HomeMy WebLinkAboutAKOBOFF, CHARLIE-1989INSURANCE ON FILE INSURANCE Kybs9�XA (k
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UNT9 alt5iutlaCl EXPSRE s AGREEMENT FOR LEASE OF REAL PROPERTY ���"
�1 Cka CLERK OF COUNCIL
GLERK OF COUNCIL DATE- 71d/r 9
DATE: %hkcq
GV H This AGREEMENT, made and entered into this day of _111,,✓:- ,
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198`, by and between the City of Santa Ana, a municipal corporation, corporate
and politic, hereinafter referred to as "City" and Charlie Akoboff,
hereinafter referred to as "Lessee."
W -1 -T -N -E -S -S -E -T -H
Recitals:
A. City is the owner of certain real property located on the south side
of First Street, east of Mountain View in the City of Santa Ana and more
specifically described in Exhibit A attached hereto and made a part hereof by
this reference and shown on Exhibit B, attached hereto and made a part hereof
by this reference (the "Property").
B. The Property is presently unimproved.
C. Lessee desires to lease the Property for the purpose of providing
additional off-street parking for its adjacent property.
WHEREFORE, in consideration of the respective and mutual covenants and
promises hereinafter contained and made, and subject to all the terms and
conditions hereof, the parties hereto do hereby agree as follows:
1. Water and Electrical Lines Reservation
City does hereby reserve the right to construct, install, repair,
replace, maintain, renew, operate and use an underground water and electric
line or lines, and appurtenances thereto, in, under, along and across, and the
right of ingress and egress in, upon, over and/or through the real property
described in said Exhibit A, and the right to access the existing lines
located under said real property semi-annually, for the purposes of cleaning,
testing and repairing said lines. City agrees that upon completion of such
installation, repair or maintenance, all land, landscaping, foilage and/or
improvements installed by Lessee disturbed thereby as a result of such
installation, repair, maintenance or spoilage deposit resulting therefrom,
shall be restored to its original condition or better, by City without expense
to Lessee. City will also protect and hold harmless Lessee from all
liability, claims, suits or causes of action which may arise out of the
negligent acts or omission of City, its officers, agents or employees in
connection with the storm drain so installed.
2. Term of Lease
(a) Except as provided in subsections (b), (c) and (d) of this
section, City agrees to lease the Property to Lessee for a minimum term
commencing on 198f and ending on the day five years from and after
said date.
2.
(b) City hereby grants to Lessee a conditional option to extend the
term of this Lease for two (2) additional five (5) year periods commencing
when the prior term expires upon each and all of the following terms and
conditions;
(i) Lessee gives to City, and City actually receives, on a
date which is prior to the date that the conditional option period would
commence (if approved) by at least six (6) and not more than nine (9) months,
a written notice of the Lessee's request for approval of the option to extend
this lease for an additional term, time being of the essence. If said request
of the approval of said option is not so given and received, these conditional
options shall automatically expire;
(ii) Upon receipt of Lessee's written request for approval of
the option to extend this Lease, City's Executive Director of Public Works
shall determine the feasibility of extending this Lease and shall provide to
Lessee a written notice of the City's approval or disapproval of said
extension. City's written notice shall not be unreasonably withheld.
(iii) The monthly rent for each month of the option period
shall be calculated as follows:
3.
(a) The rent payable for the first month of the initial
term of this Lease shall be multiplied by a fraction the numerator of which
shall be the Consumer Price Index of the Bureau of Labor Statistics of the
U.S. Department of Labor for Urban Wage Earners and Clerical Workers,
Los Angeles - Anaheim - Riverside, California "C.P.I." (1967-100) of the
calendar month during which the conditional option period is approved by the
City and actually commences and the denominator of which shall be the C.P.I.
for the month in which the original Lease term commenced. The sum calculated
shall constitute the new monthly rent during the option period, but, in no
event, shall such new monthly rent be less than the rent payable for the month
immediately preceding the commencement of the option period.
(b) In the event the compilation and/or publication of
the C.P.I. shall be transferred to any other governmental department or bureau
or agency or shall be discontinued, then the index most nearly the same as the
C.P.I. shall be used to make such calculation. In the event that City and
Lessee cannot agree on such alternative index, then the matter shall be
submitted for decision to the American Arbitration Association in accordance
with the then rules of said association and the decision of the arbitrators
shall be binding upon the parties. The cost of said Arbitrators shall be paid
equally by City and Lessee.
4.
