Resolution No. 83474
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RESOLUTION NO. 8347
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
LEASE AGREEMENT BY AND BETWEEN THE CITY OF VERNON
AND CHARLES D. PERRY III FOR THE MALBURG GENERATING
STATION PROJECT
WHEREAS, the City of Vernon ("City") is constructing 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's
inhabitants; and
WHEREAS, the City needs to use a structure and property,
located at the corner of Leonis and Seville near the Malburg Project
area for general office staff, parking and other construction -related
purposes; and
WHEREAS, Charles D. Perry III ("Perry") owns a property in
Vernon that is commonly known as 2670 Leonis Boulevard (the
"Property"); and
WHEREAS, Perry is willing to enter into a lease agreement
with the City for use of the Property during construction of the
Malburg Project; and
WHEREAS, an agreement has been negotiated with Perry for a
period of fifteen (15) months, commencing January 26, 2004, with a
payment of Ten Thousand Six Hundred Twenty Dollars ($10,620) for rent
for the period January 26, 2004 through February 29, 2004 plus One
Hundred Dollars ($100) for a forklift fee, and thereafter the sum of
Eight Thousand Eight Hundred Fifty Dollars ($8,850.00) per month
1 payable on the first day of each month; and
2 WHEREAS, by letter dated on January 22, 2004, Bruce V.
3 Malkenhorst, City Administrator/City Clerk, recommended that a Lease
4 Agreement with Perry be prepared and executed; and
5 WHEREAS, the City Council of the City of Vernon has
6 determined that, pursuant to the provisions of subsection (a) of
7 Section 2.27 of the Vernon City Code, it is in the public interest and
8 necessity to enter into the Lease Agreement with Perry.
9 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
10 CITY OF VERNON AS FOLLOWS:
11 SECTION 1: The City Council of the City of Vernon hereby
12 finds and determines that the recitals contained hereinabove are true
13 and correct.
14 SECTION 2: The City Council of the City of Vernon hereby
15 approves the Lease Agreement with Perry, a copy of which is attached
16 hereto as Exhibit "A" and made a part hereof, and authorizes the
17 payment of fees in accordance with the terms of the Lease.
18 SECTION 3: The City Council of the City of Vernon hereby
19 authorizes the Mayor and the City Clerk to execute said Lease for, and
20 on behalf of, the City of Vernon.
21 SECTION 4: The City Council of the City of Vernon hereby
22 directs the City Clerk, or his designee, to send one fully executed
23 Lease Agreement together with the initial fee of $10,620 to:
24 Charles D. Perry III
2670 Leonis Blvd.
25 Vernon, CA 90058
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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 28th day of January, 2004.
LEONIS C. MALB G, May r
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.
8347, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
January 28, 2004, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
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LEASE AGREEMENT
THIS LEASE AGREEMENT is made, entered into and executed in
duplicate originals,either copy of which may be considered and used
as the original hereof for all purposes, as of this 28th day of
January 2004, in the City of Vernon, County of Los Angeles, California
BY AND BETWEEN THE CITY OF VERNON
(hereinafter referred to as
"Lessee")
4305 Santa Fe Avenue
Vernon, CA 90058-0805
AND
CHARLES D. PERRY III
(hereinafter referred to as
"Lessor")
2670 Leonis Blvd.
Vernon, CA 90058
WHEREAS, Lessor owns that certain real property, including a
building containing approximately 26,080 square feet of industrial
office space located on approximately 43,545 square feet of land, and
other improvements located thereon situated in the City of Vernon,
County of Los Angeles, State of California, commonly known as 2670
Leonis Boulevard (the "Premises") as shown on Exhibit "A", which is
attached hereto and made a part hereof by reference; and
WHEREAS, Lessor desires to lease 15,826 square feet of the
building space and its proportional share of the outside area (the
"Leased Area") of said Premises to Lessee and Lessee desires to lease
the Leased Area from Lessor for use by its employees, its contractor,
subcontractors and/or their employees in connection with the
construction of the Malburg Generating Station Project (the
I "Project"); and
2 WHEREAS, Lessor will continue to occupy the remaining
3 portion of the Premises.
4 NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS HEREIN
5 CONTAINED AND THE MUTUAL BENEFIT TO EACH PARTY, IT IS HEREBY AGREED AS
6 HEREIN SET FORTH:
7 SECTION 1. Leased Area. Lessor hereby leases to Lessee
8 the Leased Area for the purpose of general office parking, storage of
9 material, and assembly of equipment in connection with Lessee's
10 construction of the Project (the "Permitted Use"). The term of this
11 lease shall commence on January 26, 2004, for a period of fifteen (15)
12 months, with a right by Lessee to extend the lease on a month -to -month
13 basis (with a fifteen percent [15%) increase in the lease rates),
14 until terminated pursuant to Section 6. The respective areas
15 utilized by the Lessee and Lessor are shown on Exhibit `°A."
