Resolution No. 5768
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RESOLUTION NO. 5768
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
THE EXECUTION OF A GROUND LEASE BY AND
BETWEEN THE CITY OF VERNON AND KAL-KAN
FOODS, INC.
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WHEREAS, the City of Vernon owns certain real property
located on the west side of Downey Road north of the former 44th
Street right-of-waY1 and
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WHEREAS, Section 37380(a) of the Government Code of the
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State of California provides that a City may lease property
owned or held or controlled by it or any of its departments for
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a term not to exceed 55 years1 and
WHEREAS, the City Council of the City of Vernon finds
and determines that the southwest corner of said real property
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containing approximately 8,836 square feet is not necessary for
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immediate use and occupancy by the City of Vernon1 and
WHEREAS, Kal-Kan Foods, Inc. of 3376 E. 44th Street in
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the City of Vernon has expressed an interest and desire to lease
said southwest corner of said property containing approximately
8,836 square feet for installation of a boiler plant; and
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WHEREAS, Kal-Kan Foods, Inc. has offered to lease said
property for Twenty-one Thousand Two Hundred six Dollars and
Forty Cents ($21,206.40) per year for ten (10) years with annual
increases based on the consumer price index1 and
WHEREAS, an agreement entitled "Ground Lease" by and
between the City of Vernon and Kal-Kan Foods, Inc. has been
submitted concurrently herewith.
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III
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1:
The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves the "Ground Lease" by and between the City of
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Vernon and Kal-Kan Foods, Inc., a copy of which has been
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presented to the City Council concurrently with this resolution
and the City Council hereby orders said "Ground Lease" to be
received and filed by the City Clerk.
SECTION 3: The City council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
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Agreement for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 5th day of June, 1990.
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~~v;~
THOMAS A. YB. , Mayor Pro-Tern
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BRUCE V.
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MALKENHORST, city Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 5768, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly
held on Tuesday, June 5. 1990, and thereafter duly signed by the
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Mayor of the City of Vernon.
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BRUCE V. MALKENHORST,
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(SEAL)
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C,? (J/; t/ '110'1
GROUND LEASE
This
made
and entered into
Ground
Lease
is
this
18th
day of
June
, 1990, in the City
of Vernon, County of Los Angeles, California.
BY AND BETWEEN
KAL-KAN FOODS, INC.
3376 E. 44th Street
P. o. Box 58828
Vernon, CA 90058-0828
(hereinafter designated and
and referred to as "Lessee")
AND
CITY OF VERNON
4305 Santa Fe Avenue
Vernon, California 90058
(hereinafter designated and
referred to as "Lessor" or "Cityfl)
WITNESSETH:
WHEREAS,
Lessor owns that certain real property
located In the City of Vernon, County of Los Angeles, State
of California, which is used for a pipeyard and is located
on the west side of Downey Road north of the former 44th
street right-of-way.
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WHEREAS, Lessor wishes to lease a portion of said
property to Lessee, containing approximately 8,836 square
feet, which property is identified and shown In red on
Exhibit "A" as the southwest corner of said real property
and which Exhibit by this reference is incorporated herein
as though fully set forth at length; and
WHEREAS, Section 37380 of the Government Code of the
State of California provides that a City may lease property
owned or held or controlled by it or any of its departments
for a term not to exceed 55 years; and
WHEREAS, the City Council of the City of Vernon has
found and determined that the described portion of said real
property is not necessary for immediate use and occupancy by
the City of Vernon for a public purpose and may be leased on
a short term basis for uses not incompatible with the use to
which the property is presently dedicated; and
WHEREAS, Lessee has expressed an interest and desire
to lease said portions of said real property for a boiler
plant; and
WHEREAS, the parties hereto desire to jointly provide
for the use of said property in such a manner as to be
compatible with the City's needs and uses of said property.
NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS
HEREIN CONTAINED AND THE MUTUAL BENEFIT TO EACH PARTY, IT IS
HEREBY AGREED AS FOLLOWS:
1. The recitals contained hereinabove are true
and correct and are incorporated herein as though fully set
forth at length.
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2. The premises shown on the attached Exhibit "A"
are hereby leased to Lessee effective July 1, 1990, to have
and to hold for ten (10) years (until June 30, 2000) unless
earlier terminated pursuant to item 10.
3. Lessee shall pay to the city at the time of
acceptance of the lease the sum of Twenty One Thousand Two
Hundred six Dollars and Forty Cents ($21,206.40) for the
first year of the lease (July 1, 1990 to June 30, 1991).
Lessee shall also pay annually during the term of this
lease, to the City, the sum of Twenty One Thousand Two
Hundred Six Dollars and Forty Cents ($21,206.40) plus an
increase based on the consumer price index (published by the
u.s. Dept. of Labor Bureau of Labor Statistics for Urban
Wage Earners and Clerical Workers Annual Average - Los
Angeles-Anaheim-Riverside) commencing on the first day of
July 1991, and thereafter on the first day of July of each
year. In the event the lease is terminated prior to year
end, the lease fee will be prorated appropriately.
4. Lessor leases the property described and
identified in the attached exhibit "A" to Lessee to use for
a boiler plant. Any other use of said property must receive
written approval of the City Council.
5. Lessee will pay for all materials placed upon,
joined or affixed to said property, and will not cause or
permit any liens of any kind or nature to be levied against
said premises for any work done or materials furnished
thereon and will perform all reasonable maintenance
including but not limited to maintaining the asphalt
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concrete pavement; repairing the chain-link fence and posts;
and removing all weeds and debris.
