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HomeMy Public PortalAbout05) 7.D. Chamber Lease AgreementAGENDA ITEM 7.D. MANAGEMENT SERVICES DEPARTMENT DATE: December 4, 2012 MEMORANDUM TO: Honorable Mayor and City Council FROM: Jose E. Pulido, City Manager By: Brian Haworth, Assistant to City Manager SUBJECT: TEMPLE CITY CHAMBER OF COMMERCE LEASE AGREEMENT RECOMMENDATION: It is recommended that the City Council: a) Approve a three-year lease agreement between the City of Temple City and Temple City Chamber of Commerce for the property at 9050 Las Tunas Drive; and b) Authorize the City Manager to execute said agreement with the Temple City Chamber of Commerce. BACKGROUND: On April 1, 2002, the Temple City Chamber of Commerce (Chamber) entered into a lease agreement for use of the City -owned building at 9050 Las Tunas Dr. (i.e., the 2002 Lease). The agreement allowed the Chamber to use the property as its headquarters for a term of three months (ending June 30, 2002), after which time both parties could negotiate an extension or renewal (Attachment "A"). Terms included monthly rent of $300, liability and damage insurance, and payment of taxes and utility charges connected with use of the premises. Furthermore, the City (as landlord) was not responsible for substantial building improvements, including repairs to water, sewer, electrical, heating and air conditioning systems. On May 22, 2002, as part of the annual budget process, the City Council (Council) approved renewal of the Chamber lease agreement at $1 per month (according to the official meeting minutes). City Council December 4, 2012 Page 2 3. In September 2012, it was discovered there is no formal record of such an amended or renewed lease agreement. The City Attorney's office was subsequently asked to draft a new lease. 4. On November 13, 2012, the Chamber Board of Directors reviewed the attached draft lease (Attachment "B") and agreed with the proposed terms. ANALYSIS: Over the past decade, it can be assumed that both parties have operated under a month-to-month tenancy under terms of the 2002 Lease. It is in the City's best interest to execute a new lease that clearly defines terms and responsibilities, and which is in compliance with state and local requirements. Key provisions of the proposed lease are as follows: • A proposed term of three years with a two-year option. This arrangement provides long-term stability and branding for Chamber operations, while allowing the City to renegotiate terms (after the lease expires) to reflect changes in the law; • An unchanged rent amount of $1 a month. This provision allows the Chamber to focus its financial resources on business promotion and economic development, rather than overhead costs. The Chamber would still pay all taxes and utility charges associated with the building's use; • Terms that hold the Chamber responsible for day-to-day maintenance but like most commercial leases, require the City to take on substantial maintenance responsibilities (e.g., the replacement of walls and windows, heating and air conditioning system upgrades, etc.). This allows the City to monitor the property's structural and systematic soundness, while requiring that all capital improvements to the building (over $5,000) be identified and planned as part of the annual and mid- term City Budget processes; and • Public liability and property damage insurance policies (maintained by the Chamber), naming the City as an additional insured, in form and in an amount of at least $1 million per occurrence. This requirement ensures that all indemnities are up- to-date pursuant to industry standard. CONCLUSION: Entering into a new lease with the Chamber benefits the City in a number of ways. First, the City will ensure that the Chamber has appropriate insurance for the property, pays the possessory interest tax (if any) on the property, and indemnifies the City for City Council December 4, 2012 Page 3 damages to the property arising from Chamber activities. Second, the City will retain the responsibility but also the right to perform capital maintenance on the property, ensuring the City has control over the long-term stability of the structure. Finally, the lease very clearly spells out the rights and responsibilities between the City and Chamber so as to avoid confusion and keep the parties' relationship a strong one. FISCAL IMPACT: There is no fiscal impact to the Fiscal Year (FY) 2012-13 City Budget as rent revenues will remain unchanged. However, with the City now taking on responsibility of substantial improvements to the building, needed repairs will be identified and planned as part of the City's mid-term and annual budget processes. ATTACHMENT: A. 2002 Lease B. Draft Lease ATTACHMENT "B" LEASE AGREEMENT by and between THE CITY OF TEMPLE CITY TEMPLE CITY CHAMBER OF COMMERCE Dated LA #4813-7924-4817 v1 LEASE AGREEMENT This LEASE AGREEMENT ("Lease"), dated as of , 2012, is entered into by and between the CITY OF TEMPLE CITY, a charter law city and municipal corporation (the "Landlord"), and the TEMPLE CITY CHAMBER OF COMMERCE, a California 501(c)(6) nonprofit corporation (the "Tenant"), who agree as follows: RECITALS This Lease is made with reference to the following facts and circumstances, which are a part of this Lease and are agreed to be correct: A. Landlord is the owner of certain real property (the "Property") located in the City of Temple City, County of Los Angeles, State of California commonly known as 9050 Las Tunas Drive. A legal description of the Property is set forth in attached Exhibit "A", and depicted in the diagram attached as Exhibit "B". B. The Property is improved with a one story building (the "Building") consisting of approximately one thousand fifty-six (1,056) square feet of floor area. C. Tenant wishes to Lease the Building (the "Premises") and Landlord is willing to lease the Premises to Tenant, all subject to the terms and provisions of this Lease. The parties acknowledge and agree that the Building is located adjacent to a public parking lot owned by Landlord and occupying the Property, and that the parking lot does not constitute any portion of the Premises leased by Tenant. D. Tenant wishes to secure parking for its operations in the Building from parking available in Landlord's parking lot located on and adjacent to the Property, and Landlord is willing to dedicate a number of parking spaces to Tenant during Tenant's normal business hours. 