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HomeMy WebLinkAboutCC RESO 15,560RESOLUTION NO. 15,560 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE FOR SPACE AT 43 EAST 12TH STREET BE IT RESOLVED by the City Council of the City of National City that the City Manager is hereby authorized to enter into a three year lease with Tim Lichty and Sherry Lichty for approximately 4,270 square feet of space at 43 East 12th Street, National City for use as a Police Department Annex. A copy of said lease is attached hereto as Exhibit "A". PASSED and ADOPTED this 15th day of March, 1988. GEORGE H" WATERS MAYOR ATTEST: IONE ,CAMPBELL IONE PELL,C TY CLERK BY: APPRO D A Dr, et GEORGE H. EISER, III -CITY ATTORNEY oRICIIJfL LEASE AGREEMENT THIS LEASE AGREEMENT made and entered into this 3`� day of February 1988, by and between TIM LICHTY and SHERRY LICHTY, hereinafter referred to as "Landlord" and THE CITY OF NATIONAL CITY, hereinafter referred to as "Tenant" is as follows: ARTICLE I - PREMISES Section 1.01 Leased Premises. The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises hereinafter called "leased premises" or "demised premises", consisting of approxi- mately 4,270 square feet which is the building known as 43 East 12th Street, National City, California, together with the exclusive parking located thereunder. Section 1.02 Common Area. In addition to the demised premises mentioned in Section 1.01 hereof, this Lease includes the nonexclusive right of Tenant and its agents, servants, successors, assigns, licensees, invitees, customers, suppliers, and patrons to use and enjoy, throughout the term of this Lease, the "common areas" of the Center, to wit: the driveways, entrances, exits, roadways, parking areas, sidewalks, malls and other features and facilities provided for the general uses and purposes of the Center. The uses hereby granted shall also attach to any and all additional common areas which Landlord may, in its discretion, add to the Center. Section 1.03 Regulation of Common Areas. The common areas shall be subject to the exclusive control and management of Landlord, and Landlord shall have the right, in its sole discretion, to permit any person or persons to come upon any and all parts of the common areas for any purposes whatsoever, and also, in its sole discretion, to establish, modify, change and enforce reasonable uniform and nondiscriminatory rules and regulations which shall be similar to those which exist in similar centers. Tenant agrees to abide by and conform with such rules and regulations when published. Landlord shall have the right at any time to close temporarily any part of the common area which is reasonably necessary for maintenance and security of the center. Section 1.04 Maintenance of Common Areas. Landlord agrees that it will cause all of the common areas to Inivals 1 Initials be maintained in good repair and in a clean, sanitary, vermin -free and safe condition at all times. Tenant shall pay twenty-four (24%) percent of the costs of maintaning the said common areas. ARTICLE II - TERM OF LEASE Section 2.01 Term. This lease is for three (3) years, starting from the "initial day" as defined in Section 2.02, plus the fractional month, if any, following the commencement of the term, as provided in Section 2.02, which occurs prior to the initial day. Section 2.02 Commencement of Term. The term of this lease shall commence on March 15, 1988, and Tenant's obligation to pay rent shall commence on the same date. The aforementioned date is hereinafter referred to as the "initial day", unless the aforementioned date is other than the first day of a calendar month, in which event the term "initial day" shall be deemed to refer to the first day of the first calendar month immediately following the commencement of the term. If Tenant occupies the premises before commencement of the term Tenant shall pay minimum rent for the fractional month occurring prior to the initial day on a pro rata basis (calculated on the basis of a thirty -day month). Payment of rent for such fractional month shall be made by Tenant on or before the commencement of the term. Section 2.03 Surrender of Leased Premises. At the expiration of this lease or other termination thereof, Tenant shall surrender the demised premises in good condition and broom clean, reasonable wear and tear and damage by unavoidable casualty excepted to the extent that the same is covered by Landlord's fire insurance policy with extended coverage endorsement. ARTICLE III - TENANT IMPROVEMENTS AND FIXTURES Section 3.01. Installation of Tenant's Fixtures. Not Applicable. ARTICLE IV - RENTAL AND SECURITY DEPOSIT Section 4.01 Base Rent. Tenant agrees to pay to Landlord as minimum monthly rent, without prior notice or demand, for the premises, the sum of Six latish lailiab 2 Thousand Fifty -Six Dollars and Five cents ($6,056.05) per month, on or before the first day of the first full calendar month of the term hereof and a like sum on or before the first day of each and every successive calendar month thereafter during the term hereof. Rent for any period during the term hereof which is for less than one (1) month shall be a prorated portion of the monthly installment herein, based upon a thirty (30) day month. Said rental shall be paid to Landlord, without deduction or offset in lawful money of the United 'States of America, which shall be legal tender at the time of payment at the Office of the Building, or to such other person or at such other place as Landlord may from time to time designate in writing. Section 4.02 Late Charge. Tenant agrees to be liable for and pay promptly without specific demand therefor a service charge of 10% in addition to rent due, in the event (and each such event) that the rental due is not paid by the loth day of the month. Said late charge shall be considered as additional