC Tefepnone 818 -576 -1040. 0 .. a 274, 27,E 206, ACTUAL L SUSTAII THIS POLICY DOES NOT INCLUDE BUILDING CODE UPGRADE COVERAGE. $1000 100, 1, ANNUAL PREMIUM $ 482. YOUR PREMIUM HAS ALREADY BEEN REDUCED BY THE FOLLOWING: HOME ALERT DISCOUNT a 87. RENEWAL DISCOUNT 6+ YEARS S 87. IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT. IF THIS IS NOT CONVENIENT, PLEASE COMPLETE THE LOWING. Note: If this is a change in insured property, please see 1WIa Farm Agent. ❑ Mailing address change only ❑ Location change I expect to be here ❑ permanent change ❑ temporary change - -- months. Street or Rural Route Address _ .... .._ City __ _ . Township __ County ❑ Inside City Limits ❑ Outside City Limits NOTICE TO POLICYHOLDER Zip /Postal List below all other State Farm policies (Auto, Life, Fire or Health) on which premium notices should be sent to the new address. 'FL PINT) Pol. No. Insured's Name Pol. No. ......._._. - - -- Insured's Name Pol. No. .____— ....___. -... _ .. .. _..._.... -.._ .._.. _ Insured's Name Pol. No. Insured's Name Pol. No.. ..... -. .......... _...- Insured's Name New Residence Phone No. I) New Business Phone No. ( ) For a comprehensive description of coverages and forms, please refer to your policy Policy changes requested before the "Date Prepared ", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date. If, during the past year, you've acquired any valuable property items, made any improvements to insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy 538 -141.6 Rev. 1 -90 Printed in U.S.A. O STATE FARM INSURANCE COMPANIES POLICY NUMBER 5 —J8- 5840 -4 EARTHQUAKE POLICY " INSURED: MURPHY, KEVIN J & KRISTINA L n io 8350/00 B CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY P 0 BOX 1768 NEWPORT BEACH CA 92658 -8915 -- ILIIIIIIJdI��JdJ��IJ��LLI�����IIJ�LdL�I��I��JIJ NOTE: DO NOT PAY. THE PREMIUM IS BEING D BY THE DESIGNATED PARTY. DATE PLEASE PAY THIS AMOUNT THIS IS FOR INFORMATION ONLY IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT Regional Office Use Only 0712 312 900319300017700 7555020858404025 > STATE FARM FIRE AND CASUALTY COMPANY P.O. BOX 25045, SANTA ANA CA 92799 -5048 POLICY NUMBER DATE DUE PLEASE PAY THIS AMOUNT 55— J8- 5840 -4 PAID BY SPECIFIED PART FULL PAYMENT BY DATE DUE EXTENDS POLICY PERIOD TO JUN 12 94. RENEWAL CERTIFICATE PREPARED APR 15 93 EARTHQUAKE POLICY COVERAGES & PROPERTY A DWELLING INSURED: MURPHY, KEVIN J & KRISTINA L DWELLING EXTENSION B PERSONAL PROPERTY LOCATION: 1101 NOTTINGHAM RD C LOSS OF USE NEWPORT BEACH CA 92660 -4835 MORTGAGEE: HOME SAVINGS OF AMERICA FSB P 0 BOX 7075 PASADENA CA 91109 -7075 FORMS, OPTIONS, AND ENDORSEMENTS EARTHQUAKE POLICY 4-7930 REPLACEMENT COST CONTENTS OPT RC LENDERS LOSS PAYABLE END 438 ONE LIMIT OF LIABILITY OF E 100,000 APPLIES AS ONE COMBINED LIMIT FOR ALL COVERAGES AND PROPERTY. DEDUCTIBLE: 551000 ( 5% OF LIMIT OF LIABILITY) THIS POLICY DOES NOT PROVIDE GUARANTEED REPLACEMENT COST COVERAGE ON YOUR DWELLING. THIS POLICY DOES NOT INCLUDE EARTHQUAKE BUILDING CODE UPGRADE COVERAGE. APR 19 1993 i.."Or N 4 FliiOF; iVtV EWr�ORr ScAi'h See reverse side for important information affecting your insurance. A N N U A L PREMIUM Please keep /this part for your record. AgentROMAIO INSURANCE AGENCY INC Telephone 818 - 576 -1040 0 $ 177. i 3� IF YOU HAVE MOVED, PLEASE CONTACT YOUR AGENT. IF THIS IS NOT CONVENIENT, PLEASE COMPLETE THE aLOWING. Note. If this is a change in insured property, please see y to Farm Agent. ❑ Mailing address change only ❑ Location change I expect to be here ❑ permanent change ❑ temporary change - -.... ._— months. Street or Rural Route Address City Township __ ❑ Inside City Limits .. ._ County ._. ❑ Outside City Limits Zip /Postal List below all other Stale Farm policies (Auto, Life, Fire or Health) on which premium notices should be sent to the new address. (PLE_PRINT) Pol. No. Insured's Name Pol. No. .._._ _. .. Insured's Name Pol. No. Insured's Name Pol. No. ....— - -.... Insured's Name Pol. No. Insured's Name New Residence Phone No. I—) ... _. New Business Phone No. I—) __. NOTICE TO POLICYHOLDER For a comprehensive description of coverages and forms, please refer to your policy. Policy changes requested before the "Date Prepared ", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date. If, during the past year, you've acquired any valuable property items, made any improvements to insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy. 538 -141.6 Rev. 1 -90 Printed in U.S.A. This policy provides a single limit of liability which ap- plies to the Dwelling (Coverage A). Personal Property (Coverage B) and Loss of Use (Coverage C) for losses INSUYANCE caused by an earthquake. Please review your coverage needs to determine if this coverage amount is adequate. YOUR STATE FARM POLICY FP -7930 ,.,.., (2/87) TABLE OF CONTENTS DECLARATIONS Your Name Location of Your Residence Policy Period Coverages Limits of,Liability Deductibles Begins on Page AGREEMENT DEFINITIONS COVERAGES Coverage A Dwelling Coverage B - Personal Property 'Coverage C - Loss of Use LOSSES INSURED LOSSES NOT INSURED CONDITIONS OPTIONAL PROVISIONS r - Includes copyrighted material of State Farm Fire and Casualty Company. Copyright, State Farm Fire and Casualty Company, 1983. And also. FP -7930 Includes copyrighted material of Insurance Services Office with its permission. Printed in U.S.A. (2/87) Copyright. Insurance Services Office. 1975. 1977. EARTHQUAKE POLICY AGREEMENT We agree to provide the insurance described in this policy. provisions of this policy. You agree to pay premiums when due and comply with the DEFINITIONS "You" and "your" mean the "named insured" shown in the Declarations. Your spouse is included if a resident of your household. "We ", "us" and "our" mean the Company shown in the Declarations. Certain words and phrases are defined as follows: 1. "business" means a trade, profession or occupation. This includes farming. 2. "Declarations" means the policy Declarations, any amended Declarations, the most recent renewal notice or certificate, an Evidence of Insurance form, or any endorsement changing any of these. COVERAGE A - DWELLING 1. We cover: 3. "insured" means you and, if residents of your house- . hold: a. your relatives; b. any other person under the age of 21 who is in the care of a person described above. 4. "insured location" means the residence promises. 5. "residence premises" means the one, two, thrr- nr four - family dwelling; other, structures,, and groun. .r that part of any other building where you reside and which is shown in the Declarations. COVERAGES a. the dwelling used principally as a private residence on the residence premises shown in the Declara- tions. This includes structures attached to the dwelling; b. materials and supplies located on or adjacent to the residence premises for use in the construction, alteration at repair of the dwelling at other struc- tures on the residence premises: c. wall -to -wall carpeting attached to the dwelling on the residence premises; and d. outdoor antennas. 2. Dwelling Extension. We cover other structures an the residence premises, separated from the dwelling by clear space. Structures connected to the dwelling by only a fence, utility line, or similar connection are con- sidered to he other structures. FP -7930 (2/87) We do not cover other structures: a. not permanently attached to 'or otherwise forming a part of the realty: b. used in whole or in part for business purposes; or c. rented or held for rental to a person not a tenant of the dwelling, unless used solely as a private ga- rage. COVERAGE B - PERSONAL PROPERTY 1. We cover personal property owned at used by an in- sured while it is anywhere in the world. This includes structures not permanently attached to or othe, t forming a part of the realty. At your request, we _ II cover personal property owned by others while the property is on the part of the residence premises oc- cupied exclusively by an insured. At your request, we will also cover personal property owned by a guest or a residence employee, while the property is in any other residence occupied by an insured. We cover personal property usually situated at an insured's residence, other than the residence prem- Printed in U.S.A. ises, forup to $1,000. This limitation does not apply to personal property in a newly acquired principal resi- dence for the first `30 days after you start moving the property there. If the residence premises is a newly acquired principal residence, personal property in your immediate past principal residence is not subject to this limitation for the first 30 days after the inception of.this policy. Special Limits of Liability. The special limit for each of the following categories is the total limit for each loss for all property in that category: a.. $200 on-money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins and medals. 1. $200 on property used or intended for use in a business, other than electronic data 'processing equipment or the recording or storage media used with that equipment. c. $1,000 on securities,' checks, cashier's' checks, traveler's checks, money orders and other negoti- able instruments, accounts, deeds, evidences of debt, letters of credit, notes other than banknotes, manuscripts, passports, tickets and stamps. d. $1,000 on watercraft of all .types and outboard mo- tors, including their trailers, furnishings and equip- ment. e: $1,000 on trailers not used with watercraft. f. $3.000 on electronic: data processing equipment and the recording or storage media used with that equipment: There is no coverage for said equipment or media while located away from the residence premises except when said equipment or m! edia are removed from the residence premises for the pur- pose of repair, servicing or temporary use. An in- sured student's equipment and media are covered while at a residence away from home. 2. Property Not Covered. We do not cover: a: articles separately described and specifically in- sured in this or any other insurance; 2 b. animals, birds or fish: c. any engine or motor propelled vehicle or machine, including the _part s, designed for movement on land. We do cover those used solely for the service of. insured location and not licensed for.use on' public highways; d. devices or instruments for the recording or reprod- uction of sound permanently installed in an engine or motor propelled vehicle. We do not cover tapes; wires, records or other mediums. that may be used with these devices or instruments while in the ve- hicle: e. aircraft and parts; f. property of roomers, boarders and' other tenants, except property of roomers and boarders related to an insured: g. property regularly rented or held forrentsltdothers by an insured. This exclusion does not apply to property of an insured in a sleeping room rented to others by an insured:' - h. property rented or held for rental to others away from the residence premises; i. any citizens band radios, radio telephones.'radio transceivers, radio transmitters, radar detectors. .antennas and other similar equipment.: This exclu- sion applies only while the property is located in or upon an engine or motor propelled vehicle, whether attached or not; j. books of account, abstracts, drawings, card index systems and other records. This exclusion does not apply to film, tape, disc, drum; cell and other mag- netic recording or storage media for electronic data processing. We will cover the cost of blank books, cards or other blank material plus the cast . of labor you incur for transcribing or copying such records; k. recording or storage media far electronic data processing that cannot be replaced with other of like kind and quality on the current retail market; I. farm personal property. COVERAGE C - LOSS OF USE 1. Additional: Living Expense. If a Loss Insured causes the 'residence premises to become uninhabitable, we cover the necessary increase in cost to maintain your standard of living. Payment is for the shortest time re- quired (a) to repair or replace the premises or (b) for your household to settle elsewhere, but not to exceed 12 months. This period of time is not limited by expire - tion of this policy. 2. Fair RentaE Value. If a Loss Insured 'causes that part of the residence premises rented to others or held for rental by you to become uninhabitable, we cover its fair rental value. Payment shall be for the shortest time re- quired to repair or replace the part of the premises rented or held for rental but not to exceed 12 months. .This period of time is not limited by expiration of this policy. Fair rental value shall not include any expense that does not continue while that part of the residence premises rented or hold for rental is uninhabitable. I 'Prohibited Use. If a civil authority prohibits your use of the residence premises because of direct damage to a neighboring premises by a Loss Insured, we cover any resulting Additional Living Expense and Fair Rental Value., is for a period not exceeding two weeks while use is prohibited. We do not cover loss or expense due to cancellation of a lease or agreement. LOSSESINSURED We insure for direct loss, except as provided in LOSSES NOT INSURED, to the property described in Coverages A and B caused by Earthquake, and Volcanic Eruption. Cover- age C will also apply. 