1. Demise. (a) On and subject to the terms and provisions of this Lease, Landlord leases to Tenant and Tenant leases from Landlord the Premises. (b) In connection with Tenant's lease of the Premises, Landlord agrees to reserve for Tenant's exclusive use, and post notices to that effect, four (4) parking spaces in the public parking lot owned by Landlord and located on and adjacent to the Property. During Tenant's normal business hours of 9:00 a.m. to 6:00 p.m., Monday through Thursday, these four (4) parking spaces shall be reserved for the use of Tenant and Tenant's guests, agents, employees, and invitees. Tenant agrees that Tenant has no other right under this Lease to the public parking lot and that if Tenant desires to use said parking lot for any purpose other than utilization of the four (4) parking spaces as provided in this section, Tenant shall request a permit to use the parking lot and Landlord shall review such request and may approve or deny such request in its sole and absolute discretion. LA #4813-7924-4817 V1 2. Term. The term of this Lease commences on the date hereof and continues thereafter for a period of three (3) years and, unless earlier terminated, automatically expires on , 2015, without the necessity of any notice or other action on Landlord's part. Notwithstanding the foregoing, Tenant may at its sole discretion and with sixty (60) days notice to Landlord, request and upon such request shall be granted a two (2) year extension of the Term. Such extension shall be immediately effective but the parties shall thereafter execute an amendment to this Lease memorializing such extension. No further extension beyond the three (3) year base term and two (2) year extension may be requested or granted under this Lease, and a new agreement between the parties shall be required to effectuate any such further extension. 3. Use; Compliance with Laws. (a) The Premises must be used by Tenant as a Chamber of Commerce Building and Visitors' Center. This includes receiving visitors to the city of Temple City, holding meetings related to the purposes for which Tenant is incorporated, serving as a site for the dissemination of information about the City and its businesses, allowing business owners and employees in Temple City to interact on the Premises, and serving as an office for the planning and implementation of these and similar activities. (b) Tenant and Landlord currently have a service agreement under which Tenant performs services related to public information, business promotion and assistance with City economic development projects. Should that service agreement be terminated by either party, Landlord may, at its sole option and in the exercise of its sole discretion, terminate this Lease prior to the end of the Term. (c) Tenant agrees that the Premises and its use of the Premises will at all times be in strict compliance with all applicable laws, rules and regulations of all governmental authorities having jurisdiction, and Tenant, at its sole cost and expense, agrees to comply with all such laws, rules and regulations, including, without limitation, all laws, rules and regulations requiring the making of structural or extraordinary repairs or replacements to the Premises. 4. Rent. As rent for the Premises, Tenant agrees to pay to Landlord the sum of $1.00 per month. Rent is to be paid in advance by check or wire transfer. The first installment of monthly rent is due on the date hereof and subsequent installments are due and payable on the same day of each succeeding monthly during the term of this Lease. 5. "AS -IS" Lease. Tenant acknowledges that it has inspected the Premises and Tenant warrants and agrees that it is thoroughly familiar with the Premises and all aspects thereof, including, without limitation, the physical condition of the Premises, the zoning of the Premises and all other restrictions and limitations applicable to the Premises (whether or not of public record). Tenant acknowledges and agrees that the Premises are satisfactory to Tenant in all respects. Tenant agrees that neither Landlord nor anyone acting on Landlord's behalf has made any representation or LA 94813-7924-4817 v warranty of any kind or nature whatsoever respecting the condition of the Premises, their suitability for Tenant's use, or any other matter relating to the Premises (including, but not limited to, the environmental condition of the Premises) or this Lease, and Tenant agrees that it is leasing the Premises in their "AS -IS CONDITION AND WITH ALL FAULTS". 6. Maintenance. (a) Tenant agrees that it will, at its sole cost and expense, maintain the Premises and all portions thereof, in a good, clean and safe condition and state of repair, including the making of all necessary repairs or replacements due to normal wear and tear and use of external and internal portions of the Premises. The foregoing includes, without limitation, Tenant's duty to provide for normal janitorial servicing of the Premises. Landlord will not provide normal landscaping or gardening services on the Property, as no portion of the Property that is landscaped is included in the leased Premises. Tenant agrees that Tenant is solely responsible for the security, protection and insuring of its equipment, materials and other property, and that of its employees, servants and contractors, located on or about the Premises. Tenant agrees that Landlord will have no liability of any kind or nature respecting any loss or theft of, or damage to, any such equipment, materials or other property. (b) Landlord agrees that it will, at its sole cost and expense, provide for maintenance of a substantial nature required for the upkeep of all plumbing, heating, air conditioning, ventilating, electrical and other facilities and utilities serving the Premises, and the structure of all walls, floors, ceilings, roofs, windows, doors, driveways, sidewalks, and parking lots on the Property and Property. For purposes of this Subsection 6(b), "maintenance of a substantial nature" shall be defined as maintenance estimated to cost more than $5,000. Tenant shall provide Landlord with notice of the required maintenance and with no fewer than two (2) estimates showing costs anticipated to exceed $5,000. Such notice shall be provided to Landlord prior to Landlord's annual or mid -year budget approval so that the cost of the maintenance can be included in the budget or budget revision. Should unanticipated emergency maintenance of plumbing, heating, air conditioning, ventilating, electrical or other facilities or utilities arise, Tenant may either perform the maintenance itself and seek reimbursement from Landlord or may immediately request that Landlord undertake the maintenance work to ensure continued habitability of the Premises. 