rent. Landlord and Tenant agree that this late charge represents a reasonable estimate for collection costs and processing and accounting expenses, the exact amount of which is extremely difficult to ascertain, and that as such it is fair compensation to Landlord for the loss suffered from such non-payment by Tenant. Section 4.03 Cost of Living Adjustment and Debt Service. The minimum monthly rent provided for in Paragraph 4.01 of this Lease shall be subject to an upward only adjustment in the minimum amount of Five Percent (5%) per year or the adjustment caused by application of the Consumer Price Index, whichever is greater at the commencement of the second year of the term of this Lease and each year thereafter including extended terms and/or option periods, if any. The Consumer Price Index adjustment shall be based on the Consumer Price Index For All Urban Consumers, published by the United States Department of Labor, Bureau of Labor Statistics for San Diego, California. If the Index published for the adjustment date (i.e. commencement of the second year of the term of this lease and each year thereafter) has increased over the Index for the same month in the prior year, then the monthly rent for the following twelve months shall be set by multiplying the monthly rent in the prior year by a fraction, the numerator of which is the adjustment date Index and the denominator of which is the prior year Index. If the Index is changed so that the base year differs from that used as of the month immediately preceding the month in which the term commences, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had 3 not been discontinued or revised. For the purpose of this Article the following terms are defi ed as follows: Base Year: The calendar year 1985 shall be the base year, provide• however, that the base year shall in no event be earlier than the ''rst full calendar year following the date of the initial occupancy . the first occupant of said building. Compa ison Year: Each calendar year of the term after the base year. Direct Ex enses: All direct costs of operation and main- tenance as determi ed by standard accounting practices and shall include the followin, costs by way of illustration, but not limited to, real property tax- and assessments, rent taxes, gross receipt taxes, whether assesse• against the Lessor or assessed agaist the Lessee and collected by e Lessor, or both, interest rate increase on the permanent or c'nstruction loan, insurance premiums, utilities, labor, costs in red in the management of the building, air conditioning and heat g, elevator maintenance, supplies, materials, equipment and too's, including maintenance costs and upkeep of all parking and comma areas. Direct expenses shall not include depreciation of the buil • ' ng of which the premises are a part or equipment therein. If the direct expenses paid comparison year on account of the op building of which the premises are a par espenses paid or incured for the base yea 24% of the increase. This percentage is rentable area of the building occupied b Lessor shall endeavor to give to Lessee on or March of each year following the restructi statement of the increase of rent payable by L failure by Lessor to give such statement shal waiver by Lessor of its rights to require an incre receipt of'the statement for the first comparison y pay in full the total amount of increase of direct e the first comparison year and an addition for the then The amount of any such increase of direct expenses shal estimate for said current year and this amount shall be di twelve (12) equal monthly installments and Lessee shall pay currently with the regular monthly payment next due, follo receipt of such statement, an amount equal to one (1) installment multiplied by the number of months from January calendar year in which said statement is submitted to the mont such payment, both months inclusive. Subsequent installments sha 1 be payable concurrently with the regular monthly rent payments fo 4 incured by the Lessor for the ation or maintenance of the are in excess of the direct then the Lessee shall pay at portion of the total the Lessee hereunder. efore the first day of comparison year a see hereunder, but not constitute a e in rent. Upon r Lessee shall enses due for urrent year. be used as ided into o Lessor ng the monthly i the of com succee expenses an pay a lump sum e base year less the t increases paid in the p is then being made to the installments to be paid for th year shall be adjusted to reflect balance of that calendar year and shall continue until the next ison year's statement is rendered. If in the next or any comparison year results in a greater increase in direct on receipt of a statement from Lessor, Lessee shall 1 to such total increase in direct expense over the 1 of the monthly installments of the estimated ious calendar year for which the comparison ase year, and the estimated monthly ext year following said comparison ch increase. Even though the term has expired • Lessee has vacated the premises when the final determination is made - Lessee's share of direct expenses for the year in which this Lease minates Lessee shall immediately pay increase due over the estimate• = •ense paid. Notwithstanding anything contained in this Article the re sayable by Lessee shall in no event be less than the rent speci in paragraph 4.01 horoinabove Section 4.05 Security Deposit. Tenant has deposited with Landlord the sum of Four Thousand Five Hundred Fifty Dollars ($4,550.00). Said sum shall be held by Landlord as security for the faithful performance by Tenant of all terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to the provisions relating to the payment of rent, Landlord may (but shall not be required to) use, apply or retain all or any part of this security deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is so used or applied, Tenant shall within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this security deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease term. In th'e event of termination of Landlord's interest in this Lease, Landlord shall transfer said deposit to Landlord's successor in interest. ARTICLE V - UTILITIES AND TAXES Section 5.01 Payment for Utilities. 