Resolution No. 81882
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RESOLUTION NO. 8188
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF A
LANDLORD'S AND TENANT'S AGREEMENT LEASE BY AND
BETWEEN THE CITY OF VERNON AND ANCON MARINE
REGARDING THE MALBURG GENERATING STATION PROJECT
WHEREAS, the City of Vernon ("City") is proceeding at this
time to develop a 134 MW Combined Cycle Power Plant officially named
the Malburg Generating Station (the "Malburg Project") for the purpose
of installing additional generating capacity that will yield an
efficient, cost-effective, and reliable source of electric generation
to the City of Vernon's inhabitants; and
WHEREAS, during the construction of the Malburg Project, the
Utility Department staff ("Staff") has determined that the City needs
the use of real property near the Malburg Project area for
construction -related uses; and
WHEREAS, Staff has negotiated a lease with Ancon Marine, the
owner of real property located at 4905 Seville Avenue, for the period
May 1, 2003 to October 31, 2004, at the rate of Three Thousand One
Hundred Seventy -One Dollars ($3,171) per month; and
WHEREAS, in order to meet the urgent need for the use of
property for construction -related activities and to take advantage of
the availability of the property, the City Administrator executed a
Landlord's and Tenant's Agreement --Lease (the "Lease") with Ancon
Marine, ("Ancon") on April 16, 2003, and authorized payment in
accordance with the terms thereof, subject to ratification by the City
lCouncil; and
WHEREAS, by letter dated April 23, 2003, Bruce V.
t
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Malkenhorst, City Administrator/City Clerk, recommended that the
execution of the Lease with Ancon be ratified; and
WHEREAS, the City Council desires to approve and ratify the
Lease, as executed by the City Administrator, and the payment of fees
in accordance therewith for the lease of the property; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to ratify entering into the Lease with Ancon, to enhance
services provided to the Vernon community.
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
ratifies the execution of the Landlord's and Tenant's Agreement Lease
with Ancon Marine, a copy of which is attached hereto as Exhibit "A"
and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
approves and ratifies the payment of fees in accordance with the terms
of the Lease.
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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 7th day of May, 2003.
LEONIS C. MAL URG, M or
i
ATTEST:
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8188, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, May 7,
2003, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
FAW
LANDLORD'S AND TENANT'S AGREEMENT
LEASE
This Lease is made and entered into this day of
by and between Ancon Marine (hereinafter referred to as "Landlord") whose
address is 2250 East Dominguez Street, Carson, California 90810-1008 and City of
Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 (hereinafter referred to as
"Tenant").
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on
the terms and conditions hereinafter set forth, that certain real property and other
improvements located thereon situated in the City of Vernon, County of Los Angeles,
State of California, commonly known as 4905 Seville Avenue, Vernon, California
90058 and described as Yard area, adjacent to Metal Warehouse, approximate size
90 feet wide by 180 feet long, surrounded by chain link fence, surface area asphalt,
(see attached Exhibit "A"), said real property is hereinafter called the "Premises".
The term of this Lease shall be for Eighteen Calendar Months, commencing on
May 1gt, 2003 and ending on October 31, 2004. -
Tenant shall pay to Landlord as rent for the Premises, the sum of Three
Thousand One Hundred and Seventy One ($3,171.00) Dollars per month, in advance
on the first day of each month during the term hereof. Rent shall be payable without
notice or demand and without any deduction, off -set, or abatement in lawful money of
the United States, unless otherwise provided herein, to the Landlord at the address
stated herein for notices or to such other persons or such other place as the Landlord
may designate to Tenant in writing. The sum of Six Thousand Three Hundred and
Forty Two ($6,342.00) Dollars (security deposit of $3,171.00 and $3,171.00 for the
first months rent) shall be paid to the Landlord by the Tenant upon execution of this
agreement.
The use of the Premises by the Tenant shall be restricted to the storage and
parking of equipment, machinery and construction materials only. Access to the
Premises shall be from the north side only, as shown in Exhibit "A".
Tenant hereby covenants and agrees with the Landlord as follows:
(1) To pay to the Landlord the rent as hereinabove provided as the same
becomes due, on the first day of each calendar month.
(2) Not to sublet the whole or any part of the Premises nor to assign this Lease,
and not to make any alterations, additions, or improvements in or about the
Premises without the prior written consent of the Landlord.
(3) That all alterations, additions, or improvements made in and to said
Premises shall, unless otherwise provided by written agreement between
parties hereto, be the property of Landlord and shall remain upon and be
surrendered with the Premises.
(4) Tenant acknowledges that the Premises are leased to him in their present
condition unless otherwise provided by written agreement between the parties
hereto, and Tenant agrees to keep the Premises in good condition and repair at
his own expense.
(5) At the expiration of the term or any sooner termination of this Lease, Tenant
agrees to surrender possession of the Premises in good condition and repair,
ordinary wear and tear excepted.
(6) If Tenant shall hold over after the expiration of the term of this Lease with
the consent, express or implied, of Landlord, such holding shall be construed to
be a tenancy from month to month and Tenant shall comply with all of the other
terms and covenants of this Lease applicable to a month -to -month tenancy for
such time that Tenant holds over.