(c) Beginning with the first month following expiration of the
five-year minimum term or any approved extension period set forth in
subsections (a) and (b) of this section, said lease shall continue on a
month-to-month basis until terminated by either party by the service of at
least thirty (30) days prior written notice on the other party.
(d) Following termination of the lease, Lessee shall properly
execute, acknowledge and deliver to City, within thirty (30) days after
request therefor, a release, quitclaim deed, or other document required by
City to verify the termination of this Agreement.
3. Rent
Lessee agrees to pay City, as rent for the Property, the sum of Two
Hundred Eight Dollars ($208.00) per month, due and payable in advance, upon
the first day of each calendar month, said payment to be made to City at such
place as City may from time to time specify by written notice to Lessee.
4. Alterations. Maintenance and Use
Lessee may clear any existing improvements from the Property and may
construct on the Property, a block wall and asphalt lot, including
improvements incidental thereto. Upon termination of the lease of the
Property to Lessee, Lessee shall have thirty (30) days following the date of
termination to remove any items of personal property or movable fixtures which
5.
were placed or installed on the Property at Lessee's expense, and any such
items or fixtures not removed within such period shall pass in full ownership
to Lessor. Lessee shall be responsible for all maintenance of the Property
during the term of the lease and shall keep the Property in a safe and
sanitary condition. During the term of this lease, the Property shall be used
solely for the purpose of providing off-street vehicular parking servicing
Lessee's adjacent property.
5. Indemnification
Lessee shall indemnify and save harmless City from and against any
and all claims, demands, suits, actions or proceedings of any kind or nature
resulting or arising out of Lessee's use and occupancy of the Property or any
activities undertaken by Lessee or any of its officers, agents or employees
pursuant to this Agreement.
6. Insurance
Prior to City's execution of this Agreement, Lessee shall obtain at
its sole cost and file with the Clerk of the Council of the City, and maintain
for the period covered by this Agreement, a policy or policies of liability
insurance or a certificate of such insurance, satisfactory to the legal
counsel of City, naming the City of Santa Ana, its officers, agents and
employees, as insured or additional insured, which provides coverage not less
than that provided in the form of a comprehensive general liability insurance
policy against liability for any and all claims and suits for damages or
injuries to persons or property resulting from or arising out of operations of
Lessee, its agents or employees.
M
Said policy or policies of insurance shall provide coverage for both bodily
injury and property damage in not less than One Million Dollars ($1,000,000)
combined single limit or its equivalent. Said policy or policies shall also
contain a provision that no termination, cancellation, or change of coverage
or of insured shall be effective until after thirty (30) days notice thereof
has been given in writing to City. Lessee shall give to City prompt and
timely notice of claim made or suit instituted arising out ofLessee's
operations hereunder. Lessee shall procure and maintain, at its own cost and
expense, any additional kinds and amounts of insurance which, in its own
judgment, may be necessary for its proper protection.
7. Obligation to Refrain from Discrimination
The Lessee covenants and agrees for itself, its successors, its
assigns and every successor in interest to the Property or any part thereof,
that there shall be no discrimination against or segregation of any person, or
group of persons, on account of sex, marital status, race, color, religion,
creed, national origin or ancestry in the construction of the improvements on
the Property, use, occupancy, tenure or enjoyment of the Property nor shall
the Lessee, itself or any person claiming under or through it, establish or
permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or enjoyment of the Property
to the public.
7.
8. Possessory Interest Tax
By entering into this lease, a possessory interest subject to
property taxes may be created. Lessee shall pay, beginning on the
Commencement Date and continuing during the lease term, all such possessory
interest taxes, together with all personal property taxes, other taxes,
general and special assessments and other charges which may be levied upon or
assessed against the Property or personal property located on the Property.
9. Breach of Contract
Prior to any termination of this Agreement for breach of contract,
the breaching party shall have thirty (30) days after service of written
notice of breach by the non -breaching party, to cure and correct said breach.
10. Assignability
Lessee may not assign or sublease any of its rights under this
Agreement without the prior written consent of City.
11. Binding Effect
This Agreement shall bind and inure to the benefit of the respective
heirs, personal representatives, successors and assigns of the parties hereto
except as otherwise expressly provided hereinabove.
[i
12. Notices
Any notice served by one party to this Agreement on the other
pursuant to this Agreement may be effected by personal delivery in writing or
by deposit in the U.S. Mail, postage prepaid. Mailed notice shall be
addressed as set forth below, but each party may change such party's address
by written notice in accordance with this section.
To City: City of Santa Ana
Clerk of the Council
20 Civic Center Plaza
Santa Ana, CA 92702
To Lessee: Charlie Akoboff
c/o Charlie's Foods
201 South Mountain View
Santa Ana, CA 92704
13. Time of Essence
Time is expressly declared to be of the essence in the performance of
this Agreement.