5 Tenant shall pay, before the same become delinquent, all rates and charges which may become payable for utility requirements, including gas, electricity and steam, and Tenant shall pay for heating and air conditioning of areas occupied solely by Tenant. Tenant will pay for water and sewer charges for the premises. Tenant shall further pay monthly 1/12th of that portion of the common area utilities, which the area of the demised premises bears to the total rentable area of the center, namely twenty-four (24%) percent of the house electric meter and of the house water meters. Section 5.02 Payment of Taxes. Landlord will pay in the first instance all real property taxes and assessments which may be levied or assessed by any lawful authority against the land and improvements in the Center. Tenant will pay monthly 1/12th of that portion of the real property taxes and assessments which the area of the demised premises bears to the total rentable area of the Center, namely twenty-four (24%) percent of the said taxes. ARTICLE VI - USE OF PREMISES Section 6.01 Tenant's Business. Tenant agrees to use the leased Premises for the purpose of administrative office space for the police department or other agencies of the city government and for no other purpose without written consent of Landlord; personally to supervise the operation of said business and to see it is conducted in a business -like and efficient manner and in such manner that it shall not become a public nuisance or interfere in any way with rights of the other tenants or occupants of the land or building of which the leased Premises are a part in their right to the peaceful enjoyment of their premises on or in said land or building; neither to use or permit to be used the leased Premises for immoral purposes of in any way that would be a violation of any Federal, State or local law,regulation or ordinance, that would injure the reputation of the Premises, said land or building, or the neighborhood, or that would constitute a violation of any conditions or restrictions of record affecting the leased Premises or said land or building. Tenant shall abide by all health and sanitation regulations and requirements. Section 6.02 Signs Tenant shall provide and maintain a proper identifying sign or signs in the demised premises. No signs or lettering shall be installed on the interior or exterior of the premises unless first approved by landlord in writing. Landlord alone shall be entitled to authorize Tenant or third persons to place identifying signs in the Center. 6 ‘r-\ Section 6.03 Compliance with Law. • Tenant 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. Tenant 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 underwriters or other similar bodies now or hereafter constituted relating to, or affecting the condition, use or occupance of the Premises, excluding structural changes not related to or affected by Tenant's improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordiance or governmental rule, regulation or requirement, shall be conclusive of the fact as between the Landlord and the Tenant. ARTICLE VII - ASSIGNMENT AND SUBLETTING Section 7.01 Assignment and Subletting. Tenant shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease of any interest therein, and shall not sublet the said Premises or any part thereof, or of any right or privilege appurtenant thereto, or to suffer any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the said Premises, or any portion thereof without the written consent of Landlord first had and obtained, which consent shall not be unreasonably withheld, and a consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Any such assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under this Lease. Section 7.02 Effect of Assignment. In the event of any assignment, subletting concessions or licenses, Tenant herein named shall remain fully liable for all of the obligations of Tenant hereunder, and Tenant shall not thereby be relieved of any of said obligations. If this Lease be assigned, or if the leased premises or any part thereof be underlet or occupied by anybody other than Tenant, Landlord may collect rent from the assignee, under -tenant or occupant, and apply the net amount collected to the rent herein reserved, but no such assignment, underletting, occupancy or collection shall be deemed a waiver of this covenant, or a release of Tenant from the further performance by - 7 •- Tenant of covenants on the part of Tenant herein contained. ARTICLE VIII - REPAIRS, MAINTENANCE, ALTERATIONS Section 8.01 Repairs by Landlord. The Landlord agrees to repair and maintain in good order and serviceable condition: the roof, roof drains, outside walls, foundations and structural portions (both interior and exterior) of the demised premises; and such of the pipes, wires, conduits, sewers and drains in, about, or in the vicinity of the demised premises as are or may be installed by, or are under the control of Landlord, and which serve not only the demised premises but also other portions of the Center. There is excepted from this covenant however: (a) Repair or replacement of broken plate or window glass; (b) Repair of damage caused by the negligence of Tenant, its employees, agents, contractors, customers, invitees, and licensees; (c) Interior repainting and redecorating; and (d) Repairs which are the responsibility of Tenant in accordance with Section 8.02. Section 8.02 Repairs and Maintenance by