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HomeMy WebLinkAbout1980-253 I 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE j EXECUTION OF A LEASE WITH ROBERT SEDLAK AND NANCY SEDLAK RELATING 3 TO THE USE BY CETA OF AN OFFICE BUILDING LOCATED AT 646 NORTH SIERRA WAY. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS : 6 SECTION 1. The Mayor of the City of San Bernardino is 7 hereby authorized and directed to execute on behalf of said City 8 a Lease with Robert Sedlak and Nancy Sedlak relating to the use 9 by CETA of an office building located at 646 North Sierra Way, a 10 copy of which is attached hereto, marked Exhibit "A" and incor- 11 porated herein by reference as fully as though set forth at 12 length. 13 I HEREBY CERTIFY that the foregoing resolution was duly 14 adopted by the Mayor and Common Council of the City of San 15 Bernardino at a meeting thereof, held 16 on the day of ; i' 1980 , by the following 17 vote, to wit: of _ 18 AYES: Councilmen 19 20 NAYS: � 2 ~% } 21 ABSENT: 7 23 City Clerk 24 The foregoing resolution is hereby ap ve, t /,7 day 25 of ., 1980 .i 1A 26 Ma o of e C' ty of San Bernardino Approved as to form: 27 0 28 City torney I L E A S E 2 THIS LEASE is executed at San Bernardino, California, this 3 day of June, 1980, between ROBERT SEDLAK and NANCY SEDLAK, 4 husband and wife, 106 West Sixth Street, San Bernardino, 5 California 92406 (hereinafter referred to as Lessor without regard 6 to number or gender) and the CITY OF SAN BERNARDINO, a municipal 7 corporation, 300 North "D" Street, San Bernardino, California 8 92418 (hereinafter referred to as Lessee without regard to number 9 or gender) . 10 The parties agree as follows: 11 1. Demised Premises - Lessor leases to Lessee, and Lessee 12 hires from Lessor, upon the terms and under the conditions herein- 13 after set forth, those certain premises located in the City of San 14 Bernardino, County of San Bernardino, State of California, more 15 Particularly described as follows : 16 That certain office building commonly known as 646 North Sierra Way containing approximately 7225 sq. 17 ft. together with non-exclusive use of owner' s black topped parking areas so as to accommodate 38 approximately 75 spaces, for use by Lessee ' s employees and patrons . 19 20 2 . Term - The term of this lease shall be for a period of 21 two (2) years, three (3) months , commencing upon the first day of 22 July, 1980, and terminating upon the 30th day of September, 1982 . 23 3. Occupancy of Premises - Lessee shall use and occupy 24 the demised premises for the following purposes and for no other 25 purposes without the prior written consent of Lessor: CETA, the 26 Comprehensive Employment Training Act Program. 27 4. Rent - As minimum rental for the demised premises , 28 Lessee shall pay to Lessor without deduction or offset, prior I I I!notice or demand, the total sum of Ninety thousand seven hundred 2 !ithirty-four dollars and twenty-two cents ($90,734 . 22) , payable 3 Three thousand two hundred fifty-one dollars and twenty-five cents i 4 ($3 ,251.25) per month payable in advance on the first day of each I( 5 "month, commencing the first day of July, 1980. Monthly rental 6 ; shall be escalated at 5% per year. Second year beginning July 1, j� 7 11981, monthly rental will be $3 ,413 . 81. Third year beginning g July 1, 1982 , monthly rental will be $3,584 .50 (3 months) and 9 icontinuing throughout the balance of the term of this lease, at 10 such place or places as Lessor may designate from time to time. 11 5. Security Deposit - Upon execution and delivery of this l2 lease, Lessee shall deposit the sum of Three thousand two hundred 13 fifty-one dollars and twenty-five cents ($3,251.25) in payment of 14 the minimum rental for the month beginning the first day of July, 15 1.980. 16 6. Possession - If Lessor, for any reason whatsoever, 17 cannot deliver possession of the premises to Lessee at the commence- s 18 ment of the term, this lease shall not be void or voidable, except ! I 19 as hereinafter set forth, nor shall Lessor be liable to Lessee for 20 any loss or damage resulting therefrom, so long as Lessor exercise 21 reasonable diligence to deliver possession, but in such event 22 there shall be daily pro-rata deduction for rent covering the 23 period between the designated commencement of the term and the 24 actual time when Lessor delivers possession, the duration of the 25 term remaining unaffected. If Lessor cannot deliver possession 26 of the premises within TEN days from the designated commencement 27 of said term, this lease may be terminated at Lessee ' s election. 