14. Entire Agreement
This instrument contains the entire Agreement between the parties
relating to the lease herein granted. Any representations or modifications
concerning this instrument shall be of no force and effect, except a
subsequent modification in writing, signed by the party to be charged.
9M
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
the day and year first above written.
THE CITY OF SANTA ANA
BY:
MAYOR
ATTEST.
J C. GUY
CLERK OF THE COUNCIL
APPROTED:
EDWARIT J. WQ•
CITY ATTORNEY
APPROVED AS TO CONTENT
10.
EXHIBIT A
All that certain property situated in the State of California, County of
Orange, City of Santa Ana, described as follows:
The Easterly 20.00 feet of the East half of the North half of the West half of
the Northwest quarter of the Northeast quarter of Section 16, in Township 5
South, Range 10 West, in the Rancho Las Bolsas, as shown on a map thereof
recorded in Book 51, page 12, Miscellaneous Maps, Records of Orange County,
California.
Excepting therefrom the Southerly 204 feet. Also excepting therefrom the
Northerly 100.00 feet.
11.
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PRODUCER
BELL & EMMONS
Insurance Services, Inc.
966 Calle Amanecer Ste. B, P.O, Box 5266
San Clemente, Callfornle 92672
(714) 492.7224
CODE SUB -CODE
INSURED ..._ _.. ...
CHARLIE'S FOODS, INC.
201 S. MOUNTAIN VIEW
SANTA ANA, CA 92704
A .... 0s(
3triHll�li rG 8!8189''
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS`
NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND,
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW
COMPANIES AFFORDING COVERAGE
LEr ERNY A CANADIAN INSURANCE COMPANY
...COMPANY f3._.. ...... .... ._...._ _.._ _..
LETTER
COMPANY.. ...... ...... ....... . .......
LETTER
COMPANY D
LETTER
COMPANY E
LETTER
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CCI TYPE OF INSURANCE POLICY NUMBER ! POLICY EFFECTIVE: POLICY EXPIRATION ALL LIMITS IN THOVSANOS
LTR :' DATE (MMIDDIYY) DATE (MMIDDIYY) ':.
GENERAL LIABILITY ....... _... ...... ._.. GENFRAL AGGREGATE ..... $ ... ......
A X COMMF.RCIALOFNERALLIABIUTYPRODUCTSCOMPIOPSAGGREGAIE $1q,_OQO�y
CLAIMS MADFX ::... OCCUR,: CON724160 5/27/89 5/27/90 PERSONAL AADVERTISING INJURY $1 "000
V OWNER'S & CONTRACTOR'S PROT! ( J V EACH OCCURRENCE 1 $1 000
AUTOMOBILE LIABILITY
ANY AUTO
ALL OWNED ALII'08
SCHEDULED AUTOS
HIRED AUTOU
NON OWNED AUTOS
GARAGES UAWLITY
EXCESS LIABILITY
OTHER THAN UMBRELLA FORM
WORKER'S COMPENSATION
AND
EMPLOYERS' LIABILITY
OTHER _. ......
FIRE DAMAGE (Any one fire).. $ 50
MEDICAL EXPENSE (Any one person( $ 1
..... ..... .>.. .. COMBINED ....
SINGLE $
LIMIT
BODILY
INJURY $
(Per person)
BODILY
INJURY $
(Per accident)
PROPERTY
DAMAGE
_..... .... ...... __. EACH AGGREGATE
OCCURRENCE'.
.... .... ... _. _. STATUTORY
$ _..._ (EACH ACCIDENT)
$ (DISEASE—POLICY LIMIT)
$ (DISEASE—EACHEMPLOYE
DESCRIPTION OF OPERATIONSILOCATIONSIVEHICLESIRESTRICTIONS/SPECIAL ITEMS
ADDITIONAL INSURED AS PER GL2010 ATTACHED.
CITY OF SANTA ANA
10 CIVIC CENTER PLAZA
P. 0. BOR 1988 M-25
SANTA ANA, CA 92702
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL * UXI(*N*h
MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
LEFT, MMS XXXIXIX X(XX*)4X XiXIX9trtiMXWXXNX9 X*X%NNNAt9iUX)N
rk 11
3
GL 20 10
(Ed. 01 73)
This endorsement forms a part of the policy to which attached, effective on the inception date of the policy unless otherwise stated herein
(The following Information is required only when this endorsement Is Issued subsequent to preparatlo of policy,)
Endorsement effective Policy No. COM 724160 Endorseme , No.