16 SECTION 2. Lease Fee. Lessee shall pay to Lessor at the
17 time this lease becomes effective, the sum of Ten Thousand Six Hundred
18 Twenty Dollars ($10,620.00). Such initial payment includes rent of
19 One Thousand Seven Hundred Seventy Dollars ($1,770.00) for the period
20 of January 26, 2004 to January 31, 2004, and a payment of Eight
21 Thousand Eight Hundred Fifty Dollars ($8,850.00) for the period
22 February 1, 2004 through February 29, 2004. Said payment includes a
23 fee of One Hundred Dollars ($100.00) per month for the use of Lessor's
24 forklift on the premises. Thereafter, Lessee shall pay Lessor a lease
25 fee in the amount of Eight Thousand Eight Hundred Fifty Dollars
26 ($8,850.00) per month, payable without notice or demand on or prior to
27 the first day of each month. Any partial month hereunder shall be
28 prorated. Upon termination, pursuant to Section 6, any prorated
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I amount that is due and payable to Lessee shall be refunded by Lessor.
2 Additionally, the security deposit paid by Lessee shall be refunded to
3 Lessee, less any amounts that are due to Lessor, including the cost of
4 any clean-up or rent due under this Agreement.
5 SECTION 3. Operation, Maintenance and Alteration of
6 Property. Lessor shall be responsible for code or occupancy
7 requirements for the existing condition of the building excluding
8 requirements resulting from the tenant improvements installed by the
9 Lessee. Lessee proposes to modify and/or add to the subject structure
10 the following permanent and non -permanent features, all per local
11 code:
12 Civil/Structural/Mechanical/Electrical:
13 a. Add a gate to secure the land area covered by the
14 proposed lease, per a plan to be prepared by Lessee and approved by
15 Lessor;
16 b. Add, remove and modify the existing office space
17 to accommodate Lessee's plans, including partitioning, lighting,
18 electrical, painting, and floor covering;
19 C. Add approximately 1,000 square feet of new
20 temporary office space in the northwest corner of the building to suit
21 Lessee's plans, including partitioning, lighting, electrical,
22 painting, and floor covering;
23 d. Expand existing security and fire protection
24 systems to cover Lessee's additions;
25 e. Add to and/or modify the existing building's
26 electrical and lighting plan to accommodate Lessee's plans.
27 Lessee shall be responsible for all materials and equipment
28 placed upon said property and shall not cause or permit any liens of
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I any kind or nature to be levied against said premises for any work
2 done or materials furnished thereon and shall perform all reasonable
3 maintenance.
4 f. Lessee and Lessor shall each pay for its
5 respective share of the monthly water, electric, gas and other utility
6 costs based on the proportionate area of the building or such other
7 method as mutually agreed upon by the parties.
8 SECTION 4. Indemnification. Lessee agrees and
9 acknowledges that its use of the Leased Area is at its sole risk and
10 Lessee hereby waives, releases and absolves Lessor, its officers,
11 agents and employees (the "Lessor Parties") from any and all costs,
12 losses, damages, expenses, and liability from any cause whatsoever,
13 except for willful conduct by Lessor Parties, that Lessee may suffer
14 to its personal property located anywhere in the Leased Area, or that
15 it or its agents, employees, principals, and invitees may suffer as a
16 direct or indirect consequence of Lessee's use of the Leased Area or
17 access areas to the Leased Area, or for any other reason arising from
18 or related to this Agreement. Lessee shall indemnify, defend and hold
19 harmless Lessor, its officers, agents and employees against and from
20 any and all claims arising from Lessee's use of the Leased Area from
21 any activity, work or other thing done, permitted or suffered by the
22 Lessee in or about the Leased Area and shall further indemnify and
23 hold harmless Lessor against and from any and all claims arising from
24 any act or negligence of the Lessee or any officer, agent, employee,
25 guest or invitee of the Lessee, and from and against all costs,
26 attorney's fees, expenses and liabilities incurred by reason of any
27 such claim or any action or proceedings brought against Lessor by
28 reason of any such claim.
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I SECTION 5. Insurance. Lessee shall maintain, keep or
2 cause to be kept in force, commercial general liability insurance in
3 the minimum amount, including appropriate self -insured amounts, of one
4 million dollars, covering Lessee against claims of bodily injury,
5 personal injury and property damage arising out of Lessee's operations
6 or use of the Leased Area.
7 SECTION 6. Termination.
8 (a) This lease may be terminated by Lessee after providing
9 Lessor with ninety (90) days advance notice and complying with all
10 terms regarding cleanup and status of the property. Such notice shall
11 be given as provided in Section 8 herein.
12 (b) Upon termination of the lease, Lessee shall remove all
13 or any part of the improvements as Lessor shall request and repair any
14 damage caused by Lessee's installation or removal of the removed
15 improvements.
16 (c) Upon termination of the Lease, Lessee shall restore the
17 gate and fencing on the Premises to the configuration existing upon
18 the lease signing, on to such other configuration as mutually agreed
19 upon by the parties.