1. One or more earthquake shocks that occur within a seventy -two hour period . shall constitute a single earthquake. Z. Ode or more volcanic eruptions that occur with,. , seventy -two hour period shall constitute a single volcanic eruption. We do not insure for any ensuing loss to property covered under Coverage A or B. . LOSSES NOT INSURED 1. We do not insure: or, demolition of a building or other structure, unless a: for loss to exterior masonry veneer. The value of specificallypravid . under this policy. damaged exteriormasanry veneer shall be deducted from the loss before applying the deductible clause provided in the "Declarations. For the purpose of this exclusion, stucco shall not be considered masonry.veneer, or b. land -or any costs required to replace, rebuild, sta- bilize or otherwise restore the land. 2. We do not insure under any coverage for any loss which would not have occurred in the absence of one or mare of the following excluded events. We do not insure for such loss regardless of: (a) the cause of the excluded .event;. or (b) other causes of the, loss;,.or (c) whether other causes acted concurrently or in any sequence with the excluded event to produce the loss: a. Ordinance or Law,. meaning enforcement of any ordinance or law regulating the construction, repair b. Earth Movement (other than earthquake and volcanic eruption), meaning the sinking, rising, shifting, expanding or contracting of earth, all whether combined with water or not. Earth move- ment. includes but is not limited ao landslide, mudflow, sinkhole, subsidence And erosion. c.. Water Damage, meaoing`. (1) flood, surface water, waves, tidal water, over- flow of a body of water, or spray from any of these, all whether driven by wind or not; (2) water which backs up through sewers or drains, or water which enters into and overflows from within a sump pump, sump pump well or any other system desigmurio remove subsurface water which is drained from the foundation area; or (3) natural water below the surface of the ground, including water which exerts pressure on, or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure. d, Neglect, meaning neglect of the insured to use all reasonable means to save and preserve property at and after the time of a loss, or when property is endangered. e. War, including undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel,' destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon shall be deemed a warlike act even if accidental. f. Nuclear Hazard, meaning any nuclear reaction, ra- diation, or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these. 3. We do not insure under any coverage for any loss con- sisting of one or more of the items below. Further, we do not insure for loss described in Paragraphs. 1. and 2. immediately above regardless of whether one or more of the following: (a) directly or indirectly cause, -con- tribute to or aggravate the loss; or (b) occur before, at the same time, or after the loss or any other cause of the loss: a. conduct, act, failure to act, . or decision of any per- son, group, organization or governmental body whether intentional, wrongful, negligent, or without fault; b. defect, weakness, inadequacy, fault or unsoundnessin: (1) planning, zoning, development, surveying, sit- ing; (2) design, specifications. workmanship, con- struction, grading, compaction; (3) materials used in construction or repair; or (4) maintenance; of any property (including land, structures, or im- provements of any kind) whether on or off the res- idence premises. However, we do insure for any ensuing loss from items a. and Ir unless the ensuing loss is itself a Loss Not Insured. CONDITIONS Insurable Interest and Limit of Liability. Even if more.than one person has an insurable interest in the property covered, we shall not be liable: a. to the insured for an amount greater than the insured's interest; nor b. for more than the applicable limit of liability. 2. Your Duties After Loss. After a loss to which this in- surance may apply, you shall see that the following du- ties are performed: a: give immediate notice to us or our agent; b. protect the property from further damage or lass, make reasonable and necessary repairs required to protect the property, keep an accurate record of repair expenditures: 4 c:' prepare an inventory of damaged personal property. Show in detail the quantity, description, actual cash value and amount of loss. Attach to the inventory all bills, receipts and related documents that sub- stantiate.the figures in.the inventory; d. as often as we reasonably require:' (1) exhibit the damaged property; (2) provide us with records and documents we re- quest and permit us to make copies; (3) submit to examinations under oath and sub- scribe the same; and (4) produce employees, members of the insured's household or others for examination under oath to the extent it is within the insured's power to do so: , e. submit to us, within 60 days after the loss, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief:, . (1) the time and cause of loss; (2) interest of the, insured and all others in the property involved and all encumbrances on the property; (3) other insurance which may cover the loss; (4) changes in title or occupancy of the property during the termof this policy;,. :. (5) specifications of any damaged building and de- tailed estimates for repair of the damage; (6) an inventory of damaged personal property de- scribed in 2.c.; (7) receipts for additional living expenses incurred and records supporting the fair rental value loss. Limit of Liability. In the event of a loss caused by .Earthquake,or Volcanic Eruption, the limit of liability in any one occurrence will not exceed the limit shown in the Declarations. Other provisions of this policy will not increase this limit. (1) We.will pay the cost of repair or replacement. without deduction. for depreciation, but not ex- ceeding the smallest of the following amounts: (a) the limit of liability under this policy apply- ing to the building; (b) the replacement cost of that part of the building damaged for equivalent con - struction and use on the same premises; or (c) the amount actually and necessarily spent to repair or replace the damaged building. (2) We will pay the actual cash value of the damage to the buildings, up to the policy limit, until ac- tual repairor replacement is completed. (3) You may disregard the replacement cost, 's settlement provisions and make claim under policy for. loss or damage to buildings on an ac- tual cash value basis and then make claim within 160 days after loss for any additional li- ability on. a. replacement cost basis. .. 5. • Loss to a Pair or Set..ln case of.loss.to:a, pair or set, we may elect to:. . a. repair or replace any part to restore the pair or set to its value before the loss; or b. pay the difference between actual cash value of the 4. Loss Settlement Covered property losses are settled property before and after the loss., as follows: a. Personal property and structures that are not buildings at actual cash value, up to the applicable limit of liability, at the time of loss: We will not pay an amount exceeding that necessary to repair or replace; b, Carpeting, domestic appliances, awnings and out - door antennas, whether or not attached to buildings, at actual cash value, up to the applicable limit of liability, at the time of loss. We will not pay an amount exceeding that necessary to repair or replace; c. Buildings under Coverage. A at replacement cost at the time of loss without deduction for depreciation, subject to the following: 5 6. Glass Replacement. Loss for damage to' glass caused by a Loss Insured shall be settled orf the basis of re- placement with safety glazing materials when.required by ordinance or law. 7. Appraisal. If you. and we fail to agree on the am. .i of loss, either one can demand that the amount of the loss beset by appraisal. If either makes a written de- mand for appraisal, each shall select a competent, in- dependent appraiser. Each shall notify the other of the appraiser's identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state .where the residence premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon shall be the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any two of these three shall set the amount of the loss. Each appraiser shall be paid by the party selecting that ap- praiser. Other expenses of the appraisal and the com- pensation of the umpire shall be paid equally by you and us. 8. Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only our share of the loss. Our share is the proportion of the loss that the applicable limit under this policy bears to the total Amount of insurance covering'the loss. ;uit Against Us. No action shall be brought unless there has been compliance with the policy provisions. The action must be started within one year after the date of loss or damage. 10. Our Option. We may repair or replace any part of the property damaged with equivalent property. Any prop- erty we pay for or replace becomes our property. It Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and:. .... a. reach agreement with you; . . b. there is an entry of a final judgment; or c, there is a filing of an appraisal award with us. 12: Abandonment of Property.. We need not accept any property abandoned by an insured. 13. Mortgage Clause. The word "mortgagee" includes trustee: a. If a mortgagee is named. in this policy, any loss payable under Coverage A shall be paid to the mortgagee and you, as interests appear. If more than one mortgagee. is named, the order of payment shall he the same as the order of precedence of the mortgages. b. If we deny your claim, that denial shall. not apply to a valid claim of the mortgagee, if the mortgagee: (1) notifies us of any change in ownership, occu- pancy or substantial change in risk of which the mortgagee is aware; (2) pays any premium due under this policy on de- mand if you have neglected to pay the premium; (3) submits a signed, sworn "statement of less within 60 days after receiving notice from us of your failure to do so.'Prilicy conditions relating 'to Appraisal, Suit Against Us and Loss Payment apply to the mortgagee. c. If this policy is cancelled by us, the mortgagee shall be notified at least 10 days before the date cancel- lation takes effect. d. If we pay the mortgagee for any loss and deny pay- ment to you: (1) we are subrogated to All the rights of the mortgagee granted under. the mortgage on the property; or (2) at our option, we may pay to the. mortgagee the whole principal on the mortgage plus any ac- crued interest. In this event, we shall receive a full assignment And transfer of the mortgage and all securities held as collateral to the mort- gage debt. e. Subrogation shall not impair, the right. of the mortgagee to recover the full amount of the mortgagee's claim. IA. No Benefit to Bailee. We will not recognize an as- signment or grant coverage for the benefit of a person or organization holding, storing or transporting property for a fee. This applies regardless of any other provision of this policy. 15. Intentional Acts. If you or any person insured under this policy causes or procures a loss to property covered under this policy for the purpose of obtaining insurance benefits, then this eolicy is void and we will not pay you or any other insured for this loss. 16. Policy Period. This policy applies only to loss which occurs during the period this policy is in effect. 17. Concealment or Fraud. This policy is void as to you and any other insured, if you or any other insured un- der this policy has intentionally concealed or misrepre- sented any material fact or circumstance relating to this insurance, whethe.r before or after,a loss. 18. Liberalization Clause. If we adopt any revision which would broaden coverage under this, policy without ad- ditional premium, within 60 days,prior.to or during the period this policy is in effect, the broadened coverage will immediately apply to this policy. 1.9. , Waiver or. Change of Policy Provisions. A waiver or change of any provision of this policy must be in writing by us to be valid. Our request for an appraisal or exam- ination shall not waive any of our rights. 20. Cancellation. a. You may cancel this policy at any time by notifying us in writing of the date cancellation is to take ef- fect. We may waive the requirement that the notice be in writing by confirming the date and time of cancellatiooto you in writing. b. We, may cancel this policy only for the reasons stated in this condition. We will notify you in writing of the date cancellation takes effect. This cancel- lation notice may be delivered to you, or mailed to you at your mailing address shown in the Declare- tions. Proof of mailing shall be sufficient proof of notice: (1) When you have not paid the premium, we may cancel at any time by notifying you at least 10 days before the date cancellation takes effect. This condition applies whether the premium is payable to us or our agent or under any finance or credit plan. (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason. We may cancel by noti- fying you at least 10 days before the date can - cellation takes effect. (3). When this policy has been in effect for 66 days or more, or at any time if it is a renewal with us, we may cancel if there has been: (a) conviction of a crime having as one of its necessary elements. an act increasing the hazard insured against; (b) discovery of fraud or material misrepresen- tation; - - (c) discovery of grossly negligent acts or omis- sions substantially in 'any of the " hazards insured against; or (d) physical changes in the property insured which result in the property becoming uninsurable. We may cancel this policy by notifying you at least 45 days before the date cancellation takes effect. (4) When this. policy is written for a:period longer than one year, we may cancel for any reason at anniversary. We may cancel by notifying you at least 45 days before the date cancellation takes effect:. c. When this policy is cancelled, the premium for the period from-the date of cancellation to the expira- tion date will be refunded. When you request can- cellation, the return premium will be based on our rules for such cancellation. The return premium may be less than a full pro rata refund. When we cancel, the return premium will be pro rata. d. The return premium may not be refunded with notice of cancellation or when the policy is returned to us. In such cases, we will refund it within a rea- sonable time after the date cancellation takes ef- fact. 21. Non - Renewal. We may elect not to renew this policy. If we elect not to renew, a written notice will be deliv- ered to you, or mailed to you at your mailing address shown in the Declarations. The notice will be mailed or delivered at least 45 days before the expiration date of this policy. Proof of mailing shall be sufficient proof of notice. 