7. Insurance. Tenant agrees to keep and maintain public liability and property damage insurance respecting the Premises, naming Landlord as an additional insured, in form and amounts (not less than $1,000,000 per occurrence) and with insurers reasonably satisfactory to Landlord. Tenant also agrees to keep and maintain a policy or policies of fire and extended coverage insurance, with vandalism and malicious mischief endorsements, in the name of Landlord and with loss payable to Landlord, to the extent of the full replacement cost of the improvements located on the Premises and otherwise in form and with insurers reasonably satisfactory to Landlord. Tenant also agrees to keep and maintain worker's compensation insurance coverages for its LA 114813-79244817 v I employees in the minimum amounts required by California law. All such insurance will be primary and not contributing with any insurance which Landlord may maintain, and the insurer providing such insurance must agree that such insurance will not be changed or cancelled except upon at least thirty (30) days prior written notice to Landlord. Tenant waives any and all rights of recovery against Landlord and its officials, officers, agents and employees on account of loss or damage occasioned to Tenant or its property or the property of others under its control, to the extent that such loss or damage is insured against under the fire and extended coverage policy required to be kept and maintained by Tenant under this Lease; and Tenant shall cause each policy required to be kept and maintained by it under this Lease to provide that the insurer waives all right of recovery by way of subrogation against Landlord in connection with any damage covered by such policy. Tenant will provide Landlord with copies of the policies of such insurance or certificates evidencing such insurance upon execution of this Lease and from time to time thereafter as reasonably requested by Landlord. 8. Indemnification. In addition to, and without limiting, Tenant's other obligations of indemnity under this Lease, Tenant agrees to indemnify, protect, defend (by counsel reasonably satisfactory to Landlord) and hold Landlord and its officials, officers, agents and employees, and each of them, harmless from and against all claims, losses, liabilities, actions, judgments, costs and expenses (including reasonable attorneys' fees and costs) which they, or any of them, may suffer or incur arising from or relating to (a) Tenant's use of the Premises, (b) any negligence, act or omission of Tenant, its agents, employees, contractors, guests or invitees in or about the Premises or (c) any default by Tenant under this Lease. 9. Utilities. Tenant agrees to pay, as additional rent, before delinquency, for all water, sewer, gas, heat, light, power, telephone service, refuse removal and all other utilities or services of any kind supplied to the Premises. It is agreed that Landlord is not liable for any failure or interruption of any utility or service, and the failure or interruption of any utility or service will not entitle Tenant to terminate this Lease or stop making any rental or other payments due under this Lease. 10. Taxes. Tenant shall pay, as additional rent, before delinquency all real property taxes and assessments (both general and special) levied or assessed against the Premises during the term of this Lease. Tenant shall promptly furnish Landlord with satisfactory evidence that such taxes and assessments have been paid. If any such taxes and assessments cover any period of time after the expiration of the term of this Lease, Tenant's share of such taxes and assessments will be equitably prorated to cover only the period of time within the tax fiscal year this Lease is in effect. Tenant shall also pay before delinquency all taxes levied or assessed against Tenant's trade fixtures, equipment and personal property located at the Premises or elsewhere. If Tenant fails to pay any taxes or assessments required to be paid by it under this Lease, Landlord, at its option, may pay the same and Tenant agrees to reimburse Landlord therefore immediately upon demand. Tenant acknowledges that this Lease may create a possessory interest subject to taxation and that Tenant may be subject to payment of any and all taxes levied on that possessory interest. LA #4813-7924-4817 V] 11. Alterations. Tenant agrees that it will not make any alterations or improvements to the Building or Premises, or any portion of the Building or Premises, without Landlord's prior written consent, which will not be unreasonably withheld; provided, that if the alterations or additions would affect the structural portions of the Premises, including, without limitation, the exterior or interior load-bearing walls, the foundation or the roof of the Premises, Landlord shall be under no obligation to give its consent. If Landlord consents to the making of any alterations or improvements, Tenant agrees that such alterations or improvements will be made in strict compliance with all applicable laws, rules and regulations of all governmental authorities having jurisdiction, will be performed in a good and workmanlike manner, and will be made in compliance with such other conditions, including, without limitation, the obtaining of performance and completion bonds, as Landlord may require in connection with the granting of its consent. Tenant agrees that it will pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Tenant at or for use on the Premises, which claims are or may be secured by any mechanics' or materialmen's lien against the Premises or any interest therein. All alterations and improvements made by Tenant shall, at Landlord's option and at Tenant's sole cost and expense, be removed from the Premises at the end of the term of this Lease and the Premises restored to their condition prior to the making of such alterations or improvements. 