(7) If either party hereto commences an action against the other party arising
out of or in connection with this Lease, the prevailing party shall be entitled to
have and recover from the losing party reasonable attorney's fees and costs of
suit.
(8) Landlord or Tenant may terminate this agreement by giving not less than 60
days notice in writing. Upon termination Landlord will require Tenant to vacate
the Premises, any unearned portion of said rent and security deposit will be
refunded to Tenant less any costs incurred under clause (5) of this agreement.
(9) Tenant shall provide evidence of liability insurance naming Landlord as
additional insured in the sum of not less than $1,000,000.00. Tenant, covenants
and agrees to protect, indemnify, defend and hold harmless Landlord, its
subsidiaries and affiliated companies along with their agents, employees and
officers from and against any and all claims, liability, loss, damage, demands,
actions and causes of action, made against the Landlord or for any cost or
expense, including attorney's fees, incurred by the Landlord as a result of
claims made by any person or third party which shall arise from the actions of
the Tenant in connection with this agreement.
In this Lease, whenever the context so requires, the singular number includes
the plural and the masculine gender includes the feminine and/or neuter. The
covenants and conditions of this Lease shall bind and benefit, respectively,
Landlord and Tenant, their respective heirs, executors, administrators,
successors, and assigns.
IN WITNESS WHEREOF, Landlord and Tenant have executed -this Lease on
the day and year first above written.
LANDLORD:
Bret
ByT,_ _
George uys, Chief Financial Officer
TENANT:
Bruce Malkenhorst, City Administrator
Approved as to form:
Eduardo Olivio, City Attorney
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
City Council
City of Vernon
Honorable Members:
`< EDUARDO OLIVO
' Ckw City Attorney
FAX: (562) 869-1883
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 23, 2003
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
4457
The consultant for the Utilities Department has determined that it is
necessary to lease certain property (4905 Seville Avenue) to be
utilized as general office facilities, parking space for personnel and
visitors, and other construction related uses during the construction
of the Malburg Generating Station at a monthly rate of $3,171.00.
Upon execution of such lease the first month and security deposit in
the total amount of $6,342.00 is due. An 18-month Landlord's and
Tenant's Lease with Ancon Marine, was prepared by the City Attorney
and executed by the City Administrator due to the urgency of this
issue.
It is hereby recommended that the Lease with Ancon Marine be approved
for the period of May 1, 2003 through October 31, 2004 at the stated
monthly rate and the execution by the City Administrator be ratified.
Very truly yours,
Bruce V. Malkenhors
City Administrator/City Clerk
BVM/gm
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 16, 2003
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
Mr. Bruce V. Malkenhorst •�+ �%
City Administrator/City Clerk
4305 Santa Fe Avenue
Vernon, California 90058
Re: Lease with Ancon Marine for Malburg Generating Station
Project
Dear Bruce:
The Utility Department staff ("Staff") has determined that
during the construction of the Malburg Generation Station
Project (the "Project"), the City needs the use of property near
the Project for general office facilities for all the
contractors, sub -contractors and construction workers; for
parking lot space for personnel as well as visitors; and for
warehousing, storage, light assembly and other construction -
related uses.
A lease has been negotiated with Ancon Marine, the owner of
real property at 4905 Seville Avenue, for a period of 18 months,
from May 1, 2003 to October 31, 2004, for a monthly rent of
$3,171.00. The sum of $6,342.00 will be due upon execution of
the Lease. This sum represents the first months rent of
$3,171.00 and the security deposit of $3,171.00.
Mr. Bruce V. Malkenhorst
' April 16, 2003
Page 2
Because of availability issues, the property lease needs to
be executed on a rush basis and Staff requests that you execute
the Lease, subject to the ratification of the City Council at
the May 7, 2003 City Council meeting.
If you have any questions or comments, please contact me.
Sincerely,
CA'.,
C3-\-
Eduardo Olivo
City Attorney
EO:jl
Enclosure - Lease
OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: April 16, 2003
TO: Charles Montoya, Consultant
FROM: Nelly Giron
Assistant to the Chief Deputy City Clerk
RE: Property Lease Agreement With Ancon Marine
As requested, transmitted herewith is an original duplicate
fully -executed copy of the above referenced property lease
agreement to be forwarded to Ancon Marine.
M91
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 17, 2003
Via Hand Deliver
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
Mr. George W. Buys
Chief Financial Officer
2250 E. Dominguez St.
Carson, CA 90810-1008
Re: Right of Entry to Ancon Yard at Fruitland and Seville
Avenue
Dear Mr. Buys:
Enclosed please find your signed duplicate original of the Lease
for the subject area. A check in the amount of $6,342.00
pursuant to the Lease to cover the first month's rent
($3,171.00) and the security deposit ($3,171.00) will be sent
next week under separate cover. Please send a monthly invoice
to:
Kenneth DeDario
Director of Utilities
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
Sincerely,
PW. tntoya
Consultant
CM: j1
Enclosure
cc: Kenneth J. DeDario, Director of Utilities
Ramon Abueg, Asst. Director of Engineering &Operations
--Nelly Giron, Asst. to Chief Deputy City Clerk