22. Assignment. Assignment of this policy shall not be valid unless we give our written consent. 23. Subrogation. An insured may waive in writing before a loss all rights of recovery against any person. If not waived, we.may require an assignment of rights of re- covery for a loss to the extent that payment is made by us. premises and property of the.deceased covered un- der this policy at the time of death; . b. insured includes: (1) any member of your household who is an in- sured at the time of your death, but only while a resident of the. residence premises; and If an assignment is sought, an insured shall sign and (2) with respect to your property, the person having deliver all related papers and cooperate with us in a proper temporary custody of the property until reasonable manner. appointment and qualification of a legal repre- 24. Death. If any person named in the Declarati ons or the sentative. spouse, if a resident of the same household, dies: 25. Conformity to State Law. When a policy provision is a. we insure the legal representative of the deceased. in conflict with the applicable law of the State in which This condition applies only with respect to the this policy is issued, the law of the State will apply. OPTIONAL POLICY PROVISIONS Each Optional Provision applies only as indicated in the Declarations. Option Al - Additional Insured. With respect to Coverage A, the definition of insured in this policy includes the person or organization named in the Declarations as an additional insured or whose name is on file with us. Option MV - Masonry Veneer. Paragraph 1.a. is deleted from LOSSES NOT INSURED. Option RC - Replacement Cost - Contents. Items a. and b. of the Loss Settlement Condition are replaced with the following: a. (1) Fences and the following personal property at actual cash value at the time of loss: (a) antiques, fine arts, paintings, statuary and similar articles which by their inherent na- ture cannot be replaced with new articles; (b) articles whose age or history contribute substantially to their value including but not limited to, memorabilia, souvenirs and col- lectors items; (c) property not useful for its intended purpose. (2) We will not pay: (a) an amount exceeding that necessary to re- pair or replace the property; or (b) an amount in excess of the limit of liability applying to the property. b. Other personal property, carpeting, domestic appli- ances, awnings and outdoor antennas, whether or not attached to buildings, and other structures (ex- cept fences) that are not buildings under Dwelling Extension, at the cost of repair or replacement at the time of loss without deduction for depreciation, subject to the following: (1) We will pay the cost of repair or replacement but not exceeding the smallest of the following amounts: (a) replacement cost at time of loss; (b) the full cost of repair; (c) any special limit of liability described in the policy; or (d) any applicable limit of liability. (2) Loss to property not repaired or replaced within one year after the loss will be settled on an ac- tual cash value basis. IN WITNESS WHEREOF, this Company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized Agent of this Company at the agency hereinbefore mentioned. Secretary President The Board of Directors, in accordance With Article VI(c) of this Company's Articles of Incorporation, may from time to time distribute equitably to the holders of the participating policies issued by said Company such sums out of its earnings as in its judgment are proper. i I i I e Policy Number DECLARATIONS PAGE 55 -i8- 5840 -4 O ATE FARM FIRE AND CASUALTCOMPANY PO BOX 25045, SANTA ANA CA 92799 -5045 A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS 2 0 '10 2ND MORTGAGEE 8350 -53 g NAMED INSURED ' fi CITY OF NEWPORT BEACH MURPHY, KEVIN J & KRISTINA L fi- OFFICE OF THE CITY ATTORNEY 1101 NOTTINGHAM RD ° P 0 BOX 1768 NEWPORT BEACH CA 92660 -4835 ' NEWPORT BEACH CA 92658 -8915 - I EARTHQUAKE POLICY AUTOMATIC RENEWAL If the POLICY PERIOD is shown as 12 months, this policy will be renewed automatically sub- ject to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we will give you and the Mortgagee /Lienholder written notice in compliance with the policy provisions or as required by law. POLICY PERIOD: 12 MONTHS THE POLICY PERIOD BEGINS AND ENDS AT 12:01 AM EFFECTIVE DATE: 06/12/92 STANDARD TIME AT THE RESIDENCE PREMISES EXPIRATION DATE: 06/12/93 LOCATION OF RESIDENCE PREMISES SAME AS INSURED'S ADDRESS COVERAGES & PROPERTY A DWELLING DWELLING EXTENSION B PERSONAL PROPERTY C LOSS OF USE ONE LIMIT OF LIABILITY OF $ 100,000 APPLIES AS ONE COMBINED LIMIT FOR ALL COVERAGES AND PROPERTY. LOAN # 501314 MORTGAGEE HOME SAVINGS OF AMERICA FA ITS SUCCESSORS AND /OR ASSIGNS P 0 BOX 7075 PASADENA CA 91109 -7075 DEDUCTIBLE: 4 5,000 ( 5: OF LIMIT OF LIABILITY) IN CASE OF LOSS UNDER THIS POLICY, THE DEDUCTIBLE WILL BE APPLIED PER OCCURRENCE AND WILL BE DEDUCTED FROM THE AMOUNT OF THE LOSS. FORMS, OPTIONS, & ENDORSEMENTS POLICY PREMIUM $ 177.00 EARTHQUAKE POLICY FP -7930 REPLACEMENT COST - CONTENTS OPTION RC LENDERS LOSS PAYABLE END 438 OTHER LIMITS AND EXCLUSIONS MAY APPLY — REFER TO YOUR POLICY PREPARED COUNTERSIGN D J 19 06/22/92 FP- 7030.1C AGENT YOUR POLICY CONSISTS OF THIS PAGE, ANY ENDORSEMENTS BY 818-57 INSURANCE INC AND THE POLICY FORM. PLEASE KEEP THESE TOGETHER. 818- 576 -1040 ! A Important Notice ... California law requires us to provide you with information for filing complaints with the State Insurance Department regarding the coverage and service provided under this policy. Complaints should be filed only after you and State Farm or your agent or other company representative have failed to reach a satisfactory agree- ment on a problem. Please forward such complaints to: California Department of Insurance Consumer Affairs Division 300 South Spring Street Los Angeles, CA 90013 Or call toll free 1 -800- 927 -HELP Policy Number _ DECLARATIONS PAGE O i 1 55- J4- 5859 -5 ATE FARM FIRE AND CASUAL? OMPANY P OX 25045, SANTA ANA CA 9 *9 -5045 A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS -,z 6 2ND MORTGAGEE a 8350 -53 B CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY L P 0 BOX 1768 NEWPORT BEACH CA 92658 -8915 AUTOMATIC RENEWAL If the POLICY I ject to the premiums, rules and forms in give you and the Mortgagee /Lienholder POLICY PERIOD: 12 MONTHS EFFECTIVE DATE: 06/12/92 EXPIRATION DATE: 06112/93 LOCATION OF RESIDENCE PREMISES SAME AS INSURED'S ADDRESS a NAMED INSURED 6 MURPHY, KEVIN J & KRISTINA L 3- 1101 NOTTINGHAM RD G NEWPORT BEACH CA 92660 -4835 3 ERS POLICY - EXTRA FORM 5 I is shown as 12 months, this policy will be renewed automatically sub - for each succeeding policy period. If this policy is terminated, we will notice in compliance with the policy provisions or as required by law. THE POLICY PERIOD BEGINS AND ENDS AT 12:01 AM STANDARD TIME AT THE RESIDENCE PREMISES THIS POLICY DOES NOT INCLUDE EARTHQUAKE COVERAGE COVERAGES & PROPERTY SECTION I A DWELLING DWELLING EXTENSION B PERSONAL PROPERTY C LOSS OF USE SECTION II L PERSONAL LIABILITY (EACH OCCURRENCE) DAMAGE TO PROPERTY OF OTHERS M MEDICAL PAYMENTS TO OTHERS (EACH PERSON) FORMS, OPTIONS, & ENDORSEMENTS EXTRA FORM 5 (GUARANTEED REPLACEMENT COST DWELLING AND REPLACEMENT COST ON CONTENTS) JEWELRY AND FURS $2,500 EACH ARTICLE /$5,000 AGGREGATE LENDERS LOSS PAYABLE END LOAN i 501314 MORTGAGEE HOME SAVINGS OF AMERICA FA ITS SUCCESSORS AND /OR ASSIGNS P 0 BOX 7075 PASADENA CA 91109-7075 LIMITS OF INFLATION COVERAGE INDEX: 144.4 LIABILITY - SEC $ 266,000 ALLULOSSESS $IO,000 $ 199,500 ACTUAL LOSS SUSTAINED IN CASE OF LOSS UNDER THIS POLICY, THE DEDUCTIBLES WILL BE APPLIED PER OCCURRENCE AND WILL $ 100,000 BE DEDUCTED FROM THE AMOUNT OF THE LOSS. OTHER DEDUCTIBLES MAY APPLY - REFER TO POLICY. $ 500 $ 1,000 FP- 7925.CA OPTION JF 438 POLICY PREMIUM $ DISCOUNTS APPLIED: HOME ALERT RENEWAL 6+ YEARS CA EQ FUND SURCHARGE $ CA EQ FUND ADMIN $ OTHER LIMITS AND EXCLUSIONS MAY APPLY — REFER TO YOUfj#bL3& 1992 PREPARED COUNTERSIGN D 06/22/92 F 2 M 6L.0 P- 7001.4C BY ROMANO YOUR POLICY CONSISTS OF THIS PAGE, ANY ENDORSEMENTS 6-1040 INSURANCE AGENCY INC 818-57 AND THE POLICY FORM. PLEASE KEEP THESE TOGETHER. 818 — 5 7 467.00 60.00 1.00 528.00 19 AGENT 9 0 Important Notice ... California law requires us to provide you with information for filing complaints with the State Insurance Department regarding the coverage and service provided under this policy. Complaints should be filed only after you and State Farm or your agent or other company representative have failed to reach a satisfactory agree- ment on a problem. Please forward such complaints to: California Department of Insurance Consumer Affairs Division 300 South Spring Street Los Angeles, CA 90013 Or call toll free 1- 800 - 927 -HELP o M ❑ w coca 1 a C-i -7 a m /� )g � m� \ E-1 m 00 < ® ® m . \{ m rl) � (D \ � / �{ The Califotnla Residential , Earthquake Recovery arid. Surcharge is Added To Your Bill. The California legislature has created the California Residential Earthquake Recovery Fund, which provides minimum earthquake protection to most residential property owners in California. This fund is financed through surcharges on residential property insurance policies as required by law. A description of the operation of the fund, as written and provided by the California Department of Insurance, is enclosed and should be read carefully. The state requires that every holder of a residential property insurance policy on property located within the State of California be assessed a surcharge. It also allows insurance companies to collect an administrative fee to coverthe cost of collecting the surcharge. The amount of the surcharge is deter- mined by the California Commissioner of Insur- ance and all monies collected from the surcharge will be forwarded to the state for use in payment of claims. The surcharge and administrative fee apply to each residential unit. For this reason, a duplex, when at least one unit is occupied by an owner, will be surcharged for each unit, and subject to two administrative fees. The amount due on the en- closed bill includes the policy surcharge and a $t administrative fee per residential unit. This amount must be paid in full to State Farm, regardless of the payment plan you use, by the indicated due date. You should also write the parcel number from your property tax bill in the space provided on your premium notice. (Cwremmd- � - - "�de) If the surge is not paid in full, the state will pro . rate it a rovide basic earthquake protection only for the period of time the amount paid covers', resulting in a lack of earthquake protection for part - of the policy period. We realize that this information is very technical, and that you may find it confusing. For this we apologize. However, we are required by California law to provide you with the information and bill you for the surcharge. If you have questions about the Fund after reading the enclosed Official Notice, please call the California Department of Insurance at 1 -800- 927 -HELP. Policyholder Information Service STRT{ i1RM INRURRNti 0 STATE FARM FIRE AND CASUALTY COMPANY STATE FARM GENERAL INSURANCE COMPANY Home Offices: Bloomington, IL 61701 -1001 &92 553-253 CA S.FJORM • • Form 4388FU NS (Rev. May 1, 19421X LENDER'S LOSS PAYABLE ENDORSEMENT 1. Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns, hereinafter referred to as "the Lender," in whatever form or capacity its interests may appear and whether said in terest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise. or vested in a nominee or trustee of said Lender. 2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender. its suc cessors and assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting the ownership, descrip- tion, possession, or location of the subject of the insurance or the interest therein, or the title thereto; Ibl by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act. omission, neglect, or non - compliance with any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any of them or by the happening of any event permitted by them or either of them, or their agents, or which they failed to prevent, whetheroccurring before or after the attach ment of this endorsement, or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the named insured, excluding herfrom, however, any acts or omissions of the Lender while exercising active control and management of the property. 3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to the Lender of such non-payment of premium after sixty 160) days from and within one hundred and twenty 11201 days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten 1101 days following receipt of the Company's demand in writing therefore. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be termindated before ten (101 days after receipt of said written notice by the Lander. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefore exists, this Company, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, Iwfth refund of all interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest not ac• trued), and this Company, to the extent of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as collateral thereto. 5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the Lender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified and also any Contribution Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards. other than fire and conptiance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers contributing to said payment to all of the Lender's rights of contribution under said other insurance). 6. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten 110) days after written noticed of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period'of ten 1101 days after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender. S. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents; insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and condi- tions of this policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. 9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy. Approved: Board of Fire Underwriters of the Pacific, California Bankers' Association, WS -344 Committee on Insurance S.F..FORM LENDER'S LOSS PAYABLE ENDORSEMENT Form 4386FU NS (Rev. May 1, 19421X 1. Loss of damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy. its successors and assigns, hereinafter referred to as "the Lender," in whatever form or capacity its interests may appear and whether said in serest be vested in said Lender In its individual or in Its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a nominee or trustee of said Lender. 2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its suc cessors and assigns, shall not be invalidated nor suspended: Is) by any error, omission, or change respecting the ownership, descrip- tion, possession, or location of the subject of the insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission, neglect. or noncompliance with any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee. owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any of them or by the happening of any event permitted by them or either of them, or their agents. or which they failed to prevent, whethefoccuning before or after the attach- ment of this entldrsement, or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the named insured, excluding herhom, however, any acts or omissions of the Lender while exercising active control and management of the property. 3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to the Lender of such non- payrniml of premium after sixty 1601 days from and within one hundred and twenty (120) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten 00) days following receipt of the Company's demand in writing therefore. It the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be termindated before ten (10) days after receipt of said written notice by the Lender. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefore exists, this Company, at its Option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest and other indebtedness due or to become due from the insured, whether secured or unsecured, Iwith refund of all interest not ac crued), and this Company, to the extent of such payment, sha!I thereupon receive a full assignment and transfer, without recourse, of the debt and ail rights and securities held as collateral thereto. 5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the Lender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this Contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards, other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Company )pro rata with all other insurers contributing to said payment to all of the Lender's rights of contribution under said other insurance). 6. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after - written noticed of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender. 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents; insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and condi twins of this policy andlor under other riders or endorsements attached thereto shalt not apply to cite insurance hereunder as respects such property. 9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy. Approved: Board of Fire Underwriters of the Pacific, California Bankers' Association, HS -344 Committee on Insurance • • OFFICIAL NOTICE: STARTING JANUARY 1, 19929 YOU MUST PURCHASE EARTHQUAKE COVERAGE After the devastating 1989 Loma Prieta earthquake, the California Legislature enacted a new law requiring every Californian with homeowner's insurance to obtain protection from damage caused by earthquakes. The law requires that you pay between $12 and $60 per year, depending upon the likelihood of an earthquake in your area and other factors, for $15,000 in coverage, less a modest deductible. Since most homes damaged by an earthquake suffer less than $15,000 in losses, this coverage will provide a significant level of protection. Please read the following information carefully. It describes the cost and benefits of the program. If you have any questions, call 1- 800 -927- HELP for assistance. The Green, Hill, Areias, Farr California Residential Earthquake Recovery Act was enacted into law in September 1990 to provide funding to California homeowners for damages incurred as a result of earthquakes. Former Governor Deukmejian, in his State -of- the -State Address in January 1990, proposed the establishment of a statewide mandatory earthquake recovery fund three months after the October 1989 Loma Prieta earthquake, resulting in the passage of Senate Bill 2902 by Senator Hill. This bill directs the California Insurance Commissioner to administer the California Residential Earthquake Recovery Fund (CRER Fund) to pay California homeowners for certain earthquake coverage. Surcharges. The CRER Fund shall be funded from surcharges on residential property insurance policies ranging from $12 to $60, based on the risk to the residence due to its location, the year built and type of construction. Insurance companies will collect surcharges from homeowners after January 1, 1992 whenever a residential property insurance policy is issued or renewed. The companies will remit the surcharges to the Department of Insurance for deposit into the CRER Fund. The State Treasurer will invest the deposited funds, which will be used to pay for earthquake claims, administrative expenses of the CRER Fund, and expenses incurred in adjusting claims. Please note d W payment of surcharge by homeowners and remittance of funds by insurers are mandated by law. Also. homeowners who do not pay their surcharges at the time ofrenewr lorissuance or in accordance with installment navment plans shall be ineligible to receive CRER Fund navments following an earthquake. Benefits. The Act specifies that the CRER Fund "is not a substitute for the purchase of private earthquake insurance." Benglits provided by the CRFR Fund may sug*mentprivate insurance but will not provide sufficient relief to individual homeowners in the event of a catastrophic loss. The CRER Fund shall provide, for earthquakes occurring after January 1, 1992, coverage of (a) $15,000 (less a deductible) for structural losses to residential property as a result of an earthquake, (b) $1,000 for housing expenses where the residential dwelling is uninhabitable, (c) $2,000 for reconstruction costs associated with meeting local building code requirements, and (d) low- interest loans to finance seismic retrofitting of residences. In the early years of the program, the CRER Fund will only pay for structural losses to residential property. The remaining program benefits will be provided after the CRER Fund achieves specified levels over $750 million. The deductible to the $15,000 coverage is one-half of one percent (0.5 %) - between $1,000 and $3,500 —of the amount of the (a) fire coverage or (b) the fair market value of the residence excluding land value, if the fire coverage amount is unavailable. Example 1: A residence with a structural value of $100,000 and damages of $15,000 or more would be eligible for a $14,000 payment ($15,000 minus $1,000). Example 2: A residence with a structural value of $500,000 and damages of $15,000 or more would be eligible for a $12,500 payment ($15,000 minus $2,500). Fund payments for eli 'bto residences shall be based on the actual estimated damages to the property and bylaw cannot duplicate any coverage provided by any prip vately purchased policy of insurance. Pro Rata Payments. The Act specifies that in the event the CRER Fund does not have sufficient funds to pay all claims due to an earthquake, payments to eligible homeowners may be pro -rated according to the available CRER Fund balance. Based on estimates of proiected earthquake losses to the CRER Fund pro -rated pgyments are likely ifany maior losses occur in the early years of the program. Thus, homeowners should not make personal financial decisions based on an expectation of receiving full payments from the CRER Fund. (continued on the reverse side) aam.ras uowwoful JaP1011dorlod •luaw edaQ aql [Cq pa.nnbai se noX of paaantlap 8umq sl put, aouninsul ;o luaw -uudaQ t,1w0J![9D 311,Cq paptAold put, uouum st,m pund aqi ftpjdai uotlt,olunwwoo 8mmolio3 a LL 'QNf1d AIISAWaU d}IV1161U'ffV9 - 1VI,LNdG1M VIN2IOdI"IV3 0141 alt,a.to 01 Z06Z 11!9 alt,uaS p0139110 9111J031113D 30 a191S 0141 0661 `.tagwaldOS uI STATi IARM INiURANCE STATE FARM FIRE AND CASUALTY COMPANY Home Office: Bloomington, IL 61701.1001 I1N1 553 -235 CA (continued) Claims Handling. When an earthquake occurs, Department of Insurance contract claims adjusters will promptly establish toll -free telephone numbers for Filing claims under the CRER Fund. In addition, homeowners may complete claims application forms that will be available at local emergency centers, Department of Insurance offices, and from insurance agents, brokers, and insurers. Department claims adjusters will contact eligible claimants within a few days of receiving the claims form to arrange an appointment to adjust damage. After adjusting the losses, a check will be prepared by the CRER Fund and mailed to the claimant. Valid claims should be processed in less than 60 days, unless pro -rated payments are required. Additional Information. Homeowners may obtain an "Explanation of Program Benefits," detailing coverage provided by the CRER Fund, by calling the Department of Insurance Consumer Hotline at 1- 800.927 -HELP or by writing to: CRER Fund, Department of Insurance, 770 L Street, Suite 850, Sacramento, CA, 95814, Attention: EQ Program Benefits. CALIFORNIA RESIDENTIAL EARTHQUAKE RECOVERY FUND PROGRAM ED Order No. `Escrow No. . Loan No. WHEN RECORDED MAIL TO: City of Newport Beach Post Office Box 1768 Newport Beach, CA 92659 -1768 Attn: Office of the City Attorney • SPACE ABOVE THIS LINE FOR DEED OF TRUST WITH ASSIGNMENT OF RENTS (SHORT FORM) USE This DEED OF TRUST, made June 1992 between Kevin J. Murphy and Kristina L. Murphy, husband and wife, as community property herein called TRUSTOR, whose address is 1101 Nottingham Road, Newport Beach, California (Number and Street) (City) (State) FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and City of Newport Beach, a Charter City and Municipal Corporation , herein called BENEFICIARY, WITNESSETH: That Trustor grants to Trustee in Trust, with Power of Sale, that property in the City f Newport Beach, County of Orange , State of California, described as: Lot 49 of Tract 3031 as per Map recorded as Book 96, Pages 24 -26, inclusive, in Miscellaneous Maps recorded in the Office of the County Recorder of Orange County, California, [The real property is commonly described as 1101 Nottingham Road, Newport Beach, California and is designated as Orange County AP# 07- 045 -117- 482 -061 Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits. See Rider attached For the Purpose of Securing (1) payment of the sum of $ / hereto with interest thereon according to the terms of a promissory note or date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof, and (2) the performance of each notes of even agreement of Trustor incorporated by reference or contained herein (3) Payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, To protect the security of and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each the terms and set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other and all of provisions 1B, 1964, in the book and at the of Official Records in the office of the county recorder of the county where said property is located, counties August page noted below opposite the name of such county, namely: COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 850 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumes 166 1307 Siskiyou 506 762 Amadur 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 &rtte 1330 513 Los Angela. T -3870 874 Sacramento 5039 124 Sonoma 2067 427 Calav ... s 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Maria 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A -804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 Bel Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yola 769 16 Imperial 1189 701 Napa 704 742 Santa Cruc 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivision A and B, (identical in all counties, and printed on the reverse side hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth STATE OF CALIFORNIA COUNTY OF before me, the undersigned, a Notary Public in and for said State, per- sonally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same. WITNESS my hand and official seal. ei 1158 (6/82) (This area for official notarial sect t TTe following Is a copy of Subdivisions A and 8 a fictitious Deed of Trust recorded in each county in nia as stated in the foregoing Deed of Trust and in- corporated by reference in said Dead of Trust as be part thereof as if set forth at length therein. A. To protect the security of this Deed Of Trust, Trustor agrees: ll l To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, sufferor permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Bene ficiary the entire amount so collected or any part thereof may be released to Trustor, Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3.