28 7. Use of Premises - (a) Lessee shall not conduct, or i -2- I i I p to be conducted upon the premises, any auction sale. No 2 use shall be made or permitted to be made of the demised premises, 3 nor any act done, which may increase the existing rates of insurance 4 upon the building within which the demised premises are located, 5 or which may cause the cancellation of any insurance policy cover- 6 ing said building or any portion thereof. If any act on the part 7 of Lessee or use of the premises by Lessee shall cause directly or g indirectly any increase of Lessor' s insurance expense, said 9 additional expense shall be paid by Lessee to Lessor upon demand. 10 Such payment by Lessee shall not limit Lessor in the exercise of 11 any other rights or remedies. Lessee shall not sell or permit to 12 be kept, used or sold in or about the demised premises any article 13 which may be prohibited by California Standard Forms of fire 14 insurance policies. Lessee, at his sole expense, shall comply 15 with any and all requirements pertaining to the use of the demised 16 premises, of any insurance organization or company, which complian e 17 may be necessary for maintenance of reasonable fire, extended lg coverage, public liability, and other insurance upon said building 19 and the appurtenances thereto. 20 (b) Lessee shall not commit, or suffer to be committed, 21 any waste or nuisance upon the demised premises, or any other act 22 or thing which in any manner may disturb the quiet enjoyment of 23 any occupant in the building within which the demised premises are 24 located, or of the neighborhood. 25 (c) Lessee shall keep said premises open for business 26 during usual business hours each and every business day as is 27 customary for such stores in the area in which the demised premise 28 are situated. Lessee shall at Lessee ' s sole cost and expense, j i -3- I .,without obligation of Lessor , observe in the use of the premises 2 iI,�I all governmental regulations, ordinances and statutes now in force, 3 or which may hereafter be in force. 4 (d) Lessee shall not vacate or abandon the demised premise_ 5 iat any time during the term of this lease; and if Lessee shall i 6 ; abandon, vacate or surrender the demised premises , or be disposses ed I 7 therefrom by process of law, or otherwise, any personal property li 8 ' belonging to Lessee and left in or upon the demised premises shall 9 be deemed abandoned at the option of Lessor. t i 10 (e) Lessee shall conduct his business in the demised 11 premises and the advertising and promotion thereof in conformity 12 with the highest standard of business practices prevailing in the 13 community in which the demised premises are situated. 14 (f) Lessee shall not block, obstruct or make opaque the 15 ground floor showroom window (s) , but Lessee at all times shall 16 keep the showroom visible through the showroom window(s) from the 17 exterior of said building. 18 8. Utilities - Lessee shall pay for all water, heat, gas, 19 light, power, rubbish removal , landscape and parking lot mainten- 20 ance and all other utilities and services supplied to the premises 21 9 . Repairs - The premises , and every part thereof, are at 22 the date hereof in good order, condition and repair. Lessor, at 23 its sole cost and expense, without obligation on the part of 24 Lessee, shall keep and maintain the premises and appurtenances 25 and every part thereof, including windows, doors, and sidewalks, 26 exterior walls and roofs , in good and sanitary order, condition 27 and repair, any hazards covered by extended coverage casualty 28 Y g insurance, damage b fire, and the elements excepted. Lessor' s I -4- I iresponsibility with respect to exterior walls and roofs shall be 2 limited to repair of damage not caused by Lessee, or by reason 3 of Lessee' s occupancy. Lessee shall promptly notify Lessor in 4 writing of any disrepair of the roof and exterior walls . Lessee 5 shall replace damaged glazing at its sole cost. Lessor shall I 6 maintain and keep in good working condition the air conditioning, 7 plumbing, heating and electrical fixtures. 8 10. Alterations - Lessee shall not make, or permit to be 9 made, any decorations , improvements, additions, or alterations of 10 the premises, or any part thereof, without the written consent of 11 Lessor, and any additions to, or alterations of said premises, 12 when permitted to be made, except movable furniture and trade 13 fixtures, shall become at once a part of the realty and belong to 14 Lessor, and shall not be removed by Lessee at the end of its 15 occupancy, or otherwise, except upon written consent or order of 16 Lessor. Lessee shall maintain in good condition and repair all 17 leasehold improvements in addition to all trade fixtures, fixtureso, 18 furniture and equipment contained in or about the demised premises 19 in order to promote a well-kept appearance therein. Any leasehold 20 improvements, including but not limited to additions, flooring, or ', 21 floor, wall, or ceiling covering, or