Tenant. Tenant agrees to repair and maintain in good order and condition all'.nonstructural portions of the demised premises, including without limitation, store fronts, show windows, doors, windows, plate and window glass and floor coverings, and the plumbing, heating, air conditioning, electric and sewerage systems, facilities and appliances. Tenant will maintain the interior of the demised premises in a clean sanitary condition. Nothing contained herein shall be construed to require tenant to repair construction defects or malfunctions of equipment which is covered by warranty. Tena^t ,.a s-rights-under Section 1942 of the California Civil -Code to make-Eepairs at Landlord's expens-e,. Section 8.03 Government Regulations. In the event that during the term hereof any alteration, addition, improvement or change to the demised premises is required by any government order, law or the like the cost thereof shall be borne solely by Tenant, unless such is required because of the character and structure of the demised premises without any reference to the particular use to which Tenant is putting the demised premises, in which case Landlord shall bear the cost thereof. - 8 - Section 8.04 Alterations. Tenant agrees not to make any alterations, improvements or additions to the leased Premises, without first obtaining the written consent of Landlord, and not then to make any alterations, improvements or additions without first notifying Landlord in writing of the time when he shall commence said work, in order to give Landlord an opportunity to file Notice of Non -Responsibility to persons furnishing labor and material in connection therewith and for any other reason. Any such alterations, improvements or additions shall be and become a part of the Premises, and title thereto shall pass to Landlord upon the expiration of this Lease provided that Tenant may remove any trade fixtures installed by him if the same can be removed without injury to Premises. Landlord shall not unreasonably withhold its consent to additions compatable in design and style to the existing facilities. ARTICLE IX - INDEMNITY AND PUBLIC LIABILITY INSURANCE Section 9.01 Waivers and Indemnity. It is agreed that Landlord is to be free from all liability 41tPast.. and claim for damages by reason of any injury tciproperty of any kind whatsoever and to whomsoever belonging, inol di-g-bugs mi-ted to Ten_antl-s-and-that-ems-his-agents, empi-oyeec, gueots, tenants-, 14-censees-, invitees-r-patsons-and-eeeupants,-€Eem-any-cause-er-eauses vhatscever-while-in,-upon aE--in-anyway--eenneeted-wi.-th-the-leased I emi-ses - --the-sidewalks-adjaeent-the etc-during--the-term of thin Lease -GE -any -extension he-Beef-er-any-eeeupafey-hereunder; exeept-as caused by or due to the negligence or intentional acts of -Landlord, Ttnani, its agents, servants or employees. Tenant expressly covenants and agrees to indemnify and save harmless Landlord from all liability, loss, cost and obligations on account of or arising out of any such injuries, death or losses. howavar-occur-ring ru ue to the-negligence-er-intentional-aeeo of Landle d, its -agents, servants, or employees, Section 9.02 Liability Insurance. Tenant shall, at Tenant's expense, obtain and keep in force during the entire term of this Lease, a policy of comprehensive public liability insurance with liability limits of not less than $500,000.00 per person and $1,000,000.00 per occurrence insuri-tg Landlord and Tenant against any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. The limit of said insurance shall not, however, limit the liability of the Tenant hereunder. Tenant may carry said insurance under a blanket policy, providing, however, Landlord sha!! L4 ail 441,143.u1 E:eaijrid c party . - 9 - 17. caid insurancc by Tenant :,hall hair- a landlord's protective liability cndorocmcnt attached thcrcto4 If Tenant shall fail to procure and maintain said insurance, Landlord shall, but not be required to, procure and maintain same, but at the expense of Tenant. Inaurancc required better in "Bcct's Incuranco Guide". Tenant shall deliver to Landlord prior to occupancy of the Premises copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with -loss -payable -clauses satisfactory -to -Landlord. No policy shall be cancelable or subject to reduction of coverage except after ten (10) days prior written notice to Landlord. Section 9.03 Hold Harmless. Tenant shall indemnify and hold harmless Landlord against. and from any and all claims arising from Tenant's use of the Premises for the conduct of its business or from any other activity, work, or other thing done, permitted or suffered by the Tenant in or about the Building, except as caused by or due to the negligence or intentional acts of Landlord, its agents, servants or employees, and shall further indemnify and hold harmless Landlord against and from any and - all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of the Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all and against cost, attorney's fees, expenses and liabilities incurred in or about any such claim or any action or proceeding brought thereon, and, in any case, action or proceeding be brought against Landlord by reason of any such claim, tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenants -a -material part of the -consideration -to -Landlord -hereby -assumes -all risk of vantage -to property_or-injury-to-personsTin,-upon-ar-abou he Prcmiaca, from any-cause-other-than-Landlordla-negli-genoe-er-i-i entienal acts and Tenant-her-e by-waives-all-c la ims-in-respect-therao e-against-Land 1 o r.d. Landlord or its agents shall not be liable for any damage to property entrusted to employees of the Building, nor for loss or damage to any property by theft or otherwise, nor for any injury to or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place resulting from