` To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all incumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the some in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or pro- ceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reason- able fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in affect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. S. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shell be paid to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance, (2) That by accepting payment of env sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without effecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or loin in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees. Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable, Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the in- debtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and prof- its, including those pastdue and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebted- ness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice, (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time es may then be required by law following the recordation of said notice of default, and notice of sale having.been given as then re- quired by law, Trustee, without demand on Trustor, shall sell said property at the time and piece fixed by it in said notice of sale, either as a whole or in separate par- cels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but with- out any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the pro- ceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duty acknowledged and recorded in the office Of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor , succeed toall its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the navy Trustee. (8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and as- signs. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a parry unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE TO FIRST AMERICAN TITLE INSURANCE COMPANY, TRUSTEE: The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, to- gether with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of mid Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Dead of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated Please mail Deed of Trust, Note and Reconveyance to Do nor lose or destroy this Deed of Trust OR THE NOTE which it secures Both must be delivered t the Trustee for cancellation before reconveyance will be made. c/'f � d N P1 e}` c U U F- o x U 1_ w �~ N LL. u s dl N O 3 t$`'', Q E Q o a , �t� 4 a- o LLJ b u.1 1' Q RIDER TO DEED OF TRUST DATED JUNE 1992 EXECUTED BY KEVIN J. MURPHY AND KRISTINA L. MURPHY, AS TRUSTORS IN FAVOR OF THE CITY OF NEWPORT BEACH, A CHARTER CITY AND MUNICIPAL CORPORATION, AS BENEFICIARY This Deed of Trust secures the Obligation evidenced by a Promissory Note and Agreement dated June _IL_, 1992, which Promissory Note and Agreement provide for a payment by Trustor to Beneficiary of a principal sum of Two Hundred Thousand Dollars ($200,000) plus a percentage of any "Equity Build -up ", which Equity Build -up, if any, shall be in addition to the Two Hundred Thousand Dollar ($200,000) principal sum. The Equity Build -up will be computed upon the increase in value, if any of the real property encumbered by this Deed of Trust, as determined by a sale or appraisal pursuant to the terms of an Employment Agreement dated March 6, 1992 by and between the City of Newport Beach and Kevin J. Murphy. THE PROMISSORY NOTE AND AGREEMENT WHICH CREATES THE OBLIGATION WHICH THIS DEED OF TRUST SECURES PROVIDES THAT THE BENEFICIARY SHALL HAVE THE RIGHT, AT BENEFICIARY'S OPTION, TO DECLARE ANY OBLIGATION SECURED BY THE PROMISSORY NOTE AND AGREEMENT DUE AND PAYABLE IN THE EVENT THE TRUSTOR, OR ANY SUCCESSOR -IN- INTEREST OF THE TRUSTOR, SHALL SELL, ENTER INTO A CONTRACT TO SELL, CONVEY OR ALIENATE THE REAL PROPERTY WHICH THIS DEED OF TRUST ENCUMBERS, OR ANY PART THEREOF, OR TRUSTOR SHALL HAVE ITS TITLE, OR ANY PORTION THEREOF, TO BE DIVESTED, EITHER VOLUNTARILY OR BY OPERA- TION OF LAW, WITHOUT THE PRIOR WRITTEN COASENT OF BENEFICIARY. e -4p'J: Mytrpj 0 STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On June 11, 1992, before me, the undersigned, a Notary Public in and for Said State, personally appeared Kevin J. Murphy, known to me (or proved to me on the basis of satisfactory evidence) to be the persons whose names are subscribed in this instrument and acknowledged that they executed it. WITNESS my hand and official seal. STATE OF CALIFORNIA ) ss: COUNTY OF ORANGE ) —'�-44tar P"ub"li��"-A f ../ On June 11 1992, before me, the undersigned, a Notary Public in and for the State, personally appeared Kevin J. Murphy, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument as the Attorney in fact of Kristina L. Murphy and acknowledged to me that he subscribed the name of Kristina L. Murphy thereto as principal and his own name as Attorney in fact. WITNESS my hand and official s 1. OFFICIAL VEAL SHAUNA LYN OYLER o' NOTARYPUBUC- CAUiORNN Notary Public in nd for aid State c ORANGE COUNTY Ay Comm.Emtrn Jan. 16, 1993 W.W Dear Robin: Pursuant to our discussion, I enclose proposed Deed of Trust, together with a "Rider" and a Promissory Note and Agreement creating the obligation of which the Deed of Trust is to secure. Pursuant to my discussion with Mr. Burnham, I will not attempt to amplify or clarify any of the provisions of the Employ- ment Contract, but have simply made reference to the existence thereof. Very truly yours, DENNIS -` . HARWOOD For the Firm DWH : j aj Enclosures - Deed of Trust with Rider - Promissory Note and Agreement LAW OFFICES BARGED & WOLEN w¢NARO50 cER 19800 MACARTHUR BOULEVARD ow LOS ANGELES OFFCE SAN FRANCISCO OFFICE SUITE 800 AENT EACKLANG M w:CHA w DTC wA DN 530 WEST 51 %TX STREET .0. CALIFORNIA STREET TkOMAS D, A c. I SON IBVINE, CALIFORNIA 907lE NINTX FLWR SUITE IQ wills, A. ,DER TELEPHONE: 17141757-2000 LOS ANOELES, CA 90014 SAN FRANCISCO. CA 9MII Oc E000N NNLEIN ry.CN ROOSI —Il LO FACSIMILE'. (7191752 -6313 TELEPRONE'. 1213168tr2800 TELEP.CKIM HIM SN-260O SICCNENWC 5. STVARi SOLDATE LLry D C.O. SCOTT r. T�N ER RI[N FACSIMILE, 120162T929I FACSIMILE: 0,15) A342533 .—Al n AE5 ON IN SON uDNiO Aw EOEw Nw IAN June 11, 1992 E N NIM w. RWOOD EG[wv O SCA ICIT SACR4MENt0 OFFICE OF COVUSEI JON, lo. Z D. NMOND LCA NNw p CAwy50 925 LSiR STREET ALLAN R. MOLTZEN 5TCVEN N INSTEIN A, ORELLMwNN SUITED00 FRANCIS G. WILLMA RTX SANDRA I. 11 1"111 G A., E. CONCH ENCE F IN Ay..E M NESSCN SACRAMENTO. CA 95614 EDWARD LEVY N SNCA w ACE -D.CRT G L 505ANrA, DIDON Gewr A, BRCSEE RECEIVED iCIEPMON E. 19161 4AB-2800 RTIN E. R05EN J. RONALD iONATO a FAC5IM: {g161 1425961 RE PLEASE REFER TO `.w.. SIER LARRr M. 00LYD NO SHELL 6tEDNAN EATNCA RCTERS M. LIDLANC JUN Z1 1992 OVR FILE NUMBER: SN ARON 9. D Nxls JOHN .STEVEN D....AI, 40220-01 HUG, J. <AODEN RENNCR C. NOLNES OEDORAN J. WICSON Cl i Y arroRNeY CITY OF NEWPORT BEAC.h VIA MESSENGER Ms. Robin Flory City of Newport Beach Office of the City Attorney Post Office Box 1768 Newport Beach, California 92659 -1768 Re: City of Newport Beach /Murphy Transaction Dear Robin: Pursuant to our discussion, I enclose proposed Deed of Trust, together with a "Rider" and a Promissory Note and Agreement creating the obligation of which the Deed of Trust is to secure. Pursuant to my discussion with Mr. Burnham, I will not attempt to amplify or clarify any of the provisions of the Employ- ment Contract, but have simply made reference to the existence thereof. Very truly yours, DENNIS -` . HARWOOD For the Firm DWH : j aj Enclosures - Deed of Trust with Rider - Promissory Note and Agreement )'� DOCUMENJ DELIVERY O SYSTEMS INC (714) 662 -5555 FAX (714) 662.3379 (213) 620 -9111 (619) 336 -9000 24 HOURS -7 DAYS DELIVER TO PICK UP FROM ATTN. ORDERED BY CO. NAME CO. NAME rlrPY OP NEWPORT REACH BARGER 5 WOLEN ADDRESS ADDRESS 19800 VON KARMAN, SUITE. #800 330 CITY IRVINE, CA 92715 CITY PHON DATE 7M757. -2800 NEWPORT BEACH CA 6/11/92 PHONE FILE #BILLING REF. 40220 -002 CASE! CASE NAME DAR °'� SPECIAL INSTRUCTIONS 1.111.1 K0.1— RUSH DRESEARCH PLEASE DELIVER THIS PACKAGE TO ROBIN FLORY AT THE CITY OF NEWPORT BEACH NO LATER THAN 1:00 P.M. PLEASE CALL WHEN DELIVER HAS 45EEN COMPLETED, SIGNATURE LOG is / r.: DELIVERED BY WMte - BBeg Yellow - File DOpy TIME DAM I DATE CHARGES WAIT TIME RETURN CK A RESEARCH WEIGHT q NLBS MISC. TOTAL PIN& - Redpi Gow -oma wCopy AGREEMENT TO TERMINATE EMPLOYMENT CONTRACT This Agreement, dated and effective on August 11, 1998, between the City cf Newport Eeach (City) and Kevin J. Murphy (Murphy) is made with reference to the following: A. City and Murphy entered into an Employment Agreement effective March 23, 1992 (Original Agreement) pursuant to which Murphy was appointed to the position of City Manager, B. Murphy wishes to terminate the Original Agreement and do so in a manner which minimizes any impact on the City; and C. Cibj wishes to retain the right to utilize Murphy as a consultant subsequent to the effective date of this Agreement to ensure a 9 0 smooth transition of administrations while facilitating the recruitment of a successor; Now, Therefore, the Parties agree as follows: 1. RESIGNATION Murphy has given the City forty-five (45) days notice of his intention to resign effective on September 26", 1998 (Effective Date of Resignation). The Parties acknowledge that the Letter of Resignation, which is attached as Exhibit A, satisfies the requirements of the Original Agreement that Murphy give forty-five (45) days notice of his intent to terminate. Murphy acknowledges the importance of promptly initiating the recruitment of his successor and, in consideration of City's commitments and to facilitate recruitment, Murphy agrees that the Letter of Resignation is irrevocable. 2. MURPHY'S COMMITMENTS E Murphy acrees to do the following: 0 A. From the effective date of this Agreement to the Effective Date of Resignation, Murphy shall assist in the transfer of administrative responsibilities to any acting City Manager designated by the City Council. Murphy shall also fully inform any Acting City Manager and /or the appropriate Department Director of the status of each project under his direct control. S. For a period of six (6) months subsequent to the Effective Date of Resignaticn, Murphy shall be available, on reasonable notice from the City, to consult with City officials and /or perform various duties that are necessary to facilitate a smooth transition of administrations. Murphy shall not be required to perform any service that impairs his ability to fulfill the commitments of his then current employment. In no event shall Murphy be required to spend more than twenty (20) hours per week performing duties pursuant to this Agreement subsequent to the Effective Date of Resignation. C. Murphy shall return all City property as of the Effective Date of Resicnation. 0 D. Murphy shall submit to City all invoices and receipts for business expenses reasonably incurred in performing duties prior to the Effective Date of Resignation. 3. CITY COMMITMENTS following: In consideration of Murphy's commitments City agrees to do the A. From the effective date of this Agreement to the Effective Date of Resignation: provide Murphy with his full salary and benefits including normal and customary use of the city owned vehicle assicned to him; S. Pay Murphy his normal bi- weekiv salary for thirteen pay periods commencing the first pay period after the Effective Date of Resignation. C. To allow Murphy to take up to twenty (20) days paid leave during the period from the effective date of this Agreement to the Effective Date of Resignation without reduction in Murphy's flex leave account. Paid leave conferred pursuant to this subsection shall not be added to Murphy's flex leave account for purposes of final payment. 0 0 D. Pay Murphy for all accrued leave in accordance with City policy and practice. 4. SPECIAL PROVISION A. The Original Agreement contained provisions (Section 9 — Housing) which required Murphy to reside in the City and committed the City to advance up to 5200,000 (the Advance) to assist Murphy in the purchase of this residence. The Original Agreement required Murphy to repay the Advance and any "Equity Build -up" within six (6) months after termination. Pursuant to Section 9 Murphy purchased a residence in Newport Beach for 5595,000 and the City advanced $200,000 towards the purchase price of the residence. B. The Parties hereby incorporate the provisions of Section 9 into this Agreement, with the understanding that the City and Murphy are not required to perform obligations referenced in Subsection A (purchase of residence by Murphy and advance of fund by City) and that the City's "share" of the Equity Build -up is a percentage equal to 40 divided by 119 (the Advance of 5200,000 divided by the purchase price of $595,000). C. The Parties also agree to modify the provisions of Section 9(B)(2) relative to Murphy's obligation to repay the Advance and distribution of the Equity Build -up to read as follows: "2. The Advance and City's share of Equity Build -up. if any, shall be repaid to City within twe!ve ( 12) months after September 26, 1998. In the event Murphy elects to sell the residence and lists the residence for sale at least thirty (110) days before the deadline for repayment, the date for repayment shall be extended by the time reasonably necessary to sell the residence at fair market value. The amount of the Equity Build -up shall be the difference between the original purchase price paid by Murphy (5595,000) and (a) the purchase price of the residence in the event of a subsequent sale; or (b) the market value of the residence as determined by an MAI appraiser in the event Murphy retains the residence. In the event of a sale, the expenses of the sale shall be deducted from amount of Equity Build -up payable to each Party in proportion to their share of the Equity Build -up. In the event Equity Build -up is determined by appraisal, each party shall bear the cost of the appraisal in proportion to their share of the Equity Build - uo. D. The Parties agree that this Agreement shall prevail over any inconsistent provision of Section 9 in the Original Agreement. 