12. Tenant's Property. All trade fixtures, equipment and personal property of Tenant located at the Premises will remain the property of Tenant during the term of this Lease and may be removed by Tenant at any time and shall be removed by Tenant prior to the expiration or other termination of the term of this Lease. Tenant, at Tenant's cost and expense, must promptly repair all damage to the Premises occasioned by the removal of its trade fixtures, equipment and personal property. 13. Damaoe and Destruction. If the Premises or any portion thereof are damaged or destroyed by any casualty (whether or not insured), and the cost of repairing or restoring the Premises exceeds one month's rent or if the repairs and restorations would require more than one month to complete once commenced, then either Landlord or Tenant may cancel this Lease upon the giving of written notice to the other. Upon any cancellation of this Lease pursuant to the provisions of this Section, all proceeds of insurance shall be the sole property of Landlord, and Tenant shall have no right or interest therein. 15. Sublease or Assignment. Tenant may not sublease or assign this Lease or sublet or assign the rights to all or any part of the Premises nor permit the occupancy thereof by any other person or entity without the express written consent of Landlord, which consent may be withheld in Landlord's sole discretion. 16. Default. The occurrence of any one or more of the following shall constitute a default by Tenant: (a) Vacation or abandonment of the Premises by Tenant. LA #4813-79244817 v I (b) Default of the services agreement between Landlord and Tenant referenced in section 3(b), when such default is not cured as required by that agreement. (c) Failure by Tenant to make payment of rent or any other payments required to be made by Tenant hereunder as and when due. (d) Failure by Tenant to keep and maintain any of the insurance required to be kept and maintained by Tenant under this Lease. (e) Suspension of Tenant's active corporate status due to failure to file required paperwork with the State of California or for any other reason, or loss of Tenant's tax exempt status due to failure to file required paperwork with the State of California or United States government or for any other reason. (f) Failure by Tenant to observe or perform any of the covenants or provisions of this Lease, other than as provided in subsections (b) and (c) above, when such failure continues for a period of 30 days after written notice of such failure is given by Landlord to Tenant; provided, that if the nature of Tenant's failure is such that more than 30 days are reasonably required for its cure, then Tenant will not be deemed to be in default if Tenant commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. 17. Remedies. If Tenant is in default, then, in addition to all other rights and remedies which Landlord may have at law or in equity, Landlord has the following rights and remedies which are not exclusive but are cumulative: (a) To the extent permitted by law, Landlord can, with or without terminating this Lease, reenter the Premises and remove all property and persons therefrom, and any such property may be removed and stored in a public warehouse or elsewhere at the cost and for the account of Tenant. If Landlord elects to reenter or shall take possession of the Premises pursuant to legal proceedings or pursuant to any notice provided by law, and if Landlord has not elected to terminate this Lease, Landlord may either recover all rent as it becomes due under this Lease or relet the Premises or any part or parts thereof for such term or terms and upon such provisions as Landlord may deem advisable and will have the right to make repairs to and alterations of the Premises. No reentry or taking possession of the Premises by Landlord is to be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant by Landlord. Notwithstanding any reletting without termination by Landlord because of Tenant's default, Landlord may at any time after such reletting elect to terminate this Lease because of such default. If Landlord elects to relet the Premises without terminating this Lease, then rent received by Landlord therefrom will be applied as follows: (i) First, to any indebtedness from Tenant to Landlord other than rent due from Tenant; LA #4813-7924-4817 V (ii) Second, to all costs and expenses, including, without limitation, for maintenance, repairs or alterations, incurred by Landlord in connection with reletting the Premises; and (iii) Third, to the payment of rent due and unpaid under this Lease and the residue, if any, will be held by Landlord and applied in payment of future rent as the same may become due and payable under this Lease and to any damages and other amounts which Landlord is otherwise entitled to under this Lease. Should that portion of such rent received from such reletting during any month, which is applied to the payment of rent hereunder, be less than the rent payable hereunder during that month by Tenant, then Tenant agrees to pay such deficiency to Landlord immediately upon demand. In no event will Tenant be entitled to any excess rent received by Landlord from such reletting. (b) Landlord can terminate Tenant's right to possession of the Premises at any time. No act by Landlord other than giving written notice to Tenant will terminate this Lease. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord's initiative to protect Landlord's interest under this Lease shall not constitute a termination of Tenant's right to possession. On termination, Landlord has the right to recover from Tenant: (i) The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease; (ii) The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; (iii) The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and (iv) Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant's default. "The worth, at the time of the award," as used in (i) and (ii) of this subsection (b), is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. "The worth, at the time of the award," as referred to in (iii) of this subsection (b), is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1 %. (c) Landlord can have a receiver appointed to collect rent and conduct Tenant's business. Neither the filing of a petition for the appointment of a receiver nor the appointment itself shall constitute an election by Landlord to terminate this Lease. LA #4813-7924-4817 v (d) Without waiving the default, Landlord can, at its sole option, pay such sums and/or take such actions as are necessary in Landlord's reasonable judgment in order to cure the default, and all sums expended or incurred by Landlord in connection therewith, together with interest thereon at the maximum rate permitted by law, shall be paid by Tenant to Landlord immediately on demand. 