dampness or other cause whatsoever, unless caused by or due from the negligence or intentional act of Landlord, its agents, servants or employees. Landlord or its agent shall not be liable for interference with the light or other incorporeal hereditaments, loss of business by Tenant, nor shall Landlord be liable for any defect in the Premises or in the Building. Tenant shall give prompt notice to Landlord in case of fire or accidents in the Premises or in the Building or of defects therein or - 10 - in the fixtures or equipment. ARTICLE X - FIRE INSURANCE AND RECONSTRUCTION Section 10.01 Fire Insurance. (a) Landlord shall keep the building of which the demised premises are a part, insured against loss or damage by fire, with the usual extended coverage endorsements, in amounts not less than 80% of the full insurance value thereof. Landlord reserves the right to name any other person, firm or corporation as an assured in said policies of insurance, whether such additional assured's interest be that of Tenant in said Center, mortgagee, or otherwise. Tenant will pay monthly 1/12th of that portion of the fire insurance premiums which the area of the demised premises bears to the total rentable. area of the center, together with any extra premium caused as a result of the business activity carried on by Tenant. Tenant's portion of the basic insurance premium is twenty-four (24%) percent of the same. (-b) Tenant-shall,-dur-ing-the-entire term -hereof, keep -in full force and effect a -policy with -usual —extended coverage, uandalism-and_malicious-mischief-endorsements, covering Tenant'r mere andi-sc, fixtures --equipment, signs-,-and--any of t-isns-e ginally made -by -Tenant -at -Tenant's expense in an amount not less-than-80%-of-their-full--insurable value thereof, the proceeds of which---pelicy shall be used €eE-the--repair or rcplasemcnt of the gsepe-r--ty--se-i-ns.uE-ed. The amount of oovcrago chall be subject to L ndlord's rior ap royal and th,e policy shall also mpl=—T''�..tH the provisions of the last two sentences i Section 10.02% Reconstruction. In the event the Premises or the Building of which the Premises are a part are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to forthwith repair the same; and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the rent while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall materiallyinterfere with the business carried on by the Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent. In the event the Premises or the Building of which the Premises are a part are damaged as a result of any cause other than the perils covered by fire and extended coverage insurance, then Landlord shall forthwith repair the same, provided the extent of the destruction be less than ten percent (10%) of the then full replacement cost of the Premises or the Building of which the Premises are a part. In the event the destruction of the Premises or the Building is to an extent greater than ten percent (10%) of the full replacement cost, then Landlord shall have the option; (1) to repair or restore such damage, this Lease continuing in full force and effect, but the rent to be proportionately reduced as hereinabove in this Article provided; or (2) give notice to Tenant at any time within sixty (60) days after such damage terminating this Lease as of the date specified in such notice, which date shall be no less than thirty (30) and no more than sixty (60) days after giving such notice. In the event of giving such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate on the date so specified in such notice and the rent, reduced by a proportionate amount, based upon the extent, if any, to which said damage materially interfered with the business carried on by the Tenant in the Premises, shall be paid up to the date of said termination. Notwithstanding anything to the contrary contained in this Article, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Article occurs during the last twelve (12) months of the term of this Lease or any extension thereof. Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacement of any panels, decoration, office fixtures, railings, floor covering, partitions, or other property installed in the Premises by Tenant. The Tenant shall not be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises, tenant's personal property or any inconvenience or annoyance occasioned by such damage, reconstruction or restoration. Section 10.03 Increased Risk. Tenant will not do or permit anything to be done in or upon the demised premises, or bring in anything or keep anything therein which shall increase the rate of insurance on the demised premises or the building of which they are a part above the standard rate on said premises and building with a variety or drug store located therein; and Tenant further agrees that, in the event it shall do any of the foregoing, it will promptly pay to Landlord, on demand, any such increase resulting therefrom, which shall be due and payable as additional rent hereunder. ARTICLE XI - DEFAULT OF TENANT Section 11.01 Default The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: (a) The vacating or abandonment of the Premises by Tenant. �Vk 19iliab - 12 - (b) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of five (5) days after written notice thereof by Landlord to Tenant. (c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by the Tenant, other than described in Section 11.01b, above, where such failure shall continue for a period of thirty (30) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period thereafter diligently prosecures such cure to completion. (d) The making by Tenant of any general assignment or general arrangement for the benefit of creditors; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days; or in the appointment of a trustee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged in thirty (30) days. Section 11.02 .Remedies in Default. In the event of any such material default or breach by Tenant, Landlord may at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach: (a) Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default, including, but not limited to, the cost or recovering possession of the Premises; expenses of reletting, including necessary renovation of the Premises, reasonable attorney's fees, any real estate commission actually paid; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided; that portion of the leasing commission paid by Landlord applicable to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from - 13 - served either personally or by registered mail to the address designated by Tenant, or should Tenant cease to operate the leased Premises so that notice cannot be delivered by mail, then by posting notice on the Premises with the same force and effect as though personally served upon the Tenant, and service shall be deemed complete from the time that the respective notices or demands have been mailed or posted. Any notice or demand required to be given or served on Landlord may be given or served either by delivery to Landlord personally or by mailing by Registered Mail to Landlord at Landlord's office or such place as may from time to time be designated in writing. Section 14.03 Attorney Fees. In the event of the bringing of an action by either party hereto as against the other herein or hereunder, or by reason of the breach of any covenant or condition on the part of the other party or arising out of this Lease, then in that event the party in whose favor final judgement shall be entered shall be entitled to have and recover of and from the other reasonable attorney fees to be fixed by the Court wherein such judgement shall be entered. It is agre - - - - ween Landlord and Tenant that they shall, and hereby do, waive trail •• in any action, proceeding or counterclaim brought by either of •. ties hereto against the other on any matters whatsoever arising ou or in any way connected with this Lease, the use or occupancy of sa - - ises, Sc tion 14.05' Force Majcuro. • eriod of time during which either party is prevented or delayed in the letion of the demised premises, in the performance of the making of an m rovements or repairs, or in the fulfilling of any obligation require der this Lease due to unavoidable delays caused by fire, catastrop strikes or labor trouble, civil commotion, Acts of God or public enemy, governmental prohibitions or regulations or ina 'ty to obtain materials by reason thereof, or other causes beyond ch party's reasonable control, shall be added to such party's time for formance thereof, and such party shall have no liability by on thereof. Notwithstanding the foregoing, Tenant shall not be exc for any reason, from the prompt payment of all rent and othe oney Section 14.06 Time of the Essence. Time is of the essence of this Lease and of all of its provisions in which performance is a factor. • - 16 - Unpaid installments of rent or other sums shall bear interest from. the date due at the rate of ten percent (10%) per annum. In the event Tenant shall have abandoned the premises, Landlord shall have the option of: (a) taking possession of the premises and recovering from Tenant the amount specified in this paragraph, or (b) proceeding under the provisions of the following Section 11.02b: (b) Even though a Tenant of real property has breached his lease and abandoned the property, the lease continues in effect for so long as the Landlord does not terminate the Tenant's right to possession, and the Landlord may enforce all his rights and remedies under the lease, including the right to recover the rent as it becomes due under the lease, if the Landlord permits the Tenant to do any of the following: (1) Sublet the property, assign his interest in the lease, or both. (2) Sublet the property, assign his interest in the lease, or both, subject to standards or conditions, and the Landlord does not require compliance with any reasonable standard for, nor any unreasonable condition on, such subletting or, assignment. (3) Sublet the property, assign his interest in the lease, or both, with the consent of the Landlord, and the lease provides that such consent shall not unreasonably be withheld. (c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decision of the State in which the Premises are located. ARTICLE XII - EMINENT DOMAIN Section 12.01 Definition and Effect. In Landlord is advised in writing by any entity having the power of condemnation of such entity's intention to condemn all or part of the demised premises Landlord may, without liability to Tenant and without affecting this Lease except as expressly provided herein, agree to sell the demised premises to the condemnor free from this Lease, or may enter a stipulation having the same effect without trial; a transfer to an entity pursuant to the foregoing shall for purposes of this Lease be treated the same as a taking by reason of the exercise of a power of eminent domain, and the compensation paid in connection therewith shall be treated the same as an award for such a taking. In the event of any taking (which term includes damaging) by reason of the exercise of the power of eminent domain, by condemnation proceeding by agreement as provided above, or otherwise (all of which shall be referred to as a "taking") of all the demised premises, this .Lease shall automatically terminate on the date a - 14 - IA* Tenant is deprived of possession. If so much of the demised premises is taken as to render the balance unsuitable for purposes of Tenant's business, either party, upon written notice to the other given within thirty (30) days after Tenant has been deprived of possession by such taking, may terminate this Lease. If this Lease