5. RELEASES AND PROMISES: In exchange for the mutual consideration received by each Pari1 pursuant to this Agreement, the Parties agree as follows: A. Except as to such rights or claims as may be created by this Agreement, each Party acknowledges full and complete satisfaction, and hereby releases, remises, and forever discharges the other Party and their respective agents and representatives of and -from any and ail claims, demands, causes of action, oblieaticns, agreements, liens, judgments, orders, damages, liabilities, losses, costs and expenses of any kind, in law or in equity, whether known or unknown, that either Party now holds, or has ever held against the other. This discharge and release includes, without limitation any and all claims, demands, or causes of action arising out of, or in any way connected with any transaction, occurrence, act, or admission occurring prior to the effective date including, but not limited to, any rights, claims, causes of action or damages arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Fair Labor Standards Act of 1938, the Employee 0 0 Retirement Income Security Act, the Americans with Disabilities Act, the National Labor Relations Act, the Vocational Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the California Moore - Brown- Roberti Family Rights Act, the California Unruh Civil Rights Act, the California Fair Employment and Housing act, or the California Labor Code, or under any other federal, state or local employment practice legislation, or under federal or state common law, including wrongful discharge, express or implied contract or breach of public policy. S. Each Party specifically waives the benefits of the provisions of Section 1542 of the Civil Code of the State of California, which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Notwithstanding the provisions of Section 1542, each Party expressly acknowledges that this Agreement is also intended to include in its effect, without limitation, all claims which either Party does not know or expect to exist in its favor at the time of the E execution hereof, and that this Agreement contemplates the extincuishment of any such claim, or claims, arising prior to the date of this Agreement. 6. REPRESENTATIONS, ACKNOWLEDGEMENTS AND WARRANTIES Murphy represents, warrants, and agrees as follows: A. Murphy represents that he has read this Agreement and understands the contents hereof. Murphy acknowledges that he has executed this Agreement without fraud, duress, or undue influence. 8 Neither City nor any officer or employee, has made any statement, representation, or promise to Murphy regarding any facts relied upon in entering into this Agreement, and Murphy does not rely upon any statement, representation or promise of City or t any officer or employee of City, in executing this Agreement. 7. MISCELLANEOUS A. This Agreement shall be deemed to have been executed and delivered within the State of California, and the rights and obligations of the Parties hereto shall be construed and enforced In • s accordance with, and shall be governed by, the laws of the State of California. B. This Agreement constitutes a single, integrated written contract expressing the entire agreement of the Parties. There is no other agreement, written or oral, express or implied, between the Paries with respect to the subject matter of this Agreement, except ;his Agreement. This Agreement may only be modified in a writing signed by the Parties. C. The provisions of this Agreement are contractual, and not mere recitals. This Agreement shall be considered severable, such that if any provision or part of this Agreements is ever held invalid under any law or ruling, that provision or par of the Agreement shall remain in force and effect to the extent allowed by law, and all other provisions or parts shall remain in full force and effect. D. In case either Party brings a legal action to protect or enforce rights hereunder, the prevailing Party in such litigation shall be entitled to recover reasonable attorneys' fees, expenses, and other costs incurred in the conduct of such litigation and any related appeal. Dated k Kevin J. Murphy 0 • Dated City of Newport Beach By Mayor Thomas Ccie Edwards f- \users \cat \shared \o urn hamlCMAGT.doc c 2�Ci 7� c7y) CITY OF NEWPORT BEACH OFFICE OF THE MAYOR August 24 1998 The following is the report of closed session action taken on August 10th "On August 10'h the City Council voted unanimously to accept Kevin Murphy's resignation subject to an agreement that would facilitate the transition of administrations. The Mayor and City Attorney were authorized to negotiate an agreement. The City and Mr. Murphy reached an agreement on August 11, 1998 at which time Murphy tendered his resignation. �S Thomas Cole Edwards Mayor of Newport Beach CITY OF NEWPORT BEACH Office of the City Manager January 12, 1998 TO: City Council FROM: Mayor Thomas C. Edwards Mayor Pro Tem Dennis O'Neil Councilmember Jan Debay January 12, 1998 Agenda Item 11 7 SUBJECT: COMPENSATION ADJUSTMENT FOR CITY MANAGER As directed by the City Council, we've met and discussed an adjustment to the salary of the City Manager. Following that discussion, we enclose for your information our recommended compensation adjustment. We're providing as background information the following: 1. A survey of all city manager salaries in Orange County as prepared by the Orange County Division of the League of Cities (Attachment 1). 2. A schedule listing adjustments received by represented and non - represented employees during the period of the City Manager's employment, March 1992 to present (Attachment 2). 3. A list of council goals for the last three years (Attachment 3). Historical Perspective To put in perspective Mr. Murphy's present situation, he has had no increase in salary since beginning his employment in 1992. Since 1992 the City has adjusted the compensation levels of all of our City employee (see Attachment 2). During his tenure, the City Manager has repeatedly demonstrated his commitment and devotion to this organization and there are numerous examples of the results of his commitment. During lean fiscal years this commitment has included not requesting a salary adjustment so that the City Council's fiscal message of hard times is consistent with our policy on senior executive salaries. The City in year's past has had the financial resources and support in the community to put off key decisions. This abruptly changed in the fiscal year the City Manager arrived to work in Newport Beach. For example, on assuming the City Manager position in March 1992, the draft 1992 -93 fiscal year budget was $12 million out of balance before he began making reductions and adjustments. . , , Then to compound the difficulties, the State shifted $2 million of the City's property tax revenues to the schools, followed by a similar action in 1993 -94 of $1.3 million. Under his direction, the City has rebounded from the recession and State raids. Needless to say, he has had to make some difficult decisions due to these new fiscal circumstances which many of our constituents and City employees can't fathom because of our past fiscal affluence. Longstanding Issues The City Council has directed the City Manager in the last five years to face up to several long standing issues which have been "boiling" under the surface for years in the City. Frankly, past councils ignored many of these issues. Examples include: 1) The "War Zone" of West Newport Beach. Arrests are down, noise complaints are down and when was the last reference to the "War Zone ? "; 2) The establishment of an Economic Development program; 3) A new Balboa Bay Club lease requiring the rehabilitation of the facility; 4) The problems of alcohol establishments for the Police Department; 5) A plan to revitalize the Peninsula (and actually commencing the work program with a funding 'source); 6) Completing a Groundwater system; 7) Taking on the Marinapark Tidelands issue; 8) Closing in on annexing the Newport Coast; and finally 9) Dealing with runaway leave benefits of our employees. The City Manager, with Council direction and support, has tackled many issues with success.` Achievements The City Manager, at the Council's request, provided the City Council with a list of accomplishments recently and we would like to list a few of these as a reminder of the issues: • Fletcher Jones Motorcars Relocation • Comprehensive Zoning Ordinance Rewrite • Privatized Tree and Parkway Maintenance • Reclaimed Water Agreement with IRWD /OCWD and End Users • Emergency Medical/Ambulance Program in 1993 and 1996 • Bonita Canyon Annexation • Joint Helicopter Service • Income Property Policy • Bankruptcy Recovery Plan for League of Cities • 10 Year Landfill Agreement with County at $22/ton • Re- negotiated Recycling Agreement with CRT for Lower Costs • Balboa Island Fire Station • Reorganization of City Departments from 13 to 8 RESOLUTION NO. 98_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADJUSTING THE COMPENSATION OF THE CITY MANAGER WHEREAS, the City Manager has received no increase in salary during his term of employment with the City of Newport Beach which began in March, 1992; and WHEREAS, during that period all management employees have received salary adjustments between 14% and 17 %; and WHEREAS, since 1992 the Cost of Living has increased approximately 10.31 %; and WHEREAS, the City Manager has achieved substantially all of the goals set for him by the City Council during that period and his performance, his hours of service, and dedication for the City all warrant a salary adjustment; and WHEREAS, the salary adjustment contemplated by this Resolution is accompanied by a reduction in flex leave accruals; NOW, THEREFORE, BE IT RESOLVED by the City of Council of the City of Newport Beach that the Mayor is authorized to execute amendments to the employment contract between the City and the City Manager consistent with the memo to the City Council attached as Exhibit "A" to this as Resolution. ADOPTED, this day of January, 1998. ATTEST: LaVonne Harkless, City Clerk F:\ cat%da\ResolutlonwtanagerSal.doc Thomas Cole Edwards, Mayor -1- N 2 w_ Ei L) F 6 • P • • • d D $N 6 T 41 6 N DIN 1 1 1 1 1 I 1 1 • 1 Y � I A I 1 1 al Y z; H I Y tl Y I Y C � Y I Y Y N ml ■ N I ■ F I ■ N I ■ al ■ 1Y 1 m 1 .1 1 N 1 ■ Z 1 ■ O 1 ■ G I [�N ■ 6� 1 {V ■ 1 ■ 1 1 U ■ N U i ■ O 3 ■ �o�: • 0 000 00 0 0 o I dNNN'v1N Z TN)INT ZNN Z111i1'!IZ NN'JIi1ZZZ ZZZN I I N o 0 o mo 0 0 00 o I dNNTNNUYNZNdN NNdNNdNdN NanNNNN NNNNI I.- IbrndMNNbNTT ■ OT my Tm bmdO.m :Vrml Y..bmm mmr.m .b V. bTbb bdn ■.Ib TOoPm=dm dON001 O.INb POdnmm bdmP 1 41N ■NNOTNMm.I TN OP.- INOOm. -IN mOO.ldmm NmON 1 .i C m ■ .1 .1 .1 .1 .1 .1 .1 H .� .a .1 .1 .1.1.1 .+ .1 .� .I .1 .1 .1 .1 1 h[r x N N H i Z m Z O F■ N T b O N O N O O H T O N O N O O O O r1 b SV.) H■ r-1 N r T N N N OI m T V I4 ■ .1 O Ifl m .1 ■ .I .1 d ■ €gm. 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His involvement in complex matters such as the IRWD Reclaimed Water Project, the NBPD sexual harassment litigation, the Pacific View, Lutheran Church and Fletcher Jones Development Agreements, CIOSA, the Oceanfront Encroachment Policy, the Mermaid litigation, the Thunderbird revocation, and employee termination hearings; and C. The assumption of responsibility for handling many liability cases "in- house". PROPOSED ADJUSTMENTS We are recommending the City Council approve the following adjustments: 1. Salary Adjustments; A 3% salary increase on March 1, 1998 and March 1, 1999 in addition to the Cost of Living adjustment in the current Agreement and elimination of the provision which called for payment of an annuity upon retirement equal in value to the difference between pay increases granted other management employees and City Attorney salary increases; 2. Benefit Adjustments: a. Flex Leave Reductions: A reduction in flex leave from 28 days to 25 days, with flex leave permanently capped (a six day reduction overall) at that level with flex leave spill -over pay. The City Attorney would have the right to buy out up to 80 hours of flex leave each year and the right to convert up to 5 days of flex leave (reducing accruals) to salary at .4% per day. b. Bereavement Leave: Bereavement leave, which is authorized up to five days per incident would be eliminated. C. Car Allowance: Replacement of city car with a car allowance. The car allowance would be $375 for first twelve months, $325 for the next 12 months, $275 for the final 12 months and no car or allowance thereafter. (current car is scheduled to be replaced with new vehicle) The other terms and conditions of the current agreement would remain unchanged. We are recommending the City Council adopt a Resolution authorizing Mayor Edwards to execute an amended agreement consistent with the terms discussed in this memo. If you have any questions, please feel free to contact any or all of us prior to the formal consideration of this matter. u n II P Y Y r n n u • u n u x n P p W Y Y C7 tl Y Q u Y a i X u Y p tl n X 11 p tl tl A N p n 2 n ro O u N H Y w � n F u Pi I N m a n o u uI n a Z Anu x H I n q u W u F 11 w� Un w u H I u N F I u x H I N N H I n Y z I p OIzuQ n W, V fK : z z z z z z z z H W I e u K 1 p u 014 x N EII 11 n I F ii Y i, i, N >, >• N N II x H i.V no II [L 0 n a N �. N N !, ?, z Y E. O 0I na O p Ill O O N V QOa nN c N z< z u Y u W tl N r b m 01 Yl M O X '.S. p ri 1p m M m Ol b r Y F .i Y C ICYI b M 10 m Ol N E i O w W u '1 „'IN ei rl N rl M1 Aar tl Pw W m F u n U z m n II n H 11 L� [+ OE. H II a i O H II M O e'1 b rl II U O M �.] � I4 N m M rl ei 11 > % Q N WFW .4 WEm u H Z A X V N u 'j, Q'j, Y 01 „1111 N N N M O Y H F w u Q 'y [rm P V' IIIM M b r r M H %r m 1(1 'Ti i iV Z p ,-I .4 ei .Y rY r4 e1 p U rl b N n W 4 V P Y Y a W ie b r o W M O O x O z W WiG pN NV m N r N O Y V H H YN m m N r r N r Y m b M Y m m Ol m 01 r m tl U M P IQx1 z W M F Y �Z rl r+ Li a f1 i ++ + + + wm N Y w tl a z w u p I H p Y yya.. ia.. YrzYz.. a ia. Ida a ��x F mV 4N i[UUFDUUUUU�U UUU U UU�OrUFUUHUU VUUUUi a T N u z z u \ \z z z u z z z z z z z u z u z u z z u N �zzu�zzzzzuz zzz z zzuzuzuzzuzzzzz `YzzN a ww i c�y U pm, O w z i m x . 