18. Landlord Entrv. Landlord and its authorized representatives shall have the right upon two (2) business days' written notice to Tenant to enter all portions of the Premises for any of the following purposes: (a) to determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Lease; (b) to inspect the Premises; (c) in connection with Landlord's design and construction planning respecting Landlord's future use of the Premises; and (d) to post notices of non responsibility. Notwithstanding the foregoing to the contrary, Landlord and its authorized representatives shall have the right to enter the Premises at any time, and without notice to Tenant, where an emergency situation necessitates such entry. No exercise by Landlord of its rights under this Section shall entitle Tenant to any damages for any injury or inconvenience occasioned thereby or to any abatement of rent or other amounts payable under this Lease. 19. Surrender of Premises. Upon the expiration or other termination of the term of this Lease, Tenant agrees to surrender possession of the Premises, and every party thereof, to Landlord in good order, condition and repair, ordinary wear and tear alone excepted. "Ordinary wear and tear" does not include any damage or deterioration that would have been prevented by good maintenance practice or by Tenant performing all of its obligations under this Lease. 20. Notices. Except as otherwise provided, all notices required or permitted to be given under this Lease must be in writing and addressed to the parties at their respective notice addresses set forth below; provided, that notices to Tenant may also be effectively given in writing and addressed to Tenant at the Premises address. Notices must be given by personal delivery (including by commercial delivery service) or by first-class mail, postage prepaid. Notices will be deemed effectively given, in the case of personal delivery, upon receipt (or if receipt is refused, upon attempted delivery), and in the case of mailing, three (3) days following deposit into the custody of the United States Postal Service. The notice addresses of the parties are as follows: If to Landlord: City of Temple City 9701 Las Tunas Drive Temple City, California 91780 Attention: City Manager With a copy to: Eric S. Vail, Assistant City Attorney Burke, Williams & Sorensen, LLP 2280 Market Street, Suite 300 Riverside, California 92501-2121 LA #4813-79244817 v1 If to Tenant: Temple City Chamber of Commerce 9050 Las Tunas Drive Temple City, California 91780 21. Waiver and Release of Benefits. Lessee acknowledges that upon expiration of the Term, including any extension thereof, or upon termination of any holdover tenancy (collectively "Expiration of Tenancy"), Lessee might be or become eligible to receive compensation, reimbursement, assistance, including, but not limited to, the fair market value of real and personal property, loss of goodwill, loss of profits, actual and reasonable expenses for moving a business, loss of tangible personal property as a result of moving the business, expenses incurred in searching for a replacement site for the business, expenses to reestablish the business at the new site, "in -lieu payments," and other such benefits (collectively "Benefits") under the California Relocation Assistance Act (Government Code §7260, et seq.), Title 25 of the California Code of Regulations, Article 1, § 19 of the California Constitution, the California Eminent Domain Law (Code of Civil Procedure §1230.010, et seq.), or other similar local, state, or federal statute, ordinance, regulation, rule, or decisional law (collectively "Compensatory Laws"). Lessee further acknowledges that it has received full and fair compensation of all Benefits Lessee is or might be or might become entitled to recover from the City of Temple City as a result of, or in any way related to, Expiration of the Tenancy, City's acquisition of the Premises, and City's occupancy and possession of the Premises. Therefore, being fully informed of and understanding the acknowledgments made herein and of Lessee's rights or potential rights to Benefits under the Compensatory Laws, Lessee hereby expressly and unconditionally waives, and Releases the City from, any and all rights of Lessee to claim, demand, sue for, or receive any Benefits which Lessee is or might be or might become entitled to recover from the City as a result of, or in any way related to, Expiration of the Tenancy, City's acquisition of the Premises, and City's occupancy and possession of the Premises. 22. General. (a) The acceptance by Landlord of any rental or other payments due hereunder with knowledge of the breach of any of the terms, covenants or provisions of this Lease by Tenant shall not be construed as a waiver of any such breach. The acceptance at any time or times by Landlord of any sum less than that which is required to be paid by Tenant shall, unless Landlord specifically agrees otherwise in writing, be deemed to have been received only on account of the obligation for which it is paid, and shall not be deemed an accord and satisfaction notwithstanding any provisions to the contrary written on any check or contained in any writing transmitting the same. (b) The titles to the sections of this Lease are for convenience of reference only and are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease. Any exhibits attached to this Lease are, however, a part of this Lease. This Lease shall be governed by and construed in accordance with the laws of the State of California, without regard to any otherwise governing principles of LA #4813-7924-4817 VI conflicts of law. In construing this Lease, none of the parties to it shall have any term or provision construed against it solely by reason of its having drafted the same. (c) Any provision of this Lease that is invalid, illegal or unenforceable shall