20 SECTION 7. Use of Property. Lessee shall not use the
21 premises or permit anything to be done in or about the Leased Area
22 which will in any way conflict with any law, statute, ordinance or
23 governmental rule or regulation now in force or which may hereafter be
24 enacted or promulgated. Lessee shall promptly comply with all laws,
25 statutes, ordinances and governmental rules, regulations or
26 requirements.
27 Lessee acknowledges that Lessor shall have no responsibility
28 for management of the Leased Area. Lessee, at Lessee's sole cost and
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I expense, will maintain and take good care of the Leased Area including
2 any fixtures and appurtenances thereto, and make any and all repairs
3 thereto as and when needed to preserve them in good working order and
4 condition. Lessee acknowledges and agrees that Lessor will not be
5 obligated to make any repairs, alterations or improvements to the
6 Leased Area or to otherwise prepare the Leased Area for Lessee's use.
7 All damage or injury to the Leased Area or to any other part of the
8 Leased Area or premises, or to its fixtures, equipment and
9 appurtenances caused by or resulting from misuse or negligent conduct
10 or omission of Lessee, Lessee's agents, employees, or invitees will be
11 repaired, at Lessee's sole cost and expense, by Lessee to Lessor's
12 reasonable satisfaction. Lessee will also repair any damage to the
13 Premises and the Leased Area caused by -the moving of Lessee's
14 property.
15 SECTION 8. Notices. Any notices, demands or other
16 communications required or desired to be given or made under the terms
17 of this Lease Agreement shall be in writing and personally served, or
18 served by United States Mail with postage thereon fully prepaid and
19 addressed as follows:
20 LESSOR LESSEE
21 CHARLES D. PERRY III CITY OF VERNON
22 2670 Leonis Blvd. City Administrator
Vernon, CA 90058 4305 Santa Fe Avenue
23 Vernon, CA 90058-0805
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25 Any notice, demand or other communication shall be deemed
26 given or made on the day personally served, or, if service is by mail,
27 three (3) days following the date such notice was deposited in the
28 United States mail with postage thereon fully prepaid.
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I SECTION 9. Waivers. Failure by either party to exercise
2 any of the stipulated rights arising under this lease shall not be
3 considered a waiver of any right or condition hereof.
4 SECTION 10. Entire Agreement. This lease contains the
5 entire agreement of the parties. It is understood and agreed that
6 there are no oral agreements between the parties hereto affecting this
7 Agreement and this Agreement supersedes and cancels any and all
8 previous negotiations, arrangements, brochures, agreements and
9 understandings, if any, between the parties hereto and none shall be
10 used to interpret or construe this Agreement.
11 SECTION 11. Amendments. This Agreement and the lease
12 granted hereby may only be amended or modified in a writing signed by
13 the parties' duly authorized representative, which such writing shall
14 specifically reference this Agreement.
15 SECTION 12. Recordation. This lease shall not be recorded.
16 SECTION 13. Miscellaneous.
17 (a) Time is of the essence of this Agreement and each of
18 its provisions.
19 (b) If Lessee breaches any of the covenants or agreements
20 contained in this Agreement, Lessor may at its option, terminate this
21 lease by serving thirty-(30) days' notice in writing upon Lessee.
22 (c) Upon the expiration of this Agreement, Lessee shall
23 relinquish possession of the Leased Area and have removed all of its
24 property from the Leased Area.
25 (d) If any term, provision or condition contained in this
26 Agreement shall, to any extent, be invalid or unenforceable, the
27 remainder of this Agreement shall not be affected thereby, and each
28 and every other term, provision and condition of this Agreement shall
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be valid and enforceable to the fullest extent permitted by law.
(e) Lessee and Lessor represent and warrant that neither
has had any dealings with any realtors, brokers or agents in
connection with the negotiation of this Agreement.
SECTION 14. Governing Law. This lease shall be construed
and interpreted in accordance with the laws of the State of
California.
IN WITNESS WHEREOF, the parties have caused this Agreement
to be executed by duly authorized individuals effective as of the date
first written above.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
C -T.- -�� ,
ERIC T. FRESCH C ty ttorney
By:
CITY OF VERNON
LEONIS C. MALBURG, Mayor
rti
`"-. GHARLES D. PERRY III
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EXHIBIT
VA&
Exhibit "N' s 12 T4 , 2670 Leonis Blvd.
SUPPORTING
DOCUMENTS
b 2 -Ov3
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Dear Mr. Perry:
SOL BENUDIZ
j = Police Chief
# MARK C. WHITWORTH
Acting Fire Chief
The purpose of this letter is to request a 15-day extension of the
Cityrs lease of the property at 2650 Leonis Boulevard, currently used
as the UMM/T offices. Although the City had expected the property to
be vacated by September 30, 2005, it now appears we will require it
until October 15, 2005. „
Please contact me with any questions cYr comments.
Sincerely, { 1
9 r� rr
t-�
`i
V. Malkenhorst, Jr.
Acting City Clerk/Assistant City Attorney
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