8 a na1 q a o p4�.�.1 � 0 w in ou i zwm0 Z $Za OZp wa fVF�J� 00000 a1wi �ja��yg. y� a K{a�](ai i w YDW Y Qwo Hz0i9E {Q mz fi HRH IyaU Q. 2--N 0,96 s ANxM�mt 1 N H Z W 2 U Q Q F- Z W F- U) 7 a } a J a U a w m cc O IL W Z n Q1 T N D7 T 9 0 m 0 d E U O d n 7 � ul r N E a� 75 c c CU 'a co ui � m c 0 _ � y >, i0 :3 75 a a 7 fU ft1 C C d O N O N U f0 N m C M a N n U o C O) O N y U O � O d > Y m 0- and Er v d Ci _ U m I n - € m o rn U) a or N a rn a 3 aa� U c d C_ a o E 'g r a 2 -00 m .. 2� a C V W > N > m m � CL N w 7 O a: U U a. 0 0 RESOLUTION NO. 98 / A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADJUSTING THE COMPENSATION OF THE CITY ATTORNEY WHEREAS, the City Attorney has received salary adjustments totaling 6.5% since 1991: and WHEREAS, during that period all management employees have received substantially greater salary adjustments; and and WHEREAS, the Cost of Living has increased approximately 14.0 % since 1991; WHEREAS, the City Attorney's workload has substantially increased in the past few years and his performance warrants a salary increase; and WHEREAS, the adjustments in compensation for the City Attorney will be, to some extent, off -set by reductions in benefits; and r NOW, THEREFORE, BE IT RESOLVED by the City of Council of the City of r Newport Beach that the Mayor is authorized to execute amendments to the employment contract between the City and the City Attorney consistent with the memo to the City Council attached as Exhibit "A" to this Resolution. ADOPTED, this day of January, 1998. ATTEST: LaVonne Harkless, City Clerk F:\cat\dakResolution\AttorneySal.doc Thomas Cole Edwards, Mayor -1- ATTACHMENT 3 COUNCIL PRIORITIES 1995 • Fiscal • Economic Development/Advanced Planning • Airport Monitoring/Issues • Organization Development/Task Organization 1996 • Downcoast Annexation • Fiscal • Airport • Economic Development • City Landfill Disposal 1997 • Airport Monitoring/Issues • Marine Environmental and Water Quality Issues • Advanced Planning/Annexation • Water Service Delivery/Quality • Crime Prevention • Economic Development • Employee Relations/Negotiations • Financial Forecasting • Tidelands Adminlstration/Management m ) � \ ( < Cl) w k k k Cl) § a § k K z \ � E \/ ca CU 0\\ co 0-6 Co j/( $ ƒ§0 / a) § §7 ƒ $§» & cr a. §ƒ k \k\ 2 ;22 ƒ 0 2 \ . / co \k � \ � \B� 0 it § RESOLUTION NO. 98 -5 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADJUSTING THE COMPENSATION OF THE CITY MANAGER WHEREAS, the City Manager has received no increase in salary during his term of employment with the City of Newport Beach which began in March, 1992; and WHEREAS, during that period all management employees have received salary adjustments between 14% and 17 %; and WHEREAS, since 1992 the Cost of Living has increased approximately 10.31%; and WHEREAS, the City Manager has achieved substantially all of the goals set for him by the City Council during that period and his performance, his hours of service, and dedication for the City all warrant a salary adjustment; and WHEREAS, the salary adjustment contemplated by this Resolution is accompanied by a reduction in flex leave accruals; NOW, THEREFORE, BE IT RESOLVED by the City of Council of the City of Newport Beach that the Mayor is authorized to execute amendments to the employment contract between the City and the City Manager consistent with the memo to the City Council attached as Exhibit "A" to this as Resolution. ADOPTED, this 12th day of January, ATTEST: 6 e&�l fn .4r", LaVonne Harkless, City Clerk F:\cat\da\Resolution\ManagerSal.doc Cole Edwards, Mayor -1- 0 0 CITY OF NEWPORT BEACH Office of the City Manager January 12, 1998 TO: City Council FROM: Mayor Thomas C. Edwards Mayor Pro Tem Dennis O'Neil Councilmember Jan Debay SUBJECT: COMPENSATION ADJUSTMENT FOR CITY MANAGER As directed by the City Council, we've met and discussed an adjustment to the salary of the City Manager. Following that discussion, we enclose for your information our recommended compensation adjustment. We're providing as background information the following: 1. A survey of all city manager salaries in Orange County as prepared by the Orange County Division of the League of Cities (Attachment 1). 2. A schedule listing adjustments received by represented and non- represented employees during the period of the City Manager's employment, March 1992 to present (Attachment 2). 3. A list of council goals for the last three years (Attachment 3). Historical Perspective To put in perspective Mr. Murphy's present situation, he has had no increase in salary since beginning his employment in 1992. Since 1992 the City has adjusted the compensation levels of all of our City employee (see Attachment 2). During his tenure, the City Manager has repeatedly demonstrated his commitment and devotion to this organization and there are numerous examples of the results of his commitment. During lean fiscal years this commitment has included not requesting a salary adjustment so that the City Council's fiscal message of hard times is consistent with our policy on senior executive salaries. The City in year's past has had the financial resources and support in the community to put off key decisions. This abruptly changed in the fiscal year the City Manager arrived to work in Newport Beach. For example, on assuming the City Manager position in March 1992, the draft 1992 -93 fiscal year budget was $12 million out of balance before he began making reductions and adjustments. 0 0 Then to compound the difficulties, the State shifted $2 million of the City's property tax revenues to the schools, followed by a similar action in 1993 -94 of $1.3 million. Under his direction, the City has rebounded from the recession and State raids. Needless to say, he has had to make some difficult decisions due to these new fiscal circumstances which many of our constituents and City employees can't fathom because of our past fiscal affluence. Longstanding Issues The City Council has directed the City Manager in the last five years to face up to several long standing issues which have been "boiling" under the surface for years in the City. Frankly, past councils ignored many of these issues. Examples include: 1) The "War Zone" of West Newport Beach. Arrests are down, noise complaints are down and when was the last reference to the "War Zone ? "; 2) The establishment of an Economic Development program; 3) A new Balboa Bay Club lease requiring the rehabilitation of the facility; 4) The problems of alcohol establishments for the Police Department; 5) A plan to revitalize the Peninsula (and actually commencing the work program with a funding -source); 6) Completing a Groundwater system; 7) Taking on the Marinapark Tidelands issue; 8) Closing in on annexing the Newport Coast; and finally 9) Dealing with runaway leave benefits of our employees. The City Manager, with Council direction and support, has tackled many issues with success. Achievements The City Manager, at the Council's request, provided the City Council with a list of accomplishments recently and we would like to list a few of these as a reminder of the issues: • Fletcher Jones Motorcars Relocation • Comprehensive Zoning Ordinance Rewrite • Privatized Tree and Parkway Maintenance • Reclaimed Water Agreement with IRWD /OCWD and End Users • Emergency Medical/Ambulance Program in 1993 and 1996 • Bonita Canyon Annexation • Joint Helicopter Service • Income Property Policy • Bankruptcy Recovery Plan for League of Cities • 10 Year Landfill Agreement with County at $22 /ton • Re- negotiated Recycling Agreement with CRT for Lower Costs • Balboa Island Fire Station • Reorganization of City Departments from 13 to 8 0 0 Proposed Compensation Adjustment Since 1992 if the City Manager had received the same adjustments as all other non - safety represented employees, his salary today would be $149,148 or nearly 12% higher than its present level of $132,912. The cumulative costs of these periodic adjustments, had they been approved would have been $66,000, when factoring in only salary and retirement costs. As stated earlier, the cost of living for the past five- and -a -half years has been 10.31 %. After reviewing the increases received by all our other employees, we think you would agree that the City Manager should be entitled to a substantial salary adjustment for his accomplishments, long hours and dedication to the City. Based thereon, we are recommending an adjustment of 5% retroactive to January 1, 1997 and 5% effective July 1, 1998. The adjustments we are recommending would set his new salary at $139,558 or $11,630 per month effective immediately and then $146,535 or $12,211 per month in July 1998. We also recommend that the City Manager's Flex Leave accrual be reduced to 21 days per year, which is a reduction of four days per year, and exceeds all other employee flex leave reductions. If you have any questions, please feel free to contact the three of us prior to the formal consideration of this matter. z w a H E4 P a m w N F 4 u ,4 a W BOO V i 0.' m N z a pF qF F m N Z N m m AM a �v b fail N i WW m a maI Wi VI zl N 1 r� ml W� N FI N 1 rl I N 1 m 1 N 1 m� zl of GI C� Fym W V V am� O 33Q aoa �5+5aW W E- YmE- w • tl • • n 0 000 00 0 0 0 f mNN�l ill nlmi�Nn ZNN zl/I: z m O O O 00 O O dyl yl l�l 'Y �Im 712 i1f 71 NiId NYlf�ld yl w>.>O -Zzz zzz� 00 0 'JI f Al it '!1 N'!1 '♦1 %1 it �1 �- 1Vnrdrl YlNbmnl l�'1 ONrP�l l�ld l�lm bmPf 01-1P mdnl�l m M M b m m m N N r M m O O O M b O f N n b O bl�lb m b P b d r ONOMOPNbbmdm dONN20MHN Wo=Wm No N mMOmmMmNNPI m OP.- INOOmr A mOOe�dmm NmON M M M r4 ri N '1 r-I M r1 rd rl A M M N ei '1m '1 M N ri ZOF NNt'IbONOmOON1�l0 O N NNNn P N ei el �j 4Z7 N TO N N O Yml'1 � -1�-IP POme�P bri >IF NPrnf on.+Nrv1oP V mNdmONmNNmMlpmn N M M M M M M M M M au�gj N 2N N m b b r N d m n O N • bbNN10MOOmM1pP N •nobrbroNfomO p(W •mM1�IN MOmOMOMM • 1 1 1 1 • b b.N O r r O f m r O N m • b b b m b N O O m M b P N fOl+lr bPmN0Om0 N M M P m N m r O M O M M a F F t N i i 4a1 CL N U HU • N o Huaaaa aaaaama Owl WWWWwMw I�E'1 {"1FNF�HFFf'I f'1 I N M N H N N H H H N H IVVVU VVUVVUU I I I 1 m If10 N0000rib nOOON00 bObO P m 1�1 b 10 1�11�1 P P N mM m bmbrmnd % I+IWW=v Womw r M m m N m r P b d N N M P r 0 N m ON f M N M M N W M " n W N V M O b N n N NMMMNN ^I MMANN m 'IM Nrd I�IN M10 O m O O b r m O M P r M M P m r M M 11 I 1 1 1 1 Pm n11�1m m r N m O b W b n 0 m M D rrooPmroN M M M M d P O P • o olnoPOm bbof • P P f m M M b M n O r N mNmMl�lmb MNOM • n m m M M r n M n M M N 1 1 1 1 1 1 1 I I• mvm mfOm PMOw P P d m P M b b vow N m N m M M m b N n O b• r m m M N r n M m O P• M M N N • N • a N O • F N aaaaw rW a aWN mm aw w WWaw: • ��f' If' I�' I�f'I{'If'I:i['1�{'�N"I�°f��f'I ��"If'I� • H H H H H H H H H \H H H H YiH H H H H H H• uuuuuuuuvzuuuu[�[+vuu uuuu� O N o I� �00F, Ic IM TOm6%K $OZ ppOo a m. � OawFLamNU 4 BZ z • I 4 E7NZH F4 WH i o =o��> got 0 > m 7 � A d M M zo n O m G N M n W N N M M m N P n P 4 m N 0 0 1 N P Z O 1a� V z z z W N I C\j § � \ § U) LLI U) 0 « � a k _ k 2 k K z � CM � Cd \ \\ CO \k CL c ca \ \\ $ ( }) Ci ■ §a / E) k §k\ ® CLEi k \)ƒ § - \/� , * \a D \ \ \\ COUNCIL PRIORITIES 1995 • Fiscal • Economic Development/Advanced Planning • Airport Monitoring/issues • Organization Development/Task Organization 1996 • Downcoast Annexation • Fiscal • Airport • Economic Development • City Landfill Disposal 1997 • Airport Monitoring/Issues • Marine Environmental and Water Quality Issues • Advanced Planning/Annexation • Water Service Delivery /Quality • Crime Prevention • Economic Development • Employee Relations/Negotiations • Financial Forecasting • Tidelands Administration/Management ATTACHMENT 3 STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARELESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 98 -5, was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 12th day of January, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, Mayor Edwards Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 13th day of January, 1998. (Seal) City Clerk of the City of Newport Beach, California RESOLUTION NO. 92- 19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AN AGREEMENT PURSUANT TO WHICH KEVIN J. MURPHY IS RETAINED FB 2 41992 AS CITY MANAGER. I I _ ___ __ WHEREAS, the City Council would like to hire Kevin J. Murphy ( "Murphy ") as the City Manager of the City of Newport Beach; and