be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating, diminishing or rendering unenforceable the rights and obligations of the parties under the remaining provisions of this Lease. (d) No term or provision of this Lease may be amended, altered, modified or waived orally or by a course of conduct, but only by an instrument in writing signed by a duly authorized officer or representative of the party against which enforcement of such amendment, alteration, modification or waiver is sought. Any amendment, alteration, modification or waiver shall be for such period and subject to such conditions as shall be specified in the written instrument effecting the same. Any waiver shall be effective only in the specific instance and for the specific purpose for which given. (e) This Lease and all exhibits attached to it constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements (whether written or oral) with respect to that subject matter. (f) This Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. (g) If either party hereto brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in such action, on trial or appeal, shall be entitled to reasonable attorneys' fees to be paid by the losing party as fixed by the court. The parties have caused this Lease to be duly executed by their respective duly authorized officers or representatives as of the date first set forth above. LA #4813-7924-4817 v1 TEMPLE CITY CHAMBER OF COMMERCE [Notary Acknowledgement Required] By: President TEMPLE CITY CHAMBER OF COMMERCE [Notary Acknowledgement Required] By: Secretary CITY OF TEMPLE CITY 0 Attest: Peggy Kuo City Clerk Approved as to Form: Eric S. Vail City Attorney LA 94813-7924-4817 v I Jose Pulido City Manager EXHIBIT "A" (Leoal Description of Premises) That Building located on the Parcel consisting of a portion of Sunny View Tract Land described in Parcel 3 of Document 919187,052901, portion of Lot 8. See attached Map "Exhibit B" for further description of the Parcel. LA #4813-7924-4817 v EXHIBIT `B" (Map Diagram) PROVIDED ON THE NEXT PAGE LA #4813-7924-4817 v I a PA / J I ls'd Jy.• E v ATTACHMENT "A" I - PARTIES This lease, dated, for reference purposes only, April 1, 2002 is made by and between City of Temple City (herein called "Landlord") and Temple City Chamber of Commerce (herein called "Tenant"). II - PREMISES Landlord hereby leases to Tenant and Tenant leases from Landlord for the term, at the rental, and upon all of the conditions set forth herein, that certain real property situated in the County of Los Angeles, State of California commonly known as 9050 Las Tunas Drive, a 1200 square foot building including available parking spaces. See Exhibit A attached. Said real property including the land and all improvements therein, is herein called "The Premises". III - TERM The term of this lease shall be for a period of 3 consecutive months, beginning on April 1, 2002 and ending on June 30, 2002. Notwithstanding said commencement date, if for any reason Landlord cannot deliver possession of the Premises to Tenant on said date, Landlord shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or the obligations of Tenant hereunder or extend the term hereof, but in such case, Tenant shall not -be obligated to pay rent until possession of the Premises is tendered to Tenant; provided, however, that if Landlord shall not have delivered possession of the Premises within sixty (60) days from said commencement date, Tenant may, at Tenant's option, by notice in writing to Landlord within ten (10) days thereafter, cancel this Lease, in which event the parties shall be discharged from all obligations hereunder; provided further, however, that if such written notice of Tenant is not received by Landlord within said ten (10) day period, Tenant's right to cancel this Lease hereunder shall terminate and be of no further force or effect. If Tenant occupies the Premises prior to said commencement date, such occupancy shall be subject to all provisions hereof, such occupancy shall not advance the termination date. However, Tenant shall not pay rent for such period. IV -RENTAL Tenant shall pay to Lessor as rent for the Premises, monthly payments of $300 , in advance, on the 1 st day of each month of the term hereof, subject to any adjustment hereinafter in the lease provided. Rent shall be payable in lawful money of the United States to Landlord at the office of the Landlord, or at such other place as Landlord may, designate in writing. Landlord reserves the right, at the option of the Landlord, to add a service charge in an amount not to exceed five percent (5%) of the amount due on all payments which are not paid on or before ten days after the due date. The service charge shall be considered as rent due for the month when rent was due but not paid. Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 2 of 6 V - SECURITY DEPOSIT Tenant shall deposit with Landlord upon execution hereof $0 as security deposit. VI - RENTAL ADJUSTMENTS It is understood that the monthly rental set forth herein is a rental amount for the term of this agreement which will expire on June 30, 2002. Thereafter, the parties may renegotiate a extension, renewal or new rental agreement. VII - USE OF THE PREMISES The premises shall be used by the Tenant as an office for the Chamber of Commerce and for no other purpose without written consent of the Landlord. VIII : OCCUPANCY AFTER EXPIRATION OF THIS AGREEMENT If Tenant, with Landlord's consent, remains in possession of the premises or any part thereof after the expiration of the term hereof, such occupancy shall be a tenancy from month to month upon all provisions of this Lease pertaining to the obligations of Tenant, but all options and rights of first refusal, if any, granted under the terms of this Lease shall be deemed terminated and be of no further effect during said month to month tenancy. ' IX- HOLD HARMLESS; LIABILITY INSURANCE Tenant agrees that the tenant will indemnify and hold Landlord free and harmless from all claims for damage to person or property by reason of their negligence or their acts, the tenant's employees or agents, or those claiming under them in connection with the tenant's use and occupancy of the premises. Tenant further agrees to carry, maintain and have in full force and effect through the term of this lease, public liability and property damage insurance with an insurance company authorized to transact business in the State of California, naming Landlord as additional insured and for the protection of all persons who may suffer injuries while in, or about the premises, the parking area or the ways and means adjacent to the premises. Tenant shall provide Landlord with said policy or a copy thereof. The minimum liability on said policy shall be as follows: 1. Combined Single Limit $1 ono.noo 2. Bodily Injury & Property Damage Per Occurrence $1.0()0-000 3. Bodily Injury & Property Damage Aggregate $2,00() noo Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 3 of 6 4. Medical Expense Per Person $10,000. 