lighting fixtures, installed 22 by Lessee, shall become at once a part of the realty and belong 23 to Lessor, without obligation on the part of Lessor to compensate 24 Lessee therefor. On condition that Lessee obtains Lessor ' s 25 written consent not later than thirty days before the termination 26 date of this lease, to the removal of any of the herein described 27 leasehold improvements, such removal must be completed before the 28 termination date of this lease at Lessee' s sole cost. If Lessor -5- i i ; should require Lessee by written notice given not less than thirty ', 2 I (30) days before such termination date to remove any such leasehold 3 (; improvements, Lessee shall complete such removal not later than 4 said termination date at Lessee' s sole cost. 5 j 11. Access to Premises - Lessee shall permit Lessor and i 6 �his agents to enter into and upon the demised premises at all 7 ( reasonable times for the purpose of inspecting the same, and for 8 (; the purpose of maintaining the building within which the demised 9 :jpremises are situated, and for the purpose of making repairs, 10 alterations or additions to any portion of said building (includin i 11 the erection and maintenance of such scaffolding, canopies, fences 12 and props as may be required) and for the purpose of posting 13 notices of non-responsibility for alterations, additions, or 14 repairs, and for the purpose of placing upon the property within 15 which the demised premises are located any usual or ordinary 16 "for sale" signs; and Lessor may do any or all of said acts with- 17 out any rebate of rent and without any liability to Lessee for 18 any loss of occupancy or quiet enjoyment of the demised premises. 19 Lessee shall permit Lessor, at any time within ninety (90) days 20 prior to the expiration of this lease, to place upon the demised 21 premises any usual or ordinary "for lease" or "for rent" signs. 22 12 . Signs, Etc. - (a) Lessee shall not paint, or place 23 or permit to be placed, or painted, any sign, lettering, marquee, 24 or awning in, upon, or about the demised premises, including 25 windows and doors, without the prior written consent of Lessor. 26 I (b) Upon execution of this lease, Lessee shall forthwith 27 install upon the front of the demised premises a sign advertising 28 its business in a dignified and appropriate manner; but before II -6- { I doing so, Lessee shall obtain written approval from Lessor to 2 ; plans and specifications as to design, lettering, size, coloring, 3 ( location, and lighting, if any, thereof. Lessor reserves the 4 exclusive right to the use of all exterior walls and the roof, and 5 to change the name of the building without notice or liability to I 6 Lessee. i 7 (c) Lessee shall remove, repair, or replace any awnings , 8 marquees, signs, lettering, window shades, or draperies previously , 9 permitted by Lessor whenever Lessor shall notify Lessee that such 10 removal, repair, or replacement is advisable to promote a well- 11 kept appearance upon the premises. 12 (d) If the installation, existence, servicing and mainten- 13 ance, or removal of Lessee ' s signs, awnings, or marquees, shall 14 cause any damage to the roof, walls, or any part of the building 15 in which the demised premises are situated, Lessee, at his sole 16 cost, shall promptly repair any such damage. 17 (e) Any sign, awning, or marquee installed, shall become 18 at once a part of the realty and shall not be removed by Lessee 19 at end of his occupancy, or otherwise, except upon written con- 20 sent, or order, of Lessor. 21 (f) It is expressly understood and agreed that continuous 22 sales signs or legends of similar import shall not be exhibited �' -- 23 on the interior or in display windows, or in any other part of 24 lithe demised premises, by Lessee, for any period of time other 25 ;; than is customary for seasonal sales by a retail store operating i 26 ! its business in a high-class manner, in a shopping district com- 1 27 parable to that in which the demised premises are located. 28 I 13. Assignment, Subletting, Etc. - Lessee shall not assign -7- I I ;this lease or any interest therein, and shall not sublet the 2 !'demised premises or any portion thereof, or any right or privilege ' i 3 appurtenant thereto, or suffer any other person (the employees of 4 Lessee excepted) to occupy or use the demised premises or any 5 portion thereof, without the prior written consent of Lessor; and 6 the consent to one assignment, subletting, occupancy, or use by 7 any other person, shall not be deemed to be a consent to any sub- 8 sequent assignment, subletting, occupancy or use by any other 9 person. Any such assignment, subletting, occupancy or use with- 10 out Lessor' s prior written consent shall be void and, at Lessor ' s 11 option, shall terminate this lease. Neither this lease nor any 12 interest therein shall be assignable by operation of law, as to 13 Lessee ' s interest, without Lessor ' s prior written consent, which 14 consent shall not be unreasonably withheld. If Lessee shall have 15 obtained Lessor' s prior written consent to either assignment, or 16 subleasing, then any rental paid by such assignee, or sublessee, 17 in excess of the rental provided by this lease, shall be for the 18 benefit of and shall be immediately paid to Lessor. In any event, 19 Lessor' s consent to any assignment, or subleasing, shall not 20 relieve Lessee from any obligation under this lease. 