WHEREAS, the City Council and Murphy have agreed on the terms of a written Agreement specifying the terms and conditions of Murphy's employment relationship with the City of Newport Beach (a copy of the written agreement is attached as Exhibit "A ".); and WHEREAS, the Charter of the City of Newport Beach requires the salary of the City Manager to be established by ordinance or resolution; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: SECTION 1: The City Council hereby approves the Agreement between the City of Newport Beach and Kevin J. Murphy (Exhibit "An) SECTION 2: The Mayor and City Clerk are hereby authorized to sign the Agreement on behalf of the City of Newport Beach. ADOPTED, this 24th day of February , 1992. MAYOR • f c - Z,,Y97 EMPLOYMENT AGREEMENT The City of Newport Beach ( "City ") and Kevin J. Murphy ( "Murphy ") agree as follows: SECTION 1. Employment as City Manager. City shall employ Murphy as City Manager of the City of Newport Beach to perform the functions and duties of that position as specified in the City Charter and Municipal Code of the City of Newport Beach. Murphy shall also perform other duties assigned by the City Council, without additional compensation, so long as those duties are related to matters of concern to the City of Newport Beach or cities generally and are performed by other management employees of other municipalities. SECTION 2. Effective Date /Term. This Agreement shall be effective on March 23, 1992 and shall remain in effect until terminated pursuant to Section 4. SECTION 3. Base Comvensation. City shall pay City Manager an annual base salary of $130,000.00 in twenty -six (26) equal installments paid at the same time other management employees of the City are paid. The annual base salary of the City Manager shall be established by resolution of the City Council. This Agreement shall be deemed amended whenever the City Council adopts a resolution changing the base salary of the City Manager or the manner in which management employees are paid. City shall have the right to deduct or withhold from Murphy's base compensation any and all sums required for federal income and social security taxes and all state or local taxes now applicable or that may become applicable in the future. City may also deduct sums Murphy is obligated to pay because of participation in plans or programs described in Section 6 of this Agreement. SECTION 4. Termination and Severance Pa v. A. Murphy may terminate this Agreement by giving the City at least forty -five (45) days' prior written notice of termination. B. City may terminate Murphy, without cause, upon the affirmative votes of a majority of the members of the City Council at any regular meeting, provided, however, 0 0 Murphy may not be terminated within ninety (90) days after any municipal election for the selection or recall of one or more members of the City Council. Murphy shall be furnished with written notice stating the Council's intention to terminate this Agreement, and any reasons for termination, if appropriate, at least thirty (30) days prior to the effective date of termination. C. Murphy shall receive severance pay equal to one -half (1/2) of his annual base compensation as of the date of termination, unless he is terminated because of criminal conduct, malfeasance in office, or a gross abuse of discretion. SECTION 5. Employee Benefits. A. Murphy shall accumulate paid leave at the rate of twenty - five (25) days per year, commencing on the effective date of this Agreement. B. Murphy shall receive the same health insurance and retirement benefits as are available to other non - safety management employees of the City. C. Murphy shall be entitled to participate in plans and programs available to other management employees of the City such as short term and long term disability plans, life insurance plans, and deferred compensation plans as other management employees of the City. D. Murphy shall, at City expense, undergo an annual physical examination similar to that made available to other management employees of the same age. E. The provisions of the then current Personnel Policies Resolution as well as those provisions of the City Charter and Municipal Code that relate to the terms and conditions of employment shall, except to the extent inconsistent with the terms of this Agreement, apply to Murphy as they are applied to other management employees provided, however, Murphy shall not be entitled to any compensation, or compensatory time off, for overtime. F. City shall provide Murphy with an automobile that may be used for City business as well as personal use. Murphy shall purchase gasoline for the automobile when used for mgremp.agt reasons other than Citg business. G. This Agreement shall be deemed amended whenever the City Council adopts a resolution changing the rate Murphy accumulates paid leave or alters employee benefits available to other non - safety management employees of the City. SECTION 6. Business Expenses. City shall reimburse Murphy for all reasonable business expenses actually incurred by Murphy in the performance of services pursuant to this Agreement. Murphy shall, to the extent possible, use a credit card issued in the name of the City of Newport Beach to pay for business expenses. SECTION 7. Meetings and Conferences. Murphy shall, at City expense, be entitled to attend a reasonable number of local, state and national conferences relevant to his performance of services pursuant to this Agreement. SECTION 8. Moving Expenses. City shall, upon receipt of appropriate statements or invoices, pay all costs actually incurred by Murphy in moving his principal residence from Alhambra to Newport Beach. SECTION 9. Housing. A. Murphy shall become a full time resident and elector, of the City of Newport Beach within ninety (90) days after the effective date of this Agreement, unless the time is extended by action of the City Council. B. City shall provide Murphy with that portion of the Advance requested upon thirty (30) days' written notice. City shall pay up to $200,000 (the "Advance ") towards the purchase price of the first Newport Beach residence purchased by Murphy, subject to the following terms and conditions: mgrew. agt 1. The Advance is provided on an equity sharing basis. Murphy shall repay the amount of the Advance and all or a portion of any increase in the value of the residence between the date of purchase and the date of sale or buyout ( "Equity Build -up ") as specified in this Section. The City's share of the Equity Build -up, if any, shall be in proportion to the amount of the Advance divided by the total equity contributed by the City and Murphy to purchase the residence. For example, the City is entitled to 66 -2/3% of the Equity Build -up, if any, if the Advance is $200,000.00, and Murphy contributes $100,000.00 for a total equity contribution at the time of purchase or $300,000.00. The Advance and City's share of Equity Build -up, if any, shall be repaid to City within six months after termination of this Agreement, provided, however, that all expenses of the sale of the residence shall first be deducted from the proceeds with each party being charged a prorata share of said expenses in relation to their respective ownership interests and further provided that Murphy shall be repaid all Equity Build -up achieved, by loan reduction only, from the date of purchase to the date of sale. All remaining proceeds shall be shared by the City and Murphy in relationship to the percentage of equity contributed at the time of purchase. Murphy has the option of selling the residence and paying the City from the proceeds of the sale or retaining the residence and paying the City the Advance and Equity Build -up based upon the market value of the residence as determined by an MAI appraiser selected by the City. The date on which the Advance and Equity Build -up are to be paid to the City may be extended if Murphy has diligently attempted to sell the residence, but has received no reasonable offer to purchase. For the purposes of this Agreement, the City's percent of ownership shall be that percentage derived by dividing the amount of the Advance by the total purchase price. 3. City may require Murphy to execute documents necessary or appropriate to secure repayment of the Advance and /or payment of the Equity Build -up. City shall select a method of securing payment that mgremp.agt • 0 will protect its interests without duly interfering with Murphy's ability to obtain financing. 4. Murphy shall make monthly mortgage payments and pay all property taxes, insurance and maintenance costs. 5. Except for any initial purchase money mortgage, Murphy shall not encumber the property without the express written consent of the City. 6. Murphy agrees not to make any capital improvements to the premises without the consent of the City, which consent shall not be unreasonably withheld, it being expressly understood and agreed that the parties will agree on a formula for Equity recapture at the time of sale which may result from any additional capital improvement. SECTION 10. Evaluation. The City Council shall conduct an initial evaluation of Murphy's performance within six (6) months from the effective date of this Agreement. Subsequent to the initial evaluation, the City Council shall evaluate Murphy's performance in June of each calendar year and, as a part of that evaluation, determine if Murphy's base salary or employee benefits should be increased or changed. SECTION 11. General Provisions. A. Murphy shall serve at the pleasure of the City Council as specified in the Newport Beach City Charter and may be terminated "at will" subject to the procedural requirements specified in this Agreement and /or City ordinance. B. This Agreement shall be binding upon, and inure to the benefit of, the heirs, executors, and assigns of Murphy. C. Any notice required by this Agreement shall be in writing and deemed given when personally delivered (to the City Clerk in the case of the City) , or deposited in the mgre p.sgt 0 United States mail, registered or certified, with postage prepaid and return receipt requested, and properly addressed. D. This Agreement represents the entire understanding of the parties and any modification is effective only if it is in writing and signed by the party to be charged. Dated: 3 , C12— CITY OF NEWPORT BEACH, A Municipal �Corporation By: Dated: KEVIN Pty Manager ATTEST: 404-2--) Wanda Raggi CITY CLERK AS TO FORM: Robert m. Burnnam, CITY ATTORNEY \LIFORr.,�;j' mgremp.agt 6 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER February 25, 1992 TO: CITY ATTORNEY FROM City Manager SUBJECT: PREPARATION OF EMPLOYMENT AGREEMENT Inasmuch as you have the Murphy employment agreement on your word processor, please modify Sections 9.B.1, 9.B.2, 9.B.4, and 9.B.6 consistent with the attached underline and strike out amendments approved by the City Council. Sections 9.13.3 and 9.B.5 shall remain the same. Please note the new Section 9.B.2 which shows a strike out of the last two sentences. These two sentences should be included in the new 9.B.2. After preparing" the agreement please transmit the copies to the City Clerk so she can obtain the signatures of the Mayor and Murphy. V V ROBER �VV�YrI T T L. RLW:kf Attachment • • D_g, 1. The Advance is provided on an equity sharing basis. Murphy shall repay the amount of the Advance and all or a portion of any increase in the value of the residence between the date of purchase and the date of sale or buyout ( "Equity Build -up ") as specified in this Section. The City's share of the Equity Build -up, if any, shall be in proportion to the amount of the Advance divided by the total equity contributed by the City and Murphy to purchase the residence pur-ehase pr4ee of the residene e. For Example, the City is entitled to 66 2/3% 25%- of the Equity Build -up, if any if the Advance is $200,000.00 and Murphy contributes $100,000-00 for a total equity contribution at the time of purchase or $300,000.0 $100 ,000, and the r-ehase priee of t .:dente is $400,000.00 2. The Advance and City's share of Equity Build -up, if any, shall be repaid paid to the City within six months after the termination of this Agreement provided however, that all expenses of the sale of the residence shall first be deducted from the proceeds with each party being charged a prorata share of said expenses in relation to their respective ownership interests and further provided that Murphy shall be repaid all Equity Build -up achieved, by loan reduction only, from the date of purchase to the date of sale. All remaining proceeds shall be shared by the City and Murphy in relationship to the percentage of equity contributed at the time of purchase. Murphy has the option of selling the r-esidenee and pa�4ag the City from the proceeds of the sale Build up based upen the inarket value of the residence as deter-Wiined by an MAI appraiser- selected by the City. The date on which the Advanee and Equity Build up are to be paid to the City may be extende "\ if Murphy has —diligently att6mpted to sell the residenee, 'mss Feeeiwd no reasonable offer to purehase. For purpose of this Agreement, the City's percent of ownership shall be that percentage derived by dividing the amount of the Advance by the total purchase price. 4. Murphy shall make monthly mortgage payments and pay all property taxes, insurance and maintenance costs. 6. Murphy agrees not to make any capital improvements to the premises without the consent of the City, which consent shall not be unreasonably withheld it being expresses understood and agreed that the parties will agree on a formula for Equity recapture at the time of sale which may result from any additional capital improvement.