is not terminated, as aforesaid, the Lease shall continue in full force and effect as to the portion of the demised premises not taken and the fixed minimum rent shall be abated in an equitable manner. Section 12.02 Condemnation Award. Whether or not this Lease is terminated pursuant to the preceeding paragraph, Landlord shall be entitled to the entire award made with respect to an appropriation and Tenant hereby assigns to Landlord all of Tenant's interest if any in such award, but Landlord shall pay from such award in a lump sum as received from the condemning authority that part thereof, if any, made for any excess of the market rental value of the leased premises for the remainder of the term over the lease rental, therefor. Landlord shall not be entitled to any award made to Tenant for loss of business or for costs of removal of stock or on account of movable trade fixtures. Each party shall execute such assignments and other instruments as are reasonably necessary to effectuate this Section. ARTICLE XIII - QUIET ENJOYMENT Section 13.01 Quiet Enjoyment. The Landlord covenants and agrees that Tenant, upon payment of the rental and other charges herein provided for and upon performance and compliance with all the other covenants, agreements and conditions of this lease, shall lawfully and quietly hold, occupy and enjoy the premises during the term hereof, without hindrance or molestation by Landlord or any person or persons claiming under Landlord, except as otherwise provided herein. ARTICLE XIV - LEGAL MATTERS AND MISCELLANEOUS Section 14.01 Governing Law. This Lease shall be governed exclusively by the provisions hereof and by the laws of the State of California, as the same from time to time exist. Section 14.02 Notices. Tenant shall designate an agent for service of any notice or demand under this Lease agreement and in default of such designation then such service shall be on the manager of the facility operated by Tenant on the Premises. Any such notice or demand may be given or - 15 - Section 14.07 Liens. Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant. Landlord may require, at Landlord's sole option, that Tenant shall provide to Landlord, at Tenant's sole cost and expenses, a lien and completion bond in an amount equal to one and one-half (1 1/2) times any and all estimated cost of any improvements, additions, or alterations in the Premises, to insure Landlord against any liability for mechanic's and materialmen's liens and to insure completion of the work. Section 14.08 Holding Over. If Tenant remains in possession of the Premises or any part thereof after the expiration of the term hereof, with the express written consent of Landlord, such occupancy shall be a tenancy from month -to -month at a rental in the amount of the last monthly rental, plus all other charges payable hereunder, and upon all the terms hereof applicable to a month -to -month tenancy. Section 14.09 Entry by Landlord. Landlord reserves and shall, at any and all times, have the right to enter the premises, inspect the same, to submit said Premises to prospective purchasers or Tenant, to post notice of non- responsibility, and to alter, improve or repair the Premises and any portion of the Building of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed always providing that the entrance to the Premises shall not be blocked thereby, and further that such work shall not interfere with Tenant's business, occupancy or quiet enjoyment of the Premises. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in an emergency, in order to obtain entry to the Premises without liability to Tenant except for any failure to exercise due care for Tenant's property. Any entry to the Premises obtained by Landlord by any of the said means, or otherwise shall not under any circumstances be construed or deemed to be a foceable or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion thereof. Section 14.10 Subrogation. As long as their respective insurrers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall obtain any cpccial - 17 - endorsements-,—if-requtr-ed-by-their—insurer--to-evidence-cempL arise w-i-th--the-efesementioned--waiveE. Section 14.11 Subordination. This Lease shall be subordinate to any and all existing encumbrances heretofore placed and to all encumbrances hereafter placed by Landlord upon the leased Premises, and Tenant agrees, upon written request, to execute, acknowledge and deliver any and all instruments necessary or advisable to carry out and effectuate any such subordination. In the event Landlord holds the leased Premises under any leases or tenancies, this Lease shall be subordinate to such leases or tenancies. Section 14.12 Waiver. It is agreed that any waiver by Landlord of any breach of any one or more of the covenants, conditions or agreements of this Lease shall not be construed to be a waiver of any subsequent or other breach of the same or any other covenant, condition or agreement; nor shall any failure on the part of the Landlord to require exact or full, complete and explicit compliance with any of the covenants, conditions or agreements in this Lease be construed as in any manner changing the terms hereof, or to estop Landlord from enforcing the full provisions hereof, nor shall the terms of this Lease be changed or altered in any way whatsoever other than by written amendment, signed by both parties. Section 14.13 Waste. Etc. Tenant agrees not to commit or suffer to be committed any strip or waste of the leased Premises. The parties mutually agree not to allow the Premises to be used for any purpose that will increase the rate or invalidate the insurance thereon, not to keep thereon any gasoline, distillate or any kind of petroleum product or combustible substance for use for heating, lighting or other purposes, and not to allow the Premises or any part thereof to