21 14. Bankruptcy, Insolvency, Etc. - In addition to the 22 violation of any of the terms herein contained, either (a) the 23 appointment of a receiver to take possession of all or sub- 24 stantially all of Lessee ' s assets, or (b) a general assignment by 25 Lessee for the benefit of creditors, or (c) any action against 26 Lessee by virtue of a writ of attachment or execution, or (d) any 27 action taken or suffered by Lessee under any insolvency or bank- 28 ruptcy act, if such appointment, assignment, or action continues 1 -8- I I for a period of thirty (30) days, shall constitute a breach of this] 2 lease by Lessee. l I 3 15. Remedies of Landlord - (a) In the event of any breach 4 of this lease by Lessee, then in addition to any other rights or 5 remedies which Lessor may have, he shall have the immediate right 6 of re-entry and may remove all persons and property from the de- 1 mised premises; and such property at Lessor' s option, may be re- 8 moved and stored in a public warehouse or elsewhere at the expense 9 of and for the account of Lessee. Should Lessor so elect to re- 10 enter, or should Lessor take possession pursuant to legal proceed- 11 ings or pursuant to any notice provided by law, he either may ]2 terminate this lease forthwith, or without terminating this lease 13 he may from time to time, re-let the demised premises or any 14 portion thereof for such term or terms or at such rental or rental 15 and upon such other terms and conditions (including the right to 16 make alterations and repairs to the demised premises) as Lessor in 17 his sole discretion may deem advisable. Rentals received by Lesso 18 from such re-letting shall be applied as follows: first, to the 19 payment of any indebtedness other than rent, which may be due 20 hereunder from Lessee to Lessor; second to the payment of any 21 expense incident to said re-letting; third, to the payment of the 22 cost of any alterations and repairs made by Lessor to the demised 23 premises; fourth, to the payment of rent due and unpaid hereunder; 24 and Lessor shall hold the residue,if any, and apply the same in 25 payment of future rent as the same may become due and payable 26 hereunder. Should such rentals received from such re-letting 27 during any month (after deducting therefrom the items hereinabove 28 set forth) be less than that reserved hereunder, then Lessee shall -9- i i pay such deficiency to Lessor, and such deficiency shall be 2 calculated and paid monthly. Lessee also shall pay to Lessor, 3 upon demand, the costs and expenses incurred by Lessor in such 4 re-letting and in making the aforesaid alterations and repairs. 5 No such re-entry, or taking possession of the demised premises by 6 Lessor shall be construed as an election upon his part to terminate 7 this lease, unless a written notice of such election be delivered 8 to Lessee, or unless such termination be decreed by a court of 9 competent jurisdiction. Notwithstanding any such re-letting with- 10 out termination, Lessor at any time thereafter may elect to ter- 11 minate this lease for such previous breach. 12 (b) Should Lessor at any time terminate this lease for 13 any breach by Lessee, then in addition to any other remedy that he 14 may have Lessor may recover from Lessee all damages which Lessor 15 may have incurred by reason of such breach, including the cost of 16 recovering the demised premises and the worth at the time of such 17 termination, of the excess, if any, of the amount of rent and 18 charges equivalent to rent reserved in this lease for the remainder 19 of the stated term over the then reasonable rental value of the 20 demised premises for the remainder of said term. 21 (c) The voluntary or other surrender of this lease by 22 Lessee, or the cancellation thereof by agreement, shall not cause 23 a merger; and any such act, at Lessor' s option, shall terminate 24 any and all existing subleases or subtenancies, or, at Lessor' s 25 further option, shall operate as an assignment to him of any or al 26 such subleases or subtenancies. In addition to the remedies 27 contained herein, Lessor shall have the remedies provided for 28 under Sections 1951.2 and 1951.4 of the Civil Code of the State I -10- I of California. 