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Lessor, its agents, representatives, and
reserve and shall at any and all times have the
employees,
right to ~nter the premises at all reasonable or necessary
times for the purposes of carrying on business or activities
requiring the use of any or all of the leased area until
such business or activities is completed.
7. Lessee shall indemnify and hold harmless
Lessor against and from any and all claims arising from
Lessee's use of the premises from any activity, work or
other thing done, permitted or suffered by the Lessee in or
about the premises and shall further indemnify and hold
harmless Lessor against and from any and all claims arising
from any breach or default in the performance of any
obligation on Lessee's part to be performed under the terms
of this lease or arising from any act or negligence of the
Lessee or any officer, agent, employee, guest or invitee of
the Lessee, and from all and against all costs, attorney's
fees, expenses and liabilities incurred by reason of any
such claim or any action or proceedings brought thereon. If
any case, action or proceedings be brought against Lessor by
reason of any such claim, Lessee, upon notice from Lessor,
shall defend the same at Lessee's expense by counsel
reasonably satisfactory to Lessor. Lessee as a material
part of the consideration to Lessor hereby assumes all risk
of damage to property or injury to persons In, upon, or
about the premises, from any cause other than Lessor's
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negligence and Lessee hereby walves all claims in respect
thereof against Lessor.
8. Lessee shall faithfully observe and comply
with the rules and regulations of all federal, state, or
,local agencies which have jurisdiction over the project.
9. Lessee shall not, either voluntarily or by
operation of law, transfer, mortgage, pledge, hypothecate,
or encumber this lease or any interest therein, and shall
not sublet the said premises or any part thereof, or any
right or privilege appurtenant thereto, or suffer any other
person (employees, agents, servants and invitees of Lessee
excepted) to occupy or use the said premises, or any portion
thereof. Lessee shall not assign this lease without the
written consent of the Lessor.
10. This lease may be terminated by either party
giving written notice to the other of its intention to
terminate at least sixty (60) days before the expiration of
the lease. If not so terminated, this lease shall continue
on a year to year basis. This lease may also be terminated
for breach or for cause by giving ten (ten) days notice in
writing with a statement setting forth the breach or cause.
Interference with the use of the city's property for a water
pumping station, for a pipeyard, or for other purposes shall
constitute cause for termination. Lessor shall have the
right to enter and take possession of said premises upon the
termination of this lease, in addition to any other remedy
provided by law or this lease. Such notice may be given by
delivering the same personally or by mailing the
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same to such address as each may In writing from time to
time direct and the giving of such notice by mail shall be
complete at the time of mailing. Upon termination of this
lease, Lessee shall leave the premises clear of all debris
and weeds. All appurtenances (chain link fence and posts)
shall be in proper working condition as determined by the
Director of Community Services. Failure to restore the
property to the satisfaction of the Director will result in
the City having the necessary work done at the expense of
the Lessee.
11. Public Liability Insurance. Throughout the
term of this lease, Lessee shall, at its sole cost, keep or
cause to be kept in force, for the mutual benefit of Lessor
and Lessee, combined bodily injury and property damage
liability insurance with a minimum coverage of One Million
Dollars ($1,OOO,OOO.00) per person and Two Million Dollars
($2,000,000.00) per occurrence. In addition, Lessee shall
provide at least Two Million Dollars ($2,0001000.00) of
umbrella coverage. Such insurance shall be issued by a
company or companies licensed to do business in California.
On commencement of the term, Lessee shall deliver to Lessor
Certificates of Insurance and certified letters from the
insurance carriers on the forms currently being used by the
City indicating that Lessee has complied with the provisions
of this paragraph. Such policy shall also name the City of
Vernon and its agents as additional insureds and shall also
provide thirty (30) days written notice prior to any
cancellation or material change in said insurance policies.
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12. Failure by Lessor to exerCIse any of the
stipulated rights arising under this contract shall not be
considered a waiver of any right or condition thereof.
13. This lease contains all of the agreements of
the parties with respect to the tenancy created and cannot
be amended or modified except by a written agreement.
14. This lease shall not be recorded.
15. This lease shall be construed and interpreted
in accordance with the laws of the state of California.
16. Lessee shall not use the premises or permit
anything to be done in or about the premises which will in
any way conflict with any law, statute, ordinance or
governmental rule or regulation now in force or which may
hereafter be enacted or promulgated. Lessee shall, at its
sole cost and expense, promptly comply with all laws,
statutes, ordinances and governmental rules, regulations or
requirements now in force or which may hereafter be in force
and with the requirements of any board of fire insurance
underwriters or similar bodies now or hereafter constituted
relating to or affecting the condition, use or occupancy of
the premises. said judgment of any court of competent
jurisdiction or the admission of Lessee in any action
against Lessee whether Lessor be a party thereto or not,
that Lessee has violated any law, statute, ordinance or
governmental rule regulation or requirement, shall be
conclusive of that fact as between the Lessor and Lessee.
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Executed ln duplicate this
18th
ATTEST:
4_ /d~
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BRUCE V. MALKENHORST
City Clerk/City Administrator
APPROVED AS TO FORM:
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DAVID B. BREARLEY, City Attorney
GROUNDLE-C1
day of
, 1990.
June
CITY OF VERNON, "Lessor"
BY: - /-4r1-".av t2. ~ ~ n~v"
Thomas A. Yb~ra, Mayor Pro Tern
"Lessee"
BY:
BY:
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CITY OF VERNON
PROPERTY
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NO. 12
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