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HomeMy WebLinkAboutGREYHOUND LINES, INC. (12)SECOND EXTENSION TO LEASE AGRE EMENT BETWEEN THE CITY OF SANTA ANA AND GREYHOUND LINES, INC. THIS AGREEMENT, dated, for reference purposes only, September 21, 1998, made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the constitution and laws of the State of California, hereinafter referred to as "Owner", and Greyhound Lines,lnc., referred to as "Tenant". WITNESSETH Agreement: A. Owner and Tenant hereby agree to extend the term of the Lease of February 1, 1985 to expire on September 30, 2003. If the Lease is still in full force and effect, Tenant shall have one (1) five (5) year option for extension, provided Tenant is not at the date of such election, in default hereunder of such a nature as would allow Owner to terminate the Lease, and further, provided written notice of the election of such option (s) shall be sent to Owner not less than three (3) months prior to expiration of the then current term (original or extended). If said option(s) is duly exercised by Tenant, the term of the Lease shall be automatically extended for the period of the next ensuing option, without the requirement of any further instrument, upon all of the same terms, provisions and conditions set forth in the Lease and any Amendments thereto, except for annual rental cost which shall be negotiated between the parties. B. Annual rent for the first two (2) years of the renewal term will be $20,600 annually. The rental amount for years three (3) through five (5) shall be increased each year by the Consumer Price Index, with a cap of 2%. C. Owner will clean bus bays exclusively used by Tenant every quarter. Tenant will reimburse Owner $280.00 each quarter for the cleaning. Page I of 2 D. Tenant represents to Owner and Owner acknowledges that Tenant self -insures in the ordinary course of its business. Notwithstanding any other provision contained herein to the contrary, the insurance obligations of Tenant set -forth in this Paragraph may be satisfied by endorsements to existing excess/umbrella blanket policies written by companies of recognized standing showing a self-insurance retention of not more than $1.5 million per occurrence for automobile liability and general liability insurance coverage; worker's compensation insurance coverage is subject to a $1.0 million deductible per occurrence with a deductible of $100,000 per occurrence for property damage insurance coverage, to the extent required Linder the Lease, Except as amended as set forth hereinabove, all of the provisions of the said Lease shall remain in full -force and effect. IN WITNESS VvTTEROF, OWNER AND TENANT have executed this Extension to Leas the day and year first above written. ATTEST: llie C. Guy erk of the Council APPROVED AS TO FORM: ,J- Joseph W. Fletcher City Attorney APPROVED AS TO CONTENT: David N. Ream City Attorney RECOMMEND FOR APPROVAL: .... . ...... . . Cydhia J. Nels6n, Executive Director Community Development Agency Page 2 of 2 INIVAOINCYARINEW111110VI Municipal corporation of the State f-C-' rnia M�i��A. Pulibo r APP OV A QS Tx(l CON T N T: David N. Ream City Attorney Greyhound Lines, Inc. JflW. 'Haugsl President anal Chief Operating Af Appro By : *1' —(Y