2 16 . Condemnation - In the event the demised premises are I 3 totally condemend by any authority having jurisdiction, this lease 4 shall terminate on the date possession shall be taken by condemner 5 and the rent herein reserved shall be apportioned and paid in full 6 to that date and all prepaid rent and security held by Lessor 7 shall forthwith be repaid by Lessor to Lessee. Thereupon this 8 lease shall be of no further force or effect and Lessor and Lessee 9 shall have no liability thereafter one to the other. In the event 10 the demised premises are partially condemend by any authority 11 having jurisdiction and the taking shall be fifty percent (500) of 12 the total premises, then Lessee shall have the option to terminate 13 this lease by giving Lessor thirty days prior written notice, not 14 later than thirty days after date possession shall be taken by 15 condemner. In such event the rent herein reserved shall be 16 apportioned and paid in full to that date and all prepaid rent 17 and security held by Lessor shall forthwith be repaid by Lessor to 18 Lessee. Thereupon this lease shall be of no further force or 19 effect and Lessor and Lessee shall have no liability thereafter 20 one to the other. In the event the demised premises are partially 21 condemned by any authority having jurisdiction, but to a lesser 22 extent than last above described in this paragraph, the rent 23 reserved shall then be reduced proportionately. Lessor shall be 24 entitled to and shall receive the entire award arising out of the 25 condemnation of all or any portion of the demised premises except 26 as to Lessee' s trade fixtures. Lessee hereby assigns to Lessor 27 any right or interest Lessee may have now or hereafter in any 28 such award. i -11- 1 17 . Destruction of Premises - (a) In the event of (1) a 2 partial destruction of the demised premises or the building con- 3 taining the same during the term of this lease which requires re- 4 pairs either to the demised premises or to said building, or (2) 5 the demised premises or said building being declared unsafe or 6 unfit for occupancy by any authorized public authority for any 7 reason other than Lessee ' s act, use or occupancy (which declaration 8 requires repairs either to the demised premises or to said build- 9 ing) , Lessor forthwith (except as hereinafter further set forth) 10 shall make such repairs if they lawfully can be completed within I 11 one hundred and twenty (120) working days; and such partial des- 12 truction (including any destruction necessary in order to make 13 any repairs required by any such declaration) in no wise shall 14 annul or void this lease; provided, however, that Lessee shall be 15 entitled to a proportionate abatement of rent while such repairs 16 are being made, such proportionate abatement to be based upon the 17 extent to which the making of such repairs shall interfere with 18 the business conducted by Lessee within the demised premises; and i 19 provided, further, that in making such repairs, Lessor shall be 20 required to replace only such glazing as shall have been damaged 21 by fire, and any other damaged glazing shall be replaced by 22 Lessee. 23 (b) In the event of partial destruction, as aforesaid, 24 and in the further event that repairs , as aforesaid, cannot law- 25 fully be made within one hundred and twenty (120) working days, 26 then Lessor, at its option, may make said repairs within a reason- 27 able time, and in such event this lease shall continue in full 28 force and effect and the rent shall be abated proportionately, as i -12- i i 1 hereinabove set forth. In the event that such repairs cannot law 2 fully be made within one hundred and twenty (120) working days andj 3 in the further event that Lessor may not so elect to make such 4 repairs, then this lease may be terminated at the option of either 5 party. In respect to any partial destruction (including any 6 destruction necessary in order to make repairs as required by the 7 declaration of any authorized public authority, as aforesaid) 8 which Lessor is obligated to repair or may elect to repair under 9 this Paragraph 17 , the provisions of Section 1932 , subdivision (2) 10 and of Section 1933, subdivision (4) , of the Civil Code of the State 11 of California, hereby are waived by Lessee; and provided further, 12 that Lessor shall not be required to commence said repairs until 13 he shall have received payment in full upon any policies of 14 casualty insurance covering such loss, but in no event later than 15 sixty (60) days after the occurrence of such partial destruction. 16 (c) A total destruction (including any total destruction 17 required by any authorized public authority) either of the demised 18 premises or of said building shall terminate this lease. 