Named Insured CHARLIPS FOODS, INC. t�= "
(SOU nTehgl��my�-.—
(Au-horized Represen alive "�
This endorsement modifies such insurance as Is afforded by the provisions of the policy relating to the following:
COMPREHENSIVE GENERAL LIABILITY INSURANCE
MANUFACTURERS AND CONTRACTORS LIABILITY INSURANCE
ADDITIONAL INSURED
(Owners or Lessees)
It is agreed that:
1. The "Persons Insured" provision is amended to include as an Insured the person or organization named below but only with respect to liability arising
out of operationsperformedfor such Insured by or on behalf of the named insured.
2. The applicable limit of the company's liability for the insurance afforded under the Contractual Liability Insurance Coverage Part forming a part of this
policy shall be reduced by any amount paid as damages under this endorsement on behalf of the person or organization named below.
Name of Person or Organization
(Additional Insured)
CITY OF SANTA ANA AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA,
THEIR OFFICERS, AGENTS AND EMPLOYEES'
GL 20 10 01 73
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL
AGEN13A DATE
TITLE
June 5, 1989
LEASE AGREEMENT WITH
CHARLIE AKOSOFF
k°`
CITY MANAGER
=— >i
DATE OF COUNCIL ACTION)UN 5 1980
Agggj` oftp ' ""
pr §a is r r ti o Mayor and Giark 10
i
j,ja t .!_CLERK OF THE COUNCIL
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the Mayor and Clerk
of the Council to execute a lease agreement with Mr. Charlie Akoboff
for property located at the south side of First Street, east of -
Mountain View.
EXECUTIVE SUMMARY
In July 1961, the City acquired 1.73 acres of land located south of
First Street, between Newhope and Shannon Street. The flag -shaped
parcel currently houses the west reservoir. For years the only access
to the back portion of the property was by way of a 20' X 426' strip
which proved to be inadequate for vehicular traffic. For this reason,
in April 1965, Mountain View Street was extended south of First Street
to provide better access to the reservoir. The strip has remained
vacant and no longer serves as access.
Mr. Charlie Akoboff, owner of Charlie's Foods, operates a business
adjacent to the unimproved City property. He has approached City staff
with the proposal to lease said property for additional off-street
parking of his food catering trucks.
The initial term of the lease shall be for five years, with an option
for two additional five-year periods. The contract rent shall be $208
per month effective June 1, 1989.
08 1 Z'.
MEMORANDUM
To:
Deputy City Manager
Executive Director/
From: Community Development Agency
Subject: LEASE AGREEMENT WITH CHARLIE AROBOFF
STATEMENT OF THE ISSUE
Date:
May 17, 1989
In July 1961, the City acquired 1.73 acres of land located south of First
Street, between Newhope and Shannon Street. The flag -shaped parcel
currently houses the west reservoir. For years the only access to the
back portion of the property was by way of a 20' X 426' strip which
proved to be inadequate for vehicular traffic. For this reason, in April
1965, Mountain View Street was extended south of First Street to provide
better access to the reservoir. The strip has remained vacant and no
longer serves as access.
Mr. Charlie Akoboff, owner of Charlie's Foods, operates a business
adjacent to the unimproved City property. He has approached City staff
with the proposal to lease said property.
City staff has negotiated an agreement with Mr. Akoboff to lease the
unimproved property located on the south side of First Street, east of
Mountain View, for the purpose of additional off-street parking.
Mr. Akoboff will be responsible for all costs pertaining to the
improvements of the property.
The initial term of the lease shall be for five years, with an option for
two additional five-year periods with mutual consent. Mr. Akoboff must
exercise his option to renew the lease in writing, six months prior to
the termination of the initial term of the lease. The contract rent
shall be $208 per month, with a CPI adjustment at the renewal dates.
ALTERNATIVES CONSIDERED
The alternative considered is not to enter into this agreement and let
the property remain unimproved and not generating any revenues for the
City. This alternative was rejected.
FISCAL IMPACT
The $12,480 which will be generated by this agreement during the initial
five-year term of the lease will be deposited into the general fund
account for the rental of property (Account No. 11-511).
085
CS -808
Deputy City Manager
May 17, 1989
Page Two
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the Mayor and Clerk of
the Council to execute a. lease agreement with Mr. Charlie Akoboff for
property located at the south side of First Street, east of Mountain View.
Cynthia J. Nell n
APPROVED AS TO FUNDS AND ACCOUNT:
Executive Director/
Finance and Management Services
e