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.
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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
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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
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Includes copyrighted material of State Farm Fire and Casualty Company.
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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
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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;
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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.
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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
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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)
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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.
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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.
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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
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TELEPHONE: 17141757-2000
LOS ANOELES, CA 90014
SAN FRANCISCO. CA 9MII
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NO SHELL 6tEDNAN
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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
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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 /
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DELIVERED BY
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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
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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
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b. 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.
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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
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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
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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.
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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
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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,
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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
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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:
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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
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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
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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'
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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.
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ROBER �VV�YrI T
T L.
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Attachment
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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
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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.