19 (d) In the event of any dispute between Lessor and Lessee 20 relative to the terms of Paragraph 17 , each party shall select a 21 Realtor as an arbitrator and the two so selected shall choose a 22 Realtor as the third arbitrator; and said three arbitrators shall 23 hear and determine the controversy and their majority decision 24 thereupon shall be final and binding upon both parties. Lessor 25 and Lessee shall bear the expense of such arbitration in equal 26 shares. 27 18 . Excess Taxes, Etc. - In addition to all other amounts 28 herein specified, Lessee shall pay to Lessor on the 15th day of -13- i i I November of each year of the term hereof, commencing on the 15th 2 day of November, 1980, or as soon thereafter as tax or assessment 3 bills are available one hundred percent (1000) of the amount by 4 which the special and general real property taxes, and assessments 5 for maintenance purposes , and not for capital improvements payable 6 on the land and building of which the demised premises are a part, 7 shall exceed such taxes and assessments payable with respect to 8 the fiscal year commencing July 1, 1979, and ending June 30, 1980 . 9 Said taxes and assessments shall include all such taxes and assess 10 ments whether levied by City, County or State or any other taxing 11 authority. Lessee shall have the right to inspect the bills for 12 the taxes or assessments for the period in question. Proration 13 of said payments by Lessee shall be made when necessary for the 14 first and last years of this lease term. 15 19. Transfer of Security Deposit - In the event that 16 Lessor sells the real property, of which the demised premises are 17 a part, Lessor may transfer and deliver any security given by 18 Lessee to secure the faithful performance of the provisions of thi 19 lease to the purchaser of the real property. In the event said 20 purchaser shall execute and deliver to Lessee an agreement to 21 assume Lessor' s obligation to return said security deposit to 22 Lessee in the manner provided in Paragraph 5 hereof, then Lessor 23 shall be exonerated from any further liability with respect to 24 said security. 25 20 . Subordination - This lease shall be subject and sub- 26 ordinate to the liens of any mortgages , deeds of trust, or other 27 encumbrances which now exist or may be placed upon the demised 28 premises. -14- i t 21. Holding Over - Any holding over after the expiration 2 of the term of this lease, with the prior written consent of 3 Lessor, shall be a tenancy from month to month at a minimum rental 4 of Three thousand five hundred eighty-four dollars ($3,584 . 00) per 5 month. Percentage rental rates, if any, and all other conditions 6 and agreements of this lease shall be applicable to such holding 7 over. 8 22. Termination - This lease may be terminated, with or 9 without cause, by either party upon the giving of sixty (60) days ' 10 advance written notice to the other party of such termination. 11 On the last day of the term, or sooner termination, Lessee shall 12 peaceably and quietly leave and yield to Lessor the premises , 13 together with the fixtures and appurtenances, all in good order, 14 condition and repair, reasonable wear and tear excepted. Lessee 15 shall leave the premises and appurtenances free and clear of 16 rubbish and broom clean. Lessee at its sole cost shall repair 17 any and all damage to the demised premises and to Lessor' s fixture 18 and appurtenances, resulting from Lessee ' s use or occupancy, in- 19 cluding but not limited to the removal of Lessee ' s trade fixtures 20 in conformity with the provisions hereof. In the event Lessee 21 fails to do so, Lessor may charge Lessee for the reasonable cost 22 incurred by Lessor in having the same done. 23 23. Waiver - The waiver by Lessor of any breach of any 24 term, covenant or condition shall not be deemed a waiver of such i 25 i term, covenant or condition or of any subsequent breach of the 26 ! same or any other term, covenant or condition of this lease. I 27 24 . Notices - All notices to be given to Lessee may be 28 delivered personally or by depositing the same in the United I { -15- I III I '' States mail, postage prepaid, and addressed to Lessee at the 2 ;' demised premises, whether or not Lessee has departed from, 3 abandoned or vacated the same, and said notice shall be deemed I 4 delivered upon such mailing. The mailing address for notices 5 from Lessee to Lessor shall be as above designated or such other 6 place, or places, as shall hereafter be designated by Lessor. 7 25. Insurance - Lessee at its sole cost and expense, but 8 for the joint benefit of Lessor and Lessee, shall procure and 9 maintain in full force and effect during the term hereof the 10 following insurance coverages in companies satisfactory to Lessor, ' 11 and at all times shall keep Lessor supplied with certificates 12 showing such insurance to be in full force and effect and with 13 written proof that the premiums have been paid: (a) Public 14 liability insurance with limits of not less than $500,000 . 