5. Fire Liability $1.00,000 Tenant also agrees to hold Landlord free and harmless from all claims for damage to the tenant's personal property caused from fire or water. Any protection against loss or damage to the tenant's personal property shall be in the form of insurance purchased by Tenant at Tenant's expense. Insurance is subject to approval by Landlord and shall be issued by a company admitted in the State of California and have an A ??? best rating of _ or better. X - DESTRUCTION OF PREMISES If during the term of this lease, the premises shall be destroyed by fire, the elements, or any other cause, so that the premises cannot be rebuilt within 120 days, then this lease, at the option of either party, shall become null and void as of the date of destruction, and the Tenant shall immediately surrender the premises to the Landlord. * XI - TAXES AND UTILITY CHARGES The Tenant shall pay when due, during the terms of this lease, all charges for electricity, gas, water, power, and other public utilities used by Tenant in connection with the use of the premises, together with all taxes and assessments on all personal property and trade fixtures owned by the Tenant in or upon the demised premises. The Landlord shall pay all street assessments, and bonds which have been, or may hereafter be levied or assessed against the premises. XII -ALTERATIONS Tenant agrees not to make any alterations or additions upon the demised premises without the written consent of the Landlord. Any such alterations are to be at the sole cost and expense of the Tenant and shall be and remain as part of the premises. XIII - REPAIRS AND HOUSEKEEPING Landlord shall deliver the premises in an "as -is" condition. The Landlord shall have no responsibility for any improvements to the structure, including heating and air conditioning equipment, electrical service, water service, or any other utilities. Tenant shall maintain ail equipment servicing the building, including having said equipment serviced and the air conditioning/heating filters changed not less than four times each year. If Tenant fails to do so, Landlord may provide such service and bill Tenant therefore. Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 4 of 8 The Landlord shall have no responsibility to make building improvements to the exterior walls, roof, windows, doors, etc. Tenant shall at the Tenant's sole cost and expense, maintain and keep in good order and condition the parking area and interior of said building, including the replacement of broken glass, (whether exterior, interior, or both) and the maintenance of the plumbing fixtures and any leakage or stoppage thereof. Tenant further agrees to keep a clean shop and to keep the premises clean and neat and free from accumulations of rubbish and trash constituting a fire hazard or an unsightly condition. It is agreed that because of the fire hazard caused by trash accumulations, Landlord may remove trash which the Tenant has allowed to accumulate and the cost of such removal shall constitute additional rent for the month of removal. There shall be no outside storage without written permission from Landlord except rubbish containers. There shall be no parking in driveways, parking only (being permitted) in such parking stalls as are assigned. Vehicles shall not be backed into parking stalls (head -in only). It is also agreed that upon the termination of this Lease, or any extension thereof, or sooner termination thereof, Tenant shall leave the interior of the building and the yard area and planting area in a clean and neat condition, including the removal of all grease, paint or other foreign materials from the floor, the removal of all nails, board, brackets, etc., from the walls and ceilings, all trash removed from the premises swept clean. If the Tenant shall fail or neglect to clean said premises as hereinbefore provided, Landlord may have said building and yard area cleaned and Tenant shall pay the reasonable cost thereof upon the completion thereof and the bill being presented. XIV - FIXTURES All fixtures and other property installed in the premises by the Tenant, shall become and remain the property of the Landlord. XV - COMPLIANCE WITH LAW In the conduct of Tenant's business the Tenant shall comply with the requirements of all municipal, state and federal authorities appertaining to the business conducted upon the demised premises, and Tenant shall not permit the demised premises to be used for any unlawful purpose, and shall conduct said business so that the same shall not be, or become a nuisance. XVI - DEFAULT AND BREACH In the event of any breach of this Lease by the Tenant, then the Landlord, in addition to Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 5 of 8 other rights or remedies he may have, shall have the rights set forth in this section, including the right to re-enter and may remove all persons and property from the premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of the Tenant, or the Landlord may give such property, as the irrevocably appointed agent for such purposes, to any non-profit organization such as Goodwill Industries of Southern California. A) If the Lease or any renewal or extension thereof, is terminated because of a breach by the Tenant, the Landlord shall be entitled to recover from the Tenant all lawful amounts which the presently existing laws of the State of California provide that a Landlord may recover from a Tenant, including amounts provided by Section 1951.2 of the Civil Code which, in summary, provides that the Landlord can have judgment for delinquent rent and for a sum representing rent for the balance of the term less such rent as the Landlord could be expected to get from renting the