be used as living quarters by any person, except with express written consent of Landlord. Section 14.14 Offset Statement. Tenant shall at any time and from time to time not less than ten (10) days prior written notice from Landlord execute, acknowledge and deliver to Landlord a statement in writing, (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified, is in full force and effect) , and the date to which the rental and other charges are paid in advance, of any, and (b) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder, or specifying such defaults if any are claimed. Any such - 18 - statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the real property of which the Premises are a part. Section 14.15 Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. This Lease - ,e obligations of the Tenant hereunder shall not be affected by or impai _ •-cause the Landlord is unable to fulfill any of its obligations hereun• - = delayed in doing so, if such inability or delay is caused by reaso strike, labor troubles, acts of God, or any reason beyond the reasonab e - of of the Laadlocd. Section 14.17 Sale of Premises. In the event of any sale of the Building, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrance or omission occurring after the constipation of such sale; and the purchaser, at such sale or subsequent sale' of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease. Section 14.18 Notice of Non -Occupancy. Tenant agrees to notify Landlord in writing if at any time during the term of this Lease the leased Premises are to be unoccupied for more than ten (10) days. Section 14.19 Separability. Any provision of this Lease which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect. Section 14.20 Cumulative Remedies. - 19 - It is agreed that the rights and remedies given to the Landlord by this Lease are cumulative and are not intended and shall not operate to deprive the Landlord of any other rights or remedies available to him whether in law or equity or pursuant to special proceedings. Section 14.21 Name. Tenant shall not use the name of the Building or the development in which the Building is situated for any other purpose other than as an address of the business to be conducted by the Tenant in the Premises. Section 14.22 Joint Obligation. If there be more than one Tenant the obligations hereunder imposed upon Tenants shall be joint and several. Section 14.23 Headings. The marginal headings and Article titles to the Articles of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. Section 14.24 Authority of Parties. (a) Corporate Authority. If Tenant is a corporation, each individual executing this Lease on behalf of said corporation represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance with the by-laws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. (b) Limited Partnerships. If the Landlord herein is a limited partnership, it is understood and agreed that any claims by Tenant on Landlord shall be limited to the assets of the limited partnership, and furthermore, Tenant expressly waives any and all rights to proceed against the individual partners or the officers, directors, or shareholder of any corporate partner, except to the extent of their interest in said limited partnership. Section 14.25 Successors and Assigns. The covenants and/conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. Section 14.26 Acknowledgment. Isittait - 20 - full. Landlord acknowledges receipt of first month's rent paid in Section 14.27 Rules and Regulations. Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate. Lessor reserves the right from time to time to make all reasonable modifications to said rules. The additions and modifications to those rules shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any said rules by any other tenants or occupants. Section 14.28 Definitions. All words used herein in the singular number shall include the plural, the present tense shall include the future tense, and the masculine gender shall include the feminine and neuter genders. If more than one person executes this instrument as Tenant, their obligations hereunder shall be joint and several. The term "Landlord" shall include his agent, attorney or authorized representative. The term "leased Premises" shall include all appurtenances thereto. Section 14.29 Right to Terminate Lease. Tenant is in the planning stage of developing a new police facility for the City of National City. Tenant is hereby granted the right to terminate this lease upon the expiration of twenty-four (24) months, provided Tenant give Lessor six (6) months prior written notice of the, exercise of this right to terminate the lease. IN WITNESS WHEREOF, Landlord and Tenant have executed this' date effective as of the date first above written. 1/, LANDLORD TIM LI TENANT THE Y OF $ATIONAL CITY By G. McCABE, ity Manager - 21 - ADDENDUM TO LEASE AGREEMENT THIS ADDENDUM is to the LEASE AGREEMENT made and entered into on the 3!e day of February 1988, by and between TIM LICHTY and SHERRY LICHTY, hereinafter referred to as "Landlord" and THE CITY OF NATIONAL CITY, hereinafter referred to as "Tenant" and is as follows: 1. There is added to Section 1.04 the following: Tenant shall pay twenty-four (24%) percent of the reasonalbe costs of maintaining the common areas and shall have ninety (90) days from the date of any statement or invoice therefor to question the reasonablness of such charges. 2. There is added to Section 10.02 the following: However, Tenant shall be entitled to an abatement or reduction in rent for any period of time during which the damages. interfere with the business being carried on by Tenant. IN WITNESS WHEREOF, Landlord and Tenant have executed this Addendum To Lease Agreement on the a ,,Ztfday of March 1988. LANDLORD c. TIM L %ER LIGHT TENANT THE C OF TIONAL C TY . McCABE, ity Manager