00 in 15 respect to injury or death to a single person and not less than 16 $100, 000. 00 in respect to any one accident, and with limits not 17 less than $100 , 000. 00 for property damage. (b) Plate glass 18 insurance covering all plate glass in the demised premises . 19 Lessee shall procure each and all of the insurance polices 20 Lessee is required to provide pursuant to the terms of this lease 21 prior to the time any liability may arise or might accrue against 22 or in favor of the parties hereto under each and all of the said 23 insurance policies pertaining to the demised premises and to 24 Lessee' s business to be conducted thereon. Lessee forthwith upon 25 becoming insured under each and all such policies or under any 26 new or additional policies of insurance shall exercise Lessee' s 27 best efforts to cause each of the insurers under each and all of 28 such policies of insurance to waive, in writing, for the express -16- I I it I benefit of Lessor, all rights of subrogation which said insurer 2 might otherwise, if at all, have against Lessor and/or Lessee. 3 Lessee ' s failure to procure such waiver, after the exercise of 4 diligence to obtain same, shall not constitute a breach of this 5 lease. 6 26. Lease Subject to the Laws of the State of California - 7 This lease shall be subject to the laws of the State of California 8 and it is agreed that if any word, phrase, clause, sentence, 9 article, provision, or paragraph of this lease is or shall be held 10 invalid or unlawful under the laws of California for any reason, 11 the same shall be deemed severed from the remainder hereof, and 12 stricken therefrom, and shall in no way affect or impair the 13 validity of this lease or of any other portion thereof, and this 14 lease shall otherwise remain in full force and effect. 15 27. Miscellaneous Provisions - (a) Subject to the pro- 16 visions hereof relative to assignment, this lease shall be binding 17 upon and inure to the benefit of the heirs, executors, administra- 18 tors, successors and assigns of the respective parties; and all 19 of such respective parties shall be jointly and severally liable 20 hereunder. 21 (b) This lease contains the entire agreement of the 22 parties, and no modifications thereof or statement or repre- 23 sentation in connection therewith shall be effective or binding 24 upon either party unless the same is reduced to writing signed by 25 Lessor and Lessee, and attached hereto. 26 (c) Time, and prompt performance of the parties' respectiv 27 obligations hereunder, are of the essence of this lease. 28 (d) If Lessor and/or Lessee consist (s) of more than one i -17- i i I person, then the covenants, agreements, and obligations of the 2 respective parties shall be binding upon such parties, jointly 3 and severally. 4 28 . Option to Renew - Providing Lessee is not in default 5 under this lease, at its termination, it shall have an option to 6 renew said lease for an additional three year term. The rental 7 rate for the additional term shall be agreed upon by Lessor and 8 Lessee. If they cannot agree as to the rental rate, each shall 9 choose an appraiser, and those two appraisers shall choose a third 10 appraiser. Said three appraisers shall establish fair rental for 11 the extended term, and their decision shall be final. Any cost of 12 appraisal shall be borne equally by Lessor and Lessee. Extension 13 of the lease, however, shall be subject to a ninety (90) day 14 written notice from Lessee to Lessor, prior to the expiration of 15 the initial term, as to its intention to renew the lease. 16 IN WITNESS WHEREOF, the parties hereto have executed this 17 lease on the date and year first above written. 1$ "LESSOR" Robert Sedlak 21 ,l r 22 Nancy Sedlak., 23 "LESSEE" 24 CITY OF SAN BERNARD _ 0 25 ATTEST: 26f" 'rte Mayor 27 City Clerk Approved as to form: 28 0 . City Atto ey Victoria 9. LU IZ •►1"It 1 IL•3x 19= I LKd i 1 �OR�Oeli Q � } CU 'A rsi r tl 1 3 Ca do I`J r Ir � vn E-M _j IF L ly.. a+ �ZSm i Pi 91-�Y i _e X I W e5 FLoo� N ;Landlord-,' prior to occupancy: A. Will install 12'6" of 10' high' 2' x 4' stud- partition with ;j" drywall on each_ side with a passage door from large area into-private office. B. Will install 25- feet of 10 ft. high 2' x 4 stud partition with drywall, on each side with a passage door. This will make two large classrooms in the south wing of the building. C. Will install approximately 600 yards"of commercial. grade carpet in de- signated areas. D. Will make certain all lighting, plumbing, heating and air conditioning is in good. working order at time of occupancy. YM