premises to others. The exact terms of said Section 1951.2 shall apply rather than the brief summary given just above. B) If the Landlord at first does not elect to terminate and the breach continues, he may at any time thereafter elect to terminate this Lease. C) Any and all entries for the sole purpose of preserving the property shall not be construed and election by the Landlord to terminate this Lease unless a written notice of such intention be given or unless the termination be by court decree. D) No right of re-entry, or of taking possessions shall be exercised unless notice is first given as provided in the section of this Lease captioned "NOTICES." Excepted from this provision is entry for such acts of preservation as cannot reasonably await the giving of written notice. XVII -ATTORNEY'S FEES In the event the Tenant shall default in the performance of any of the conditions of this Lease and any action shall be filed to enforce such conditions, or any other action is filed, the successful party shall be entitled to receive from the unsuccessful party all costs of such action together with reasonable attorney fees incurred by the successful party in connection with such litigation, whether such action progress to judgment or not. XVIII - NOTICES If the Tenant fails to pay rent when due or fails to pay any other sum or sums which may become due and payable under the terms of this Lease, the Landlord shall give not less than three (3) days notice of such default. Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 6 of 8 Unless a different period is elsewhere provided in this Lease, the Landlord shall give not less than ten (10) days notice of any claimed breach of the within Lease so that the Tenant shall have that period in which to cure the default if the default is susceptible of remedy. Non-payment of rent, if remedied within the three (3) days notice period, shall always be considered as a default susceptible of remedy. In any notice given by the Landlord, the Landlord may elect, by so stating in the notice, that if the notice be not complied with the Tenant's right to possessions shall be terminated and/or that the Tenant's right under the Lease shall be forfeited. Any declaration by the Landlord shall not relieve the Tenant of any obligation for rental or other payment due nor for any damages which may have been suffered by the Landlord by reason of the breach. Any notice required to be given or which may be given to the Landlord either personally or by United States mail; if by mail the envelope containing such notice shall be either registered or certified and addressed to the address at which rental is to be paid hereunder or at such other place as the Landlord may from time to time designate by notice in writing. Any notice required to be given or which may be given to the Tenant may be given either personally or by United States mail; if by mail the envelope containing such notice shall be either registered or certified and addressed to the street address of the premises or to such other place as the Tenant may from time to time designate by notice in writing. Any notice given by mail shall conclusively be deemed to have been given and received at 5:00 p.m. on the regular post office business day following deposit in an originating post office located in the State of California. XIX - ASSIGNMENT OR SUBLET Tenant agrees not to assign, sell hypothecate, encumber this Lease or sublet the premises. * XX - SIGNS It is understood and agreed that Tenant may install reasonable advertising signs about the building provided said sign shall be so attached as to not damage said building. Tenant shall upon the termination or expiration hereof remove said signs and return the building in the condition in which received, including the repainting of any walls to remove signs painted thereon. Installation of any exterior signage shall comply with all applicable zoning restrictions and shall require prior written approval of the Landlord. The Tenant shall be responsible for paying all applicable sign permit fees and any other costs associated with such signage. Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 7 of 8 XXI - CONSTRUCTION The term "Landlord" shall include the singular if necessary. The term "Lease" or the phrase "the term hereof," shall include any renewal or renewals thereof where permitted by the context hereof. All terms used in the singular or in the masculine gender shall apply to the plural or to the feminine or neuter gender as the context hereof requires. The paragraph headings shall not be deemed to contain the subject matter of the para- graph nor be considered in the construction thereof, it being understood that said paragraph headings are used only for the purpose of convenience and not for the purpose of construction. Each and all of the provisions of this Lease shall be binding upon, and endure to the benefit of the heirs, executors, administrators and assigns of the Tenant. In the event of any controversy, the laws of the State of California in which the parties do business, applicable to'such controversy, shall prevail. XXII - WAIVER The waiver by either party of any of the covenants herein provided shall not be deemed a waiver of such party's rights to enforce the same or any other covenant herein. The rights and remedies given to the parties hereunder shall be in addition to, and not in lieu of, any right or remedy provided by law. XXIII -ACCEPTANCE Tenant acknowledges, by reentry hereunder, that the Tenant has examined the premises and that they are in a sanitary and safe conditions. Tenant further acknowledges that neither Landlord nor Landlord's agent has made any representation or warranty as to the present or future suitability of the premises for the conduct of Tenant's business. XXIV - LANDLORD'S ENTRY Tenant agrees that Landlord or Landlord's agents may enter the premises at any reasonable time, during normal business hours, for the purpose of inspecting the same. IN WITNESS WHEREOF, the parties hereto have executed this Lease on the date specified below their respective signatures. LANDLORD: 7 TENANT: IR � &W t c City Manager Kmberofm /rce1`1_c� Lease Agreement between City of Temple City and Temple City Chamber of Commerce Page 8 of 8 Dated: / l a ✓� ATTEST BY: IN A. A a/ City Clerk U A: Dated: �!�zj 32W3 ie"f i ;r of Commer Dated:�fil